Dodged a bullet, but has FXCM lost all of it's integrity.

[Jason Rogers]

I have now decided to keep monies under the FCA compensation guarantee, and every time I reach the limit, to keep withdrawing.

You might want to speak with our Private Client Group about the possibility of setting up a custodial account. Just shoot me a PM with your contact details, and I can arrange a follow up for you.

 

[Jason Rogers]

WTF is going on with FXCM. Is this a case of FXCM not giving a rat's derriere about it's customers anymore, and just raping their accounts to make sure the ensuing loan they have gets paid off quickly.

In regards to how we plan to repay the Leucadia loan, below are comments from our CEO Drew Niv:

"We anticipate that with the proceeds from the sale of some non-core assets and continued earnings we can meet both near and long-term obligations of our financing, while preserving the strength of our franchise. It's widely known and understood that FXCM's core business has always been retail FX; It is the majority of FXCM's revenue. In fact, today we announced certain key operating metrics for January 2015 as we do every month as a publicly-traded company (ticker: FXCM). The data show that it was our second best month ever in terms of retail volume.

"However, over the past few years, the company has spent over $250 million dollars making strategic acquisitions building up our non-core businesses, mainly the institutional side as we tried to diversify the firm. We are now looking to sell some of those non-core assets; But, we are not in a rush and are looking to get the highest valuations for these assets.

"We are considering closing or selling smaller regulated entities that require large sums of capital requirements, but that offer increasingly low return on capital. The latter move allows us to free up significant amounts of cash that is currently trapped. We believe that in the near term we can pay down a majority of the loan."

Could it be a case of FXCM thinking "we tried to have a little integrity, that didn't work, lets revert back to the bucket shop methods of our past. After all our customers are addicted gamblers, who will keep up with their addiction".

If there were any doubts before, it should be pretty clear now that FXCM does not benefit when clients lose on our No Dealing Desk (NDD) forex execution. That's because we offset each of your orders one-for-one with the best prices from competing liquidity providers. That means we don't profit from your losses, or lose from your profits. Instead, we make money from your trading volume.

By contrast, when you trade with a dealing desk broker or maker maker, at the most basic level, when you lose, they win. Some of these market makers are now announcing record profits as a result of their clients' losses after the SNB event. If the market gapped the other way, 2000+ pips in favor of client trades due some central bank intervention or geopolitical event, then we may have been looking at a much different scenario.

For this reason, FXCM believes that NDD remains the fairest pricing model for forex traders, because it eliminates the conflict of interest that is present when you trade with a dealing desk broker. That's why we will continue to offer our clients NDD execution. We don't hunt stops, because we have nothing to gain from you losing on a trade. In fact, we want you to be profitable so you can continue trading with us.

 

[Jason Rogers]

the FXCM platform is fantastic to use with everything so simple, even a layman like me can use it. Easy to calculate what your percentage risk is in pounds, and pips, thus easy to calculate profit target, which has to be worked out, for the way I trade. I wish not to risk 1%, yet end up losing 1.35% if the trade goes wrong, as my calculations were guesstimates, and in an environment where getting in quickly(for me) is of utmost importance.

I'm glad you're please with FXCM's Trading Station platform.

 

[Jason Rogers]

Particularly in light of FXCM's past

That case was dismissed in November of 2011.

 

[Jason Rogers]

Re trading against ya:

"Still, until now, FXCM tended to win even when its customers lost. In disclosure statements mandated by the U.S. Commodity Futures Trading Commission, customers are told upfront that such currency trading isn’t carried out on regulated exchanges.

“WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER,” the CFTC warning reads in capital letters. “As a result, when you lose money trading, your dealer is making money on such trades.”

Thank you for the info BSD.

The risk disclosure quoted above is what the CFTC requires all US-regulated firms to provide to traders regardless of the execution method actually used to offset client orders. The fact is that FXCM offers traders No Dealing Desk (NDD) forex execution which is something we clearly state on our website and in the trading agreement we provide to our clients when they open their trading accounts: http://bit.ly/1klBM0k

On our NDD model, each client order is offset one-for-one with the best prices from competing liquidity providers. These liquidity providers are independent from FXCM. That means we do not profit from client losses. Instead, FXCM makes money from client trading volume through the commission we charge.

 

[Jason Rogers]

Following on from the earlier digression, and to get the thread back on topic, I decided to see what the spread differences are between FXCM and FXPROS, and the main reason was to see if FXCM stays within their usual parameters of a widening of spread around circa 20 pips, which seems to be the norm around NFP.

