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FXCM sets up shop locally

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Jason Rogers said:
Hi Apocalypto,

Taking portions of the website out of context is misleading.

As explained in previous posts FXCM Micro trades are managed through the FXCM trading desk which is what the paragraph you listed describes. If you would have copied the entire page or listed the website, then this would have been apparent as to what the paragraph applies to. I'm guessing you took this from the US trading agreement in which case the second paragraph also goes on to mention that accounts on the no dealing desk feed are executed back to back with a bank and therefore the outcome of the trade has no impact on FXCM's profit or loss.

You can read FXCM's execution policy for no dealing desk execution in the product disclosure statement http://www.forextrading.com.au/docs_pdfs/product-disclusore-statement-parts1_2.pdf on page 9:

FXCM offers No Dealing Desk (NDD) execution. With NDD, FXCM does not take a market position, which eliminates a major conflict of interest between broker and trader. Every trade is hedged back to back with FXCM LLC who in turn hedges with some of the world's premier banks or financial institutions, which compete to provide FXCM with bid and ask prices. These price providers (banks and financial institutions) do not see your stops, limits, and entry orders, The best spreads available to FXCM are streamed to you with a small markup. There is no dealer confirmation.​
Click to expand...

Jason after heavy reading of experiences of past customers, the overall picture tells me you guys have a slippage problem?

I trade off a 1min chart with interactive brokers in the news out of the news never had a slippage issue.

Is there a difference in a true ECN and in the STP you offer? These are internet reviews so who knows if they're true????

Cheers,
 
>Apocalypto< said:
Jason after heavy reading of experiences of past customers, the overall picture tells me you guys have a slippage problem?

I trade off a 1min chart with interactive brokers in the news out of the news never had a slippage issue.

Is there a difference in a true ECN and in the STP you offer? These are internet reviews so who knows if they're true????

Cheers,
Click to expand...

Slippage can occur in forex trading as in any other market. Trading during a news event would increase the likelihood of slippage since the market tends to be less liquid and more volatile during a news release.

If you're trading in and out of the market using maret orders, there is a way to minimize slippage on our platform. You can set the order type to market range indicating a range of prices you're willing to accept. Sort of like a fill or kill order, but you specify within what range of prices. If the market has moved outside of the range, then the order gets cancelled rather than being slipped by a larger amount than specificied.

If you're scalping and trading over a million per click, then the Active Trader platform would be ideal since you can see level II type depth of market. The active trader platform also has a dedicated liquidity pool for active trader clients.

In my opinion, the term ECN is thrown around liberally in the forex market. Many say ECN when trying to describe the opposite of a dealing desk. A true ECN will allow traders to make a market and hit another traders price in the order book. In an STP or NDD setup, the order will go into process whenever a bank offers the requested price.
 
Interestingly the competition send out an email today with a notice they would be changing the rules about owners of EA's handing over the rights for their IP to FXCM who would then make money from reselling the experts.!

Obviously they received a lot of complaints, I know I wouldn't compete if I knew I was losing the rights to my own work!
 
Jason Rogers said:
Slippage can occur in forex trading as in any other market. Trading during a news event would increase the likelihood of slippage since the market tends to be less liquid and more volatile during a news release.

If you're trading in and out of the market using maret orders, there is a way to minimize slippage on our platform. You can set the order type to market range indicating a range of prices you're willing to accept. Sort of like a fill or kill order, but you specify within what range of prices. If the market has moved outside of the range, then the order gets cancelled rather than being slipped by a larger amount than specificied.

If you're scalping and trading over a million per click, then the Active Trader platform would be ideal since you can see level II type depth of market. The active trader platform also has a dedicated liquidity pool for active trader clients.

In my opinion, the term ECN is thrown around liberally in the forex market. Many say ECN when trying to describe the opposite of a dealing desk. A true ECN will allow traders to make a market and hit another traders price in the order book. In an STP or NDD setup, the order will go into process whenever a bank offers the requested price.
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Hi Jason,

This is a interesting comment I found.

Not all of the above apply to FXCM's "no-dealing-desk" trading option. In this set-up, trades are routed to other interbank market participants. Of course, one of FXCM's "interbank market participants" is FXCM Asia LTD which can still manipulate prices to a client's disadvantage.


The source is http://en.wikipedia.org/wiki/FXCM#cite_note-2

So you see this is why I am still so skeptical of the company you represent.

On top of the comment by doc that you gain rights / access to EA scripts.

cheers,
 
>Apocalypto< said:
Hi Jason,

This is a interesting comment I found.

