FX comment: Some clients are more equal than others
|We received an email from a disgruntled dbFX customer this week, claiming that Deutsche's spreads weren’t nearly as tight as claimed on their website.
Judging by a sample of emails that we were passed (we have blanked out the names in the spirit of fairness), our correspondent was rather shocked to discover that he was being quoted 2.7 pips on EUR/USD.
After pointing out that the spread was three times as wide as many other platforms, dbFX brought it down to 1.7, then helpfully noted that in order to receive anything tighter, he would have to commit to trading $500 million a month!
How much volume our correspondent was trading at the time is unclear – he talks about slowly building up to some fairly big sums. Whatever, it is safe to assume that it was more than the £65 in my spread betting account where I can trade EUR/USD at 2 pips.
A look at the dbFX site reveals EUR/USD spreads “as low as” 1.7 pips. There is also a footnote that reads: “Prices are derived directly from the FX market and will fluctuate according to natural changes in volatility and liquidity.