FXCM Manipulating its Core Pricing?

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.

Looks lIke one of your other threads has been deleted. Can you repost any missing videos again?

pboyles said:

Looks lIke one of your other threads has been deleted. Can you repost any missing videos again?

Click to expand...

He's more manipulative than FXCM is. He's conveniently NOT giving us all the information.

Peter

pboyles said:

Looks lIke one of your other threads has been deleted. Can you repost any missing videos again?

Click to expand...

Any idea why it was deleted? I must have missed the ending.

Peter

wackypete2 said:

Any idea why it was deleted?

Click to expand...

he who pays the piper calls the tune perhaps ?

the hare said:

he who pays the piper calls the tune perhaps ?

Click to expand...

Yes, perhaps.
But the video was a terrible example of his argument and his argument didn't hold up at all. The trader in the video went short 5 mini lots total in 2 separate transactions and got a margin call....and we are led to believe that the margin call occurred because FXCM closed out 1 of the transactions at a huge price discrepancy but left the other one open. The video goes downhill from there.

Peter

wackypete2 said:

Yes, perhaps.
But the video was a terrible example of his argument and his argument didn't hold up at all. The trader in the video went short 5 mini lots total in 2 separate transactions and got a margin call....and we are led to believe that the margin call occurred because FXCM closed out 1 of the transactions at a huge price discrepancy but left the other one open. The video goes downhill from there.

Peter

Click to expand...

Well the video is from 2010 and the tech issue on the platform was caused by a conflict with a new version of Adobe Flash that was released. Whenever a tech issue does occur and it impacts client trades, FXCM will review any trades impacted and make necessary adjustments to ensure it doesn't negatively impact the trader.

If anyone has a question about FXCM or why something has occurred, they can simply ask and I am happy to help. As mentioned on another thread, I believe the vast majority of traders on the forum are here for an actual legitimate discussion, but some users are here simply to spam and have an agenda. Traders can decide for themselves:

Forums - FXCM -vs- DCFX Spread Challenge (Realtime)
Forums - FXCM -vs- DCFX Spread Challenge II
Spreads? Or, Price Fixing? @ Forex Factory
http://www.trade2win.com/boards/forex-brokers/155060-fxcm-vs-dcfx-spread-challenge-ii.html

Taking a look at the following thread, along with the 56 pages of posts, gives you an idea of the character of TraderNumber7 (or iDouble or Tango 6 Alpha, etc.) Forums - Leverage, I dont understand the principle of it.... I have no intention of getting into this low level of discourse that the poster devolves into, and the forums deserve better.

I'm certainly here to help those traders who have questions about FXCM and are are not simply here to mislead others. For those that have questions and would like help, they are welcome to post on the FXCM thread.

Jason

Jason Rogers said:

I have no intention of getting into this low level of discourse that the poster devolves into, and the forums deserve better.

Jason

Click to expand...

Agreed.

Peter

wackypete2 said:

He's more manipulative than FXCM is. He's conveniently NOT giving us all the information.

Peter

Click to expand...

That's interesting. You are so up the FXCM hole, that you never took the time to notice that this video is NOT MINE! It was posted by someone else - and was brought to my attention by another FXCM customer!

So, when you make the same old claim that I'm not showing you all the information - what kind of other information would you like to see?

Lastly, since you know that some information is missing - can you please tell us what that might be?

It is a video, for goodness sakes, man. The video speaks for itself. The guy who posted it, did not even bother to narrate the darn thing because it speaks so loudly.

To be honest with you - I am MUCH more interested in Jason's response to this video, than I am my own. This video clearly shows a price lag against other trading platforms during a period of normal FX volatility.

Why? Why is this happening ONLY on the FXCM platform? The other two move in proportionate time sequences. There differentials can be accounted for with any number of good explanations and are well with a decent margin of each other. Yet, the FXCM platform lags by up to as much as 15 pips or more!

Again, why?

wackypete2 said:

Yes, perhaps.
But the video was a terrible example of his argument and his argument didn't hold up at all. The trader in the video went short 5 mini lots total in 2 separate transactions and got a margin call....and we are led to believe that the margin call occurred because FXCM closed out 1 of the transactions at a huge price discrepancy but left the other one open. The video goes downhill from there.

Peter

Click to expand...

That is not the video on question. Are you paying attention?

