Stock Indices
CFDs
Why Trade Global Indices through FXCM?
- Competitive Pricing: Competitive spreads enable you to gain exposure to global markets. To view full list of spreads, please click here.
- No Commission: Trade commission free on all index products at FXCM unlike other markets. FXCM is compensated through a markup which is added to the bid/ask spread it receives from its liquidity providers, except where otherwise noted.
- Generous Leverage: Generous leverage on all products that are clearly detailed on the FXCM Trade Station II. Without proper risk management, currency trading has a high degree of leverage that can lead to large losses as well as gains.
- Benefit from Dividends: Hold a long position overnight and receive dividend payments
- Hedging Capability: You can go long or short in a single index trade.
- No Re-Quotes: Re-quotes occur when a trader makes an order at a specific price, but the order is rejected by a trading desk, and the trader is given a new price to accept or reject. Re-quotes can slow down your trading. FXCM cannot re-quote forex orders because those orders operate on straight through processing. FXCM also maintains a no re-quote policy for indices, metals, and oil, although those orders do not operate on straight through processing. Orders are executed at the best price available within the trader's parameters, subject to market liquidity at the time.
Trading Indices on Lot Based System
FXCM utilises a "lot-based" trading system. This simply means that all FXCM products are aggregated into standardised trade sizes. These sizes generally replicate the underlying reference instrument (the futures or cash instrument) or are a fraction of that figure. This simplifies trading by allowing clients to trade in lot increments, and also provides a price for each lot size rather than averaging open and close prices when multiple positions are taken in the same instrument.
The lot size for all indices is in fact one contract (e.g., 1 US 30, 1 UK 100, etc). However, in order to effectively reflect the movement and profit/loss implications of their underlying futures, FXCM has established a minimum/incremental trade size as detailed on page 3.
For instance, if you wish to trade the US 30 you must buy/sell a minimum of five contracts. If you wish to trade a larger size than that, you would have to trade in multiples of 5, for example 10, 15, 20, and so on. You can apply this methodology to all indices minimum/incremental trade sizes. (Full details in product guide page 3.)
Trading Indices on Margin
It is FXCM's policy to credit accounts to a zero balance when debit balances occur as a result of trading.
Financing Explained
All open positions at 5 p.m. (New York time) are rolled forward to the next trading day. If you hold a long (buy) position then you will be charged financing (LIBOR +3%) to roll the position, and if you are short you may receive financing (LIBOR -3%). For further details, please review our product guide here.
Please note that the Roll S and Roll B displayed in the "Dealing Rates" window are the costs per contract. Since such is the case, the client will pay or earn whatever the charge is, multiplied by the size of the position the client is holding.
Example:
Client is long 10 US 30. Current Roll B is -$0.88 (as displayed in the "Dealing Rates" window). Assuming the client is a holder of this position through 5 p.m. (New York time), they will be assessed a charge of $8.80 for that particular trading day.