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FXCM Discussion

  • #3,201
  • Dec 4, 2012 7:47pm Dec 4, 2012 7:47pm
Quoting mfoste1
It is your "flagship" trading station that is giving clients issues. I'm real and I'm going to be completely honest with you and I don't care because this is your job and you have to deal with it, otherwise go work for a reputable company with ethical practices and sound technology. FXCMs software is a fucking disgrace. FXCM does NOT invest enough in technology to keep the company ahead of their competitors. The problem from this stems from upper management in the company being so incredible obtuse, inept and disconnected from reality the company...
Y U NO describe what the problem actually is?

what bugs?

bugs bunny?
  • #3,202
  • Dec 5, 2012 6:28am Dec 5, 2012 6:28am
Anybody have an issue with FXCM putting a 20pt spread on SP500 this afternoon?

I got stopped out of 2 positions on this and had to send in a claim.
I wonder how they will treat un realized profits.
Does anybody have experience with this?
  • #3,203
  • Dec 5, 2012 8:38am Dec 5, 2012 8:38am
Quoting wendigo
hi i was wondering what the difference in execution is between dd and ndd i like the spreads on dd but dont want bad execution as im a break out trader

WENDIGO
Hi Wendigo,

Our DD execution actually uses the FXCM NDD price feed as a base to derive prices and execute orders. This means that our dealing desk execution shares important features with our NDD execution such as no re-quotes and no restrictions on stops and limits.

When FXCM first announced the launch of our new lower spreads, we had a good discussion in this thread related to your question. You can find the full discussion here.

Jason
  • #3,204
  • Dec 5, 2012 9:11am Dec 5, 2012 9:11am
For Jason Rogers
FXCM Representative


I just put answer to your questions in this thread:

http://www.forexfactory.com/showthre...=1#post6265790
best ragards
Hanzov
  • #3,205
  • Dec 5, 2012 5:14pm Dec 5, 2012 5:14pm
Quoting peetje
Anybody have an issue with FXCM putting a 20pt spread on SP500 this afternoon?

I got stopped out of 2 positions on this and had to send in a claim.
I wonder how they will treat un realized profits.
Does anybody have experience with this?
Hi Peetje,

You did the right thing by sending in a claim. The Trade Audit Committee will review your case and follow up with you after they investigate.

Jason
  • #3,206
  • Dec 5, 2012 5:27pm Dec 5, 2012 5:27pm
Quoting hanzov
For Jason Rogers
FXCM Representative


I just put answer to your questions in this thread:

http://www.forexfactory.com/showthre...=1#post6265790
best ragards
Hanzov
Hi Oleg,

Thanks for providing this information. Since you mentioned that your internet connection is sometimes low quality and interrupted by your provider in Ukraine, I think a Virtual Private Server (VPS) might be the best long term solution. Using a VPS is like running your MT4 platform on a virtual computer in the US. In fact, there is a VPS provider that's in the exact same location as our MT4 servers. This would give you the best possible connection to our servers and also allow you to run your MT4 platform 24 hours a day even when your own computer is turned off or loses internet connection.

You can get this VPS service for free if your FXCM account balance is at least $5000. Otherwise the VPS costs $30 per month. Here's a link with details.

Jason
  • #3,207
  • Dec 5, 2012 5:42pm Dec 5, 2012 5:42pm
i don't have 500k yet but im getting there can you tell me in more detail how Custodial Trusts - Active Trader account holders with more than $500,000 in equity may request that FXCM establish custodial trust accounts in their names at Bank of America. how is my money more safe and if it is 100% safe if you guys go out of business
  • #3,208
  • Edited 8:25pm Dec 5, 2012 6:01pm | Edited 8:25pm
Quoting traderathome
FXCM (NYC) Broker Comment:

An interesting thing just happened. The FXCM spread on EU went from 2+ pips to over 5 pips, then suddenly over 10 pips as the price spiked down. Now, was that FXCM spiking down the price simply by increasing the spread so it could run stops on longs and maybe trigger short pending orders, so it could take a long position? Waiting to see what PA follows. If PA goes up, then I will believe this was the situation. If price goes down, then I'll have to cogitate more on this to try and understand why that peculiar set of...
Quoting Jason Rogers
HI Traderathome,

Thanks for your comment. It's important to note that on our No Dealing Desk forex execution, FXCM doesn't determine the prices our clients trade on, and we don't make money from client losses. Our liquidity providers send us prices. We simply pass the best bid and ask onto our clients, and add a pip markup for our profit.