Jason Rogers said:

Well the video is from 2010 and the tech issue on the platform was caused by a conflict with a new version of Adobe Flash that was released. Whenever a tech issue does occur and it impacts client trades, FXCM will review any trades impacted and make necessary adjustments to ensure it doesn't negatively impact the trader.

If anyone has a question about FXCM or why something has occurred, they can simply ask and I am happy to help. As mentioned on another thread, I believe the vast majority of traders on the forum are here for an actual legitimate discussion, but some users are here simply to spam and have an agenda. Traders can decide for themselves:

Forums - FXCM -vs- DCFX Spread Challenge (Realtime)
Forums - FXCM -vs- DCFX Spread Challenge II
Spreads? Or, Price Fixing? @ Forex Factory
http://www.trade2win.com/boards/forex-brokers/155060-fxcm-vs-dcfx-spread-challenge-ii.html

Taking a look at the following thread, along with the 56 pages of posts, gives you an idea of the character of TraderNumber7 (or iDouble or Tango 6 Alpha, etc.) Forums - Leverage, I dont understand the principle of it.... I have no intention of getting into this low level of discourse that the poster devolves into, and the forums deserve better.

I'm certainly here to help those traders who have questions about FXCM and are are not simply here to mislead others. For those that have questions and would like help, they are welcome to post on the FXCM thread.

Jason

Click to expand...

So, you tell us that the reason why FXCM's prices lagged everybody else, had to do with a problem with Adobe Flash!

You then post the same cut and paste trash where nobody is talking about trading, and where trolls crashed a thread?

Jason Rogers said:

Hi Everyone,

I only wanted to point out a few key facts that the original poster left out of his videos. The biggest one is that it compares FXCM's spreads which include our pip markup to another company's spreads which do not include the additional commission they charge you.

Click to expand...

Even when you add the DCFX commission, FXCM is still a couple hundred percent higher on spreads - period. So, that does not answer the question, about why FXCM spread are so far beyond what they have been claiming for years, as being some of the lowest spreads in the industry.

Jason Rogers said:

FXCM gets its forex prices from 10+ liquidity providers and the best bid/ask spread is automatically displayed on the platform with FXCM’s pip mark-up which acts as a commission.

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10+ liquidity partners that FXCM refuses to name? Why is that? Why won't FXCM name its liquidity providers?

Other Retail FX Brokers name their liquidity providers and are in fact, very proud of their relationships with these liquidity providers:

Liquidity Partners for DCFX

Jason Rogers said:

Full disclosure: even after you factor in their commission, their quoted spread stills seems cheaper, but that brings me to my second point.

Click to expand...

Disclose the liquidity partners that take the other side of FXCM Customer trades? Who provides the liquidity to the FXCM platform? If other FX Retail Brokers can disclose this information, then why can't FXCM?

Jason Rogers said:

The original poster posed the question: "What extra are you getting from FXCM?"
Well for starters, you get to deal with an industry leader,

Click to expand...

A leader in what? Leading Newbies over a cliff?

You are a publicly trading company right now, but you behave like an unethical Bucket Shop. Is that how "leaders" in this industry are modeled?

Do you know what happens with Publicly traded companies that mishandle their Customers, or that cause injury to their Customers? Can you spell Public Law Suit? Can you spell Stock Price Drops Like a Rock?

What happens to a Publicly traded company that gets fast a loose with their Customers - in ANY way, shape, or form? Can you spell 60 Minutes? Can you spell 20/20? Can you spell CNN Expose with Anderson Cooper?

Do you have any idea just how close FXCM is to that reality RIGHT NOW? This very minute?

Jason Rogers said:

...one of the few publicly traded forex brokers listed on the New York Stock Exchange (NYSE: FXCM). That gives our clients the confidence that a privately held broker simply cannot, and safety of funds is especially important after the failure of firms like PFG and WorldSpreads.

Click to expand...

The ONLY difference between PFG and FXCM, is that PFG was older and PFG got caught one too many times. That's happening right now with FXCM, and you don't even know it.

Things are NOT as they appear to be right now, Jason.

Jason Rogers said:

Experienced traders know...

Click to expand...

Experienced Traders don't trade in production mode with FXCM, Jason. The Newbie, or the un-schooled FX Retail Trader needs to understand this salient point, Jason.

You claim that FXCM does not take positions against its customers. Ok, then why not list ALL of the FXCM liquidity providers right here inside this thread, Jason? This way, people will KNOW who is taking the other side of their trade.

