FXCM Discussion

Hi Jason,

I was just on the phone with a friendly chap in customer service. I signed up a few days ago to use FXCM because it offers the NinjaTrader (NT) platform, which has terrific tick charts. After I sent in all the paperwork and got the confirmation that I was good to go with NT, I followed the connection guide but didn't see my account linked in NinjaTrader. The service rep suggested I call NinjaTrader to sort this out, which I thought was a bit puzzling given this is one of the platforms FXCM features on its website.

As we conversed, I learned that there is an additional spread added on to trades through NT which are not included if using FXCM's house platform, Trading Station (which is a really confusing name given the well-established TradeStation). The spreads on your website do not include these additional NT fees. Per the service rep, the NT fees used to be 0.40 per lot, but now the fee is incorporated into the spread, but he couldn't tell me how much it was. I asked whether these additional fees are disclosed on the FXCM website. We checked while on the phone together. NT fees are not disclosed. I was probably a bit cross with the poor chap on the phone, and I apologize for that. But I gotta say, it seems really dodgy that FXCM is not transparent about its fees.

So my question - what exactly are FXCM's fees (all-in) when using NinjaTrader? Obviously it would help to know this to compare FXCM/NT with other broker/platform combinations, and plus brokers in general are supposed to be transparent when it comes to fees...

FXBarbarian

Hi FXBarbarian,

Thanks for bringing this to my attention. I agree it should be more transparent and I will bring it to the attention of our management team to see what we can do. For a little more background on the spread mark-up, the fee is compensation for NinjaTrader and using their platform. If you purchase a lifetime license from NT, then there's no mark-up and the spreads would be the same as if you were using the Trading Station platform.

I've also heard positive things about the NinjaTrader tick charts recently so good to hear you find them useful. I'll let you know when I get more info. about the mark-up information being added to the site.

Jason

Dear Jason

Will the FXCM Mobile Trading Station App ever implement notifications when a trade execute?

Is it possible to maybe put it on a "to-do" list for the developers? I think we have been waiting for years for this to be implemented and clearly can't be that difficult.

Many of the Crypto trading apps have a notification setting when a trade executes.

Please let us know!

Hi pooh123,

FXCM releases this data every month in our monthly metrics press release. As of our latest release for June 2018, FXCM had 109,225 active accounts. The full report can be found here.

Jason

Hi Krypt0n1te,

Yes it will! From recent updates I have received, we are getting closer to an initial release for iOS and Android for trading notifications which would include market orders, conditional orders, and margin calls. Thanks for your patience with the release, and I know we are all looking forward to it.

Jason

Awesome Jason!

Cannot wait.

Take care and have a lovely weekend.

I will be out of the office until Monday, August 13 and will respond to your posts and private messages when I return.

For immediate assistance, you can contact our 24-hour live customer support.

Cheers, Jason

A gentle reminder , to stay away from fxcm. And especially the shark Daniel Rogers. His like the dodgy salesman when you walk into used car dealer. Fxcm found guilty of fraud , much better abrokers than fxcm and crooked Daniel Rogers. Stay away all costs..

Fxcm = Daniel Rogers =guilty fraud = scum = stay away = Australian salt water crocodile

Countless horror stories , have a read Google for starters

Thanks Jason for the response, but still could you disclose the additional spread charged to use NinjaTrader? Does anybody there know? (Bloke on the phone didn't.)

I use NT with FXCM. There is no additional spread .
The only problem with NT and FXCM is the connection. NT can only be reliable if used for day trading. Even NT says not to run for more than 24hr without restarting.

Even after paying over a 100 thousand in commission, fxcm and NT are not interested in fixing the weekend maintenance / connection problem I experience.

