Fxcm lowers Spreads

[dageshi]

Receiived an e-mail during the night from fxcm saying they are lowering the spread on the following.

Currencies With 3 Pip Spreads
EUR/USD
EUR/GBP

Currencies With 4 Pip Spreads

USD/JPY AUD/USD
EUR/JPY NZD/USD

FXCM will be offering lower spreads for the following pairs
GBP/JPY
CHF/JPY


While that all looks fine and all, I just wonder, what happened to the GBP/USD ? If I remember correctly its the third largest trading pair in the market, why no change in its spread?

Or have they changed that recently and I'vev just missed it?

 

[Hayek]

What I don't understand is how they keep getting away with such huge spreads in EUR/GBP. This doesnt really move that much and is probably the most liquid pair in the interbank market. Trades in 1/2 pip increments and spread is usually 1/2 pip or 1 pip depending on what's going on. When I see firms making 5 pips on it I just dont understand how anyone could make any dough off that.

GJ

Not everybody knows that fact, GJ. I remember I got the information that EUR/GBP had more liquidity than GBP/USD in one report of BIS, and luckily testified it when once I watched the demonstration flash of UBS's fx platform. I am sure even now still somebody doesn't know that, that is why he accepts the spread. FXCM can earn money from traders' ignorance, which is legally.

 

[JP1966]

I think the reason that they (most brokers rather than fxcm in particular) get away with such a widespread is because it is a recipricoal ands so it does not look so wide. Think about it in old £/DM terms - 5 pips is equal to about 22 £/DM points when the market was 2-3 pips!

As for FXCM -they they have to address their market practice and ethical issues rather than lower their spreads to have any chance of developing long term relationships. To be fair I don't think that is their business model. Want as many new accounts through the door as possible and then watch 95% of them blow their money. Thye don't want accounts of people who will be around for a while and hence make money.

 

[henry766]

i agree with gamma , doesn't seem all that generous , i think i'm right in saying ideal pro on interactive is 1pip for euro at mo , ( i don't use it as i trade futures with them).

 

[moe]

I think the reason that they (most brokers rather than fxcm in particular) get away with such a widespread is because it is a recipricoal ands so it does not look so wide. Think about it in old £/DM terms - 5 pips is equal to about 22 £/DM points when the market was 2-3 pips!

As for FXCM -they they have to address their market practice and ethical issues rather than lower their spreads to have any chance of developing long term relationships. To be fair I don't think that is their business model. Want as many new accounts through the door as possible and then watch 95% of them blow their money. Thye don't want accounts of people who will be around for a while and hence make money.

why would anybody trade with fxcm. they will rip you off ever chance they get. there prices are not in line with the interbank market. they make there own market.