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FXCM Discussion

  • #10,481
  • Apr 6, 2018 1:26pm Apr 6, 2018 1:26pm
Quoting djxput
Hi Jason could you tell me if FXCM in the UK is increasing their margin rates for spread betting (retail investors). IG has stated in july they are raising their margin rates due to ESMA rules 10X on indexes and various on others by a lot. You can by pass the rules if you have worked in the industry or have 500k sitting in investments somewhere.
Hi djxput,

Any broker that ultimately falls under ESMA supervision could potentially be impacted by the new leverage rules, that includes FXCM UK. Therefore FXCM UK will have to implement the same rules.

For anyone not familiar with what djxput is talking about, the European Securities and Markets Authority (ESMA) announced the following leverage rules on 27 March

Quote
...The product intervention measures ESMA has agreed under Article 40 of the Markets in Financial Instruments Regulation include:

1. Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying:

 

  1. 30:1 for major currency pairs;
  2. 20:1 for non-major currency pairs, gold and major indices;
  3. 10:1 for commodities other than gold and non-major equity indices;
  4. 5:1 for individual equities and other reference values;
  5. 2:1 for cryptocurrencies;

...

The full release can be found on ESMA's website here.


The new rules impact retail clients, and you are correct that if you can meet certain qualifications to be classified as a professional client, then you could 'by-pass' the rules. It should be noted that the new rules for the EU region do not impact FXCM Australia which is regulated by ASIC.

An official date for when rules will take place was not announced. Instead a general timeline was given:

Quote
ESMA intends to adopt these measures in the official languages of the EU in the coming weeks, following which ESMA will publish an official notice on its website. The measures will then be published in the Official Journal of the EU (OJ) and will start to apply one month, for binary options, and two months, for CFDs, after their publication in the OJ.

So you're looking at at least a couple of months before changes would take place. That's all the information I have for you at the moment. We will have more information in the weeks ahead, and I will post it for you once it is available.

Jason
  • #10,482
  • Apr 27, 2018 3:54am Apr 27, 2018 3:54am
i am using fxcm mt4 platform and it sucks it will not allow me to close or place position when market is active.... oanda is far superior than fxcm. i also tried pepperstone, they're far better than fxcm and heaps of their people keep on calling for different sales talks. sad.

i put 150 dollars into my account...
  • #10,483
  • Apr 27, 2018 8:32am Apr 27, 2018 8:32am
Quoting sideway
i am using fxcm mt4 platform and it sucks it will not allow me to close or place position when market is active.... oanda is far superior than fxcm. i also tried pepperstone, they're far better than fxcm and heaps of their people keep on calling for different sales talks. sad. i put 150 dollars into my account...
Hi sideway,

I'm sorry to hear you were having problems with the MT4 platform on your computer. I'll PM you for more details so our technical support team can help identify what is happening to find a solution.

Jason
  • #10,484
  • Apr 28, 2018 5:51am Apr 28, 2018 5:51am
I was just reading an article explaining the situation where FXCM was banned from the US for being caught redhanded faking being an ECN

So what is the FXCM model now? in the territories it still operates in?
  • #10,485
  • Apr 30, 2018 8:59am Apr 30, 2018 8:59am
Quoting ycomp
I was just reading an article explaining the situation where FXCM was banned from the US for being caught redhanded faking being an ECN So what is the FXCM model now? in the territories it still operates in?
Hi ycomp,

If FXCM were acting as a market maker on NDD forex execution we would not have suffered more than $200 million dollars in losses during the SNB flash crash. On NDD forex execution, every order is offset one-for-one with a liquidity provider. The trader has a position with FXCM and FXCM has an offsetting position with the liquidity provider. When the trader went into a debit balance, that meant FXCM also had a debit balance with the liquidity provider that had to be covered. So what you are implying is at odds with what actually happened.

I would say the number of active accounts and trading volume demonstrates the level of trust our clients have in FXCM. As of March 2018, there were over 110,000 active accounts traded at FXCM and $210 billion in customer trading volume. And as of Q4 2017, FXCM was the second biggest retail FX broker outside of Japan https://www.financemagnates.com/fore...ns-top-5-2017/

Why would traders choose FXCM? You may not have first hand experience, but our spreads, slippage stats, and execution quality speaks for itself https://www.fxcm.com/uk/about-fxcm/e...-transparency/ . *Please remember that losses can exceed deposits when trading FX and CFDs.

