, the biggest US forex broker, is to offer ECN raw-spread accounts with fixed commissions to its Japanese clients.
Raw-spreads for major currency pairs may be as low as zero since no markup is applied. Many traders prefer very low spreads with the broker in that case making profits from a usually fixed commissions.
Only an Electronic Communication Network (ECN) broker may offer raw-spreads. Accordingly, FXCM will provide its customers access to interbank rates, huge liquidity and very fast execution via ECN.
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The commissions vary from ¥200 per standard lot for USDJPY pair to ¥300 for EURUSD, EURJPY, GBPJPY, AUDJPY, and NZDJPY to ¥500 for all other currency pairs (c.a. $2, $3, $5 respectively). These commissions are in the lower range of what brokers usually charge.
Raw-spreads accounts will automatically replace the FXCM Trading Station platform standard accounts in November. Until then Japanese clients may ask for a transition and it will be granted. At some future point raw-spread account for Metatrader 4 will be launched as well.
It is to note that until 1 November he minimal deposit required for a raw-spread account is ¥50 000 (c.a. $500). After this date the margin requirement will be ¥300 000 (c.a. $3000)
FXCM move follows the market wish in Japan and Asia in general. It is not by coincidence that raw-spread accounts are also offered by Vantage FX and Pepperstone – both Australian brokers targetting Asian markets.
The following map shows almost half of FXCM's retail volume in 2013 is made in Asia. Not a surprise then that FXCM is granting their Japanese clients base their wish.
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