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How does FxPro offer 'negative balance protection' on big lots

  • #41
  • May 5, 2015 7:18am May 5, 2015 7:18am
Can you share the direct link to Fxpro description on FCA website? You know, it's quite hard to follow your point as you don't provide any links.

I've tried to search myself but found FxPro only in some excel file http://www.fca.org.uk/static/documen...-provided.xlsx
  • #42
  • May 5, 2015 9:47am May 5, 2015 9:47am
Quoting Akciym
Can you share the direct link to Fxpro description on FCA website? You know, it's quite hard to follow your point as you don't provide any links. I've tried to search myself but found FxPro only in some excel file http://www.fca.org.uk/static/documen...-provided.xlsx
Here:
http://www.fsa.gov.uk/register/firmP....do?sid=228715
  • #43
  • May 6, 2015 5:13am May 6, 2015 5:13am
Quoting Akciym
Can you share the direct link to Fxpro description on FCA website? You know, it's quite hard to follow your point as you don't provide any links. I've tried to search myself but found FxPro only in some excel file http://www.fca.org.uk/static/documen...-provided.xlsx
http://files.shareholder.com/downloa...esentation.pdf see page 6 fxcm explain it. FXCM introducing a narrow spread, principal model for smaller clients, while operating within established risk parameters
  • #44
  • Last Post: May 7, 2015 1:07am May 7, 2015 1:07am
Quoting Akciym
Yeah Harris27, that seems strange. Actually, I have some doubts regarding FxPro being an agent broker. I've checked their client agreement (http://www.fxpro.co.uk/trading/products/legal), and there is clearly stated "6.1 FxPro is authorised by FCA to act as a matched Principal Broker". I have checked what a "Matched Principal Broker" is and it seems like that means that the Broker can act only as a counterparty to all clients deals. Here is the explanation http://www.investopedia.com/articles/03/012403.asp So what is this "Agent...
Dear Harris27,

Thank you for your enquiry into the FxPro execution model.

Firstly we would like to clarify how our model currently operates. FxPro is able to undertake an internal matching of the order flow generated, largely in part due to the volumes generated by our clients. This internalisation process is based on rigorous and detailed risk management techniques which are closely monitored and continuously evaluated by FxPro. In the event a position cannot be internally matched, FxPro will review the risks associated with the position and consequently hedge the position should this be required.

With regards to your concerns surrounding FxPro acting as a counterparty to your trades, kindly note that FxPro serves at all times as the sole counterparty to all of our clients’ trades, as is stated in our legal documentation which is available on our website (http://www.fxpro.co.uk/trading/products/legal), the reason being when sending trades to the market this is carried out using a Back-to-Back transaction process whereby the client trades with FxPro and FxPro carries out the matching transaction with our Liquidity Providers. This is the manner by which an Agent trade is carried out as it is the Broker, in this case FxPro, who has the relationship with the LPs and/ or PB and not every individual client of FxPro. This is very much a common market practice and there is nothing untoward about this behaviour.

If you require any further information please do not hesitate to ask, transparency if of the utmost importance to FxPro and we will gladly address any concerns you may have.

Kind Regards,
FxPro Team
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