In regards to the price spike you saw, I notice your post was made right after 5pm New York time today. That's when trade rollover occurs. At 5pm every weekday trades are rolled from one trading day to the...
FXCM (NYC) Broker Comment:

Hi Jason,

Thank you for your reply. I took your link ride but ended up still with these questions. The spike down in question was not high volume, so why the sudden spread rise to over 10 pips in an "inactive" market where your spreads are typical, as they were before and after this sudden occurrance? This was not just a matter of a liquidity provider widening spreads for an "instant" of "computing rollover interest and adjusting accounts accordingly", because there were actual trades being executed during the moments of this event! And why is the FXCM price in that first time frame of the new day still exhibiting a lower low as a result of that event trading, than the other NYC forex brokers exhibit for the same time frame? These fundamental questions remain unanswered.

And you do function as a dealing desk broker. The following being taken from a footnote at the FXCM website (http://www.fxcm.com/advantages/forex...0000000MXcNAAW).....
"In the dealing desk model, FXCM acts as a market marker, setting the prices and spreads on which you trade. In this execution model, FXCM is on the other side of your trades. We can see your stops and limits and we profit from your trading losses."

And therefore, Jason, the question remains as to if FXCM intentionally increases spreads to reach prices they want to reach, in order to trigger pending client orders so FXCM can take positions on the opposite side, and/or in order to hit client stops on existing opposite side trades so FXCM can use that liquidity to get even more such positions. In all fairness to FXCM, maybe it does not actually increase the spread. Maybe the liquidity providing bank does, during rollover accounting, as you intimated. Maybe FXCM, knowing when this happens, just stands ready like a vulture to take advantage of the suddenly increased spread to trade as mentioned against it's client accounts during those brief moments. Either way, this would suggest an intent by FXCM to actively go after client money, rather than passively benefitting from client trading.

-tah
  • #3,209
  • Dec 5, 2012 10:55pm Dec 5, 2012 10:55pm
Quoting traderathome
FXCM (NYC) Broker Comment:

Hi Jason,

Thank you for your reply. I took your link ride but ended up still with these questions. The spike down in question was not high volume, so why the sudden spread rise to over 10 pips in an "inactive" market where your spreads are typical, as they were before and after this sudden occurrance? This was not just a matter of a liquidity provider widening spreads for an "instant" of "computing rollover interest and adjusting accounts accordingly", because there were actual trades being executed during the...

http://www.fxcm.com/advantages/forex...ecution-types/

You may not be under the Dealing Desk execution, to my knowledge most clients operate under their NDD model. In these instances FXCM actually stand to make a loss if banks widen out as they will not earn much from hedging the position back into the market.
  • #3,210
  • Dec 6, 2012 12:03am Dec 6, 2012 12:03am
Quoting Jason Rogers
Hi Oleg,

Thanks for providing this information. Since you mentioned that your internet connection is sometimes low quality and interrupted by your provider in Ukraine, I think a Virtual Private Server (VPS) might be the best long term solution. Using a VPS is like running your MT4 platform on a virtual computer in the US. In fact, there is a VPS provider that's in the exact same location as our MT4 servers. This would give you the best possible connection to our servers and also allow you to run your MT4 platform 24 hours a day even when your own...
Hi Jason,
Thanks, I know about VPS and there is a n optimal solution. But before I have design and preliminary test the stable EA. Now I am still not satisfied by my own one. Because no sense to invest in account and VPS without stable and profitable EA.
P.S. Is any demo VPS ( with limitations, may be) available without investing capital into account value?
Best regards
Oleg
  • #3,211
  • Dec 6, 2012 12:57am Dec 6, 2012 12:57am
Quoting mfoste1
It is your "flagship" trading station that is giving clients issues. I'm real and I'm going to be completely honest with you and I don't care because this is your job and you have to deal with it, otherwise go work for a reputable company with ethical practices and sound technology. FXCMs software is a fucking disgrace. FXCM does NOT invest enough in technology to keep the company ahead of their competitors. The problem from this stems from upper management in the company being so incredible obtuse, inept and disconnected from reality the company...
Can you post here what bugs you experienced?
  • #3,212
  • Dec 6, 2012 1:24am Dec 6, 2012 1:24am
i don't have 500k yet but im getting there can you tell me in more detail how Custodial Trusts - Active Trader account holders with more than $500,000 in equity may request that FXCM establish custodial trust accounts in their names at Bank of America. how is my money more safe and if it is 100% safe if you guys go out of business
  • #3,213
  • Dec 6, 2012 6:40pm Dec 6, 2012 6:40pm
Hi Tah,

Thanks for your reply.