As with many businesses, we are not perfect, but we are now under new management and new ownership as a Leucadia company. We will continue to provide the best products and services we have been known for to our existing clients, and work to build back trust that we know will have to be earned over time.

Jason
  • #10,486
  • Apr 30, 2018 1:08pm Apr 30, 2018 1:08pm
Machine Learning Webinar Series

Tomorrow (May 1) our education website QuantNews is hosting the first of a 3 part webinar series on Machine Learning and how to implement it into your algorithmic trading strategy using Python programming language. Registration is free https://www.quantnews.com/webinar-se...rning-trading/ and a recording will also be made available after in case you can't make it.

Attached Image


Remember that forex and CFD trading can result in losses that could exceed your deposited funds and therefore may not be suitable for everyone, so please ensure that you fully understand the risks involved.

Jason
  • #10,487
  • Apr 30, 2018 4:34pm Apr 30, 2018 4:34pm
Hi Jason

What happened to the lower spreads on UK spread betting accounts promotion? Ie - EURUSD at 0.7 pips.

It says the promotion ends on March 30th. Did you decide to continue with this or back to spreads wide enough drive a bus through?

Cheers
  • #10,488
  • May 1, 2018 2:34pm May 1, 2018 2:34pm
Quoting C-12
Hi Jason What happened to the lower spreads on UK spread betting accounts promotion? Ie - EURUSD at 0.7 pips. It says the promotion ends on March 30th. Did you decide to continue with this or back to spreads wide enough drive a bus through? Cheers
Hi C-12,

The promotion was supposed to end on March 30th, but we have decided to continue with same spread levels for spread betting accounts . The website should be updated shortly removing the reference to the promotion period.

Jason
  • #10,489
  • May 3, 2018 7:21am May 3, 2018 7:21am
I have an XAUUSD buy stop at around 1315 but it has magically jumped to 1317.13 when the trade opened. What's going on mate? That's abit too much >_>

Attached Image (click to enlarge)
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  • #10,490
  • May 3, 2018 5:35pm May 3, 2018 5:35pm
Quoting Orangejuice
I have an XAUUSD buy stop at around 1315 but it has magically jumped to 1317.13 when the trade opened. What's going on mate? That's abit too much >_> {image}
More importantly why place a buy stop there? Bit of a random entry.
  • #10,491
  • May 4, 2018 5:08am May 4, 2018 5:08am
Quoting ycomp
I was just reading an article explaining the situation where FXCM was banned from the US for being caught redhanded faking being an ECN So what is the FXCM model now? in the territories it still operates in?
As to your question, I think it is to make a lot more money while being under a microscope. By the way, whatever happened to FXCM's debt (was it 60+ Mill remaining), does it still need to get payed off or did Leucadia virtually take over FXCM already?...

???
  • #10,492
  • May 7, 2018 1:20pm May 7, 2018 1:20pm
Quoting Aad
{quote} As to your question, I think it is to make a lot more money while being under a microscope. By the way, whatever happened to FXCM's debt (was it 60+ Mill remaining), does it still need to get payed off or did Leucadia virtually take over FXCM already?... ???
Hi Aad,

FXCM is a Leucadia company now. Leucadia holds a 50% voting interest and up to a 75% economic interest in the FXCM Group, and our membership in the Leucadia family, which includes Jefferies Group, has and will help us better serve our clients.

Jason
  • #10,493
  • May 7, 2018 1:37pm May 7, 2018 1:37pm
Effective Spreads Widget

Many of you already know that we provide historical spread data on our website via a spreads widget. The widget displays the historical spread for the top currency pairs and you can view the data on an hourly or daily basis.

