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is fxcm the best retail broker out there?

  • #21
  • Aug 6, 2008 8:58am Aug 6, 2008 8:58am
http://www.nfa.futures.org/basicnet/...2&contrib=CFTC

Be sure to check the reputation of a forex broker. They are trying to put on a new face but the heart is still corrupt.
Thanks, Jonathan
  • #22
  • Aug 6, 2008 9:24am Aug 6, 2008 9:24am
u guys made me think again.i plan to open 100k acc with fxcm.
STAMPEDE BULL VS BEAR
  • #23
  • Aug 6, 2008 9:53am Aug 6, 2008 9:53am
i would never open a 100k acc with them. Small amount yes but 100k no way.
  • #24
  • Aug 6, 2008 10:02am Aug 6, 2008 10:02am
Quoting fxclans
u guys made me think again.i plan to open 100k acc with fxcm.
sure, go ahead.
Trade what you see, not what you think.
  • #25
  • Aug 6, 2008 10:12am Aug 6, 2008 10:12am
I am not sure if any of you have received email from FXCM explaining their No Deal Desk model, under what circumstance does it apply. but i would like to attach here again, which i have received it from FXCM on the 16th of July. Take note (full email):


==========================================================
FXCM
==========================================================

Dear Client:

At FXCM we believe that our No Dealing Desk model provides
you with the fairest, fastest, and most transparent execution:

()No restrictions. An ordinary dealing-desk broker,
acting as a market maker, may trade against a client. With No
Dealing Desk, we do not take a market position—eliminating any
conflict of interest or price manipulation. We fill your orders
from the best prices available to us from nine of the world’s
largest banks and most aggressive price providers.

()Our sheer trading volume, which exceeds $350 billion monthly,
ensures our close relationships with these global banks. With so
many price providers competing for our trading volume, spreads
are tight—even during market- moving news. Furthermore, these
price providers never see your stops, limits, or entry orders.

()Since the EUR/USD is nearing $1.60, now may be a good time to
take advantage of the tight spread on the pair. Do you need some
trading ideas?
That’s where DailyFX Plus can help: https://plus.dailyfx.com/tnews/loginForm.jsp

If your account needs replenishing, visit http://www.fxcm.com/depositing-funds.jsp

Note: since your account is set up with No Dealing Desk execution,
the National Futures Association (NFA) requires FXCM to provide
you with the following disclosure:

THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED
ON AN EXCHANGE. FXCM IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS
AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN
YOU BUY. THE PRICES FXCM OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE
AND FXCM MAY OFFER DIFFERENT PRICES TO DIFFERENT CLIENTS.

ALTHOUGH FXCM IS THE COUNTERPARTY TO EACH OF YOUR TRADES, IF YOUR
ACCOUNT(S) IS TO BE TRADED UNDER A “NO DEALING DESK” MODEL, FXCM LIMITS
RISK TO ITSELF BY IMMEDIATELY HEDGING (OFFSETTING) THE TRADES AND
POSITIONS IT ENTERS INTO WITH YOU ONE FOR ONE WITH ONE OF SEVERAL
BANK MARKET MAKERS. AS A RESULT, FXCM DOES NOT PROFIT WHEN YOU LOSE
MONEY ON A TRADE. RATHER, FXCM IS COMPENSATED BY MARKING UP THE PRICE
IT RECEIVES FROM THE BANK MARKET MAKER.

IN SOME CIRCUMSTANCES FXCM MAY ELECT TO REMOVE YOU FROM THE
“NO DEALING DESK” MODEL. FXCM WILL NOTIFY YOU AT THE TIME THAT IT DOES SO.
IN SUCH A SITUATION, YOU SHOULD BE AWARE THAT FXCM MAY MAKE MORE MONEY IF
THE MARKET MOVES AGAINST YOU. ADDITIONALLY, SINCE FXCM ACTS AS THE BUYER OR
SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADING
RECOMMENDATIONS YOU RECEIVE FROM ANY OF FXCM’S REFERRING BROKERS.
FXCM ITSELF DOES NOT PROVIDE INDIVIDUALIZED-CLIENT TRADING RECOMMENDATIONS.