Quoting traderathome
The spike down in question was not high volume, so why the sudden spread rise to over 10 pips in an "inactive" market where your spreads are typical, as they were before and after this sudden occurrance? This was not just a matter of a liquidity provider widening spreads for an "instant" of "computing rollover interest and adjusting accounts accordingly", because there were actual trades being executed during the moments of this event! And why is the FXCM price in that first time frame of the new day still exhibiting a lower low as a result...
You're right about 5pm New York time not being a period of high trading volume. That's precisely why banks have designated that as the time to roll trades over from one day to the next, because they don't expect anyone to be trading then. The business day has just ended in New York and it's still a couple of hours before the new business day picks up in Asia.

Some banks stop quoting prices altogether, while others widen their spreads. That's what you see being reflected on our platform when the spreads widen at 5pm. The reason you see this reflected in the first time frame of the new day is because 5pm is both the end of one trading day and the start of the next. Therefore, the closing price at 5pm for the previous day will be the opening price at 5pm for the new day.

Quoting traderathome
And you do function as a dealing desk broker. The following being taken from a footnote at the FXCM website (http://www.fxcm.com/advantages/forex...0000000MXcNAAW).....
"In the dealing desk model, FXCM acts as a market marker, setting the prices and spreads on which you trade. In this execution model, FXCM is on the other side of your trades. We can see your stops and limits and we profit from your trading losses."

And therefore, Jason, the question remains as to if FXCM intentionally increases...
FXCM offers two types of forex execution: No Dealing Desk (NDD) and Dealing Desk (DD). Unless you specifically requested for your account to be set up on DD execution, which we only introduced in October, you account is set up on NDD execution. On NDD, we take the best bid and best ask prices from all of our liquidity providers, add a pip mark-up, and stream those prices to the platforms we provide. We don't profit from client losses under the NDD model, only from the pip markup. It's impossible for our liquidity providers to hunt your stop, because only the best price being quoted at any given time from the competing banks gets to offer our client orders, and the banks can't see where your stops are.

Even on our DD execution, we use the FXCM NDD price feed as a base to derive prices and execute orders. We simply reduce the pip markup to offer our clients a lower spread. So there's no question of us hunting your stop. Another reason to know it's not stop hunting is because it occurs at the exact same time everyday at 5pm New York time. Here's more info on our two execution options.

Jason
  • #3,214
  • Dec 6, 2012 7:15pm Dec 6, 2012 7:15pm
Quoting PoundTrader
i don't have 500k yet but im getting there can you tell me in more detail how Custodial Trusts - Active Trader account holders with more than $500,000 in equity may request that FXCM establish custodial trust accounts in their names at Bank of America. how is my money more safe and if it is 100% safe if you guys go out of business
Hi PT,

Great question. The benefit of having a custodial trust account in your name with Bank of America is that bank accounts in the US are FDIC insured. FXCM has been pushing for years for there to be similar insurance for individual forex accounts in the US, but currently none exists. That means if a forex broker in the US goes bankrupt, the money of that broker's clients would be at risk.

That means for those of us trading in the US, the financial strength of our forex broker is of utmost importance. As one of the few publicly-trade forex brokers (NYSE:FXCM), we are able to provide our clients with a level of financial transparency that is not possible with smaller privately held brokers.

Let me know if you'd like me to put you in touch with one of my colleagues who specializes in setting up these custodial trust accounts. Even if you're not ready yet, he can answer questions you have about the setup.

Jason
  • #3,215
  • Dec 6, 2012 7:16pm Dec 6, 2012 7:16pm
Quoting Jason Rogers
Hi Tah,

Thanks for your reply.



You're right about 5pm New York time not being a period of high trading volume. That's precisely why banks have designated that as the time to roll trades over from one day to the next, because they don't expect anyone to be trading then. The business day has just ended in New York and it's still a couple of hours before the new business day picks up in Asia.

