We will soon be emailing all our clients this news, but you are one of the first to receive these emails.
FXCM will be enhancing our NDD model to show you the actual raw spreads we receive from our liquidity providers without any markups. Instead of markups, you will pay the transparent low commissions detailed in the emails we sent you. So yes, this new model is similar to Active Trader, but now with even lower transaction costs.
For example, suppose you trade 1k (AKA 1 micro lot) EUR/USD when the spread is 0.2 pips. You would pay EUR 1.5 cents (USD 2 cents) in spread cost plus EUR 6 cents in commission round turn (EUR 3 cents when opening the trade, and EUR 3 cents when closing it). That’s a total round turn transaction cost of EUR 7.5 cents or about 1 pip.
FXCM’s new pricing model will allow traders to easily scalp the market, while providing increased execution benefits to stop and limit orders.