For more information on No Dealing Desk, please visit our page at
http://www.fxcm.com/execution-advantage.jsp.

FXCM is committed to offering you excellent execution, easy accessibility,
and exceptional client service—with live support 24 hours a day, 7 days a
week. If you have any questions, please call one of our
currency specialists, who are available 24 hours a day, at 888-503-6739,
or e-mail us at [color=#0066cc][email protected][/color].

We look forward to serving you.

Best regards,

FXCM
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005
1-888-50-FOREX (36739)
[color=#0066cc][email protected][/color]
www.fxcm.com
  • #26
  • Aug 6, 2008 10:53am Aug 6, 2008 10:53am
"With so
many price providers competing for our trading volume, spreads
are tight—even during market- moving news."

I think that may be false advertising because i can find examples which show that isn't the case.

Anyways need a real legal advise to see if this deserves review.
  • #27
  • Aug 6, 2008 11:11am Aug 6, 2008 11:11am
low spreads are bull biscuit anyway, since they've introduced their NEW "1/10 pip" spread, the bid/ask price have been swinging around wildly, and when you try to place a market order, no matter if the price moved 1/10 pip in your favour or 1/10 pip against your favour, your order gets rejected, so the only way to get in, is either get in "at best price" which is suicide, or try your luck with 1pip market range, which effectively increases your spread by at least 1 pip if you're lucky, so talk about tight spreads, yeah right! Wait till you try to get in the market!
  • #28
  • Aug 6, 2008 11:49am Aug 6, 2008 11:49am
I just recently took a 105-pip profit from their micro account, and I got $964 for 1 standard lot (100k).

Do you guys think it's reasonable?
"People sometimes mistake luck with skill"
  • #29
  • Aug 6, 2008 2:19pm Aug 6, 2008 2:19pm
Quoting 20pips
I just recently took a 105-pip profit from their micro account, and I got $964 for 1 standard lot (100k).

Do you guys think it's reasonable?
Which pair were you trading?
  • #30
  • Aug 6, 2008 5:24pm Aug 6, 2008 5:24pm
again NFA'S best customer disclosure is:
FDMA---
THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. [MEMBER] IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. THE PRICES [MEMBER] OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE.

ALTHOUGH [MEMBER] IS THE COUNTERPARTY TO EACH OF YOUR TRADES, [MEMBER] LIMITS RISK TO ITSELF BY INSTANTANEOUSLY OFFSETTING THE TRADES AND POSITIONS IT ENTERS INTO WITH YOU WITH A BANK OR INSTITUTIONAL MARKET MAKER. AS A RESULT, [MEMBER] DOES NOT PROFIT WHEN YOU LOSE MONEY ON A TRADE. RATHER, [MEMBER] EARNS COMMISSIONS ON EACH TRADE IT ENTERS INTO WITH YOU. THE AMOUNT OF COMMISSIONS CHARGED IS DISCLOSED ON PAGE [x] OF THE CUSTOMER AGREEMENT.
or has the follwoing characteristics: (1) when a retail customer enters an order on the FDM's platform, the FDM automatically (without human intervention and without exception) enters into the same transaction with another counterparty, creating an offsetting position in its own name; (2) the FDM confirms to the retail customer the price at which the order has been executed, which is the same price at which the FDM entered into the offsetting position; (3) the FDM does not profit from any resulting market movement as its offsetting transaction will result in the same profit or loss as the retail customer's transaction; and (4) the FDM's sole manner of compensation is a commission charge on each trade.
http://www.nfa.futures.org/news/news...ArticleID=2104
Quoting mattrader
I am not sure if any of you have received email from FXCM explaining their No Deal Desk model, under what circumstance does it apply. but i would like to attach here again, which i have received it from FXCM on the 16th of July. Take note (full email):


==========================================================
FXCM
==========================================================

Dear Client:

At FXCM we believe that our No Dealing Desk model provides
you with the fairest, fastest, and most transparent execution:

()No restrictions. An ordinary dealing-desk broker,
acting as a market maker, may trade against a client. With No
Dealing Desk, we do not take a market position—eliminating any
conflict of interest or price manipulation. We fill your orders
from the best prices available to us from nine of the world’s
largest banks and most aggressive price providers.

