I’m not sure if this is a global FXCM change or specific to FXCM Australia, but FXCM AU have announced via email that they are rolling out pricing changes tomorrow! If you have not received the email and it is applicable to you, here is the summary from the email.
FXCM is taking the next steps to evolve our famous No Dealing Desk forex execution. We’re introducing an exciting NEW forex-pricing model with raw spreads1 and low commissions that may reduce trading costs for our most popular currency pairs when compared with previous typical spreads. FXCM will now provide raw spreads, which means no markups1 on the prices from our liquidity providers. FXCM is now primarily compensated by transparent low commissions per lot.
To ensure you have sufficient time to manage positions and learn about the new pricing model, the accounts listed above are scheduled to upgrade automatically to the new pricing model under FXCM’s No Dealing Desk Offering after trading closes Friday, 24 October 2014.2
If you would like more information or the details, please visit their forex pricing page here.
I, for one, am excited about the changes. According to my calculation, the overall transaction costs should reduce – however – I previously had the commission incorporated into the spread. Now, the commission will be separate from the spread which can have an impact on my strategies, such as the spread checker etc. I already confirmed with my account manager that the change will not impact the historical prices used in back-testing, therefore we basically have no way of assessing the impact of this change!
So, here’s to a new week full of surprises, and hopefully more money! Good luck everyone.