Jason Rogers said:

Since FXCM is compensated by trading volume via NDD forex execution, we are able to offer lower spreads/commission for traders that trade at least 10 million notional volume per month or have an account balance of at least $50k.

Click to expand...

Compensated BY WHOM, Jason? That's the question. Who is compensating you? And, if FXCM is already being compensated by this unknown source, why manipulate the spreads? If you are adding to the spread, and you are being compensated, are you not double-dipping?

You just admitted that you are receiving a Commission - you claim that your spreads are the way they are because OTHER brokers are charging a commission and "fixing" their spreads. Which one is it, Jason? You cannot have it both ways. You just spoke out of both sides of your mouth.

One the one hand you are being compensated. On the other hand, you are padding the spreads?

Jason Rogers said:

Below are the typical spreads for the top traded currency pairs on active trader, and the starting commission is $3.50 per side for a 100k lot.

Click to expand...

You keep talking through both sides of your mouth. Above, you touted FXCM's spreads as being fair because there were NO commissions. You insinuated that when other brokers charge a commission, it is because they "fix" their spreads. I'm not making this stuff up! These are your statements, Jason.

Now, you tout the FXCM Active Trader platform and post a pic showing lower spreads WITH A COMMISSION??? What kind of sense does that make?

Your commissions are $0.50 greater than DCFX and your spreads are STILL hundreds of percent HIGHER than DCFX, even WITH the Active Trader platform. So, what real advantage does the FXCM Customer receive again? None. Zero. Nada. Nachos. Zip.

That's the double-talk, non-sequitur gibberish you always get from FXCM on the issue of Spreads and Core Price Manipulation.

Jason Rogers said:

That video was from 2010; there was tech issue on the platform that day caused by a conflict with a new version of Adobe Flash that had just been released.

Click to expand...

I did not post the video because it was back in 2010. I posted all of these videos because they RANGE from 2009 through 2012! It shows a HISTORY of deception and a total lack of integrity on the part of FXCM. I posted these videos because it shows that across a range of years, FXCM is STILL untrustworthy after all this time.

I posted these videos so that the individual new to Retail Forex, can see a Bucket Shop for what it is - a cold Bucket Shop - period. I did not post just one video.

Here's another video showing the exact same kind of Spread jacking on the part of FXCM. This time, the comparator broker is different:

EXNESS vs FXCM - YouTube

Care to explain that, Jason? Or, will it be the same old non-sequitur retort - that FXCM has a relationship with 10+ blah, blah, blah? The comparator broker may not be worth its weight in salt, but this is a consistent theme with FXCM when it comes to their spreads, yet you keep telling us that you have no "Dealing Desk."

Jason Rogers said:

This video is based on a misconception about how FXCM makes its money. FXCM uses No Dealing Desk forex execution. That means contrary to the video presenter’s beliefs, at no point was FXCM taking a market position against his trade. We did not stand to profit from his loss.

Click to expand...

A misconception? Are you telling me that I don't understand your business model? FXCM uses an pricing engine algorithm that modifies the pricing coming from its private proprietary liquidity pool and then forwards those modified prices on to the customer's desktop via whatever FXCM trading platform they have selected, based on the type of account they have. Those prices ARE NOT Interbank prices. They have been padded to include a built-in profit for FXCM.

So, by definition - if you are not delivering to the customer TRUE Interbank pricing, then you absolutely MUST have a Dealing Desk, Jason. How can you be this clueless about how your own business model works! It does not matter of your Dealing Desk is not "staffed" with boiler room types sitting by the telephone. In fact, that's old school, Jason. Your "Dealing Desk" is an Electronic Dealing Desk. Yet, you think that somehow, nobody understands this going on behind the scenes at FXCM.

Who do you think I am, Jason? Do you think I'm that guy that Atticus keeps raving about? Wrong. I'm somebody that knows something about the technology you use. I know you use an Oracle Database, Jason.

Now, you tell me HOW is it possible that I know FXCM uses an Oracle db on its back-end? Can you figure that one out, Jason? By the time you figure out how I know this, FXCM will already be in court - defending itself from a Liability Lawsuit.

I was working for Oracle, long before you came to FXCM, Jason. (surprise!) More to the point, I'm one of those that got sent all over the world for Oracle, setting up "back-end" RDBMS solutions for all kinds of companies and industries, including MANY on Wall Street, Jason.

So, is there anything else you want to tell me about your "Back-End?" Do you know who implemented your "Back-End," Jason. Do you know HOW I know that when customers called the DBFX Client Services Toll Free Number, that they actually got an FXCM Representative on the phone, Jason?

