Spreads? Or, Price Fixing?

What's the technical difference in Retail FX? Does anyone know? How might it impact you as a Retail Fx Trader? Are you aware of the differences between Retail Fx Broker spreads?

I've tossed together a really quick video that is one part "rant" and one part "informative," on the glaring differentiation between spreads at two brokers: FXCM and DCFX. I'm paid by neither to produce such videos, but I do find it rather interesting that such discrepancies in pricing exist, given the touts made by brokers such as "FXCM" to have some of the "lowest spreads in the industry."

Retail spread "fixing" via computer algorithm on proprietary "pricing engines" delivered to "Retail Traders" as camouflaged "Interbank Rates," have been one of biggest pet peeves since getting involved with Fx many years ago. So, I decided that I was long overdue for my small contribution to the well know facts about "Spread Fixing" in Retail Fx.

Enjoy the video, but I'd much rather that you actually get on the phone and start a massive "joint" complaint with your Broker about such matters, so that all "Retail" Traders can start enjoying what only a few platforms still have the integrity to offer.

Watch the video and then get angry enough to start a conversation with your Retail Broker about how to inject "fairness" into the Retail Fx Spread "game," for the benefit of all involved.

If one Broker can offer consistent low spreads (even through periods of so-called "low volatility") with lightening fast trade execution, then so can ALL Retail Fx establishments.

Get in the game and make change happen!

Regards,
iD

good points,i trade from uk and feel quite lucky after watching your video.
i use spread bet brokers,my spreads vary from 1 pip to 2.5 pips and im still complaining,after watching your video ,id best stop complaining .also i get filled very fast with very little re quotes.

i did try alpari,but the execution takes so long and also spread variance,so only use for demo trading new ideas.

interesting ,it does show how little control is out there,no wonder so many loose

Hi iDouble,

FXCM receives prices from 10+ liquidity providers and the best bid/ask price is automatically displayed on the trading platform along with FXCM’s pip mark-up (or commission if you will) unlike dealing desk brokers which can “fix” the price. Spreads will vary based on liquidity, and the rollover period you chose to use for your video is notorious for illiquidity, even causing some brokers to close trading during rollover period.

Anyone wanting to get further background on iDouble can review the following thread as "iDouble" aka "7thsignaltrader" aka "Tango 6 Alpha" has a history of trolling from forum to forum, a fact which other forum members have caught on to as well http://www.elitetrader.com/vb/showth...5&#post3582335

Jason

That the threadstarter highlighted such a period is a good, after you completed the information.
It would behoove any trader to know the typical periods spreads increase to challenge some methods' potential gains.
Thanks for this idea (as I'm on simulator).

The goal here is to get the Newbie Trader squared away and to make sure they don't get hurt by their Retail Forex Broker. I did not produce this particular video, though I do have a new video on FXCM Spreads coming soon.

In that same vein, I've come across another excellent video presentation by ScoonyG. His video sheds light on WHY all FX Retail Traders (Newbies in particular), need to do their homework BEFORE making a deposit at any Retail FX Broker.

In this case, once again, it is FXCM out of New York, receiving the spotlight, for closing positions on their MT4 Platform, but actually accounting for the same position on their TradeStation II platform, causing a negative imbalance for the trader and a permanent loss on two FX positions that WOULD have turned out to be net positive trades.

There are two (2) glaring problems with FXCM's behavior here:

1) The trader was NEVER informed that, if they elect to use the FXCM MT4 platform, that their position totals would be accounted against the FXCM TradeStation II platform, which can have a different price for closed positions, than the FXCM MT4 platform.

2) Instead of work to retain a customer, help educate the trader about FXCM "policy" (I call it behavior, because there is no CFTC/NFA rule that mandates this activity across multiple trading platforms that an Retail Broker may offer), FXCM decided to NOT reimburse its customer (the trader) and never even apologized to the trader for its own failure to disclose and inform the customer/trader, that any closed position on the MT4 platform, is subject to an accounting correction during the daily MT4 platform so-called "synchronization."

