The Spread in the Forex markets is the difference between the
various buying and selling prices on offer for any particular
currency pair. Before any trade becomes profitable, forex traders must
first make up the spread. Lower spreads means trades move into the
positive column earlier. Many traditional Market Maker forex brokers
proudly advertise their low fixed forex spreads as being an advantage to
The truth is fixed spreads do not offer any significant advantage
and are subject to forex broker tactics such as widening - a tactic
whereby forex brokers with dealing desks manipulate the spreads on
offer to their clients when client trades move against the broker.
FXCC's ECN/STP trading model does not have a fixed spread. This
means the spread on offer will accurately reflect the true buying
and selling rates for a particular currency pair and ensures
investors are trading forex under real forex market conditions of supply and
A fixed spread may seem like a good thing when market conditions
are optimal and there is heavy supply and demand. The fact is, a
fixed spread remains in place even when market conditions are not
the best and regardless of what the true buying and selling rates
for any given currency pair are.
Our ECN/STP model provides our clients with direct access to the
other Forex market participants (retail and institutional). We do
not compete with our clients or even trade against them. This grants
our clients more advantages over dealing desk market makers:
- Very tight spreads
- Better forex rates
- No conflict of interest between FXCC and its clients
- No limits on Scalping
- No “stop-loss hunting”
FXCC strives to offer
its clients the most competitive rates and spreads in the market.
This is the reason we have invested heavily in establishing strong
relationships with reputable and reliable liquidity
providers. The advantage our clients have is that they enter the
forex arena on the same terms as majors.
Prices are streamed from various liquidity providers to FXCC’s
Aggregation Engine which then selects the best BID and ASK prices
from the streamed prices and posts the selected best BID/ASK prices
to our clients, as illustrated in the flow diagram below.
Prices are collected from our liquidity providers and the best BID/ASK prices are sorted by our
aggregation engine and presented to our clients. No intervention or manipulation.
Forex trading the way you asked for.