FXCM released its average Bitcoin/USD
contract-for-difference (CFD) spread for
October this Thursday. Last month was the first
full month of Bitcoin trading for FXCM, with
the retail broker only launching BTC/USD CFDs
on the 1st of October.
In its statement, the company noted that its
spreads were tighter than most other major
retail brokers, including Plus500, IG Group and
CMC Markets.
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Those three companies all averaged spreads
hovering around 50 points in October, whereas
FXCM managed to average a 32 point spread
for the same BTC/USD CFD product.
Moreover, the company released its spread
data for all of October. Looking at it, one can
see that the company’s spreads progressively
tightened over the course of last month.
“As previously announced, we have continued
to work with our Liquidity Providers to lower
our Bitcoin CFD spreads to be some of the most
competitive in our space,” Brendan Callan, CEO
of FXCM Group noted. “We’ve been able to do
this over the course of the past few weeks and
we wanted to take the time to highlight them.”
Low vol + better liquidity = lower spreads
Tighter spreads are likely to have become more
commonplace in the cryptocurrency market
over the past few months.
Starting in the summer and running up until
this cold, autumnal Thursday, we have seen a
plateauing in Bitcoin volatility. No longer are
we in the global cryptocurrency craze that
pushed the price of Bitcoin up to $20,000 at the
start of this year.
For brokers, that means spreads can become
tighter as they don’t have to protect themselves
against massive price fluctuations.
Concurrent with the decline in volatility has
been an increase in the quality of liquidity
available to brokers.
Liquidity managers such as OneZero, Gold-i
and TradAir have not only been able to
connect brokers to better sources of liquidity,
they’ve also added tools , such as hedging
capabilities , to the solutions they are providing
to brokers.
That means brokers can not only be more
certain that they will have access to decent
sources of liquidity, but that they will also
have better means at their disposal to manage
it. For their clients that translates into tighter
spreads.
FXCM may be the first to release its spread
data as a marketing tool but don’t be surprised
if we see a trend of tightening spreads for
Bitcoin products as market volatility lowers
and technical expertise improves.
contract-for-difference (CFD) spread for
October this Thursday. Last month was the first
full month of Bitcoin trading for FXCM, with
the retail broker only launching BTC/USD CFDs
on the 1st of October.
In its statement, the company noted that its
spreads were tighter than most other major
retail brokers, including Plus500, IG Group and
CMC Markets.
Join the Leading Industry Event!
Those three companies all averaged spreads
hovering around 50 points in October, whereas
FXCM managed to average a 32 point spread
for the same BTC/USD CFD product.
Moreover, the company released its spread
data for all of October. Looking at it, one can
see that the company’s spreads progressively
tightened over the course of last month.
“As previously announced, we have continued
to work with our Liquidity Providers to lower
our Bitcoin CFD spreads to be some of the most
competitive in our space,” Brendan Callan, CEO
of FXCM Group noted. “We’ve been able to do
this over the course of the past few weeks and
we wanted to take the time to highlight them.”
Low vol + better liquidity = lower spreads
Tighter spreads are likely to have become more
commonplace in the cryptocurrency market
over the past few months.
Starting in the summer and running up until
this cold, autumnal Thursday, we have seen a
plateauing in Bitcoin volatility. No longer are
we in the global cryptocurrency craze that
pushed the price of Bitcoin up to $20,000 at the
start of this year.
For brokers, that means spreads can become
tighter as they don’t have to protect themselves
against massive price fluctuations.
Concurrent with the decline in volatility has
been an increase in the quality of liquidity
available to brokers.
Liquidity managers such as OneZero, Gold-i
and TradAir have not only been able to
connect brokers to better sources of liquidity,
they’ve also added tools , such as hedging
capabilities , to the solutions they are providing
to brokers.
That means brokers can not only be more
certain that they will have access to decent
sources of liquidity, but that they will also
have better means at their disposal to manage
it. For their clients that translates into tighter
spreads.
FXCM may be the first to release its spread
data as a marketing tool but don’t be surprised
if we see a trend of tightening spreads for
Bitcoin products as market volatility lowers
and technical expertise improves.
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