Dislikedthank you Jason, your last post is understandable, but I don't see hedging in it? Where is the hedging gone now?Ignored
Dislikedthank you Jason, your last post is understandable, but I don't see hedging in it? Where is the hedging gone now?Ignored
Dislikedthank you Jason, your last post is understandable, but I don't see hedging in it? Where is the hedging gone now?Ignored
Dislikedno matter how they paint it they're still not an ECN broker......Ignored
DislikedThe term ECN is thrown around liberally by forex traders and brokers alike....Ignored
DislikedHi kengur,
The example itself is the hedging (offsetting) process. Risk is offset or hedged by sending orders straight to the banks for processing.Ignored
DislikedSo If I buy 100K EUR/USD, FXCM is short(virtually) the same amount(FXCM is on the other side), but FXCM is hedging that by buying 100K EUR/USD with the interbank?Ignored
DislikedThe promotional info that FXCM is putting out says that your order is NOT held in house, as would be the case with your average bucket shop, but goes straight to the next level, at least.
I don't think they are claiming to be a true ECN but are stating that they do not take the other side. The point is that at any one time you aren't the only one placing an order at that level so I would expect it's fairly easy for them to aggregate all the orders and pump them into standard lots, at the very least.
They make a 1-pip profit (at worst)...Ignored
Disliked@ Jason
What about hedging, you were mentioning hedging...to me it's not necessary if FXCM routes my order directly to the intebank market...
I thought interbank market allows only 100K amounts..?Ignored
DislikedHi all,
Just to share what i've just heard from a broker - MF Global, about their Forex trading. Pls note i have no association with this broker, neither do i use them.
The MFGtrader platform offers STP trading, whereby they internally match orders at each price (example, at the exact price 1.4750, if there are 1,000k buy orders for the Euro and 850k sell orders, the 850k volume will be offset internally). Any unmatched orders (150k in this example) will be sent directly to the Currenex platform.
The broker acknowledges that they earn...Ignored
DislikedI wonder what FXCM micro does with long term profitable traders, i dont understand how they could earn the spread with such tight spreads so their profit must come from their customers losses to a degree.... so how do they deal with consistently profitable traders....Ignored
DislikedHere's what the said representative told me about one particular marketmaker which i shall not name. Whether this is true or not i do not know, comments are welcome.
One particular marketmaker will tag traders into 3 categories:
A - Consistently profitable
B - Consistently losing
C - Breakeven
If you fall into A, they will take the same trade as you (presumably this would be extremely selective and less than 1-2% of traders)
If you fall into B, they will marketmake and take the opposite side of your trade, so orders are not sent to the interbank...Ignored
DislikedHi TraderT,
I agree the details are a little vague. The typical MO of a market maker is to aggregate positions internally and then manage the remainder of the risk which sounds like what you described. Would be interesting if they would have given you a more detailed example of the inner workings of the system.
-JasonIgnored
DislikedHey Jason,
this is what a ECN 's spreads look like.
as you can see FXCM is a fair way off.
enjoyIgnored
DislikedThe spreads are comparable to FXCM Active Trader. Here's a website that compares active trader spreads to other brokers www.fxintel.com . Maybe you want to start a new thread to discuss spreads so as to stay on topic?Ignored
DislikedThe spreads are comparable to FXCM Active Trader. Here's a website that compares active trader spreads to other brokers www.fxintel.com . Maybe you want to start a new thread to discuss spreads so as to stay on topic?Ignored
So I have to do 10 million a month or open and account with 25K to have a service that's comparable to a 10K Interactive Brokers account. the spreads are not better or the same they're comparable..... lol great joke Jason.
For an account trading more than Fee per side per 100K lot 10M / Month $5 100M / Month $3.5 Note: Commissions are negotiable based on trading volume Typical Spread for Major Currencies*
EUR / USD: 0.7 PIPS GBP / USD: 1.8 PIPS USD / JPY: 1.2 PIPS USD / CHF: 1.8 PIPS
now if you gave a $5 round trip on the GBP/JPY per 100K with a typical spread of 2-2.5 then I will say well done to you.
FXCM is doing well to make these new products, but you still profit form losing clients in the form of FXCM mini. so no matter what you say or spin, the fact is FXCM still profits form clients losing money!
Interactive Brokers Dukascopy MB Trading to the best of my knowledge don't they're true ECN brokers, FXCM is not...
Hey Jason did you know that FXCM was/is one of the main reasons the word Market Maker has a bad rep now......
Have a nice Saturday.
DislikedFor an account trading more than Fee per side per 100K lot 10M / Month $5 100M / Month $3.5 Note: Commissions are negotiable based on trading volume Typical Spread for Major Currencies*Ignored