timbecks777
Junior member
- Messages
- 11
- Likes
- 0
Best Thread FXCM Discussion
- Thread starter Jason Rogers
- Start date
- Watchers 128
forever_young
Member
- Messages
- 84
- Likes
- 1
no offence, but I don't think that it's a good idea to compare forex with gamble in any kind.
they are such different things and I think the same approach can only spoil the beginner..
Jason Rogers
Senior member
- Messages
- 2,772
- Likes
- 93
no offence, but I don't think that it's a good idea to compare forex with gamble in any kind.
Hi Forever Young,
No offense taken. I can definitely see where you're coming from with this. It wasn't my intention to compare trading to gambling. However, I don't think poker played properly is gambling.
On the flip side, I think there are some unsuccessful traders who don't realize that what they're doing is not really proper trading but is actually gambling in the markets. They don't use proper risk management. They don't plan enough about how to handle their losses.
Jason
Jason Rogers
Senior member
- Messages
- 2,772
- Likes
- 93
Glyder, do you play?
forever_young
Member
- Messages
- 84
- Likes
- 1
I may assume you`re talking about psychological issues like being calm during the whole thing. that`s may be similar between poker and trading.
I believe that at specially on the large time frames (and with big money) traders would rather use math or fundamental analysis and definitely not gambling.
glyder
Established member
- Messages
- 755
- Likes
- 94
Hi Jason,
Not a great deal, and never online.
But its amazing the number of market wizards who used their poker as a basis for trading techniques.
I tihnk its the abiity to accept losses / see the bigger picture is similar to trading.
I like the book Zen & The Art Of Poker lots of lessons that are good for trading.
Jason Rogers
Senior member
- Messages
- 2,772
- Likes
- 93
Yes, the other game I often hear mentioned by traders is backgammon. Again I think it's because chance plays a part especially in the short term, but the only way to achieve long term success is through calculated risk taking and weighing the risk versus the rewards. People who take foolish risks may get occasional success but ultimately lose as do those who play it too safe.
The other skill that's useful from backgammon is learning to press home an advantage by increasing the game value when you're winning. That's similar to adding to a winning position. You can also concede a game when victory is unlikely rather than losing more points. That's similar to closing out losing trades to cut losses.
glyder
Established member
- Messages
- 755
- Likes
- 94
Thats all true about backgammon, I've played that since I was a nipper and have a pretty good record. However very much like demo / real trading the mindset changes once the gambling dice comes into play.
Jason Rogers
Senior member
- Messages
- 2,772
- Likes
- 93
This Thursday is the Thanksgiving Holiday in the US which will impact the rollover schedule and trading hours for certain CFD products. So please take note:
Let me know if you have any questions.
Jason
1. Rollover: The JPY pairs will have 5X rollover and all other pairs will have 4X rollover today as a result of the holiday. There will be 0 rollover for all pairs tomorrow.
2. Forex Trading: There are no changes to forex trading hours. Trading will continue through Friday as normal and close on Friday at the normal time of approximately 4:55pm ET. Please be aware that liquidity will likely be lower than normal which could impact spreads.
3. CFD Trading: The times listed below show the change to CFD trading instruments in US Eastern Time (GMT -5 hours). (CFD trading is not available to residents of the United States)
2. Forex Trading: There are no changes to forex trading hours. Trading will continue through Friday as normal and close on Friday at the normal time of approximately 4:55pm ET. Please be aware that liquidity will likely be lower than normal which could impact spreads.
3. CFD Trading: The times listed below show the change to CFD trading instruments in US Eastern Time (GMT -5 hours). (CFD trading is not available to residents of the United States)
Let me know if you have any questions.