While the overblown spreads that FXCM offers its customers is highly egregious, uncalled for and tremendously shady, given the ability of its competitors to consistently offer spreads that are between 50% to 600%+ LOWER than FXCM spreads at any given time during a typical FX market session; the outright theft of customer funds by way of using the MT4 "daily synchronization process" as an excuse to re-count the level of closed positions such that they are in favor of FXCM and to the financial detriment of its customers, is one of the most unethical action that any Retail Forex Broker could take AGAINST its own customer.

When the word SCAM is used in the online Retail Forex Community, that word should be properly applied. There should be EVIDENCE of the scam that took place and there should be undeniable PROOF that a scam actually did occur. In the case of this FXCM Customer, there is no doubt as to either.

To be forewarned is to be forearmed. Please be educated by the video, offended at the practice and motivated enough to do something about it, if and/or when it happens to you - up to and including the filing of a A Civil Action against ANY Retail Forex Broker, who engages in such behavior. At the very least, if ANY Retail Forex Broker is found engaging in this type of behavior, please contact the NFA/CFTC and file a complaint - pending a Civil Action against the Broker.

Wrong sub-forum. Deleting.

fxcm is no longer a market maker

The Newbie Educational Series continues.

In this course, we present a "silent" video showing exactly HOW a Retail Bucket Shop can manipulate the core price that arrives at your platform. Unfortunately, once again, the culprit just happens to be FXCM (sorry, guys). This video was produced by Boonyrabba at YouTube.com.

Before looking at this video, the Newbie Forex Trader needs to understand a few things. Retail Forex 101: Retail Brokers and Retail Intermediaries are all sharing basically the same LPs (Liquidity Providers, Liquidity Partners). Also, you should know that Retail Forex is OTC (Over-The-Counter) and the most important component of that fact to you, should be the realization that there is no Central Clearing for transactions and there is no audit trail for what the Exchange Based Markets call, Price & Time. Essentially, when you trade the Retail Forex Market, you are literally trading "on" your Intermediaries back-end server - literally in their office. That's as far as your Bid, or Ask goes in Retail FX.

This means that in order to have a greater change at seeing long-term success as a Retail Trader, you MUST insure that you are trading with a "reputable source," and one that is regulated AND chartered. One would think that after becoming a Public Corporation, that everything done in the public view would rise above board. That's just not the case with FXCM. In their case, old habits die very hard.

You've seen two videos now (in an attempt to help the Newbie FX Trader understand what they are dealing with when making a deposit with a Retail Forex Broker) that demonstrated clearly how a Retail FX Broker can manipulate their Spread. You've also just seen a new video that clearly demonstrates the unethical practice that some Retail FX Brokers use to close out your position on one platform, but credit your account based on the closing price on a different platform that is to their advantage.

Now, in this video, we'll take a look at how when a Retail FX Broker is NOT manipulating their Spread, they just might be manipulating their Core Price. The result is that the Trader will sometimes never see the prices that Retail Traders are seeing on their trading platforms, not just by 1-5 pips, but sometimes by as many as 10-20 pips or more! That is huge Core Price Manipulation and you will witness that with your own eyes, in this following video.

This is for the education of Newbie FX Traders and for the edification of all FX traders who care about such topics.

Be educated by this. Be informed by this. And, if you find yourself the victim of this kind of unethical and unprincipled Retail Forex Broker behavior, then also find yourself outraged by this, to the point of actually doing something about it - either through the NFA, CFTC, or the Civil Courts.

Notice that the Spreads FXCM deliver to the desktop in this video are outstanding! The absolute best spreads I have ever seen from an FXCM Trading Platform, in the the Retail environment. But, that is NOT what this video is all about. This video is about the lag in the Core Pricing that arrives to the desktop, which is clearly NOT a function of some kind of end-user network malfunction, network bandwidth problem, or any of the other excuses that FXCM and other Retail Forex Brokers rely upon in their Client Agreement.

