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FXCM Discussion

Is Fxcm-UK acting or permitted to act as a Dealing Desk Market Maker or as a counterparty without informing it's trading clients ?

See the FCA in UK at https://register.fca.org.uk/ShPo_Fir...000000MfNCCAA3

In the Permissions section [Dealing in investments as principal and under subsection Limitations ]

it shows that FXCM has only got "Rights to or interests in (both)"

I am reliably informed that a true ECN or NDD broker (who is not permitted to be a counterparty) should have the FOLLOWING entry in this section of the FCA register:

  1. Limited Licence - matched principal broker

Unable to: (i) hold financial instruments for own account unless it meets the 'matched principal exemption conditions' as defined in the FSA's Glossary of defined expressions used in the FSA's Handbook and (ii) underwrite MiFID financial instruments and/or place MiFID financial instruments on a firm commitment basis

See also: https://en.wikipedia.org/wiki/Market...ents_Directive

and entry for Lmax https://register.fca.org.uk/ShPo_Fir...000000NMSxwAAH

do fxcm allowe Scalping
and whats the slippage
the spreads and commission please

Thanks
Quoting JohnTR
{quote} Hi Jason, Only 5 minutes ago I was on chat with Adam at FXCM and I asked him if I can open a Standard account with $2000. He told me the account opening minimum for standard account was $5000 , not $2000. I even showed him one of your web pages where it states that. Your statement and his seem to contradict eachother. Can you confirm to us now that we can open a standard account for $2000 ? Thanks John p.s sorry to see...
Be very careful opening an acount with fxcm.
Have requested an answer to the problem in the email below and fxcm refuse to answer or acknowledge me am getting reeady for the next step which will involve legal action
Hello Dion i sent you an email 2 days ago
RE:
Hi Colin,

Thank you for your email and continued interest in FXCM.
Please note that your existing trades will not be closed and re-opened as part of the transfer of your account to Halifax as you have mentioned. Rather, your trades will stay open, given they are on FXCM's servers, and will remain there throughout the transfer.
Your trades will only be closed down automatically if you fail to consent to the transfer by the due date, at which point your account will also be locked and you will be required to withdraw your funds.
Please re-read the email sent to you featuring the link to the consent form and information concerning the transfer for more information. If you have any further enquires, please feel free to reach out.


Best regards,

Dion Meogrossi
For some reason i seem to have missed your answer could you please confirm reciept of this email or not so as we can adress the matter of the missing $5000.00 dollars from the balance .
After trading with Tradestation with stocks, futures and options for many years I came to currency trading.
MT4 and all forex brokers, suck (compared to Tradestation). FXCM just sucks less.
If you have to trade forex spot, then FXCM is not a bad choice imo. MT4 though, is a disaster imo. Like a garage band, versus rock and roll of famer.
Quoting JohnTR
After trading with Tradestation with stocks, futures and options for many years I came to currency trading. MT4 and all forex brokers, suck (compared to Tradestation). FXCM just sucks less. If you have to trade forex spot, then FXCM is not a bad choice imo. MT4 though, is a disaster imo. Like a garage band, versus rock and roll of famer.
do u know any broker sucks even less then FXCM ?
Quoting sameerbiz
{quote} do u know any broker sucks even less then FXCM ?
If you are a US resident, you need to go offshore. It would be great if our government allowed us to trade with a UK or Australia regulated broker where our funds are insured and trading conditions are far superior, but they think it's best for us to trade with the lying, cheating, thieving US brokers. I've been offshore for over two years and trust my broker far more than I would any US broker.
Quoting sameerbiz
{quote} do u know any broker sucks even less then FXCM ?
Oanda is good but fxcm beats their commission. Those are the only two I myself would trust with my money. There could be others , I just don't know of any more. too many horror stories going around of others.
Really like the beta platform Jason. I've emailed a couple of suggestions.

Phil
  • Post #9,149
  • Quote
  • Edited Jun 14, 2016 11:37am Jun 13, 2016 6:07pm | Edited Jun 14, 2016 11:37am
Quoting JohnTR
{quote} Hi Jason, Only 5 minutes ago I was on chat with Adam at FXCM and I asked him if I can open a Standard account with $2000. He told me the account opening minimum for standard account was $5000 , not $2000. I even showed him one of your web pages where it states that. Your statement and his seem to contradict eachother. Can you confirm to us now that we can open a standard account for $2000 ? Thanks John p.s sorry to see...
Hi John,

Your forum profile mentions you live in the US. Note we recently increased the minimum to open a Standard account with FXCM US to $5000. While the help section of our US website is still in the process of being updated, you can see the new 5k minimum listed on our account opening page.

