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Trading Platform
Fractional Pips
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- Starting in early September, you will see an additional digit in the price quotes.
- Instead of quoting full pips, we are offering prices in tenths of a pip.
- The digit representing a tenth of a pip appears to the right of the two large, bold-faced digits.
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The Benefit
Fractional pip pricing should reduce bid/ask spreads for each of the more
popular currency pairs.
Our aim is to provide you with very competitive transaction costs—tight
bid/ask spreads on every currency pair. Access To Better Spreads
To give you access to better spreads, we introduced No Dealing Desk
execution. As one of the largest Forex Dealer Members* with strong
liquidity relationships with the world's leading banks, we constantly press
them to supply the most favorable prices to us.
As a result, the banks have now
begun to provide streaming six-digit prices to FXCM; and consequently we
are delighted to provide more accurate, tighter prices to you.
As competition intensifies, fractional pip pricing
should reduce bid/ask spreads for each of the more popular currency pairs
even further—welcome news indeed in view of the market volatility we have
recently experienced. Before this change, the buy price was rounded up
to the nearest pip, and the sell price was rounded down. Now, with
the additional decimal place, you will see a more accurate—and usually
tighter—spread. For instance, you might see a buy price of 1.34557 instead
of 1.3456 and a sell price of 1.34532 instead of 1.3453. In this case, you would have a spread of 2.5 pips instead of 3.
As competition intensifies, fractional pip pricing should reduce bid/ask
spreads on all of the more popular currency pairs even further—welcome
news indeed in view of the market volatility we have experienced recently.
* See recent CFTC financial data: http://www.cftc.gov/marketreports/financialdataforfcms/
P/L in Pips Now Quoted Fractionally
On your Open and Closed Positions on the FX Trading Station, your P/L will now show tenths of a pip.
For more information, please call us at 1-888-503-6739.
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