Best Thread FXCM Discussion

[Jason Rogers]

Thanks, so as I am a retail customer it is held under 'client money' rules. Its just the question of FSCS cover for overseas banks they may have.

Hi newste26,

You are correct that retail accounts with FXCM UK continue to be segregated in accordance with FSA client money rules. Where this does not apply is if you are a professional client as per FSA specifications. I do apologize about any confusion that this caused.

-Jason

 

[Steve.Newton]

Hi newste26,

You are correct that retail accounts with FXCM UK continue to be segregated in accordance with FSA client money rules. Where this does not apply is if you are a professional client as per FSA specifications. I do apologize about any confusion that this caused.

-Jason

Thanks Jason.

 

[Jason Rogers]

Attention on Rollover: March 15, 2011 If you're planning to hold any JPY trades open at 5:00pm ET, please be aware that the BOJ has acted to discourage FX speculation in the JPY which is causing rollover charges to be elevated across all JPY pairs. Any important trading notices will continue to be posted on the Client Update Center.

 

[Truth Seeker]

Hi newste26,

You are correct that retail accounts with FXCM UK continue to be segregated in accordance with FSA client money rules. Where this does not apply is if you are a professional client as per FSA specifications. I do apologize about any confusion that this caused.

-Jason

Where is this fact in writing Jason?

 

[Jason Rogers]

Where is this fact in writing Jason?

Listed right on the website: http://www.fxcm.co.uk/regulation.jsp

 

[Truth Seeker]

All FXCM need to do now is to reduce spreads, ie, 1 pip euro, 2 pip cable, 1 pip eurgbp, then see the business they get

 

[Truth Seeker]

If FXCM are not going narrow their spreads, if you add the difference between non spreadbet and FXCM spreadbet, you are actually paying up to 200% more on every trade because of the wide spreads and as tax is only 40% tops and you can get tax relief on all your losses we are not gaining anything by spreadbetting with FXCM, we are actually being a bum deal.

Now I know there are spreadbetting firms now doing zero spreads, so how are they making money? The only way I can see if that they rely on losers.

 

[Jason Rogers]

If FXCM are not going narrow their spreads, if you add the difference between non spreadbet and FXCM spreadbet, you are actually paying up to 200% more on every trade because of the wide spreads and as tax is only 40% tops and you can get tax relief on all your losses we are not gaining anything by spreadbetting with FXCM, we are actually being a bum deal.

Now I know there are spreadbetting firms now doing zero spreads, so how are they making money? The only way I can see if that they rely on losers.

If you read the thread (in the spread bet section) of the broker which offered zero spreads, you will see the difficult time some traders faced when trying to trade after becoming profitable or trading in the direction the market is moving. If a broker isn't being compensated through a spread, then the next obvious question is how are they compensated? The majority of spreadbet brokers are market makers which can profit off of traders losses. If the market is going against you, you'll often find you have no problem getting into or out of the trade because your loss is the brokers profit. If you try to enter the market in the direction the market is moving or exit as it moves in your favor, you'll often find that is when you start to experience re-quotes or dealer referral. FXCM's NDD forex execution has no re-quotes because it uses straight through processing. The trade is offset back to back with one of several banks or financial institutions which means FXCM doesn't profit or lose from our traders positions profiting or losing.

Second, because we use NDD forex execution, the spreads will also be variable based on the prices and liquidity being offered by the banks. The platform automatically displays the best bid/ask price on offer from several bank market makers and we add a pip mark-up to the spread which is essentially a commission. When you click on a price, the order is sent to the bank offering that quote. So while other spreadbet firms may lure you in with a zero spread only to be surprised later by re-quotes and dealer referral, with FXCM you see the actual best bid/ask price being offered from the banks we deal with plus the pip markup. Therefore there are no re-quotes.

-Jason

 

[goodtyneguy]

#Are_offshore_deposits_covered_Are offshore deposits covered?

We do not cover deposits outside the European Economic Area (EEA), or in the Channel Islands or Isle of Man.

The issue of spreadbetters moving client monies outside the EEA and the frequent reminders by UK banking/financial instituitions of the FSCS in relation to retail deposits are a cause for concern in my opinion. Of course the spreadbetters have a vested interest in protecting their clients cash. Let' face it if the PIIGS go down then so does the rest of europe. The UK has outstanding loans with Irish banks of about 9% of GDP alone. From my understanding, a default by just one member of the PIIGS and it will all come down like a house of cards. The UK/FSCS could not afford to compensate everyone or if it could where would the banks retail customers stand in the queue in relation to financial instituitions? I can just hear Camemoron and Glake in an apologetic TV special announcement which will go something like this: It has all been an unfortunate, unforseen and unavoidable event and that we (meaning the proleteriat) are going to have to take it on the chin. We are all in the same boat and by accepting the losses we are doing so for a new start and therefore for the good of our queen and country.