This video shows that without question, FXCM delivers outstandingly good spreads, and when they do, they ALSO input a heavy drag on their Core Pricing, which causes their entire platform to lag the rest of the OTC Retail Forex Market.

Hello Traders,

For those of you that do not know, I've been trading both Stock Options and Currency Pairs for the past 10 years. I've grown from private Retail Trader, to private Institutional Trader. I trade ONLY my the capital within my own firm and I do not solicit the funds of others. I operate a closed fund that engages the FX markets on a daily basis, through the FXAll trading platform.

When the initial spread challenge video was posted on several trading forums in the Retail Forex Forum community, representative "Jason Rogers," of FXCM Inc., responded by saying that the video depicted the differential in spreads between FXCM and DCFX, during a time of day when volatility was "notoriously low." The suggestion was that if the video had been taken at an earlier time when volume was higher, that the differential in spreads between FXCM and DCFX, would not be so great.

As this video will show, as it turns out, during times of "normal volatility," the spread differential between FXCM and DCFX actually increased not decreased, to my surprise. This video highlights the increase in FXCM spreads relative to its competition and it further highlights the need for New FX Traders to be fully aware of what's going on relative to the price they pay for accessing the Retail Forex Market through ANY Retail Forex Broker, not just FXCM.

I'm now working on the private research team at CollaborativeFx, and our mission is to determine the viability of converting my Excel based prototype trading system, through an OOP environment, based on the performance of a fairly complex lower Time Frame Bot design (the current prototype does not have access to lower time frame data).

The CollaborativeFx (after it reopens) will primarily be a pure proprietary research site that is non-commercial to the core. There's no advertising because there's to sell. So, vendors won't be interested in a pure research site. We will also make some of our results available to the general public. And, there will also be a limited discussion forum for the sole purpose Researching Automated Trading Systems, and then discussing how individuals might think about organizing their thoughts with respect to developing their own system.

One of the other things we will do, is hopefully shed some light on the Retail Forex Trading Business as whole, and to help inform traders about the pitfalls that they might encounter along the way in dealing with such firms. If you are just starting out in Fx and you do not have ample start-up capital, then you will have very few choices when it comes to who you use as your Retail Forex Broker. Nonetheless, you should understand what you are dealing with, BEFORE you get involved and open an account with ANY Retail Forex Intermediary.

This video is early glimpse into the kinds of things that we tend to bring out into the open at the CollaborativeFx in our free to the public video library. For now, you will have to watch these videos hosted by YouTube.

Cheers and very successful trading to you all!

NOTE: The video has just been uploaded to YouTube. You may have to wait several minutes before the video is available for viewing, as YouTube must finish processing the video file.
--------------------

FXCM -vs- DCFX Spread Challenge II:

i get the feeling you are a whinger
.

you need help

Really doesn't matter if iDouble is a SUPERTroll. The Info is valid - FXCM has a history of being against traders and not simply a neutral party. There have been many attempts to expose them but in spite of NFA fines, lawsuits and other issues it appears they JUST WONT CHANGE!! I guess our outcry's are just the cost of doing business to them. I've traded with them in the past and it was a horrible experience.

I hoped they would change since they have the size be a mini-exchange but it seems like its a lost hope. Its just more profitable to screw us retail traders since the majority will blow their accounts anyway and drop out of forex. The biggest MarketMakers in retail fx are just baaaad. Namely FXCM, Forex.com and IBFX. Too bad, its just a shame that Dodd-Frank doesnt let us trade outside of USA. Maybe if we could we would be able to trade Integral spreads with USA brokers but since we're denied OUR BROKERS get those spreads and just pass them to us with a HEFTY markup (and in spite of that they STILL screw us - Grrrrr!! )

I get the feeling iDouble aka JetTrader aka WaveTop aka TradeVector can't get over blowing up his FXCM account.

