MTrading Provides an Enhanced Offering to Traders

May 02, 2017 17:37

Dear Trader,

We're happy to announce that starting from trading session opening on Monday, 8 May 2017, our offering will be greatly improved through introduction of new trading instruments, new margining and execution models as well as enhanced trading conditions on a number of existing products.

Please find full information about the forthcoming changes below.

1. Changes on the M.Standard account

1.1. M.Standard rebranding to M.Premium

M.Standard account will get a new name — M.Premium — to reflect all improvements and highlight an enhanced value proposition of our new offering.

1.2. Replacement of Instant Execution with Market Execution

It's been widely acknowledged in the trading community that Instant Execution, with its declarative benefit of seeing the prices in the platform as 'executable', is a very controversial execution model that is specific to the MetaTrader universe and has no real implementation elsewhere.

In fact, this means that any 'executable' price you may click in the platform under the Instant Execution terms is anyway validated with our liquidity providers, which is frequently resulting in re-quotes caused by network delays. Re-quotes can be extremely disturbing during periods of high volatility and sometimes just do not allow to open or close a position in due time.

In response to feedback of traders and research of the execution quality, we came to a clear conclusion that Instant Execution is subject for replacement with Market Execution, which is in fact the most widely accepted pricing model across all platforms, venues and markets.

Market Execution means that all prices you see in the platform are indicative, and that the execution price is not the one you pick from the trading terminal, but the one which is available at the time your request hits the best bid or offer on the server.

Under the terms of Market Execution your buy/sell requests can be from time to time executed with slippage, which may result in a price improvement or getting a worse price with an equal probability.

Stop orders and Stop Losses can be sometimes executed with negative slippage, while limit orders and Take Profits can be executed with positive slippage.

At the same time, under the terms Market Execution, you will:

  • No longer receive any re-quotes.
  • No longer be limited by Limit/Stop levels, so you will be able to put a Stop Loss, Take Profit or a pending order as close to the current price as you want.
  • Always get filled at the best available price.

We kindly hope that new execution model will greatly improve the overall quality of our services and bring you a new level of comfort in trading.

1.3. Increased pricing precision

Starting from the above date all currency pairs will be priced with an additional number after the decimal point, which will result in reduction of typical spreads during main trading hours.

For example, the spread on EURUSD is currently rounded to 2.0 points and cannot have a fractional value such as 1.2, but after the change the spread may naturally go lower, reducing your trading costs.

For the same purpose, additional numbers after the decimal point will be added to cash indices and commodities.

1.4. Reduced spreads

Typical spreads on all major instruments, including currency pairs, cash indices and spot metals will be greatly improved, please see examples below:

Instrument

New typical spread, pips

Old typical spread, pips

Improvement

EURUSD

1.2

2.0

-40%

Germany 30

0.8

2.0

-60%

GOLD

22.0

50.0

-56%

1.5. New margining model and increased leverage on commodities and indices

Provided leverage will no longer depend on account's balance and will be determined by position's notional value in account's currency, delivering the following benefits:

  • More confidence in trading — the leverage will no longer decrease all of a sudden when your balance increases; under the new terms, you will be fully able to control the leverage applied to your position as long as you control it's size.
  • More effective use of your funds for trading without decreases of potential exposure along with increases of your balance. Contrary to current margining, the new terms always provide you with a higher potential exposure as long as your funds increase.
  • More freedom in trading due to independent margining of different instrument types.
  • Enhanced protection against negative balances due to a leverage of 1:50 that will be applied to positions opened during last trading hours on Fridays ('pre-close margining') in order to minimise the impact of the weekend price gaps.
  • Increased accessibility of the popular indices and commodities for clients with smaller deposits due to a leverage of 1:500, which will be available for CFDs on gold, silver, WTI, Brent, Germany 30, UK 100, US 30, US 500, US NASDAQ 100 and Australia 200; additionally, a maximum leverage of 1:200 will be available for the CFDs on Hong Kong 50, Japan 225 and Euro STOXX 50.
  • More trading opportunities with one of the major currency pairs - USDCHF - and other currency pairs with the Swiss franc, which will be made available for trading on general margining terms and thus will get a leverage up to 1:1000.

Please find all details regarding the new margining as well as calculation examples in a PDF file - Floating Leverage Terms, Trading Examples and QA.

Please note that new margin requirements will be applied to all new and existing positions starting from the session opening on Monday May 1st, 2017.