Just one more thing you do not know about WHO I am, Jason. I can tell you what your offices look like from the inside out, Jason. I can tell you what your IT room looks like, Jason. I can tell you the color of the door as you walk into it, Jason. I can tell you all that information, Jason.

Keep typing, Jason. Keep right on typing, my dear friend.

I can see FXCM Oracle Tables that you don't even know exist, Jason.

THAT is who I am, Jason.

Now, do you want to answer the questions that I've put to you here, Jason?

Jason, I am definitely not who you think I am, but I am someone that you should know (at least to some extent).

Do the math on that one, Jason.

Nut case

Peter

I tried FXCM a couple of years back, loved their platform but hated their spreads and their pricing - it took me about 4 hours to work out they weren't for me and moved on, why are you wasting your life hating them.

Those that are using FXCM are either happy with it or stupid - I really wouldn't waste your energy trying to convince people how bad they are - let them work it for themselves - trust me all that negativity is not doing you any good.

TraderNumber7 said:

Even when you add the DCFX commission, FXCM is still a couple hundred percent higher on spreads - period. So, that does not answer the question, about why FXCM spread are so far beyond what they have been claiming for years, as being some of the lowest spreads in the industry.




10+ liquidity partners that FXCM refuses to name? Why is that? Why won't FXCM name its liquidity providers?

Other Retail FX Brokers name their liquidity providers and are in fact, very proud of their relationships with these liquidity providers:

Liquidity Partners for DCFX






Disclose the liquidity partners that take the other side of FXCM Customer trades? Who provides the liquidity to the FXCM platform? If other FX Retail Brokers can disclose this information, then why can't FXCM?





A leader in what? Leading Newbies over a cliff?

You are a publicly trading company right now, but you behave like an unethical Bucket Shop. Is that how "leaders" in this industry are modeled?

Do you know what happens with Publicly traded companies that mishandle their Customers, or that cause injury to their Customers? Can you spell Public Law Suit? Can you spell Stock Price Drops Like a Rock?

What happens to a Publicly traded company that gets fast a loose with their Customers - in ANY way, shape, or form? Can you spell 60 Minutes? Can you spell 20/20? Can you spell CNN Expose with Anderson Cooper?

Do you have any idea just how close FXCM is to that reality RIGHT NOW? This very minute?





The ONLY difference between PFG and FXCM, is that PFG was older and PFG got caught one too many times. That's happening right now with FXCM, and you don't even know it.

Things are NOT as they appear to be right now, Jason.




Experienced Traders don't trade in production mode with FXCM, Jason. The Newbie, or the un-schooled FX Retail Trader needs to understand this salient point, Jason.

You claim that FXCM does not take positions against its customers. Ok, then why not list ALL of the FXCM liquidity providers right here inside this thread, Jason? This way, people will KNOW who is taking the other side of their trade.




Compensated BY WHOM, Jason? That's the question. Who is compensating you? And, if FXCM is already being compensated by this unknown source, why manipulate the spreads? If you are adding to the spread, and you are being compensated, are you not double-dipping?

You just admitted that you are receiving a Commission - you claim that your spreads are the way they are because OTHER brokers are charging a commission and "fixing" their spreads. Which one is it, Jason? You cannot have it both ways. You just spoke out of both sides of your mouth.

One the one hand you are being compensated. On the other hand, you are padding the spreads?




You keep talking through both sides of your mouth. Above, you touted FXCM's spreads as being fair because there were NO commissions. You insinuated that when other brokers charge a commission, it is because they "fix" their spreads. I'm not making this stuff up! These are your statements, Jason.

Now, you tout the FXCM Active Trader platform and post a pic showing lower spreads WITH A COMMISSION??? What kind of sense does that make?

Your commissions are $0.50 greater than DCFX and your spreads are STILL hundreds of percent HIGHER than DCFX, even WITH the Active Trader platform. So, what real advantage does the FXCM Customer receive again? None. Zero. Nada. Nachos. Zip.

That's the double-talk, non-sequitur gibberish you always get from FXCM on the issue of Spreads and Core Price Manipulation.






I did not post the video because it was back in 2010. I posted all of these videos because they RANGE from 2009 through 2012! It shows a HISTORY of deception and a total lack of integrity on the part of FXCM. I posted these videos because it shows that across a range of years, FXCM is STILL untrustworthy after all this time.