Quoting Hawkins
{quote} Just got an email from FXCM, the fine print states starting September 2016 all standard accounts below $4000 balance will receive a $10 monthly maintenance fee.
Hi Hawkins,

This monthly maintenance fee is related to the new Standard account opening minimum of 5k in the US. If you have a Standard account with FXCM US and maintain a balance of at least 4k, then the $10 monthly maintenance fee is waived. Note there is no monthly maintenance fee for Mini accounts. If your Standard account balance is below 4k, you can switch your account type to Mini for free.
quote=Jason Rogers;8977866]{quote} Hi John, Your forum profile mentions you live in the US. Note we recently increased the minimum to open a Standard account with FXCM US to $5000.[/quote]

So now all US clients under 5K instead of 2K will be subject to all the DD tricks and manipulation. It just keeps getting better for US clients. They should let the 3 remaining brokers just merge into one and create a complete monopoly. This way, you could really screw the traders without any competition. That would be great!!
Quoting Hawkins
{quote} I'm assuming it was an SEC mandate that brokers increase forex margin requirements by 50% and probably due to the Brexit? Is there any information about if this increase is only temporary and go back down next month (or sooner)? {image}
Quoting JohnTR
Thanks Hawkins!! Great info. Overall all I think it does help stabilize the broker, and therefore helps protect our own money, in the event of wild market swings.
The margin increases are related to Brexit. As you saw today, volatility is already picking up dramatically, and we're still 10 days away from the UK vote.

I expect we'll be able to lower margin requirements back to previous levels after Brexit volatility subsides, but we will have to consider the market conditions. For example, if the UK does vote to leave the EU, then volatility could remain high for an extended period.

The DailyFX research team has been hosting a series of webinars leading up to the Brexit vote and will conclude with a rally in the final week on June 21st.
Quoting JohnTR
I would think of the 10 per month as Insurance against the broker going under. It's almost a relief that forces account holders to step up. I mean, no body trades for kicks, we're all here to make it big, and that's more likely to happen with a well funded account. Not saying I like it, but that it is better for the broker and therefore better for the safety of my money. Ultimately better for my success.
Hi John,

You raise some good points. On our No Dealing Desk (NDD) model, we offset each of your orders one-for-one with the best prices from competing liquidity providers. That means FXCM profits from your trading volume, not your losses. We want you to be successful, so you will trade more with us. Statistics show accounts with a balance of at least $5000 are more profitable.

In regards to the safety of your funds, it's worth noting FXCM's strong regulatory capital position. As of May 6, 2016, the minimum regulatory capital requirement for our worldwide operations is $60 million. However, FXCM has regulatory capital of $167 million, a surplus of $107.2 million. Furthermore, the latest financial data from the CFTC show traders continue to have more money on deposit with FXCM than any other retail forex broker in the US.

Attached Image
Hey Jason, I posted this question in the NinjaTrader forum but does FXCM active trader account support IOC or FOK orders through NinjaTrader or at least through the API?

Does the demo account have the capability to see through to the live market order book? Meaning we could write NT software to determine what potential slippage will be based on order size?

Lastly do you guys offer any kind of rebate on NT lifetime license? Thanks.
Quoting knockroe
Is Fxcm-UK acting or permitted to act as a Dealing Desk Market Maker or as a counterparty without informing it's trading clients ?
Hi Knockroe,

FXCM believes in providing traders with transparency regarding the execution options we offer, so you have all the information you need to make the right decision and have an excellent trading experience that meets your expectations.

For Standard accounts and Active Trader accounts, we provide No Dealing Desk (NDD) forex execution. On the NDD model, we offset each client order one-for-one with the best prices from competing liquidity providers.

Attached Image (click to enlarge)
Click to Enlarge Name: liquidity-providers-logo-group-desktop.jpg Size: 157 KB


That means, we don't take the market risk on the side of client trades. Therefore, we don't profit from client losses, or lose from client profits. Furthermore, we would never switch a client from NDD execution without informing them.*

For Mini accounts, we provide dealing desk (DD) execution. On the DD model, we will face market risk as a result of entering into trades with clients. Because of this risk, FXCM needs to implement certain restrictions during news events.^

Additionally, we may take steps to mitigate the risk arising from market making more effectively by transferring your underlying account to our NDD offering. That means, we don't have to resort to the dealer intervention practices (re-quotes and excessive spread widening particularly during news events) which can occur with DD-only brokers, and you can have confidence in trading your FXCM account regardless of the account type you choose.

