New York—August 12, 2010— FXCM recently enhanced its No Dealing Desk forex execution model by adding Price Improvements. As of July 12, 2010, if a better price becomes available before your limit order executes, FXCM’s No Dealing Desk execution engine will automatically give you the best available price.

The Old

A common inconvenience to most No Dealing Desk execution models is that limit and limit entry orders always fill at the limit price—even if the market price gapped or spiked favorably through it. At the same time, stop orders can fill at a worse price.

The New

Now with FXCM Price Improvements, your limit and limit entry orders can receive positive slippage. That means you can potentially make more money if the market gaps or spikes favorably through your limit price. This is especially true in situations where the market is moving fast like during weekend gaps or around news events.

How Does It Work?

To illustrate how a Price Improvement can mean more money for you, consider the following example.

Friday: You decide to hold a 10K EUR/USD buy position through the weekend, in light of a G20 meeting on Saturday. You create a limit order on the trade at 1.3260 anticipating a possible gap when trading opens.

Saturday: The G20 meeting is very positive for the Euro-zone, which could help your trade.

Sunday: As trading opens, the EUR/USD price gaps through your limit price of 1.3260, from Friday’s close of 1.3242 to 1.3275.

The Old: Previously, your limit would have filled at your requested limit price of 1.3260.

The New: Now, with FXCM Price Improvements, since the market gapped through your limit price, your trade could close at 1.3275, providing you with a Price Improvement of up to 15 pips.

“Exchange traded instruments already benefit from positive slippage.” said Drew Niv, CEO of FXCM. “With FXCM Price Improvements, FXCM is bringing the forex industry more in line with these common practices, making trading even more fair for our clients.”

To see Price Improvements in action, FXCM recommends using limit orders to close trades. Easily see when you get a Price Improvement by comparing the limit price that you requested with the limit price where you were filled.