RELEASE Number
7528-17
February 6, 2017
CFTC Orders Forex Capital Markets, LLC (FXCM), Its Parent Company, FXCM Holdings, LLC and FXCM’s Founding Partners, Dror Niv and William Ahdout, to Pay a $7 Million Penalty for FXCM’s Defrauding of Retail Forex Customers
FXCM, Niv, and Ahdout are Prohibited from Registering with the CFTC, Acting in Exempt Capacities or Acting as Principals, Agents, Officers or Employees of Registrants
CFTC’s Order also holds FXCM, Niv, and FXCM Holdings responsible for FXCM’s False Statements to the National Futures Association
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against Forex Capital Markets, LLC (FXCM) , its parent company, FXCM Holdings, LLC (FXCM Holdings), and two founding partners, Dror (“Drew”) Niv, and William Ahdout, who were, respectively, Chief Executive Officer of FXCM and Managing Director of FXCM, (collectively, Respondents). FXCM’s principal place of business is New York, New York; Niv resides in Connecticut; and Ahdout resides in New York.
The CFTC Order finds that, between September 4, 2009 though at least 2014 (the Relevant Period), FXCM engaged in false and misleading solicitations of FXCM’s retail foreign exchange (forex) customers by concealing its relationship with its most important market maker and by misrepresenting that its “No Dealing Desk” platform had no conflicts of interest with its customers. The Order finds FXCM, FXCM Holdings, and Niv responsible for FXCM making false statements to the National Futures Association (NFA) about its relationship with the market maker.
The Order requires Respondents jointly and severally to pay a $7 million civil monetary penalty and to cease and desist from further violations of the Commodity Exchange Act and CFTC Regulations, as charged. FXCM, Niv, and Ahdout agree to withdraw from CFTC registration; never to seek to register with the CFTC; and never to act in any capacity requiring registration or exemption from registration, or act as a principal, agent, officer, or employee of any person that is registered, required to be registered, or exempted from registration with the CFTC.
“The CFTC Is Committed to Protecting Customers from Harm in the Markets It Regulates”
“Full and truthful disclosure to customers and honest discourse with self-regulatory organizations such as NFA are vital to the integrity and oversight of our markets,” said Gretchen L. Lowe, Principal Deputy Director and Chief Counsel of the CFTC’s Division of Enforcement. “Today’s action’s demonstrates that the CFTC is committed to protecting customers from harm in the markets it regulates.”
FXCM is registered with the CFTC as a Futures Commission Merchant and Retail Foreign Exchange Dealer. FXCM has been providing retail customers with access to over-the-counter forex markets through a proprietary technology platform and has acted as counterparty in transactions with its retail customers in which customers can buy one currency and simultaneously sell another. Both Niv and Ahdout were CFTC registrants during the relevant period.
FXCM, under Niv’s and Ahdout’s direction and control, misrepresented to its retail forex customers that when they traded forex on FXCM’s No Dealing Desk platform, FXCM would have no conflict of interest, the Order finds. In addition, according to FXCM’s marketing campaign, retail customers’ profits or losses would have no impact on FXCM’s bottom line, because FXCM’s role in the customers’ trades was merely that of a credit intermediary, the Order finds. FXCM further represented that the risk would be borne by banks and other independent “market makers” that provided liquidity to the platform, according to the Order.
FXCM’s Undisclosed Interest
Contrary to these representations, the Order finds, FXCM had an undisclosed interest in the market maker that consistently “won” the largest share of FXCM’s trading volume – and thus was taking positions opposite FXCM’s retail customers. FXCM, the Order finds, formulated a plan in 2009 to create an algorithmic trading system, using an FXCM computer program that could make markets to FXCM’s customers, and thereby either replace or compete with the independent market makers on FXCM’s “No Dealing Desk” platform. Although FXCM eventually spun off the algorithmic trading system as a new company, in actuality the company remained closely aligned with FXCM, according to the Order. This market maker received special trading privileges, benefitted from a no-interest loan provided by FXCM, worked out of FXCM’s offices, and used FXCM employees to conduct its business, the Order further finds.
The Order finds that FXCM and the market maker agreed that the market maker would rebate to FXCM approximately 70 percent of its revenue from trading on FXCM’s retail forex platform. In total, through monthly payments from 2010 through 2014, the company rebated to FXCM approximately $77 million of the revenue it achieved. However, FXCM did not disclose to customers, among other things, that this company – FXCM’s principal market maker – was a startup firm spun off from FXCM, the Order further finds.
False Statements to the NFA
The Order also finds that FXCM willfully made false statements to NFA in order to conceal FXCM’s role in the creation of its principal market maker as well as the fact that the market maker’s owner had been an FXCM employee and managing director. The Order finds that during a meeting between NFA compliance staff and FXCM executives, Niv omitted to mention to NFA the details of FXCM’s relationship with the market maker.
The Order holds Niv and Ahdout liable for FXCM’s fraud violations as “controlling persons” who were responsible, directly or indirectly, for FXCM’s violations. Niv is also held liable for FXCM’s false statements to NFA as a controlling person who was responsible directly or indirectly for those violations. FXCM Holdings is held liable for FXCM’s fraud and false statement violations as principal of FXCM, the Order also finds.
The CFTC thanks NFA for its assistance in this matter.
CFTC Division of Enforcement staff members responsible for this action are Christopher Giglio, Patrick Daly, David C. Newman, Xavier Romeu-Matta, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan.