So, it may turn out that losing the protection of the FSCS for the safety of a solvent bank, (is there such thing... think creative accounting?)may not actually be a bad thing. I'd still want to know where my money was parked though. A very sensitive subject, no doubt.

 

[Jason Rogers]

Hi newste26,

You are correct that retail accounts with FXCM UK continue to be segregated in accordance with FSA client money rules. Where this does not apply is if you are a professional client as per FSA specifications.

A couple weeks ago there were questions about segregated accounts at FXCM UK vs. non-segregated in response to the terms and conditions email sent out. I was able to get details on the number of segregated vs. non-segregated accounts at FXCM UK which I can share with you.

As of April 10, 2011 FXCM UK had a total of 80,103 accounts. Out of this number, 13 accounts at FXCM UK were not segregated due to professional client classification as specified by the FSA client money rules. All of the 80,090 retail individual trading accounts are segregated, as they should be, according to FSA client money rules. Even though the funds of only 13 accounts are not segregated, they are still held separate from FXCM's operational funds, and professional clients can still request that their funds be segregated.

Safety of funds is a top concern for every trader in the forex market. You need to know whether the broker you entrust your money with is financially stable and won't disappear with your deposit. FXCM is a publicly traded company on the New York Stock Exchange (NYSE: FXCM), and our audited financial statements are publicly available for you to access. FXCM has no debt and over $190 million in cash. The most recent release for Q4 earnings and full 2010 results can be found here: http://ir.fxcm.com/phoenix.zhtml?c=238885&p=irol-newsArticle&ID=1534848&highlight= .

 

[Andyxxxx]

Hello, I think I'm posting in the right place, I've looked through numerous forums and can't seem to find an answer for this particular query, anyway here goes.

I have question with regards to the trailing stops on the FX trading system II (the dynamic in particular) and exactly what is the mechanics on how they work.
for example, If I open a buy position at 5050 and set a stop loss at 5000 (50 points away). then come back a little time later and the Sell price of the position is now 5040 (40 points from the stop loss)

If i then decide to set a dynamic trailing stop at this later time, will the Dynamic trailing stop have a trailing value of 40 or 50 points?

I think I've made the question as simple as possible

Thanks

 

[Jason Rogers]

Hello, I think I'm posting in the right place, I've looked through numerous forums and can't seem to find an answer for this particular query, anyway here goes.

I have question with regards to the trailing stops on the FX trading system II (the dynamic in particular) and exactly what is the mechanics on how they work.
for example, If I open a buy position at 5050 and set a stop loss at 5000 (50 points away). then come back a little time later and the Sell price of the position is now 5040 (40 points from the stop loss)

If i then decide to set a dynamic trailing stop at this later time, will the Dynamic trailing stop have a trailing value of 40 or 50 points?

I think I've made the question as simple as possible

Thanks

Hi Andy,

You're in the right place.

The trailing stop feature will cause the stop loss order you create to trail the market price. So if you enable the trailing stop, it will cause the stop loss order you have set at 5000 to begin trailing the market price as it moves up.

Now there are two types of trailing stops available in the platorm: Dynamic and Fixed. The dynamic trailing stop will cause your stop loss order to continually follow the market as it moves in your favor, even when the market moves only 1/10th of a pip. Continuing with your example, you entered the market at 5050, you set a stop loss order at 5000, and you come back to the platform to enable the dynamic trail when the sell price is at 5040. Every pip the market moves up from 5040, the dynamic trail will move your stop loss order up a pip. If the market moves up by 10 pips from 5040 to 5050, your stop loss order will move from 5000 to 5010. If the market moves 20 pips up from 5040 to 5060, your stop loss order will move up from 5000 to 5020. If the market moves up 126 pips from 5040 to 5166, your stop loss order will move up from 5000 to 5126. And so forth...

So the dynamic trail causes the stop loss order to trail the market price from the price at the moment when you set the trailing stop.

I know it can get confusing when trying to explain it, so let me know if there's any confusion.

-Jason

 

[Andyxxxx]

Thanks for letting me know, I thought that might be the case, I just had to find out the hard way, by being stopped out on my first ever live trade and what was even more annoying, after I had been stopped out the price went in direction predicted and I would have made a healthy profit.

Even though my original stop price was not hit, it was the use of the trailing stop made the order close. Thankfully I used recommended risk management and position sizing and didn't lose too much, so not too much of an expensive lesson.

The following sums it up in one sentence :

"So the dynamic trail causes the stop loss order to trail the market price from the price at the moment when you set the trailing stop."
Its only a minor thing but it does not explain that in the in FX trading Station user guide. Maybe it can be added for clarity.

 

[Jason Rogers]

Easter Holiday Trading Hours

Important information on changes to trading hours due to the Easter holiday:

There are no changes to forex trading hours. Trading closes on Friday at 4:00pm ET (20:00 GMT) and starts again on Sunday at 5:15pm ET (21:15 GMT)/

CFD Trading hours will change from Thursday, April 21 to Tuesday, April 26 for some CFD trading instruments. Below is a list of the changes to trading hours for the CFD products. All times are in GMT.

