Do not invest more money than you can afford to lose.
UK-regulated forex broker Atom8 has introduced new contracts for difference (CFDs) trading instruments, including on global indices, commodities, precious metals and treasury notes, online media Finance Magnates reported on Wednesday, citing a company statement sent out to clients.
The broker has substantially reduced spreads, the media said without providing specific details. It provides more depth to its liquidity, which allows it to deliver the best pricing available, lower spreads included.
The changes aim to provide the broker with competitive advantage to attract new clients and increase its market share.
Atom8 is an electronic communication network (ECN) broker and as such it provides its clients with direct access to other participants in the forex market, such as other individual traders, brokerages, hedge funds, and banks. Instead of acting as a mediator, an ECN broker is a facilitator and does not make profit when its clients lose a trade. Instead, it makes money from commissions, rather than relying on spreads.
“We believe the clients require institutional standards of service and we have made recent changes to our liquidity offering to provide new products, institutional level depth, and exceptional execution. […] For us, 2016 has been the beginning of a period of dynamic growth for the foreseeable future,“said David Andrews, co-founder and CEO of Atom8, as cited by Finance Magnates.
“Atom8 has worked with a group of select new partners to customize aggregated liquidity pools with minimum $1 million top of the book, while maintaining transparent, competitive spreads and pricing,” Andrews said. “To minimize the spread, liquidity providers from different regions were added to these liquidity pools to maintain competitive spreads during all time zones,” he added.
The broker offers two types of ECN accounts – one with small commission, and the other one with no commission fee. The first account type uses raw spreads that start from 0.25 pips, since it has no additional mark-up from the broker, while for the no-commission account spreads start from 0.6 pips, which is still on the low side. However, the minimum initial deposit the broker required is £5,000, which is much higher than the standard for retail trading and not suitable for all retail traders.
Other forex brokers that use the ECN model include Forex Capital Markets, or FXCM, Gain Capital, the two largest US forex brokers, FxPro, Exness, IC Marlets, FXChoice, Alpari, IronFX, and other well known names.
Atom8 is a brand name of London-based Atom8 Financial Services. The company is licensed by the UK Financial Conduct Authority (FCA). It offers forex trading and spread betting services, and CFDs to retail and institutional clients alike.
Source: Finance Magnates
