FXCM broker has announced that it has decreased spreads on major currency pairs and indices by as much as 54%.
Forex Capital Markets Group (FXCM), a broker providing online Forex and CFD trading services, announced reduced spreads for major currency pairs and indices on its platform. FXCM explains that the company intends to implement similar changes to MT4 accounts in the future. MT4 is a third-party platform and, as such, there are additional technical challenges when it comes to making price changes.
In addition, new spreads will be available to clients under Forex Capital Markets Limited, FXCM EU Limited and FXCM Australia Pty Limited. Brendan Callan, Chief Executive Officer (CEO) of FXCM, said that this move is geared towards making broker prices more competitive than ever. This is because in recent months there have been major changes in global currencies, such as the decline of the Euro against the dollar which has created opportunities for retail investors in the FX market.
Callan also added that even though FXCM's spreads change, the Australian company remains committed to offering quality execution and the best experience for its clients.
The Australian currency pair and the US dollar (AUD/USD) were the biggest, dropping to 0.85, or 54%. However, FXCM clarified that the reduction only applies to TS2 accounts.
According to data shared by FXCM, the EUR/USD pair got the second largest spread decline. The pair adjusted to 0.78, different from the old price of -0.6. EUR/GBP was also down 36% to 1.39.
According to FXCM, the decline in price spreads goes hand in hand with saying "client first, trader driven". Furthermore, FXCM emphasizes that reducing spreads is beneficial to provide higher quality execution.