I posted these videos so that the individual new to Retail Forex, can see a Bucket Shop for what it is - a cold Bucket Shop - period. I did not post just one video.

Here's another video showing the exact same kind of Spread jacking on the part of FXCM. This time, the comparator broker is different:

EXNESS vs FXCM - YouTube

Care to explain that, Jason? Or, will it be the same old non-sequitur retort - that FXCM has a relationship with 10+ blah, blah, blah? The comparator broker may not be worth its weight in salt, but this is a consistent theme with FXCM when it comes to their spreads, yet you keep telling us that you have no "Dealing Desk."




A misconception? Are you telling me that I don't understand your business model? FXCM uses an pricing engine algorithm that modifies the pricing coming from its private proprietary liquidity pool and then forwards those modified prices on to the customer's desktop via whatever FXCM trading platform they have selected, based on the type of account they have. Those prices ARE NOT Interbank prices. They have been padded to include a built-in profit for FXCM.

So, by definition - if you are not delivering to the customer TRUE Interbank pricing, then you absolutely MUST have a Dealing Desk, Jason. How can you be this clueless about how your own business model works! It does not matter of your Dealing Desk is not "staffed" with boiler room types sitting by the telephone. In fact, that's old school, Jason. Your "Dealing Desk" is an Electronic Dealing Desk. Yet, you think that somehow, nobody understands this going on behind the scenes at FXCM.

Who do you think I am, Jason? Do you think I'm that guy that Atticus keeps raving about? Wrong. I'm somebody that knows something about the technology you use. I know you use an Oracle Database, Jason.

Now, you tell me HOW is it possible that I know FXCM uses an Oracle db on its back-end? Can you figure that one out, Jason? By the time you figure out how I know this, FXCM will already be in court - defending itself from a Liability Lawsuit.

I was working for Oracle, long before you came to FXCM, Jason. (surprise!) More to the point, I'm one of those that got sent all over the world for Oracle, setting up "back-end" RDBMS solutions for all kinds of companies and industries, including MANY on Wall Street, Jason.

So, is there anything else you want to tell me about your "Back-End?" Do you know who implemented your "Back-End," Jason. Do you know HOW I know that when customers called the DBFX Client Services Toll Free Number, that they actually got an FXCM Representative on the phone, Jason?

Just one more thing you do not know about WHO I am, Jason. I can tell you what your offices look like from the inside out, Jason. I can tell you what your IT room looks like, Jason. I can tell you the color of the door as you walk into it, Jason. I can tell you all that information, Jason.

Keep typing, Jason. Keep right on typing, my dear friend.

I can see FXCM Oracle Tables that you don't even know exist, Jason.

THAT is who I am, Jason.

Now, do you want to answer the questions that I've put to you here, Jason?

Click to expand...

Yawning 3.0 - YouTube

wackypete2 said:

Nut case

Peter

Click to expand...

The Case for the Nut.

When you reach that level of trading success, accuracy and precision - be sure to let us know. Until then, jealousy is all you have going for you.

x4x said:

I tried FXCM a couple of years back, loved their platform but hated their spreads and their pricing - it took me about 4 hours to work out they weren't for me and moved on, why are you wasting your life hating them.

Those that are using FXCM are either happy with it or stupid - I really wouldn't waste your energy trying to convince people how bad they are - let them work it for themselves - trust me all that negativity is not doing you any good.

Click to expand...

I hear what you are saying, but I don't get the "negativity" part. It almost reads like you think I am angry at FXCM for some reason. Why would I be?

Showing the new guy why they should not be trading with a Bucket Shop, is not a "negative" exercise. In fact, it is a very positive exercise because it helps to prevent the Nube from making the same mistake that so many before him/her have made in the past.

I'm not quite sure when learning from the mistakes of others, or from outright and glaring evidence in a video became "negative." My video makes it clear, I do this for the Nube and for the Nube only.

All the negativity has come from the genuinely clueless individuals you see in this thread, who typically attack anything they either don't understand, don't agree with and/or don't like. So, the negativity, if there is any, has come directly from people like that in this and countless other threads within the online trading "community."

safvan said:

Yawning 3.0 - YouTube

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Which is precisely where most Retail FX Traders are right now in their quest for mediocrity.

Being clueless is not cool. Its actually really dumb.

TraderNumber7 said:

Being clueless is not cool. Its actually really dumb.

Click to expand...

Funny you should say that

Peter