Please Note: Oil, metals, and indices trading is not available to residents of the USA and its territories.

 

[pair trader]

Thanks for the update

 

[Jason Rogers]

Updated Margin Requirements for USD Denominated Accounts

Updated USD Margin Requirements: This information was sent to all FXCM US and FXCM UK accounts denominated in USD. Please be aware in case you have not read the email (We know how distracting the Royal Wedding can be). Margin requirements for USD denominated accounts will be adjusted at market close on Friday, April 29th due to recent price fluctuations in the US Dollar. It is important to monitor your usable margin closely, making sure it does not fall below zero. Here is a table of the new margin requirements for accounts on 200:1 leverage with FXCM UK when trading a mini lot of 10k for the specified currency pair:

If your account is with FXCM US, multiply the amount by 4 to get the margin requirement for a 10k lot at 50:1 leverage. Last week I mentioned that micro lots are now automatically available for all new standard 10k accounts setup with FXCM US. If you have an existing standard 10k account with FXCM US and would like the ability to trade micro lots, please contact client services with the request.

At present, FXCM does not anticipate that margin requirements will have to be changed more than once a month. Up-to-date margin requirements are and will continue to be displayed in the “Simple Dealing Rates” window of the trading platform, by currency pair.

 

[Bint_Crusher]

thanks for letting me know, i thought that might be the case, i just had to find out the hard way, by being stopped out on my first ever live trade and what was even more annoying, after i had been stopped out the price went in direction predicted and:cheesy::cheesy::cheesy::cheesy::cheesy::cheesy: i would have made a healthy profit. whistlingwhistling

even though my original stop price was not hit, it was the use of the trailing stop made the order close. Thankfully i used recommended risk management and position sizing and didn't lose too much, so not too much of an expensive lesson.

The following sums it up in one sentence :

"so the dynamic trail causes the stop loss order to trail the market price from the price at the moment when you set the trailing stop."
its only a minor thing but it does not explain that in the in fx trading station user guide. Maybe it can be added for clarity.

calm down dear

 

[Jason Rogers]

Dow Jones FXCM Dollar Index

We're happy to announce that FXCM has partnered with Dow Jones Indexes to release the Dow Jones FXCM Dollar Index (USDOLLAR)!

The symbol was added to all [FXCM US (LLC)] demo accounts yesterday. If you don't see it in the dealing rates window, you can add it by clicking on the Symbols button at the top of the platform. I've been told that the charts may possibly be backfilled by this week. In terms of live trading on the index, it will be added to live accounts eventually.... possibly within a couple of months but still not certain. The index can also be found on most financial websites by searching for the ticker symbol USDOLLAR, i.e. Yahoo Finance.

The Dow Jones FXCM Dollar Index is composed of 4 currencies in equal weightings.

The Dow Jones FXCM US Dollar Index avoids outdated currency pair selection and confusing methodology to produce a more straightforward design. The index basket is designed to be as easy to understand as it is to trade. At inception date, the index reflects an equivalent $10,000 long position against the euro, British pound, Japanese yen, and Australian dollar. The value of the index is subsequently the average value of those US Dollar positions. If the US Dollar rallies 100 pips against the euro, Australian dollar, Japanese yen, and British pound, the index will appreciate by approximately 100 points.

If you don't see the USDOLLAR symbol on your demo account, you can add it by clicking on the Symbols button at the top of the platform. Scroll down to USDOLLAR and put a check in the box. Here is what it will look like once added to the dealing rates window:

The screenshot of the USDOLLAR basket is from yesterday when the index value was at $9,440. This is the USD value of the 4 currency pairs in the basket. Since the initial starting value of the index was $10,000 you can see that the US Dollar has lost value since the index was initially launched. The current USDOLLAR value is around $9,504 (as of a few minutes of the post) so you can tell that the USDOLLAR has gained in value since yesterday. The new index allows you to easily speculate on the direction of the dollar versus a basket of pairs. Let me know if you have any questions.

-Jason

 

[kalott]

"If you don't see the USDOLLAR symbol on your demo account, you can add it by clicking on the Symbols button at the top of the platform. Scroll down to USDOLLAR and put a check in the box"

Nothing on my demo..

maybe i need new glasses?

 

[Jason Rogers]

"If you don't see the USDOLLAR symbol on your demo account, you can add it by clicking on the Symbols button at the top of the platform. Scroll down to USDOLLAR and put a check in the box"

Nothing on my demo..

maybe i need new glasses?

You don't need glasses, I just need to be clearer in my post

The USDOLLAR was added to all demo accounts with FXCM US (LLC). If your demo is with FXCM UK or FXCM Australia, you will not see it just yet. The plan is to add it to the remaining demos this weekend. If you want to see it immediately, best option is to register a demo with FXCM US. If you don't mind waiting, it will be there soon enough!

-Jason