FXCM Publishes Average Spreads Data on Majors for 2015
- The brokerage has published a statistical bulletin which sheds light on the spreads that the firm offers to retail traders
FXCM Inc has published a new document, revealing what have been the trends regarding one of the key metrics which foreign exchange traders look at when choosing their intermediary. The average spreads between the bid and ask prices throughout 2015 which FXCM offers to its clients in major currency pairs have been analyzed and presented to the public.
The stats which the brokerage published are focused on 4 major currency pairs, which are probably the most traded in the industry - the EUR/USD, USD/JPY, GBP/USD and AUD/USD. The study encompasses average spreads throughout peak and non-peak market hours, since Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term conditions vary between different time zones.
The company has gathered data, which only includes data gathered from its standard account clients who have deposited more than $2,000 and are classified under the no-dealing desk Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term platform.
For the purposes of the study, FXCM has defined the hours between 1am EST and 1pm EST as peak trading hours while those between 1pm EST and 1am EST have been marked as non-peak. The classification is largely accurate as the most liquid hours for the currency markets are usually during the extended London trading session.
Looking at the four major currency pairs in the study, the average spread was close to 0.3 pips on the EUR/USD, USD/JPY and the AUD/USD. Trading the GBP/USD was a touch more expensive at 0.5 pips during peak hours. During non-peak hours the spreads are looking higher - from 0.5 on the USD/JPY to a full pip on the GBP/USD.
Looking at these numbers might provide a new perspective for traders looking for the lowest possible costs. When we are looking at a commission based model against a spread based model where the full cost of the trade is included within the spread, some market making offerings might look more attractive at first sight.
FXCM has also provided a statistic for the percentage of time when spreads on the above-mentioned pairs is below 0.1 points - for the EUR/USD this is the case during 8.32 per cent of the time, for the USD/JPY the figure stands at 10.39 per cent, while for the AUD/USD with 5.11 per cent. Rounding up the statistics is the GBP/USD its at 2.75 per cent of the time.
FXCM Inc has published a new document, revealing what have been the trends regarding one of the key metrics which foreign exchange traders look at when choosing their intermediary. The average spreads between the bid and ask prices throughout 2015 which FXCM offers to its clients in major currency pairs have been analyzed and presented to the public.
The stats which the brokerage published are focused on 4 major currency pairs, which are probably the most traded in the industry - the EUR/USD, USD/JPY, GBP/USD and AUD/USD. The study encompasses average spreads throughout peak and non-peak market hours, since Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term conditions vary between different time zones.
The company has gathered data, which only includes data gathered from its standard account clients who have deposited more than $2,000 and are classified under the no-dealing desk Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term platform.
For the purposes of the study, FXCM has defined the hours between 1am EST and 1pm EST as peak trading hours while those between 1pm EST and 1am EST have been marked as non-peak. The classification is largely accurate as the most liquid hours for the currency markets are usually during the extended London trading session.
Looking at the four major currency pairs in the study, the average spread was close to 0.3 pips on the EUR/USD, USD/JPY and the AUD/USD. Trading the GBP/USD was a touch more expensive at 0.5 pips during peak hours. During non-peak hours the spreads are looking higher - from 0.5 on the USD/JPY to a full pip on the GBP/USD.
Looking at these numbers might provide a new perspective for traders looking for the lowest possible costs. When we are looking at a commission based model against a spread based model where the full cost of the trade is included within the spread, some market making offerings might look more attractive at first sight.
FXCM has also provided a statistic for the percentage of time when spreads on the above-mentioned pairs is below 0.1 points - for the EUR/USD this is the case during 8.32 per cent of the time, for the USD/JPY the figure stands at 10.39 per cent, while for the AUD/USD with 5.11 per cent. Rounding up the statistics is the GBP/USD its at 2.75 per cent of the time.