They say to save money is to gain money. This sounds topical for any trader or investor. As for Forex traders, tighter spreads allow them to save decent amounts of money, especially if they trade intensively (scalping etc.)
Tighter Spreads: Win-Win Solution
Client-oriented brokers start realizing potential advantages of tighter spreads for themselves and their clients. By tightening spreads, they create more favorable trading conditions for existing and potential clients. As a result, they increase the client base. More clients mean more trading lots while more trading lots mean more income for the broker. Therefore, the tight spread policy pays off. At the same time, traders have to spend less money on spreads. This is a win-win solution. Everybody is happy.
HY Markets is one of such wise broking companies. It has been in the industry for over three decades!
Janusz Leon Wiśniewski says that genius ideas are born out of simple necessities. HY Markets shares this point of view and has been implementing the idea since the very foundation. A representative of HY Markets told Market Leader that clients’ needs and desires inspire the company to come up with ideas that later turn into revolutionary innovative solutions.
A number of factors say that the company can really be trusted. Over 30 years of experience alone can confirm that. Moreover, the company is licensed by the Financial Services Authority (FSA), a major financial watchdog, and is regulated by the Markets in Financial Instruments Directive (MiFID).
The FSA Regulated page reads:
“Henyep Capital Markets (UK) Limited (‘HY CAPITAL MARKETS’) is authorised and regulated by the Financial Services’ Authority (FSA) under Company reference number 186171.”
Another factor speaking in favor of the company’s reliability is the fact that HY Markets is subject to the Financial Services Compensation Scheme (FSCS). It means that your money is secured. Even if the broker goes bankrupt, you will still be able to get your money back.
The Security of Funds page reads:
“All HY Markets customers benefit from the FSA's FSCS scheme. FSCS is the UK's compensation fund of last resort for customers of financial services firms authorised by the Financial Services Authority (FSA). This means that FSCS can pay compensation under the protected investment business scheme to consumers if an authorised financial services firm is unable, or likely to be unable, to pay claims against it and so is in "default."
Payments under the protected investment business scheme are limited to a maximum of £50,000.00 per customer. The Scheme is set up mainly to assist retail individuals, although smaller businesses are also covered….”
Not so long ago, the company’s management decided to make an unprecedented decision – to lower the spreads for all financial instruments, including all the currency pairs, gold, silver, oil, futures etc. Now, any trader will be charged with tighter fixed spreads irrespective of the chosen type of trading accounts (mini, standard or premium). For example, the spread for EURUSD is lowered down to 1.8 points (or pips). For gold and cure oil, it is 0.5 cents and 0.60 cents correspondingly.
For more details on spreads, please, visit the Product Specifications page of the company’s official website.
On HY Markets’ Spread Tightening
According to Eugene Olkhovsky, ’s leading expert in financial markets from Canada, spreads are some of the key factors that should be taken into account when choosing a Forex broker. For traders, spreads are unavoidable expenses. Obviously, the lower they are, the more money traders can save. Suppose you pay 2 pips per 1 lot. The costs may seem irrelevant. What if you are an intensive trader and have traded 1.000 or 10.000 lots or even more? Now think how much money you pay. Therefore, the size of the spread matters in the long run. Moreover, tighter spreads suggest higher liquidity.
Obviously, when a Forex broker offers tight spreads along with other benefits and is regulated by major financial authorities like the FSA, this is a perfect choice for any trader, whether he/she is a beginner or a professional trader.