You posted this on YouTube and I responded with a correction of this statement, explaining why they can't be anything other than a Market Maker for their Private LP.

If you think your trades are getting anywhere near the real Interbank market, you are highly confused about the distinctions between Retail and Institutional FX.

I've got some stuff over on T2W that explains in greater detail, and I use one of the Triennial BIS reports to counter Jason's fictional argument and to demonstrate WHY FXCM is a typical Bucket Shop.

In order for these Retail Buckets to not be making a market, they would need to carry you to the "real" market. When and where do they ever do that? Can you explain to me how your 1 lot deal ever sees the light of day on the HSBC DOM? Can you tell us how your 10 lot deal just got filled against Mellon Bank of New York? Can you explain to me when Standard Charter Bank became interested in your "micro lot" deal coming through the FXCM deal flow?

My goodness! What do you think "retail fx" really means?

Is that a reply to the content within the video, or is that the limit of your knowledge of the business?

If you want further background on iDouble, then why not simply show them the threads that actually have something to do with trading? This is what makes your response so incredibly transparent. You throw up a line about having "10 liquidity providers," yet you never tell the Nube that their position never sees the light of day on the real Interbank market, yet you sell the Nube on the idea that they are actually trading the real Interbank market.

You have offered nothing in the way of any explanation regarding the SECOND video that clearly shows an earlier time frame, where your spreads were as much as 600% higher than DCFX? Yet, you somehow think that posting a link to a whack'O stalker online, who's done nothing more than pull his own pants down in full public view by making nothing more than insinuations without proof of anything he claims, is somehow going to enlighten people about who I am?

Here's who I am. Over $300k net in less than 72 hours, using slightly more than $400k (cost basis) trading at over 87% accuracy to a specified and utilizing a simultaneous 17 pair trading profile:

http://www.trade2win.com/boards/fore...ml#post1051638


Here's who I am. I took you to task on the notion that FXCM was anything more than a Bucket Shop and I exposed the lie that somehow the liquidity being provided to FXCM customers, are in fact representative of Interbank liquidity, by showing the differential between the total number of transactions per year according to the BIS Report (for the six major currencies) and the level of liquidity that FXCM offers on a daily basis to its customers. I did this by way of derivation, using the Max Lot Per Trade Limitation that FXCM places on its Customers and the reasoning that FXCM gives for having such a Maximum Lot Per Trade Limitation. The very fact that such limitations even exist, is proof positive that FXCM DOES NOT carry its customers to the real Interbank market.

Your proprietary liquidity pool might indeed contain "some" Interbank players - but how do we know? You refuse to Publish their names! What are you so afraid of? DCFX, plasters their Liquidity Providers all over their website as "Partners." Why does FXCM refuse to publish this information? I asked you that question years ago, and you never answered the question.

If you want to know more about my background, why not simply ask? I've had three (3) successful Professional careers. Being a Trader is my third career, Jason. How many successful "Professional" careers have you had?

http://www.trade2win.com/boards/fore...ml#post1070464

Recall? You started this thread because I called FXCM on the carpet for its marketing tactics and claims of lowest spreads in the industry. How could you forget to post this link? These links contain information about either Trading, or the Business of Trading and they all contain either my direct experience, or they contain my live trades.

While you are posting old links, why not go and recover my old TurbineTrader Trade Journal on DailyFX? You remember that journal don't you, Jason? It is the one that had 21 trades that were better than 90% accurate to a 35 pip daily target - recall? That thread got DELETED. Why? Why delete a trade journal that was highly successful, while leaving useless threads such as Jack'O's "House of Pain and Pleasure?" Why would FXCM support a con artist such as Jack'O? He got arrested and charged with fraud, remember? Remember how I took him on for editing his trades after the fact, inside his own thread?