View attachment 185088 (link not showing FXCM SPREAD @20 VS FXPRO SPREAD AT 2)

The above seems to be ok, and around the norm, but still far to high, and for longer compared to FXPRO,


The below. What can I say, :-0:-0:-0:-0:-0

View attachment 185090(link not showing FXCM SPREAD @47 VS FXPRO SPREAD AT 26)


47 pip spread.



47 pip spread

Oh come on, thats just not cricket.

@Jason Rogers Could you please explain to me why there is such a difference in spreads please.

Also, why there seems to be a spike up on FXCMS charts taking out the latest high where tight stops may have been, yet this is not even seen on Dukascopy.

View attachment 185094

View attachment 185096

I look forward to your response.

Best
John

As you mentioned, spreads can widen during NFP. While I can't speak for other brokers, I can state that with FXCM this spread widening is due to our liquidity providers widening their spreads. We simply pass on the best prices we receive from them. And since we offset each of your orders one-for-one with our liquidity providers, we do not profit form your losses or lose from your profits. Therefore, we have not reason to want your stops to be triggered.

That said, if you feel there was an error in our trade execution that negatively impacted one of your trades, I encourage you to use this online form to file a trade inquiry: http://bit.ly/1lQlJ7Z

The Trade Services Team will be happy to investigate this in detail and follow up with you.

 

[Jason Rogers]

Just seen this thread. I opened up an account with FXCM as they are not market maker broker as I have an account with Spreadco which is. Bit worried now! I am using FXCM to trade currency pairs on a daily and long term basis. Any other recommendations for decent UK brokers with good mobile software with reasonable charges as I have tried a few demo accounts. I have only got a small balance to start with 2k GBP. Thanks

Hi VSAP,

FXCM continues to offer you the same NDD forex execution that you've always enjoyed with us.

 

[Jason Rogers]

I've been informed that FXCM are doing a software update this weekend, and a good friend of mine cynically suggested "they are more likely placing a more advanced HFT bot back into their trading systems to revert to old tactics of shagging their own clients out of their money, but doing it quicker this time". I personally don't think his thinking holds water, but with some of the skull doggery that goes on, who knows.

Below are the new features added in FXCM's latest update of Trading Station Desktop.

Good-Till-Date Entry Orders
Now you can add a specific expiration to your entry order. Set your entry order to expire tomorrow, next week, next month or after large news events.

Show or Hide Candle Gaps
When an instrument closes at a different price than where it opened, a candle gap can occur. Now you can show or hide candle gaps, giving greater accuracy to your indicators and strategies.

Run Reports in Your Time Zone
The Combined Account Statement now automatically reflects the same time zone as your platform.

Performance Enhancements
We've made 176 performance enhancements to improve order execution and further stabilize the platform, along with many other polishes to functionality to optimize your trading experience.

Real Volume and Transactions
Experience five ground-breaking indicators based on FXCM’s trading book. Each indicator gives you a real look at market behavior and trading psychology by showing you what the crowd is doing.

• 
  Real Volume and Transaction Indicators
  With these two indicators, get the inside view of FXCM clients’ actual order flow on 14 of our most popular currency pairs.
  Directional Real Volume Indicator
  Display long, short, net and total values of FXCM’s real volume individually as opposed to total value only.
  On Balance Real Volume Indicator
  A supplement to the On Balance Volume indicator, On Balance Real Volume utilizes real volume as opposed to tick volume.
  Market Movers Index Indicator
  Find the smart money—Market Movers Index shows the ratio of real volume divided into transactions per period, so you can see conviction behind breakouts.

https://www.youtube.com/watch?v=2TOqRVTi9UE&feature=youtu.be

 

[timsk]

@Jason Rogers

. . .
For this reason, FXCM believes that NDD remains the fairest pricing model for forex traders, because it eliminates the conflict of interest that is present when you trade with a dealing desk broker. That's why we will continue to offer our clients NDD execution. We don't hunt stops, because we have nothing to gain from you losing on a trade. In fact, we want you to be profitable so you can continue trading with us.

Hi Jason,
In spite of your repeated efforts to clarify FXCM's position re. the NDD pricing model, the dunce at the back of the class still isn't entirely clear!


Would I be right in thinking that NDD pricing model only applies to forex instruments? Therefore, clients wishing to trade indices and metals would still have FXCM taking the other side of their trades. From your product guide . . .

"A contract for difference (“CFD”) allows you to potentially profit or loss from the fluctuations in the price of the underlying instrument. The price of a CFD is based on the price of the underlying instrument and is not traded on an exchange, despite the status, or location of the underlying instrument. Therefore, CFD’s are an over-the-counter (OTC) product, and you are trading with FXCM as the counterparty to all transactions you undertake."

