Forex Platforms

Transparent and Fair Forex Pricing

Transparent and fair forex pricing

Foreign exchange has become one of the fastest growing investment asset classes for the retail investor, and over the past 10 years or so, there has been a proliferation of brokers and providers coming to market to meet the trading demands of this ever growing community.

One of the key considerations for anyone wanting to trade forex is the pricing offered by the broker. Retail forex traders should look to use a forex broker that not only provides world-class service, support and research, but one that also provides reliable, fair and transparent bid/ask spreads.  Traders should also be careful to look behind the advertised price, and clearly establish the actual or “typical” price, which is often not clear and different from the one advertised.

Spreads in forex are the difference between the bid and offer prices.  For example, if a EURUSD quote is 1.4064 to 1.4066, the spread is 2 pips.  So, as an investor, you can sell EURUSD at 1.4064 and buy EURUSD at 1.4066.

Spreads are affected by the amount of traders in the market at that time, also know as liquidity.  When there are more traders, the spreads should be narrower. Pricing fluctuates according to the time of day and liquidity in the market.  The tightest spreads are typically seen during London trading hours, during which Asia or New York traders are also active in the market.

The dbFX forex trading platform provides its clients with competitive currency spreads, as well as a number of other benefits.  All prices provided by dbFX are fully transparent, neutral and, as they are streamed from Deutsche Bank, one of the world’s largest liquidity providers*, prices are streamed directly from the heart of the foreign exchange market.  These prices will naturally fluctuate according to movements in the levels of volatility and liquidity.  Full anonymity in the market is also provided to all clients, with fully automated risk management.

For more information on forex trading with dbFX, please visit www.dbfx.com.

* Euromoney FX Poll 2005 – 2009.