1.6. New trading instruments

The following 41 new instruments will be made available for trading and will include new cash index and commodity CFDs, new currency pairs and single share CFDs on most popular EU and US blue chips:

MT4 Symbol

Description

[HSI50]

Hang Seng Index CFD, cash (HKD)

#AIR

Airbus Group SE CFD

#AMZN

Amazon.com Inc. CFD

#BAS

BASF SE CFD

#BAYN

Bayer AG CFD

#BMW

Bayerische Motoren Werke AG CFD

#BN

Danone SA CFD

#BNP

BNP Paribas SA CFD

#DAI

Daimler AG CFD

#DBK

Deutsche Bank AG CFD

#DTE

Deutsche Telekom AG CFD

#FP

Total SA CFD

#GLE

Societe Generale SA CFD

#NFLX

Netflix Inc. CFD

#ORA

Orange SA CFD

#PHIA

Koninklijke Philips NV CFD

#SAP

SAP SE CFD

#SIE

Siemens AG CFD

#SNAP

Snap Inc CFD

#TSLA

Tesla Motors Inc. CFD

#TWTR

Twitter Inc. CFD

AUDCHF

Australian Dollar vs. Swiss Franc

CADCHF

Canadian Dollar vs. Swiss Franc

CHFJPY

Swiss Franc vs. Japanese Yen

EURCHF

Euro vs. Swiss Franc

EURNZD

Euro vs. New Zealand Dollar

EURRUB

Euro vs. Russian Rouble

GBPCAD

Great Britain Pound vs. Canadian Dollar

GBPCHF

Great Britain Pound vs. Swiss Franc

NZDCHF

New Zealand Dollar vs. Swiss Franc

NZDJPY

New Zealand Dollar vs. Japanese Yen

USDCZK

US Dollar vs. Czech Koruna

USDHKD

US Dollar vs. Hong Kong Dollar

USDHUF

US Dollar vs. Hungarian Forint

USDNOK

US Dollar vs. Norwegian Krone

USDPLN

US Dollar vs. Polish Zloty

USDRUB

US Dollar vs. Russian Rouble

USDSEK

US Dollar vs. Swedish Krona

USDSGD

US Dollar vs. Singapore Dollar

PALLADIUM

Palladium Spot (100 oz) vs. US Dollar CFD

PLATINUM

Platinum Spot (100 oz) vs. US Dollar CFD

1.7. Amended trading terms on existing instruments

Please note that starting from Monday, 8 May 2017, the following amendments will be applied in order to extend trading hours of the most popular instruments:

Instruments

New trading hours

Currency pairs

00:05 Mon – 23:59 Fri

recess 23:59 – 00:05 Mon – Fri

USDCNH

04:30 Mon – 23:59 Fri

recess 23:59 – 04:30 Mon – Fri

GOLD, SILVER Spot CFDs

01:00 Mon – 23:59 Fri

recess 23:59 – 01:00 Mon – Fri

US share CFDs

16:35 – 23:00 Mon – Fri

Australia 200 index CFD

02:50 Mon – 23:59 Fri

recess 09:30 – 10:10, 23:59 – 02:50

Germany 30 index CFD

01:00 Mon – 23:00 Fri

recess 23:15 – 23:30 & 23:59 – 01:00

US 30 index CFD

US 500 index CFD

US NASDAQ 100 index CFD

UK 100 index CFD

01:00 Mon – 23:59 Fri

recess 23:15 – 23:30 & 23:59 – 01:00

Euro STOXX 50 index CFD

09:00 – 23:00 Mon – Fri

BRENT, WTI CFDs

01:00 Mon – 23:59 Fri

recess 23:59 – 01:00

NGAS CFD

01:00 Mon – 23:00 Fri

recess 23:00 – 00:15

Additionally, the contract size and minimum trade increment on Japan 225 index CFD will be reduced by 10 times (from 100 to 10 index levels) in order to make it more accessible to clients with smaller deposits or those willing to follow more precise risk management.

All open positions and pending orders on Japan 225 index CFD will be multiplied by 10 in order to reflect the change of the contract size.

2. Changes on the M.Pro account

2.1. Reduced ECN commission

In order to reflect the spread reduction on the M.Premier account, we will respectively reduce the commission on the M.Pro account, so that both offerings will be similar in terms of trading costs.

The new ECN commission will get 40% off and will be as low as 6 USD per a round turn trade in the amount of 1.0 lots.

2.2. Reduced minimum trade size on currency pairs

All Forex instruments available on an M.Pro account will get a reduction of the minimum trade size, from 0.1 lots to 0.01 lots, in order to make this account more accessible for traders with smaller deposits.

This change will also enable all traders with an M.Pro account to excercise more precise money management.

2.3. New margining model

The M.Pro account will get the same improvements to margin requirements as the M.Premium account.

Please see full information about the new margining in a PDF file: Floating Leverage Terms, Trading Examples and QA.

We kindly hope that you will find our improved offering appealing and that it will help you to get new opportunities in trading. It's been a good and interesting project that helped us to develop a more competitive and up-to-date offering, which incorporates the newest eFX technology solutions with a vision of prospective trends of the online trading industry.

Should you have any queries, please do not hesitate to contact our Customer Support or your account manager.

Kind regards,

MTrading Team