And while the quoted spread is nice to know, what traders really care about is the actual spread paid including any slippage when the trade is executed. That's why we have updated the widget to show you the Effective Spread. The Effective Spread shows you the spread at which trades were actually filled, including any positive/negative slippage, the difference being clearly displayed in the table. Here's an example:

Attached Image (click to enlarge)
Click to Enlarge Name: spreads widget 5-7-2018 2-31-04 PM.jpg Size: 58 KB


Over 89%* of all orders receive positive slippage or zero slippage, this means those trades were executed at the rate client clicked on or better with FXCM. This effectively lowers your spread at execution. *As per the February 2018 Slippage Statistics Report.
Attached File(s)
File Type: pdf execution-transparency (1).pdf   579 KB | 672 downloads


The effective spreads widget can be found here.

Jason

*Past performance is not indicative of future results. Losses can exceed deposits.
  • #10,494
  • May 18, 2018 10:01am May 18, 2018 10:01am
Attached Image (click to enlarge)
Click to Enlarge Name: algo summit.jpg Size: 158 KB


FXCM is hosting an algo trading summit on 15 June 2018 in London with speakers including Rob Carver, Dr. Yves Hilpisch, Artur Sepp, and more discussing topics on using APIs, machine learning strategies, Python, artificial intelligence, and creating automated systems. This will be a great event for you to learn from industry leading experts and receive in-depth tips and answers to your algo trading questions. Registration is free and you can find more information here.

Jason

*Trading forex/CFD's on margin carries a high level of risk and may not be suitable for all investors as you could sustain losses in excess of deposits.
  • #10,495
  • May 22, 2018 4:13am May 22, 2018 4:13am
Hi Jason

Would it be possible to just move a CFD account from UK to Australia (instead of first closing in UK and then try to open a new in Australia)?




Quoting Jason Rogers
{quote} Hi djxput, Any broker that ultimately falls under ESMA supervision could potentially be impacted by the new leverage rules, that includes FXCM UK. Therefore FXCM UK will have to implement the same rules. For anyone not familiar with what djxput is talking about, the European Securities and Markets Authority (ESMA) announced the following leverage rules on 27 March {quote} The full release can be found on ESMA's...

" It should be noted that the new rules for the EU region do not impact FXCM Australia which is regulated by ASIC."
  • #10,496
  • May 25, 2018 10:03am May 25, 2018 10:03am
Quoting zekin
Hi Jason Would it be possible to just move a CFD account from UK to Australia (instead of first closing in UK and then try to open a new in Australia)? {quote} " It should be noted that the new rules for the EU region do not impact FXCM Australia which is regulated by ASIC."
Hi zekin,

I notice your bio says you are located in Sweden. Traders in Sweden and the EU region are unable to open an account with FXCM Australia, which means we wouldn't be able to move your account from the UK to Australia. The account must be opened through our UK entity. Traders outside of the EU region would be able to open with FXCM Australia.

Jason
  • #10,497
  • May 25, 2018 12:07pm May 25, 2018 12:07pm
Quoting Jason Rogers
FXCM is hosting an algo trading summit on 15 June 2018 in London with speakers including Rob Carver, Dr. Yves Hilpisch, Artur Sepp, and more discussing topics on using APIs, machine learning strategies, Python, artificial intelligence, and creating automated systems.
Hilarious how you at FXCM babble about those topics while you have implemented the slowest possible technology (i.e. JSON or REST etc.), whereas when it comes to algos speed matters the most. LMAO.
Return To Disorder
  • #10,498
  • May 28, 2018 3:25pm May 28, 2018 3:25pm
Hi FXCM

I have accounts with both OANDA and FXCM. Got an email from OANDA saying due to the new ESMA regulations

 

  1. Negative Balance Protection - Negative balance protection on a per account basis, limiting clients’ aggregate liability for all trades connected to an account to the funds available on that account.
  2. Margin Closeout Per Account Rule - As per the current arrangements, margin closeout will occur when the sum of funds in your account and the unrealised net profits and losses of all open trades connected to that same account, fall to less than half of the total initial margin protection required to place the open trades.


Can you confirm that FXCM UK will therefore also have Negative Balance Protection?

  • #10,499
  • May 30, 2018 8:18am May 30, 2018 8:18am
New member here, FXCM is available in US?
  • #10,500
  • May 31, 2018 3:33pm May 31, 2018 3:33pm
Quoting zzzz1zzz
New member here, FXCM is available in US?
Hi z,

FXCM is not regulated in the US and therefore does not accept US residents.

Jason
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