Media Contact
Dennis Holden
202-418-5088

Last Updated: February 6, 2017

RELATED LINKS

1. Order: Forex Capital Markets, LLC, FXCM Holdings, LLC, Dror Niv, and William Ahdout

Shocking really.

I wonder why that $77 million that is being "rebated" isn't paid to the retail customer base of FXCM from that time.

I would happily receive it to cover the times I was taken out at certain stop loss price levels when the same trades running on competitors platforms were not closed off.

The sort of "stop hunting" which many, including FXCM swear doesn't occur :-)

I have a question.
I email fxcm i[email protected] but I get no reply back from my questions. They literally ignore my emails.

I had an account for a long time but their customer support is not there.

Am I the only one having the same issues?.

It worries me a bit when I email a big company like fxcm and nobody replies back to those emails.
fxcm has good spread and commissions and I can set stop loss without any limitations but their customer support is basically null. There is nobody there, at least I am not getting replies when I email them.

Hi FXBarbarian,

I was able to get more detailed information from our support team on the pricing for NinjaTrader accounts.

New NinjaTrader accounts with FXCM have no pip-mark up added to the spread. That is why there is no longer information regarding a spread mark-up on the website. This was changed a couple of months ago when NinjaTrader decided to no longer offer a Free license to clients wanting to trade FX with brokers like FXCM. Traders now purchase the lease package or lifetime package from NinjaTrader directly instead of paying a pip mark-up to the broker which is then rebated to NinjaTrader in place of the license payment.

The service rep you spoke with was likely not aware of these changes, and I apologize for the confusion. It was confusing to me as well, and our support team has been updated on the changes to make sure correct information is explained when this question comes up.

For any clients that opened more than a couple of months ago, they were grandfathered into their existing setup which entails a 2/10ths pip mark-up on the spread, or approximately $0.02 per 1k lot, and is compensation for NinjaTrader that takes the place of an outright license fee. Our support team can check on your existing account setup, if you want to confirm which setup you are on. Or just send me a private message, and I can get you in touch with a colleague to help directly.

Jason

Hi fibo,

That is the correct email. I'm going to send you a private message to ask for details on the email address you are sending it from so we can investigate if there's a problem with emails coming through. I see now you're a new member which means you can't receive private messages yet. Can you please email me directly at jrogers (at) fxcm.com with the email address you are using to email us and I can help.

Jason

Well I opened account with FXCM. With 25k deposit I can only open 3 lots max on CHF (7.5k CAD margin per 1 lot) and two lots max on GBP (9.5k CADA per 1 lot)pairs...Jesus...lol Looks like i got even less then 1:30 leverage...i don't get it. Anyways anyone looking to open account with these retardedly low leverages keep that in mind. Cons:High commission(impossible to do 500 lots a months to get discount with this leverage, you need 500k at least the way I trade...) and Very low leverage. Pros: Execution is top notch for far, cant complain, spreads are very tight, safety of funds. I will update in few weeks so far so good, except i was expecting to be able to open at least 6 lots...only disappointment so far.

I emailed you.

Hi fibo,

I'm not seeing any incoming email that would appear to be coming from you. Can you log on to our live chat so we can check on it in real time https://bit.ly/FXCM_livechat

Jason