Some Global Prime trading accounts do not have commission charges separate to the spread. Where this is the case, the spread visible in the trading platform is an ‘all in’ price that includes our transaction fees and commissions. There are other fees such as swaps and interest for positions held overnight which you should be mindful of.
Spreads on these accounts may be higher than those advertised on the Global Prime website, however, the overall trading costs are lower since there are no commissions charges separate to the spread.
The commission free trading account cannot be used in conjunction with any other offer.
The claim Australia’s lowest cost Forex and CFD provider is based on a sample of data collected from Australia’s largest and most competitive Forex and CFD providers in February 2021.
The term ‘lowest cost’ is a reference to the total round turn spread and commission trading costs in Australian dollars. Competitor spreads and commissions are based on advertised spreads and commissions from their websites.
The claim ‘Spreads from 0.0 pips’ is a reference to the minimum spread seen across many of Global Primes Forex and Metals products, i.e. those products which have an ‘aggregated’ or ‘retail broker ECN’ price.
The average spreads on the website https://www.globalprime.com/trading-conditions/spreads/ are based on recent observations and should not be solely relied upon when deciding to trade with us. The trading platforms have live pricing for each market. We recommend using a demo account to assess our pricing before deciding to trade with us.
Commission free accounts can have a 0.0 pip spread, however, this is unlikely due to the small fees that we build into the spread. You should not use the commission free account if you want 0.0 pip spreads.
Global Prime explains its use of the term ECN in detail here https://www.globalprime.com/ecn-advantage/
The main takeaways that you should know about our use of the term ECN are:
‘Multi-bank liquidity aggregated into a best bid best offer’ is only available for our Forex and Metals products. CFDs over Indices, Stocks, Bonds and Commodities are not ‘ECN’. See below for more details or our Best Execution page for the different pricing and execution across each class of products.
Small forex and metals trades (usually less than 50,000 and XAU 30oz respectively) are executed internally and ‘batch hedged’ once the position size is large enough to hedge via our prime broker, or an opposing trade comes in from another client. Batch hedging small trades allows us to avoid prime broker minimum ticket fees and therefore give you the lowest trading costs possible.
SMALL TRADES THAT DO NOT GO DIRECTLY TO OUR LIQUIDITY PROVIDERS ARE NOT ECN OR STP.
Global Prime hedges all market risk with our liquidity providers. We do not seek to run a net position and the market risk arising from small trades is both small and temporary. It is automatically and systematically hedged out every time. Lastly, we limit our market risk per currency pair to around 100,000 so we can hand on our heart say ‘small trades’, ‘cost savings’ and ‘not a B-book’. A typical B-book has positions per currency pair in the tens or hundreds of millions.
You can verify exactly how and with whom all of your trades have been executed by viewing your automated trade receipts in your client area. You can see all details for your trade including: executed price, spread, slippage, execution time and market depth showing the order book and liquidity providers.
With this information, you have all the means necessary to make a decision as to whether you want to continue trading with us, and if our statements and claims are true and meeting your expectations.
If you’re not satisfied with our performance, stop trading immediately and contact us as soon as practically possible so we can address your concerns.
Indices, Commodities, Bonds, Cryptocurrency and Stock CFD products are ‘synthetic index or market tracking derivatives’. They follow the underlying cash and or futures markets of their respective product.
THESE CFD PRODUCTS ARE NOT ECN.
We do not provide an ‘aggregated’ or ‘ECN’ feed for these products since most liquidity providers will have somewhat different prices and there is no central counterparty or ‘prime broker’ through which these trades can be given up and cleared. Because of this, all trades generally go to a single liquidity provider on a per product basis.
When these products follow an underlying futures market, there may be times when their prices differ from the futures. For example, in periods of extreme volatility when the spread between the front and second nearby month of the futures is highly volatile, it may become difficult to track movements in these markets and therefore prices may vary wildly. Factors such as illiquidity and contract expiries in the underlying futures markets can exacerbate these price differences.
Global Prime has measures in place to mitigate the impact of wide spreads, spread spikes, illiquidity and generally poor market conditions around the end of day period. GlobalPrime defines the Rollover Period as between 4.30pm and 5.30pm New York each day.
TRADING OVER THE END OF DAY PERIOD IS EXTREMELY HIGH RISK AND SHOULD BE AVOIDED AT ALL COSTS.
The Rollover Period may have the follow negative effects to client trading:
Steps that Global Prime may take to improve client experience during the Rollover Period:
TRADES EXECUTED OVER THE END OF DAY PERIOD THAT DO NOT GO DIRECTLY TO OUR LIQUIDITY PROVIDERS ARE NOT ECN OR STP.
There are steps you can take to mitigate your risk of loss over the end of day period, including: