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Fixed and Tight Spreads | Rakuten Securities HK

Rakuten Securities HK offers a fixed and tight spreads to the investor by striving to drive the trading cost to the lowest level. Maximizing your trading advantage is always our goal.

Basic concept of spreads

People often get confused with the terms spreads and slippage in trading. Both elements are important when it comes to determining profitability and success in forex trading. Let’s begin with what is spreads and slippage.

What is Spreads?

Usually, forex brokers offer two different prices for currency pairs, i.e. the bid and ask price. The bid is the price at which you can sell your base currency and ask is the price at which you can purchase the base currency. The difference between the bid and ask price is called as Spreads. There are two types of spreads, fixed and variable or floating.

Fixed –

It stays the same no matter what the market conditions are at any time provided. Fixed spreads require a small amount of capital and thus, trading with fixed spreads is cost-effective for traders who don’t have a large sum to start trading in the forex market. Also, when trading with fixed spreads, it becomes easy and foreseeable to calculate transaction cost. As fixed spreads never change, you always know what to expect when you start a trade.

Variable –

On the other hand, variable spreads keep on changing. In this, the difference between the bid and ask prices are always varying based on market conditions. When you are trading with variable spreads, you would more clear pricing, particularly when you consider accessing prices from various liquidity suppliers mean you would be getting better pricing because of the competition.

What is Slippage?

Even if you have high-speed internet and computers, use the automated trading feature with expert advice to react promptly to price movements, there can still be delays in execution of a trade. Prices might fluctuate during that time. The delay could only be for a second and the result could be a slight difference between the price that you had placed and the price at which the actual trade took place. The difference between these two prices is known as slippage.

Slippage can be a usual incidence in forex trading, but it is often misinterpreted. When a trader understand how forex slippage takes place, he or she can reduce negative slippage and possibly make the most of positive slippage.

When Slippage occurs?

Slippage occurs when a trade order is completed at a price which is different from the price requested by the trader. This normally occurs during highly volatile market conditions and also when an order does not match with the desired prices.

Although the slippage in forex is often seen as a negative thing, this normal market event can be a good thing for traders. When forex trading orders are directed to be completed by a liquidity provider or bank, it is done at the best possible price, whether it is above or below the requested price.

Reasons for Slippage occurring

Slippage in forex occurs due to different reasons. For each buyer with an exact price and trade size, there should also be the same number of sellers willing to sell at the same price and trade size. If an imbalance between buyers or sellers occurs, that is what causes the prices to move up or down. Depending on the movement of prices, it can be a positive or negative slippage

Forex slippage can also take place on usual stop losses where the stop loss level cannot be met. However, Rakuten Securities HK goes all-out to get the best out of client’s trading benefits by driving to take the trading cost to the lowest. They offer fixed and particularly tight spread.


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Spread

Rakuten FX Trading Platform

Competitive Tight & Fixed Spreads¤.
No Commission, Minimize Your Trading Cost!

Rakuten Securities HK strives to maximize client’s trading advantage by driving the trading cost to the lowest level. And now, we offer fixed and extremely tight spread¤.

 

LOWEST FIXED SPREADS¤ BELOW ARE DISPLAYED IN PIPS.

Trade now and enjoy this absolute advantage with Rakuten FX account.

 

Currency Pair Spread Currency Pair Spread Currency Pair Spread
USD/JPY 0.9 EUR/USD 0.9 AUD/USD 0.9
NZD/USD 1.4 EUR/GBP 1.3 GBP/USD 1.3
USD/HKD 3.0 HKD/JPY 4.0 EUR/CHF 2.7
EUR/JPY 1.5 GBP/JPY 2.2 CHF/JPY 2.6
CAD/JPY 1.8 AUD/JPY 1.9 NZD/JPY 2.4
GBP/CHF 3.0 AUD/NZD 2.6 CNH/JPY 2.3
AUD/CHF 2.3 NZD/CHF 5.4 ZAR/JPY 4.6
NOK/JPY 4.3 TRY/JPY 3.7 SGD/JPY 4.6
USD/CAD 1.8 GBP/AUD 2.7 GBP/NZD 3.2

Register a Rakuten FX Trading Platform Demo

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I acknowledge that Rakuten Securities HK may contact me by phone, mobile messenger or e-mail with information on Rakuten Securities HK's products, services, promotional offers and trading education, and assist me in using the forex online trading platform.

Although demo accounts attempt to replicate real-time market scenarios, they are based on simulated market environment. As such, there are key differences that distinguish it from a live account; including but not limited to, the lack of dependence on real-time market liquidity, delay or difference in pricing and spread. The operational capabilities when executing orders in a demo environment may result in atypically expedited transactions, lack of rejected orders, and/or the absence of slippage. Additionally, updates to demo account may not coincide with those of live accounts.

^ Rakuten Securities was ranked as the world’s fifth largest retail forex broker by volume in August 2017 from Finance Magnates.
Ŧ Only available for clients who hold a Rakuten FX account.
¤ Fixed spreads are offered in Rakuten FX account during at least 95% of the time of the monthly core-time trading period (8am to 2am HKT of every trading day). Spreads shown above and in our website are for reference only and are not guaranteed and may widen beyond the average spreads depending on the market volatility, especially under circumstances of extremely low liquidity, news events or public holidays. Please always refer to the trading platforms for the most updated spreads.
ɞ Order execution rate is calculated based on the AS Streaming and Streaming trading orders in 10k or less order size with lower than 1 pip slippage setting in which were executed during the period between Jan 1 to Nov 1, 2017.
§ Rakuten Securities HK offers Trading Station platform through its partner FXCM.
Commission is charged per trade side on both open trade(s) and close trade(s). All commission fees may be subject to change from time to time without prior notice. Please always refer to the most updated Schedule of Standard Fees and Charges.
ʊ MARKETSPEED FX platform is the winner of “Online Forex Trading Platform” by Good Design Award in 2012.

To safeguard your trading account(s), you are highly recommended to set a strong password and change it regularly.

When executing customers’ trades, Rakuten Securities HK 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, acting as a counterparty in the transactions. As a result, Rakuten Securities HK’s interests may be in conflict with yours.

Rakuten Securities Hong Kong Limited (“Rakuten Securities HK” SFC CE Number: AIM232) is a wholly owned subsidiary of Rakuten Securities, Inc. (*) Rakuten Securities, Inc., one of the major online brokers in Japan, founded in 1999, is a subsidiary of Rakuten, Inc. (TOKYO: 4755).
The risk of loss in leveraged foreign exchange trading can be substantial. You may not be suitable as you may sustain losses in excess of your initial margin funds. Leverage can work against you. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives. Do not speculate with capital that you cannot afford to lose. If you decide to trade products offered by Rakuten Securities HK, you must read and understand the information and disclosure provided by Rakuten Securities HK. Rakuten Securities HK may provide general commentary which is not intended as investment advice and must not be construed as such. Seek advice from a separate financial advisor. Rakuten Securities HK and Rakuten Group assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of information, text, graphics, links or other items contained within these materials. Read and understand the Terms and Conditions on Rakuten Securities HK’s website prior to taking further action.
Information Security on Internet: To protect your privacy, do not access your trading account via public or shared computer or save your password locally in any computer or mobile device after logging in. Rakuten Securities HK will never ask you to send any of your personal information such as account number and password to us directly via e-mails.
(*)Company Registration ID (in Japan): Kanto Local Finance Bureau (Financial Instruments Firms) No.195