Some banks stop quoting prices altogether, while others widen their spreads. That's what you see being reflected on our platform when the spreads widen...
Jason, thank you for continuing with this discussion, because while I have my concerns I still seek understanding. What remains unexplained is why trading occurred while the spread was in excess of ten pips. And this did not occur exactly at/after 5pm EST, but somewhat later. My post time signature was 5:07 pm EST, but it took me time to write it so likely the event was within the first several minutes of the new day, but not at the start of the new day. First the spread went to 5+ pips, stayed there, then popped to 10+ pips where the spike down in price occurred, then went back to 5+ pips, and finally back to "normal" in the 2+/- pips range. Since the 10+ pips/trading event was preceded by a 5+ pips timespan, which itself was after 5pm, this does not seem to be a factor of the rollover accounting task starting exactly at 5pm. And what about the trading during that 10+ pips period?

-tah
  • #3,216
  • Dec 6, 2012 7:18pm Dec 6, 2012 7:18pm
Quoting Julian_Ass
Can you post here what bugs you experienced?
Yes, if you provide specifics, I'll be happy to investigate this for you.

Jason
  • #3,217
  • Dec 6, 2012 7:24pm Dec 6, 2012 7:24pm
Quoting traderathome
Jason, thank you for continuing with this discussion, because while I have my concerns I still seek understanding. What remains unexplained is why trading occurred while the spread was in excess of ten pips. And this did not occur exactly at/after 5pm EST, but somewhat later. My post time signature was 5:07 pm EST, but it took me time to write it so likely the event was within the first several minutes of the new day, but not at the start of the new day. First the spread went to 5+ pips, stayed there, then popped to 10+ pips where the spike...
Hi Tah,

No problem at all. It's my pleasure to discuss this with you. Others have had this same question in the past. The wider spreads around rollover time can extend to a few minutes after 5pm. That's because it can take some banks that long to complete the rollover process which includes refreshing their servers for the new day. The spreads widen because many banks stop quoting prices, while the ones that do quote prices will widen their spreads. Trades can still execute at this time, because there are still some banks quoting prices.

Jason
  • #3,218
  • Dec 6, 2012 10:41pm Dec 6, 2012 10:41pm
To jason fxcm
Why at my trade ticket no 2660692 the lowest bid price at 15 minute time frame at 5 december 2012 13.30 - 1345 Gmt from Fxcm bid price trough trader interceptor 5 (i am using trader interceptor demo so not registered at FXCM as control)and mt 4 and TS 2 platform have different price. Usually this two platform always have exact price time to time.
At tradeinterceptor the lowest was 1697.08 and Mt 4 and ts 2 (which i have real account) have the same price 1696.90 so my Sl at 1696.95 was trigered,
My question is why at my trader interceptor that has the same price provider from Fxcm Xau /usd bid price and always has the same price time to time but at that particular
event (ticket no 2660692) the lowest price were different

Do you using double price or you have Stop Loss hunting practice in your company
  • #3,219
  • Dec 7, 2012 3:08am Dec 7, 2012 3:08am
Quoting Jason Rogers
Yes, if you provide specifics, I'll be happy to investigate this for you.

Jason
Yes, I want to see screenshots of these 'bugs" too.
  • #3,220
  • Dec 7, 2012 4:14am Dec 7, 2012 4:14am
Quoting agshue
To jason fxcm
Why at my trade ticket no 2660692 the lowest bid price at 15 minute time frame at 5 december 2012 13.30 - 1345 Gmt from Fxcm bid price trough trader interceptor 5 (i am using trader interceptor demo so not registered at FXCM as control)and mt 4 and TS 2 platform have different price. Usually this two platform always have exact price time to time.
At tradeinterceptor the lowest was 1697.08 and Mt 4 and ts 2 (which i have real account) have the same price 1696.90 so my Sl at 1696.95 was trigered,
My question is why at my trader interceptor...
I see the Spike down, they've been a pain this week got stopped out by 4 of them, of my 6 trades so I feel your pain dude.

I'm a Live Tradeinterceptor user and checked MT4 FXCM demo and TI and both have the same low of 1696.90 sorry. TI can be kinda buggy maybe demo is worse ??

I checked DAX for a spike against official DAX chart and sadly same spike which hit my SL to the pip, no SL hunting on FXCM's don't worry.

If I find any I'll be posting it here, do not worry.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
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