We recently added a corporate blog to FXCM.com and here is the most recent blog post:
I recommend that you take a look at the full map, as it lays out each step in the NDD process. The essential things to note are:
Every single forex trade made with FXCM through the NDD system is offset with a forex market maker, such as a global bank or financial institution. FXCM does not carry your position on its books.
All FXCM’s forex prices come from the best prices offered by these market makers. The price gets a markup from FXCM, and the result is displayed to you. So, when you click on a price to make an order, you are actually clicking on someone else’s price with our set markup on top. FXCM is not making its own forex prices.
FXCM doesn’t make the price, and every single order is offset with a third party market maker. The market makers filling your orders only see orders coming from FXCM. So the people making the prices and providing the execution don’t know who you are, what your trading style or record is, or where your stops are. FXCM automates it all by running everything through our advanced computer systems. This results in execution that is fast, efficient, and fair.
http://www.fxcm.com/fxcm-blog.jsp
By Sameer Bhopale, Chief Marketing Officer, FXCM
Ever since we released No Dealing Desk (NDD) forex execution back in 2007, it’s been a tough concept to visualize. I mean, my trading station doesn’t really look any different on No Dealing Desk. I still click to buy or sell, and it executes quickly. But once I click, where does that order go? Some far-away exotic land? Into the clouds? Where?
To help traders understand their orders, we created a map of No Dealing Desk forex trading execution.
http://media.dailyfx.com/illustratio..._Picture_5.png
I recommend that you take a look at the full map, as it lays out each step in the NDD process. The essential things to note are:
Every single forex trade made with FXCM through the NDD system is offset with a forex market maker, such as a global bank or financial institution. FXCM does not carry your position on its books.
All FXCM’s forex prices come from the best prices offered by these market makers. The price gets a markup from FXCM, and the result is displayed to you. So, when you click on a price to make an order, you are actually clicking on someone else’s price with our set markup on top. FXCM is not making its own forex prices.
FXCM doesn’t make the price, and every single order is offset with a third party market maker. The market makers filling your orders only see orders coming from FXCM. So the people making the prices and providing the execution don’t know who you are, what your trading style or record is, or where your stops are. FXCM automates it all by running everything through our advanced computer systems. This results in execution that is fast, efficient, and fair.
http://www.fxcm.com/fxcm-blog.jsp