()Our sheer trading volume, which exceeds $350 billion monthly,
ensures our close relationships with these global banks. With so
many price providers competing for our trading volume, spreads
are tight—even during market- moving news. Furthermore, these
price providers never see your stops, limits, or entry orders.

()Since the EUR/USD is nearing $1.60, now may be a good time to
take advantage of the tight spread on the pair. Do you need some
trading ideas?
That’s where DailyFX Plus can help: https://plus.dailyfx.com/tnews/loginForm.jsp

If your account needs replenishing, visit http://www.fxcm.com/depositing-funds.jsp

Note: since your account is set up with No Dealing Desk execution,
the National Futures Association (NFA) requires FXCM to provide
you with the following disclosure:

THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED
ON AN EXCHANGE. FXCM IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS
AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN
YOU BUY. THE PRICES FXCM OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE
AND FXCM MAY OFFER DIFFERENT PRICES TO DIFFERENT CLIENTS.

ALTHOUGH FXCM IS THE COUNTERPARTY TO EACH OF YOUR TRADES, IF YOUR
ACCOUNT(S) IS TO BE TRADED UNDER A “NO DEALING DESK” MODEL, FXCM LIMITS
RISK TO ITSELF BY IMMEDIATELY HEDGING (OFFSETTING) THE TRADES AND
POSITIONS IT ENTERS INTO WITH YOU ONE FOR ONE WITH ONE OF SEVERAL
BANK MARKET MAKERS. AS A RESULT, FXCM DOES NOT PROFIT WHEN YOU LOSE
MONEY ON A TRADE. RATHER, FXCM IS COMPENSATED BY MARKING UP THE PRICE
IT RECEIVES FROM THE BANK MARKET MAKER.

IN SOME CIRCUMSTANCES FXCM MAY ELECT TO REMOVE YOU FROM THE
“NO DEALING DESK” MODEL. FXCM WILL NOTIFY YOU AT THE TIME THAT IT DOES SO.
IN SUCH A SITUATION, YOU SHOULD BE AWARE THAT FXCM MAY MAKE MORE MONEY IF
THE MARKET MOVES AGAINST YOU. ADDITIONALLY, SINCE FXCM ACTS AS THE BUYER OR
SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADING
RECOMMENDATIONS YOU RECEIVE FROM ANY OF FXCM’S REFERRING BROKERS.
FXCM ITSELF DOES NOT PROVIDE INDIVIDUALIZED-CLIENT TRADING RECOMMENDATIONS.

For more information on No Dealing Desk, please visit our page at
http://www.fxcm.com/execution-advantage.jsp.

FXCM is committed to offering you excellent execution, easy accessibility,
and exceptional client service—with live support 24 hours a day, 7 days a
week. If you have any questions, please call one of our
currency specialists, who are available 24 hours a day, at 888-503-6739,
or e-mail us at [color=#0066cc][email protected][/color].

We look forward to serving you.

Best regards,

FXCM
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005
1-888-50-FOREX (36739)
[color=#0066cc][email protected][/color]
www.fxcm.com
  • #31
  • Aug 9, 2008 6:41am Aug 9, 2008 6:41am
Hi Jeffreyc01,

This is from the same page on NFA's site. The same page where you got your info above.

I have placed the important part (in my opinion) in Bold Red font.