Not all of the above apply to FXCM's "no-dealing-desk" trading option. In this set-up, trades are routed to other interbank market participants. Of course, one of FXCM's "interbank market participants" is FXCM Asia LTD which can still manipulate prices to a client's disadvantage.


The source is http://en.wikipedia.org/wiki/FXCM#cite_note-2

So you see this is why I am still so skeptical of the company you represent.

On top of the comment by doc that you gain rights / access to EA scripts.

cheers,
Click to expand...

While Wikipedia is a good resource for free information, it's only as reliable as its sources. Much in the same way that you're trusting information from the forums from anonymous members. In this case, anyone is free to update Wikipedia information to their liking, whether true/untrue or biased and is not an official FXCM source of information. For all we know, you could have written it... Not that you have :), but you get my point.

What is official is the product disclosure and trading agreement information. We are a regulated entity, across several jurisdictions so the information we disclose through our trading agreements is factual and official.

All standard 10k, MT4, Forex System Selector, and Active Trader accounts are executed through No Dealing Desk execution, and the majority of Micro accounts are executed through the FXCM trading desk as disclosed.

Jason
 
Jason Rogers said:
While Wikipedia is a good resource for free information, it's only as reliable as its sources. Much in the same way that you're trusting information from the forums from anonymous members. In this case, anyone is free to update Wikipedia information to their liking, whether true/untrue or biased and is not an official FXCM source of information. For all we know, you could have written it... Not that you have :), but you get my point.

What is official is the product disclosure and trading agreement information. We are a regulated entity, across several jurisdictions so the information we disclose through our trading agreements is factual and official.

All standard 10k, MT4, Forex System Selector, and Active Trader accounts are executed through No Dealing Desk execution, and the majority of Micro accounts are executed through the FXCM trading desk as disclosed.

Jason
Click to expand...

So you do pass STP trades on to your ASIAN FXCM, and no I didn't write it.

Cheers,
 
>Apocalypto< said:
So you do pass STP trades on to your ASIAN FXCM, and no I didn't write it.

Cheers,
Click to expand...

FXCM Asia is not a liquidity provider on the NDD execution. We do not pass STP trades to FXCM Asia. I confirmed with both our compliance department and trading desk. The trades are hedged back to back with one of 10 banks providing liquidity on the platform. I will also update wikipedia page since it lists incorrect information.

Jason

BTW...didn't mean to say you wrote it, just using as an example that information on wikipedia can be updated by anyone without a source referenced. If it's referenced, then all the better.
 
Anyone use or have used FXCM and have any feedback?

Not looking to scalp but take up longer term positions, months not minutes and would be trading on their platform not metatrader.

Any feedback would be handy, thanks
 
Unnamed User said:
Not looking to scalp but take up longer term positions, months not minutes and would be trading on their platform not metatrader.

Any feedback would be handy, thanks
Click to expand...

Trading longer term swings there are many shops that can accommodate your business. Look at security of funds and cost of carry.
I really don't understand why you guys wish to trade with a third party when Futures markets are available
 
FXCM Australia introduces lower spreads

Hi Everyone,

FXCM Australia is now offering lower spreads through our new dealing desk execution option. Here’s a list of the new spreads for twelve of FXCM’s most popularly traded currency pairs.

newspreads.png

While FXCM believes that NDD execution provides the best overall trading experience, we also offer dealing desk execution as an option for traders whose primary concern is low spreads. Traders can now choose which option best fits their needs.

There is a table on our website that goes into more detail about the trading restrictions on the dealing desk option such as maximum lot size, maximum account balance, etc. http://www.forextrading.com.au/execution-types.jsp, and let me know if you have any questions.

Jason
 
Steve C said:
Noob Question of the week: What exactly to the pip spread figures mean?
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The difference between the buy and sell price. This is how most brokers turn a profit and also prevents you from endlessly profiting of minor flucuations in the price ie with no spread you could simultaneously buy and sell with orders to take profit at one pip, it's almost guaranteed that both orders would be filled at profit within a matter of seconds given a normal evenings price volatility.
 
OGRooney said:
The difference between the buy and sell price. This is how most brokers turn a profit and also prevents you from endlessly profiting of minor flucuations in the price ie with no spread you could simultaneously buy and sell with orders to take profit at one pip, it's almost guaranteed that both orders would be filled at profit within a matter of seconds given a normal evenings price volatility.
Click to expand...

I see, so scalping with FX then becomes very hard - Thanks OGRooney.
 
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