Tight Forex Spreads

  • We know that one of the most important aspects of forex trading is spreads. That’s why at City Index we are dedicated to offering you the tightest spreads possible, 24 hours a day.  

    Our Forex Spreads

    We want to offer our FX traders the tightest possible FX spreads around the clock. We believe that the best way to offer tight FX spreads is by using a combination of fixed spreads for the most popular traded currency pairs during the busiest periods of the market between 8am and 6.30pm (UK time) and Capped Variable Spreads outside of these hours. 

    Our Forex Spreads 

    For minor and exotic FX pairs we offer Capped Variable Spreads 24 hours a day. 

    With a City Index trading account, you can therefore trade EUR/USD and GBP/USD forex pairs with a fixed spread of 1 pip and 1.5 pips respectively during the busiest trading periods. 

    Tight Fixed Spreads

    For our top traded currency pairs including EUR/USD, GBP/USD and JPY/USD we offer tight fixed spreads between 8am and 6.30pm (UK time) (known as our fixed spreads hours). This means that you can trade these markets with peace of mind that you are trading in the same tight spread regardless of how volatile the underlying market spreads are. For example, during the announcement of major news or economic data, underlying FX spreads may widen. Regardless of this, you will still enjoy the same tight fixed spread at City Index. 

    We offer fixed spreads of 1 pip for EUR/USD, 1 pip for USD/JPY and 1.5 pips for GBP/USD. Outside of our fixed spreads hours, our most popular markets operate as Capped Variable Spreads. 

    Capped Variable Spreads

    Outside of our fixed spreads hours and for the rest of our FX markets including minor and exotic pairs, we operate Capped Variable Spreads (CVS). With CVS, we place a ‘cap’ or ‘ceiling’ on the maximum amount our forex spreads can go to, so you have a distinct advantage. For example, outside of fixed spreads hours, our spread on GBP/USD is capped at 4 pips. This means that even if the underlying GBP/USD market spread is 5 pips, our spreads will remain capped or fixed at 4 pips until the underlying market spread retraces back below our capped 4-pip limit. At this point, our spreads will then begin to track the underlying market spread once again unless the capped upper limit is breached once more. 

    Capped Variable Spreads 

    Benefits of our FX spreads

    We believe that our FX spreads give City Index forex traders a distinct advantage over other retail traders. You can trade the most popular forex pairs with tight fixed spreads during the busiest trading hours of the market and benefit from Capped Variable Spreads during periods of typical low market liquidity.

    1) Tight Fixed Spreads  

    We offer some of the tightest fixed spreads in the market for our most popular forex pairs including 1 pip for EUR/USD and USD/JPY. This means that even when underlying market spreads widen, you can still trade at the same tight spread during our fixed spreads hours, giving you a competitive advantage over other retail forex traders. 

    2) Cheaper to Trade Around Key Economic Events

    Trading in and around events such as the Non-Farm Payrolls or GDP figures can trigger sharp swings in forex prices and cause wider underlying market spreads. Our tight spreads for major FX pairs during fixed spreads hours and Capped Variable Spreads for minor and exotic pairs enable you to trade these events much more efficiently and with cheaper spreads than the underlying market may otherwise dictate. 

    3) Ease of Mind

    Tight fixed spreads for our most popular FX pairs mean that our clients can trade with peace of mind, knowing that even in the most volatile market conditions, where spreads can widen excessively, they can continue to enjoy the same spreads. Equally, traders of minor or exotic FX pairs can trade with the knowledge that for these specific pairs, our forex spreads will be capped at specific levels, even during periods of low market liquidity.

    4) Price Improvement Technology

    Slippage is common in the forex markets, particularly when prices are moving quickly. One of the downsides of slippage is that if a price moves by the time your trade is placed into the market, your execution price could be slightly worse.  

    What is Slippage? The difference between the expected opening price of a trade and the price at which the trade actually executes is called slippage. Slippage, also known as market gapping, often occurs during periods of higher volatility, when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade. 

    Making the Most of Slippage: At City Index, our Price Improvement Technology makes it possible for us to give you a better price, where possible, so you can use slippage to your advantage whenever it occurs. Price Improvement Technology enables us to execute trades at better levels if prices move in your favour by the time your trade is placed. 

    For example, if the EUR/USD bid price is 1.3235 when the trade is executed and the price improves to 1.3236 (one pip improvement), the trade will be executed at the improved price of 1.3236 to give you another distinct advantage over other retail forex traders.

    What to know what trading platform to use?: The City Index Advantage Web online forex trading platform, Advantage Trader downloadable platform and trading apps for Android mobiles and tablets have been designed to give you the fighting edge over other forex traders. Find out more about our forex trading platforms

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