Indices & Commodities
FXCM offers over a dozen stock indices allowing traders to trade their opinion of the US, European, Asian, and Australian markets. Up-to-date margin requirements are displayed in the "Simplified Dealing Rates" window of the Trading Platform by instrument.
Why trade global indices through FXCM?
- No Re-Quotes:1 on all index products, giving you fast, efficient trade execution without expensive re-quotes.
- Competitive Pricing: Competitive spreads enable you to gain exposure to global markets.
- No Commission:2 Trade commission free on all index products at FXCM unlike other markets.
- Generous Leverage:3 Generous leverage on all products that are clearly detailed on the FXCM Trade Station.
- 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.
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 (i.e., 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.
Trading Indices on Margin
No deficit balances on your account. It is FXCM's policy to credit accounts to a zero balance when deficit balances occur as a result of trading.
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 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.
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.
1 No Re-Quote Policy: FXCM maintains a no re-quote policy. Circumstances exist based on order size, trading pattern, and market conditions where individuals may not receive execution at the requested rate. Orders are executed at the next available rate within the trader's parameters, subject to market conditions. The difference between the requested rate and final execution price may be more or less advantageous based on the market activity and available liquidity.
2 Compensation: When executing customers trades, FXCM can be compensated in several ways, which include, but are not limited to: charging fixed lot-based commissions at the open and close of a trade, adding a markup to the spreads it receives from its liquidity providers for certain account types, and adding a markup to rollover. Under the Dealing Desk execution model, FXCM may act as a dealer and may receive additional compensation from trading.
3 Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.