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FXCM Plans to Launch Single Share CFDs in Europe

It was only yesterday that FXCM, the leading US-based Forex broker reported its results for 2013 – but often the most interesting information is not contained in the numbers themselves but in the comments during the earnings call following the metrics release. And our curiosity was satisfied this time too, with FXCM's chief executive Drew Niv pledging growth in the European business of the broker and the launch of new contracts for difference, including single share CFDs.  
 
Those who have some knowledge of CFD trading are perhaps aware that it's most often with packages. This makes this type of market activity expensive and not affordable to many traders. FXCM will now tackle the issue with single share CFDs – you can actually buy a contract for Google or Apple stock – the activity gets way cheaper and is set to attract the interest of more clients.
 
Drew Niv noted that the addition of single share CFDs has been the most frequent demand from FXCM clients in Europe. For that matter, let's also note that FXCM aims to become number 2 broker in Europe within two years, compared with the current number 4 position. 
 
Let's elaborate a bit further about the rationale for enhancing the CFD business in Europe. Niv commented that the two of FXCM's biggest rivals in Europe – IG Markets and Saxo Bank, have an edge in terms of average account balance with this mainly due to the fact that they offer trading CFDs and Forex in one account and that the list of CFD instruments is way more diversified and long. That is why FXCM will seek to fill this gap with an agency offering of CFDs on indices and commodities, as well as the single stock CFDs we've just mentioned.
 
Moreover, growing a CFD business is not that complicated, at least that's what FXCM's chief executive said. No substantial restructuring is necessary, nor are any mergers and acquisitions. One more perk is the European regulation and the Basel 3 framework in particular: Niv mentioned that it has made CFD businesses more expensive and would probably put off many current and potential competitors from the market. These guys have given a lot of thought to the matter.
 
The announcement of the pending launch of one share CFDs came less than a week after the broker's subsidiary in Australia enriched its trading instruments lineup with Micro CFDs. FXCM is indeed planning some major moves in the CFD direction.
 

About FXCM Inc.

 
FXCM Inc. (NYSE:FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide. At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM's U.K. subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
TAGS: fxcm  fxcm forex broker  fxcm europe  contracts for difference  cfd  cft trading  forex trading  online trading  singe share cfd  one stock cfd  market share  european market  europe forex 

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