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FXCM New Pricing Model to Reduce Trading Costs

Retail brokerage firm FXCM has introduced a new pricing model for its US subsidiary, which displays “raw” FX spreads and commission costs separately in what it says is a bid to improve transparency for customers.

“As part of FXCM’s commitment to its clients, we are taking pricing and broker service transparency to a new level and bringing greater opportunities to clients,” says Drew Niv, CEO of FXCM.

The FXCM platforms now display raw spreads from 15 liquidity providers, streaming prices into the FXCM no dealing desk execution system. As spreads are getting tighter, the cost structure of the trading process has become more transparent, which has resulted in the company on average reducing trading costs on the top 14 currency pairs by 50%, claims Niv.

The US is the fifth region to begin migrating new and existing clients to the more transparent pricing model. The US entity has also raised the open account minimum from $50 to $2,000. Other targeted jurisdictions began offering a similar commission structure and raised their account minimums as well, FXCM says.

The move follows FXCM’s promise to offer narrower spreads to its clients, which it stated in its investor presentation for August 2014. Earlier this month it launched raw spread accounts for Japanese clients.

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