______________________________________________

* Mini accounts with equity greater than 20k are automatically converted to Standard accounts with NDD execution and a maximum of 100:1 leverage. Note that leverage magnifies gains and losses. For more information on how to use effective leverage, here's a DailyFX article: http://bit.ly/24EojEQ

^ The typical 2-5 pip minimum distance from current market rate for stop and limit orders on DD accounts could increase to upwards of 10 pips. Note that NDD accounts with FXCM have no such restrictions regarding order placement.
Quoting sameerbiz
do fxcm allowe Scalping and whats the slippage the spreads and commission please Thanks
Yes Sameer, we welcome scalpers at FXCM.

The trading volume scalpers can generate make them some of our best clients. We even have an Active Trader program that can provide discounts on commissions for the highest volume scalpers. On our website, you can see our Standard account commissions.

A one-year study of orders executed through FXCM shows our clients receive positive slippage at least as often as they receive negative slippage.

  1. 76.2% of all orders had NO SLIPPAGE.
  2. 13.5% of all orders received positive slippage.
  3. 10.2% of all orders received negative slippage.
  4. Over 58% of all limit and limit entry orders received positive slippage.
  5. 52% of all stop and stop entry orders received negative slippage.


Your questions have me curious though. Did you run into problems with scalping and slippage at another broker? Was this an automated strategy? On what currency pair(s)? What platform did you use? I ask because FXCM offers traders many platforms and solutions from API to VPS, so you can optimize the implementation of your scalping strategy to minimize negative slippage and still receive the full benefits of positive slippage.

For example, while negative slippage is a risk trading with any broker in any market (particularly with the increased volatility we've seen lately), you'll be interested to know FXCM's Trading Station platform provides you with tools like Market Range and Range Entry which limit your negative slippage (but not your positive slippage) on Market Orders and Entry Orders respectively.

Quoting fxRichard
Hey Jason, I posted this question in the NinjaTrader forum but does FXCM active trader account support IOC or FOK orders through NinjaTrader or at least through the API? Does the demo account have the capability to see through to the live market order book? Meaning we could write NT software to determine what potential slippage will be based on order size? Lastly do you guys offer any kind of rebate on NT lifetime license? Thanks.
In regards to IOC and FOK, we support these order types for all our account types (Mini, Standard, Active Trader) on our Trading Station platform. That means, we also offer these order types via API.

In regards to NinjaTrader, my guess is if you've used such order types on their platform in the past, they should work on your FXCM account as well. However, you're right to confirm such information with their support team.

We don't offer a rebate on NT lifetime licenses, since the cost you pay goes to them. The alternative is to pay the monthly NT subscription.
Quoting philtre71
Really like the beta platform Jason. I've emailed a couple of suggestions. Phil
Thanks Phil
Hello Jason. I have always liked Jasons, and I hope I can remain calm in reporting what has happened to me. I have two brokers abroad.

  1. I chose to after long research sign on with FXCM US because I wanted to get closer to home.
  2. I chose it because of the APPS - specifically the EA Apps - several were of interest.
  3. I signed on in April 2016 and my great account manager was aware that the top two reasons for choosing FXCM were the availability of DailyFX Plus, and the EAs.
  4. He did not know of the change made recently: no US clients may use any EA free or paid EVEN THOUGH THEY COMPLY WITH FIFO perfectly.
  5. I just learned that I am prevented from getting the particular EA I want yesterday, when I tried to download it.
  6. I wrote to Live Chat and got an inadequate explanation - . There was no specific reason: FIFO does NOT CUT IT as a reason since I was told that FXCM cannot offer me what is right in front of my face, but any other purveyor could and I could use it!

I wrote to my account manager. He responded that he had not known and at the time I had joined, the APPS were available to US clients. As soon as one tries to correct a murky situation, inevitably... something is made worse - in this case - this does not add up. ALL US Clients should have received a notice IMMEDIATELY upon the change AND with a coherent explanation. I saved ALL my fxcm messages from very first contact.. and not one fits the bill.

After my Live Chat inadequacy, I heard from someone whose name is Merrill at FXCM - again, no direct and explicit reason given. They think I am like most people but I am not.

Here is what I believe: FXCM is colluding with the NFA and that FXCM is AFRAID of something... otherwise - why not accept money for FIFO compliant EA's, and making clients happy with either free or paid versions. I am not stupid; my instincts are accurate.

