I got caught out by this too - why the company did not have the courtesy to let clients know is beyond belief! I haven;t lost any money but I use an EA to assist with trading - it needed re-coding to take into account the extra digit - e.g. GBPUSD is now 1.95764 (before it was just plain old 1.9576).

As for them lowering the spreads, GBPUSD used to be 3. Now it is variable and normally about 4.1 to 4.5.

Nearly every trade I make gets re-quoted aswell.

Summary - looking for a new broker.