Where is the highly accurate DailyFX TurbineTrader Trade Journal, Jason?

That's who I am. Post links to things that have something to do with (oh, shall we say) "Trading." That's what I do for a living. Do you trade for a living, Jason? Or, do you just cut and paste old PR statements for FXCM?

I suppose you have proof of this?

Of course, not. Clueless people don't have to prove anything. All they have to do is post obscure links without having the slightest idea what they are doing, or why they are doing it. Somebody told them to and that's enough for the shallow minded.

Look, pal. I no longer trade Retail. I'm not posting this stuff for my benefit. I'm posting it for the Nube who can't see through the fog that Bucket Shops spew in their marketing campaigns. And, I do it precisely because I know that clueless individuals (such as yourself) who do not understand where they are trading, or why they are trading there, won't ever offer the Nube anything worthy of there time or attention when it comes to helping them get out of Retail Hell.

So, who is telling the truth?

Call DBFX and get FXCM?

The Truth About the Relationship between DBFX and FXCM Finally Revealed

(a two [2] part documented video that includes an actual phone call to FXCM)

How many former DBFX clients, customers and traders realized that FXCM actually had physical access to their DBFX account information? This video finally nails the proof to the wall, that both FXCM and DBFX lied to the public about their so-called "White Label Only" relationship, as well as who had access to the private custom data and information, derived by traders who funded trading accounts with DBFX.

This video is further exposition and proof of the "Bucket Shop Mentality" of Retail Forex Brokers, Intermediaries, Market Makers, and FCMs who lie to their customers by placing their private information into third-party hands without Customer approved and/or direct knowledge.

This was a major violation of trust. Both FXCM and DBFX share in the responsibility for their unethical behavior and their improper business practices. The former dbFX Client Accounts were supposed to have been made available to Forex.com, a Gain Capital Holdings Inc., operation in Retail Forex. dbFX, NEVER sent to its clients, any documentation that named "FXCM" as the alternative "roll-over" Broker during the period where dbFX was engaged in winding down its U.S. Retail Forex operations.

Does Gain Capital (Forex.com) know that FXCM was servicing the clients of dbFX, even through the date of final dissolution of the U.S. dbFX operation? Just how deep does the rabbit hole go? And, what OTHER information about its clients/customers, did dbFX reveal and/or release to FXCM Incorporated, WITHOUT prior consent and/or authorization of the dbFX "client?"

Both FXCM and the former Deutsche Bank owned "dbFX," made public the status of their relationship and confirmed in numerous reports of various kinds, that the only connection between them, was the licensing agreement that allowed dbFX to use the FXCM Trading Station II, in a separate and distinct business that did not include back-office ties of any kind, whatsoever.

This video clearly demonstrates all previous statements of full autonomy by both FXCM and dbFX, to all at once be false and untrue. The lies told by both the former dbFX and the current FXCM, are highlighted in this video by way of a telephone call that exposes the fact that dbFX had previously published and documented business telephone numbers for their own Client Services delivery, that were actually managed and directly serviced by FXCM employees out of the FXCM New York office.

Trading the currency markets can be difficult enough. Trading an already difficult market with an unethical and unprincipled Retail Forex Bucket Shop, could easily mean the difference between long-term success as a Trader and imminent failure.

This video is for educational purposes and it comes with the intent to inform those seeking the truth about the Retail Forex Intermediary known as FXCM Incorporated. FXCM Incorporated, is an NYSE traded company and has a fiduciary responsibility to its shareholders, customers and its clients.

Is there any response forthcoming at all, from the designated FXCM Internet Public Relations Representative, Jason Rogers, regarding the facts and/or substance contained within the following video?

This is a Two Part video.

Call DBFX Get FXCM: Part I

Inserted Video

Call DBFX Get FXCM: Part II

Is that what the videos show? Or, do the videos show something completely different?

BTW - it takes longer than 5.7 minutes to watch a near 10 minute video. Just FYI.