I accept the fact that FXCM is so huge and far reaching that it has definitely compromised itself in many ways, as does any large and successful entity... but I did not think this would affect me personally. And there were enough Pluses that I chose to sign on.

Finally, I trust and respect my account manager whose name is the same as my brother's. BUT: had FXCM made the change in late April or May of 2016, why did clients like me, a prospective, signed on but not yet funded client, not get a NOTICE to the effect that certain EAs are no longer available to US residents: with a reason that is not designed to appease the gullible.

I will be back here and rescind anything I've stated that turns out to be needing correction. Until I get an explanation from FXCM, things stand as they stand.

Please understand I am doing this for love of God... I cannot, yet, remain silent when something is instinctively suspect that directly affects me.

Please also understand that truth is simple: if the answer is not specific and simple... it is clearly not the truth.

Thank you, Jason.

Quoting Jason Rogers
{quote} Hi Knockroe, FXCM believes in providing traders with transparency regarding the execution options we offer, so you have all the information you need to make the right decision and have an excellent trading experience that meets your expectations. For Standard accounts and Active Trader accounts, we provide No Dealing Desk (NDD) forex execution. On the NDD model, we offset each client order one-for-one with the best prices from competing liquidity providers. {image} That means, we don't take the market risk on the side of client trades. Therefore,...
The above rote promotion does not address #Post 9,142.

The ignored core claim of the post is:
Quoting knockroe
.... I am reliably informed that a true ECN or NDD broker (who is not permitted to be a counterparty) should have the FOLLOWING entry in this section of the FCA register:

  1. Limited Licence - matched principal broker

Unable to: (i) hold financial instruments for own account unless it meets the 'matched principal exemption conditions' as defined in the FSA's Glossary of defined expressions used in the FSA's Handbook and (ii) underwrite MiFID financial instruments and/or place MiFID financial instruments on a firm commitment...


Extracts from FCA Register: Alternative -

Permission ►Dealing in investments as principal
Attached Image
Attached Image (click to enlarge)
Click to Enlarge Name: NDD-1b.png Size: 11 KB


Extracts from FCA Register: FXCM - https://register.fca.org.uk/ShPo_Fir...000000MfNCCAA3

Permission ►Dealing in investments as principal
Attached Image
Attached Image (click to enlarge)
Click to Enlarge Name: NDD-1a.png Size: 8 KB


According to #Post 9,142 the above extracts from the FCA register would point to FXCM not being a true NDD.
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
Quoting Mm8
{quote} Be very careful opening an acount with fxcm. Have requested an answer to the problem in the email below and fxcm refuse to answer or acknowledge me am getting reeady for the next step which will involve legal action Hello Dion i sent you an email 2 days ago
Hi Colin,

Dion works out of our Sydney office and was out of the office on Monday. I've emailed him regarding your forum post, but due to the time difference between Sydney and New York, I might be able to get a response for you faster if you forward me a copy of the email you sent him. Please email me at jrogers AT fxcm DOT com.

Quoting Mm8
RE: Hi Colin, Thank you for your email and continued interest in FXCM. Please note that your existing trades will not be closed and re-opened as part of the transfer of your account to Halifax as you have mentioned. Rather, your trades will stay open, given they are on FXCM's servers, and will remain there throughout the transfer. Your trades will only be closed down automatically if you fail to consent to the transfer by the due date, at which point your account will also be locked and you will be required to withdraw your funds. Please re-read...
My apologies but Dion was incorrect in saying your trades will stay open as part of your account transfer to Halifax. Please refer back to my forum posts for you which explain:

  1. why New Zealand accounts are being transferred to Halifax: http://www.forexfactory.com/showthre...68#post8901068
  2. and, how you can re-open your trades in your Halifax account: http://www.forexfactory.com/showthre...02#post8904802


Quoting Mm8
For some reason i seem to have missed your answer could you please confirm reciept of this email or not so as we can adress the matter of the missing $5000.00 dollars from the balance .
Unfortunately, I'm not familiar with the details of this problem. At first glance, it seems like this may simply be some confusion between your balance (which does not including your floating profits and losses) and your equity (which does factor in your floating P/L), but I'm happy to investigate this further for you.

As mentioned above I've emailed Dion about this, but due to the time difference between Sydney and New York, I might be able to get a response for you faster if you forward me a copy of the email you sent him. Please email me at jrogers AT fxcm DOT com.
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