"FXCM's is the only firm that runs their Currenex through their dealing desk." I'm paraphrasing, but that's what a Currenex insider told me once about FXCM's Currenex. While there is some rigging going on on every Currenex hub to some degree, this [feeding it through a dealing desk] is just the ultimate.
Recently, another trader I work with wanted to diversify and fund some of our new traders at FXCM. He has had a good relationship with them in the past and claims that their back office, handling of sub accounts, customer service, etc., etc. is great. At the same time, it's important to note that his style is very long term in nature. Usually, longer term systems are not sensitive to the particular broker or liquidity hub used; so that's why his particular experiences with this broker might have been good. When he brought up FXCM, I said, "OK; you mean the longer term guys, right?" He said, "No; the shorter term guys too. They have Currenex and so-and-so told me that their spreads are very competitive interbank spreads."
Having spent the last few years dealing with many brokers and focusing on active, day trading systems, I told him that I would prove to him that what he was being told was at least an undeliberate untruth.
So on August 31st, 2007, I recorded a short video of the screen during the London session, comparing EURUSD + GBPUSD on BGC's Currenex (BGC can be added to Trader KGB's list) and FXCM's. I attached a screenshot to this post. Notice that FXCM's Currenex is way off the real market. When I showed this video to my associate, he freaked out. IMHO, it doesn't make sense to use FXCM for Currenex until they change their focus.
IMHO, BGC (in London) is pretty good. If you're trading news, don't go there or at least keep your trades to less than $2M (but that's the same advice I give most news traders that want to graduate to Currenex).
- #43
- Oct 3, 2007 11:48pm Oct 3, 2007 11:48pm
- | Joined Nov 2006 | Status: Come and get it! | 183 Posts
Should a person use Currenex at all? What about LAVA?
Yeah... Did you do the programming? What CAXs like thus far?
The programming was done by another trader in our group. I am told that C++ produces the fastests algorithms.The CAX is rocking! Haven't traded live on there yet. Still collecting tick data for systems trading and waiting for the first front end to be ready (should be this week) for discretionary trading. Spreads are great. Three to five time more ticks than an active Currenex hub. Can't wait!
No; not me. C++ was the last elective I took while in college and I dropped it after the professor started talking about objects and OOP! This was after the first class! LoL
The CAX is rocking! Haven't traded live on there yet. Still collecting tick data for systems trading and waiting for the first front end to be ready (should be this week) for discretionary trading. Spreads are great. Three to five time more ticks than an active Currenex hub. Can't wait!
which will cause a bit of problem for 99% of FF users.. as an example..
P.S. CAX is a cool thingy indeed