GFT Offering Fractional Pricing

I don't know how I feel about my premier broker following the footsteps of so many MT4 brokers.

GFT decided to offer fractional pricing in order to offer users "competitive spread", from what I was told from Customer Service. Gave examples of GFT offering spreads down to 0.8 (they said is very possible). I thanked them for giving me "best case scenario" and asked them about "worst case scenario", CS never got around to answering that question. This is coming from a broker that has always offer the lowest variable spreads in the business. For example: if you're a EurUsd trader you know the spread will always be 2-3 pips. I've been with GFT for years and I've never seen EU over 3 pips or GU over 4 pips and so on. Worst cast scenario for EURUSD trader would be a spread at 3.9 (might as well round up), when we've enjoyed a solid 3 pip spread during low liquidity moments. GBPUSD trader would likely be trading 4.8 as oppose to the "no higher than" 4 pips we've enjoyed during low liquidity moments.

The change will be happening next week. I'll see how this goes.

I just got off the line with GFT regarding my account, hoping that there would be an option of keeping the traditional pricing. NOPE.

I had used Tradestation > Gain Capital before, which was also on the fractional pricing. It was horrible. The spreads were not tighter, and fluctuated much more (could be a reflection of GC, but could also be fractional pricing). If you place an order, and do not allow for slippage, the chances of you getting filled are horrible, especially in a quickly moving market (which is very common). So, lets say you put a limit order in at 1.10000 on the 5 decimal system, and it goes to 1.09999 and then quickly jumps to 1.10001 never retracing, your out of luck over a dollar, or a penny depending on contract size.

Really, the only traders that should be worried about 0.00001 are absolutely HUGE financial institutions. Not even your local 10 branch bank should care about 1/10,0000 of anything. Does the FED raise and lower interest rates at that fraction? They don't even give coupons a cash value that low (you know the ridiculous notion of trading in a coupon for some McD's french fries for 1/100 of a cent). Oh, wait, GFT would be large FOREX institution. Maybe they are really doing this, to better their standing? Making things more complicated, I mean precise, is rarely going to improve anything.

So, keep your fractional pricing away from me. I don't care about better spreads if it is by 1 PIP or .00012 PIPS. I want solid fills, a consistent spread, and good customer service. I don't want to factor in rounding to an extra decimal place. I don't want to worry about moving my entry points down an extra pip, just so I'm sure to get in. I don't want to figure a 38.2% retracement on a 1.45673. As it stands now, would you round up/down 10 pips to get a fill? I hope not. If you consistently round down a full pip to ensure a fill, then you are negating the tighter spread. In the flyer posted above, it gives the example of a $200 profit being $203 on the fractional pricing. WOW! $3. That's a gallon of gas and a pack of gum - the cheap gas, and a small pack of gum. I just can't see where adding complication is going to help.

As of right now, I was VERY PLEASED with GFT. In two weeks, my doubts will be creeping in quickly.

Does anyone use FX LITE? I get their charts because of the 5pm EST close, but don't have an actual account. They are still a 4 decimal broker. Any insight would be greatly appreciated (either on FX LITE or other 4 decimal brokers especially with a 5pm EST daily close). And thanks for letting me vent about the upcoming change. Bahhh!