One more question if I may. I only trade the Dow and the Dax and, again from your product guide, I see your 'target' spread for the Dow is 4. Is that 0.4 of a index point - or is it 4 whole points? If it's the former, that's a very tight spread. If it's the latter, then I'm afraid I won't ever be one of your customers!
Tim.

 

[Jason Rogers]

Would I be right in thinking that NDD pricing model only applies to forex instruments? Therefore, clients wishing to trade indices and metals would still have FXCM taking the other side of their trades. From your product guide . . .

Hi Tim,

You're right. While FXCM offers traders NDD execution for forex, CFD trading is on DD. We are exploring options to offer NDD for more products in the future, but there is no ETA at this time.

One more question if I may. I only trade the Dow and the Dax and, again from your product guide, I see your 'target' spread for the Dow is 4. Is that 0.4 of a index point - or is it 4 whole points? If it's the former, that's a very tight spread. If it's the latter, then I'm afraid I won't ever be one of your customers!
Tim.

It's the latter. I appreciate your feedback regarding our US30 (Dow) spreads and will pass it onto our senior management. One thing worth noting is that unlike with some other brokers, there are no requotes when trading CFDs with FXCM.

 

[timsk]

It's the latter. I appreciate your feedback regarding our US30 (Dow) spreads and will pass it onto our senior management. One thing worth noting is that unlike with some other brokers, there are no requotes when trading CFDs with FXCM.

Hi Jason,
Thanks for the swift response and providing the clarity. If FXCM are only really interested in attracting clients who trade forex - then wide spreads on other instruments don't much matter. However, if your goal is to expand the range of markets and instruments and appeal to the seemingly tiny percentage of weirdo's like me who don't trade forex, then you've got your work cut out!

I'm demo trading the MT4 platform with ETX Capital - as I've had a spread betting account with them for years. If I decide to move over to MT4, I'll then be on the hunt for a broker with the best offer. During the week, a member asked about this outfit based down under and, on the face of it, they're saying the sort of things that pique my interest: IC Markets (To subscribers to this thread, please note this is not an endorsement or recommendation - I've done nothing more than have a cursory glance at their website.)

I'm sure you and your colleagues know what your competitors are doing. Even so, but I thought some feedback from a (prospective) punter might be of interest.
Tim.

 

[Judds Admiral]

Lot Size Calculator

So the SNB debacle took place, and FXCM share price collapsed. A hot flush rushed through my body, as I thought the inevitable might happen, and reading the unfortunate demise of Alpari compounded this feeling with bucket loads of interest, all the wise words of others about not keeping all your money with one broker filled my head with "I told you so", yet my naiveté, and greed in profit accumulation kept me using FXCM mainly.

I decided to pull my money out, but there seemed to be no change in my account size, Hmm, something's not right here. Then I decided to call, and there was no response. Oh dear, it seemed the wreath was already made, and FXCM was about to join the likes of MF Global, and the latterly deceased Alpari.

Luckily for me, and others FXCM got a bail out, and monies were withdrawn.

I have now decided to keep monies under the FCA compensation guarantee, and every time I reach the limit, to keep withdrawing.

I have always had amounts in other brokers which I keep open to see the price differences with FXCM, and it is safe to say they are nigh on the same. Yet after the SNB debacle, I am now seeing vast differences in prices, spikes that were never seen before seem to be appearing, spreads seem to be astronomically wider around news events, which were previously not there, trend lines which are drawn on 1 min bar high/lows, seem to be shifting slightly as the day progresses, and I have changed timeframes, then back to the original time frame.

WTF is going on with FXCM. Is this a case of FXCM not giving a rat's derriere about it's customers anymore, and just raping their accounts to make sure the ensuing loan they have gets paid off quickly. Could it be a case of FXCM thinking "we tried to have a little integrity, that didn't work, lets revert back to the bucket shop methods of our past. After all our customers are addicted gamblers, who will keep up with their addiction".

I appreciate the main consensus would be to switch brokers, but the FXCM platform is fantastic to use with everything so simple, even a layman like me can use it. Easy to calculate what your percentage risk is in pounds, and pips, thus easy to calculate profit target, which has to be worked out, for the way I trade. I wish not to risk 1%, yet end up losing 1.35% if the trade goes wrong, as my calculations were guesstimates, and in an environment where getting in quickly(for me) is of utmost importance.

What are your views on this, and more importantly, what broker would people recommend.

Best
John

If you go to forextradingcoach you can download a free lot size calculator, which takes out all the guess work out of it. Might find helpful

Regards

Craig.

 

[spinola]

Fxcm have a free risk management app to use in their platform.

Download here http://www.fxcmapps.com/trading-station/risk-management-indicator/