FXCM Crypto Spreads Up in May as Prices Continue Uptrend

FXCM Group today reported its execution quality metrics for May 2019, which showed higher rates across its average ‎spreads for cryptocurrency and certain FX instruments.‎

For the cryptocurrency pairs, the ‎company averaged 28.2 pips on BTC/USD, up from only 25 pips in the first quarter. However, May’s spread was significantly lower when weighed against the 44 pips the company charged when it first reported spreads metrics for its bitcoin instrument nearly a year ago.

Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term printed fresh highs in May, extending a rally that has seen major coins more than double in value since the start of the year. Rumors that global top brokers and exchange will soon start crypto trading for institutional customers was also having a positive impact on price.

For the Ethereum and Litecoin instruments, FXCM charged on average 1.9 and 0.57 pips, respectively, also a touch higher from the months prior.

The FX broker introduced the new asset type earlier last year when it began testing the service with its already installed Bitcoin offering.

FXCM also published its price improvements/slippage statics for May 2019, which ‎showed the following highlights‏.‏

• 67.4% of orders executed at price
• 21.9% of orders executed with positive slippage
• 10.7% of orders executed with negative slippage

The company also reported on its execution speed, which is measured from the time a customer’s order is received to the time of filling. The average order execution time was 24 milliseconds in May, compared to 21 in March. Although an important factor in determining where orders are routed, it is only one factor. Some brokers may provide a good speed of execution but fail to provide price improvement or Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

According to figures stated in the report, the average spreads on the ‎EUR/USD, GBP/USD and XAU/USD pairs were 0.1, 0.6, and 34.5 pips respectively.

The following table shows the exact figures in March:

Additionally, the online brokerage disclosed its Effective Spread statics, ‎which displays its quoted spread for its top FX pairs, and compares ‎the figures with actual spreads, at which trades were already filled, with the ‎difference being displayed in a table key.‎