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24-Hour Trading |
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Unlimited Commission Free Trades* |
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Instantaneous Execution of Market Orders† |
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Short Sell without an Uptick |
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24-Hour Trading
Unlike stocks, the currency market is a seamless 24-hour market. At 5:15 p.m. Sunday, New York time, trading begins as markets open in Sydney and Singapore. At 7 p.m. the Tokyo market opens, followed by London at 2 a.m., and finally New York at 8 a.m. In addition to giving FX traders the flexibility of determining their trading day, traders can react immediately to news released around-the world. Most of the news relating to stocks is released when the market is closed. When this happens the market often "gaps" up or down resulting in a missed opportunity for traders who were on the right side of the market.
Zero Commissions & Unlimited Trades
In the currency market, you pay no commissions and no exchange fees because you deal directly with the market maker in a purely electronic online exchange, eliminating both ticket costs and middleman brokerage fees. There is still a cost to initiating the trade, but that cost is reflected in the bid/ask spread that is also present in all markets including futures or stocks trading. Combined with the tight, consistent, and fully transparent spread, currency trading costs are lower than any other market.
Active stock traders often see substantial portions of the gross profits go to brokers in the form of commissions, and the exchanges in the form of exchange and data fees. While equity brokers may advertise enticing commissions, the spread between the bid and ask is not fixed and may vary with market conditions, particularly with smaller less liquid stocks. This spread can be 3 to 8 cents or more, depending on the time of day, and results in an added hidden transaction cost much greater than the stated discount commission rate.
With FXCM you are dealing directly with a market maker, there are no commissions,* the only cost to you is the spread, which is fixed and transparent.**
Execution Quality and Speed
The stocks market does not offer instant execution or price certainty. Even with electronic trading and limited guarantees of execution speed, the price for fills on market orders is far from certain. In the stocks market, the prices quoted by brokers often represent the LAST trade, not necessarily the price for which the order will be filled. With FXCM, all orders in the dealing rates window are actual prices where traders can buy/sell the currency pair. You experience rapid execution and price certainty!†
Short-Selling without an Uptick
Unlike the stocks market, there is no restriction on short selling in the currency market. Trading opportunities exist in the currency market regardless of whether a trader is long or short, or which way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. Hence, a trader has an equal access to trade in a rising or falling market.
*FXCM is compensated for its services through the spread between the bid/ask prices.
**FXCM maintains fixed spreads during normal market conditions.
†Under normal market conditions.
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