---------------------
" In response to individual requests, NFA has approved alternative language to be used in lieu of the prescribed disclosure where the FDM's business model, unlike the typical counterparty relationship, has the following characteristics: (1) when a retail customer enters an order on the FDM's platform, the FDM automatically (without human intervention and without exception) enters into the same transaction with another counterparty, creating an offsetting position in its own name; (2) the FDM confirms to the retail customer the price at which the order has been executed, which is the same price at which the FDM entered into the offsetting position; (3) the FDM does not profit from any resulting market movement as its offsetting transaction will result in the same profit or loss as the retail customer's transaction; and (4) the FDM's sole manner of compensation is a commission charge on each trade."
----------------------

I believe this language can only be used in their advertising, or on their disclaimers when the condition in (4) is met.

So, the way I see it, the broker should not be able to claim that they don't make a profit by taking the opposite side of your trades -- unless the broker's SOLE MANNER OF COMPENSATION is commissions.

I suppose the "grey area" of this language is the last two words. It could be said that that refers to each trade that is placed according to a specific system that they have set up on their site.

The way they get around this problem without breaking the law and being sued and prosecuted is to set up some "non-dealing desk" that require that you have an account balance in the tens of thousands of dollars to be able to trade that way.

They know that the great majority of their customers are small players that won't be able to open that kind of account. But that still allows them to "legally" continue with their misleading advertising that suckers in the gullible newcomers to this "business" at which point they end up opening a regular account anyway. And there they are. Very soon broke. Same old same old.

In all fairness, they aren't really lying but they are attracting potential customers with the hype of "no dealing desk", "we don't trade against you", "true ecn broker", etc.

Remember last year? You were trading last year, weren't you? It was always "no commissions", "no cost trading" etc. etc. Then they conveniently avoided mentioning the unreasonable spreads, ridiculous slippage, requotes, and frozen servers at convenient times (almost always in their favor). You got to find out about that after you signed up for this awesome opportunity they offered. Oops.

That the brokers are trying to get rich at the newbies expense is well established, but my real question is why would "individual requests" cause the NFA to change the wording of the disclaimer -- the warning that helps to keep the small, new traders from being mislead? I think I know, but you form your own opinion. Maybe the fox is guarding the henhouse here.

This is just one more reason to believe what I've heard from professionals in the forex arena for the last two years: There are NO good forex brokers. Only the bad and the ugly.

Moral: Watch your money like a hawk. Caveat Emptor!

PD

  • #32
  • Oct 25, 2008 10:05pm Oct 25, 2008 10:05pm
on the fxstreet i found in their description that their business nature is the ecn. I thought that they are mm. i am confused with that.
  • #33
  • Oct 26, 2008 1:54pm Oct 26, 2008 1:54pm
PistolDave u r right on the money! They are all there to take your money. Some follow the rules and some dont. Personally(I had FXCM account for 3 years) I would never allow myself the indignity of being their customer again. Isnt it funny how I started to profit the minute I found a less crapy Broker?
FF = Forex Faggots
  • #34
  • Last Post: Oct 26, 2008 2:49pm Oct 26, 2008 2:49pm
What i dont understand is why FXCM is reserving for them the right to switch you from the NDD to DD ? If they are a true NDD and offsetting all their trades in the Interbank Market what is the point of switching you back to DD?
the only explanation i can find is that they are getting complains from their counterpart Bank if a client is to successfully trading the market and therefore they must switch the client to DD this actually buries their claim that the dont mind if you win money and only shows that they will in any case prefer their liquidity providers over you and also may have future implications regarding your ability to close a position in time and to the right price
also i find it very suspicious that the dont provide you with the name of your counterpart which again only shows you that FXCM takes the side of their liquidity providers and will act firstly to satisfy their liquidity providers i will strongly advice you to get an API and place your stops on the API so FXCM cant see your orders (work only with soft orders )this may help to a certain point but if you always place your stop away from your entry with about the same points they will find your practice and may give this information to their liquidity providers
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