|By Business Wire||
|March 2, 2014 05:29 PM EST||
FXCM Inc. (NYSE:FXCM), a leading provider of foreign exchange trading and related services, has enhanced its Contracts for Difference (“CFDs”) offering by reducing the tradable size to 1/10th its current value. FXCM clients will now be able to trade CFDs in smaller amounts, allowing more available margin, lower transaction costs and greater flexibility in their trading of stock indices and commodities.
“FXCM will be working this year to make our CFD offering more unique and competitive and this is one of the first steps,” said Drew Niv, CEO of FXCM. “As one of the first brokers to offer micro CFDs, FXCM is bringing greater trading opportunities at a lower cost to traders.”
How Does It Work?
To illustrate how FXCM’s Micro CFDs offering will benefit clients, consider the following example.
Open a AUS200 position before:
The minimum trade size was 1, equating to a $1 AUD profit/loss for each price tick. FXCM required a $70 margin deposit for each lot traded on an AUD-denominated account. (Margin rates vary for accounts in other currencies.)
Open a AU200 position after:
Now, the minimum trade size remains 1. However, because the pip cost is reduced by 1/10th, the profit/loss for each price tick is 0.10 AUD. The required margin is $7 AUD.
With FXCM, traders have access to over a dozen stock indices allowing to trade the US, European, Asian, and Australian markets. Furthermore, FXCM offers no re-quotes1 on all index products - giving traders fast and efficient trade execution, competitive pricing, no commissions2, hedging capabilities, and a comprehensive suite of educational services.
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About FXCM Inc.
FXCM Inc. (NYSE:FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide.
Founded in 1999 and headquartered in New York, NY, FXCM is listed on NYSE (NYSE:FXCM) with an office in Sydney as part of its network of 12 offices around the world.
At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM's U.K. subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
Remember, trading foreign exchange and CFDs may result in a loss of some or all of your deposited funds and, therefore, may not be suitable for all investors, so please ensure that you fully understand the risks involved. Read full disclaimer. AFSL# 309763
1 No Re-Quote Policy: FXCM maintains a no re-quote policy. Circumstances exist based on order size, trading pattern, and market conditions where individuals may not receive execution at the requested rate. Orders are executed at the next available rate within the trader's parameters, subject to market conditions. The difference between the requested rate and final execution price may be more or less advantageous based on the market activity and available liquidity.
2 Compensation: When executing customers trades, FXCM can be compensated in several ways, which include, but are not limited to: adding a mark-up to the spreads it receives from its liquidity providers, receiving compensation for order flow, and charging commission to accounts that trade with FXCM's lowest spreads which are available to qualifying accounts. Under the Dealing Desk execution model, FXCM may act as a dealer and may receive additional compensation from trading.
Important Information: Micro Contracts for Difference (“CFDs”) is not available for FXCM Japan Securities Co., Ltd. (“FXCMJ”) clients.