FXCM Takes on Leading CFD Providers: Offering Forex, Stock Indices & Commodity CFDs

London, 28 August 2009  FXCM Ltd. (www.fxcm.co.uk), a leader in the retail forex business will now offer a CFD product focusing on forex, global stock indices, oil, and precious metals.
Key features of online CFD trading with FXCM include:

1. No re-quotes
2. Competitive pricing
3. No commissions*
4. Generous leverage†
5. Single position accounts with hedging capabilities
6. Benefits from dividends
7. Guaranteed no deficit account balance as a result of trading with no extra fee

By trading CFDs with FXCM, retail clients benefit from FXCM’s close banking relationships with ten of the largest and most aggressive price providers who supply clients with large pools of liquidity and highly competitive spreads, even during market-moving news events. Furthermore, FXCM believes that the new index, commodity, and precious metal CFD instruments will complement their existing forex business and appeal to more retail clients globally, enabling them to trade a range of products from a single trading account.

FXCM executes your trades with no re-quotes. Some CFD brokers trade against their clients and will re-quote in order to make money on your trades, which creates a conflict of interest. FXCM will not interfere in your trading by re-quoting your trades.

Brian Griffin, Executive Director for CFDs at FXCM says:
“FXCM has some of the best people in the industry and feel that it is only a matter of time before FXCM claims its place as a significant provider in the global CFD industry.

Everything we do at FXCM is driven by client demand. Our clients have long asked to apply the no re-quote business logic we adopted for our award winning forex service to the index, oil, and metal CFD market-place.

This is what we have doneno re-quotes for our CFD products. I believe we have created the industry’s fairest retail trading platform. We welcome all clients who are frustrated with their current forex and CFD provider to give us a try.”

Open a free practice account and begin trading CFD’s with FXCM Ltd. http://www.fxcm.co.uk/free-forex-accounts.jsp
For further information on CFD market news and analysis please visit FXCM’s free news Web site www.CFDTrading.com.

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FXCM Holdings LLC Facts

As of June 2009

1. FXCM Holdings LLC has over $100 million in capital
2. More than 150,000 live accounts trade on platforms offered by FXCM
3. An average of $365 billion in notional volume is traded each month on platforms offered by FXCM.
4. More than $600 million in customer funds trading on platforms offered by FXCM

Risk Disclaimer:
*FXCM is compensated through the bid/ask spread except where otherwise noted. Please note, commission charges apply for certain classes of non-standard accounts such as Active Trader.
†Without proper risk management, a high degree of leverage can lead to large losses as well as gains.

Leveraged Contracts for Difference (CFD) and foreign exchange (Forex) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade CFDs and/or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with CFD and forex trading, and seek advice from an independent financial advisor if you have any doubts.

Currently, residents of the United States are not permitted to trade CFD instruments offered by FXCM.

I assume you cannot offer this product in the US due to regulations?

Hi InfinitySL,

That is correct. At the moment only available to non-US residents.

Jason

".....This is what we have doneno re-quotes for our CFD products. I believe we have created the industry’s fairest retail trading platform...."

Micro, mini or Standard lots on Oil and S&P ?

is anyone aware of brokers who do not charge/pay dividends on Indices such as FTSE100, CAC40, DJIA, S&P500 etc...

Hello Jason


1 - Is this true?


2 - Forex liquidity providers are GLOBAL Banks
could you tell me who are the CFDs liquidity providers ?
and what about FXCM CFDs liquidity provides ?


3 - if I trade CFDs and have lost , does fxcm gain in this case ? please explain this


thank you

Hi @999,

FXCM offers No Dealing Desk execution for forex transactions. CFD's are different, since FXCM does make the market for oil, gold, and stock indices as explained on our website and additional information in the FAQ's.

When we originally launched CFD's the goal was to offer it via No Dealing Desk, but our clients want to place trades in a orders sizes that are too small to be hedged one-for-one on an exchange. The only way for us to accommodate this smaller trade size currently is to offer it as a market maker. If there is ever a way in the future for us offer CFD trading on NDD, then we will look to do it. Traders may remember that when FXCM first offered microlot forex trading on FXCM Micro, it was through a dealing desk. That changed after a few years, when enough banks began to offer micro lot liquidity for us to offer NDD forex execution to FXCM Micro accounts.

When a broker is taking the market risk on the other side of your trades, there is the potential for a conflict of interest. That is because a loss for you could result in a profit for the broker or vice versa. FXCM seeks to provide the best trading environment possible by offering trading in CFD products that have the most liquid underlying markets for us to offset our risk. This is why we are able to offer CFD trading with No Re-quotes.

For CFD products such as gold, our liquidity providers are many of the same banks that provide liquidity for currencies. In fact at many large banks, the gold desk and the forex desk are one and the same. FXCM gets liquidity for CFD's on stock indices from the relevant futures market. The underlying product for each CFD we offer can be found in the CFD FAQ's.

Jason