Jason
CFTC Opens New Comment Period
Two weeks ago the CFTC released their latest rule proposal to the public regarding customer funds protection for the futures industry. Once again the CFTC is accepting comments from the public:
http://comments.cftc.gov/PublicComme...m.aspx?id=1291
The comment period is slated to be open until January 14. FXCM continues to encourage forex traders to leave comments with the regulators on this matter. Retail forex has not been included in these reforms despite the thousands of customers at PFG who traded retail forex. In addition to supporting segregation of funds protection and insurance for the industry FXCM is also proposing the following:
Proposals to Bring Full Market Transparency and Accountability to the Futures/Forex Industry
1) Require All FCM’s to Publicly Publish Their Financials Once a Quarter:
Currently, the CFTC publishes monthly “Net Capital” reports that disclose to the public how much money a Futures Commission Merchant has set aside in capital. However, that report provides very little insight into how well the company is doing financially. By requiring FCM’s and RFED’s to publish their audited financials the trading public will know how much risk they are taking with each firm since investors will be able to weigh the liabilities along with the excess capital that these firms have.
Furthermore, the published financial statement should include everything (i.e. holding company’s financials) since what happens to other subsidiaries of the company can easily affect the regulated FCM/RFED. Each company should be required to provide a link to its financials on its own homepage so that the public can do its proper due diligence.
Too often, those firms that are teetering on the edge of bankruptcy lure customers in by offering unsustainable gimmicks (dirt cheap commissions, account opening bonuses) that temporarily puts off the inevitable. Customers should be aware of the perilous finances of those firms that would offer these kinds of gimmicks before opening an account with such a firm. PFG Best was a classic example of a firm that used such gimmicks as they routinely low balled their competitors with uneconomical discounts that no reputable, legally compliant firm could match.
2) Require all FCM’s to Employ a Top Ten Accounting Firm:
There need to be much higher accounting standards than currently exist in the FCM world. The Platt Group publishes an annual ranking of public accounting firms that could be used by FCM’s. Whether it is top 10 or top 25, the main point is that FCM’s must use a nationally recognized and respected accounting firm that could apply the same tough standards to FCM’s that publicly traded companies must meet.
While no one proposal will guarantee that a future FCM will not fail, these proposals will enhance the public’s due diligence capabilities by bringing greater market transparency and accountability to the world of futures/forex trading.
Two weeks ago the CFTC released their latest rule proposal to the public regarding customer funds protection for the futures industry. Once again the CFTC is accepting comments from the public:
http://comments.cftc.gov/PublicComme...m.aspx?id=1291
The comment period is slated to be open until January 14. FXCM continues to encourage forex traders to leave comments with the regulators on this matter. Retail forex has not been included in these reforms despite the thousands of customers at PFG who traded retail forex. In addition to supporting segregation of funds protection and insurance for the industry FXCM is also proposing the following:
Proposals to Bring Full Market Transparency and Accountability to the Futures/Forex Industry
1) Require All FCM’s to Publicly Publish Their Financials Once a Quarter:
Currently, the CFTC publishes monthly “Net Capital” reports that disclose to the public how much money a Futures Commission Merchant has set aside in capital. However, that report provides very little insight into how well the company is doing financially. By requiring FCM’s and RFED’s to publish their audited financials the trading public will know how much risk they are taking with each firm since investors will be able to weigh the liabilities along with the excess capital that these firms have.
Furthermore, the published financial statement should include everything (i.e. holding company’s financials) since what happens to other subsidiaries of the company can easily affect the regulated FCM/RFED. Each company should be required to provide a link to its financials on its own homepage so that the public can do its proper due diligence.
Too often, those firms that are teetering on the edge of bankruptcy lure customers in by offering unsustainable gimmicks (dirt cheap commissions, account opening bonuses) that temporarily puts off the inevitable. Customers should be aware of the perilous finances of those firms that would offer these kinds of gimmicks before opening an account with such a firm. PFG Best was a classic example of a firm that used such gimmicks as they routinely low balled their competitors with uneconomical discounts that no reputable, legally compliant firm could match.
2) Require all FCM’s to Employ a Top Ten Accounting Firm:
There need to be much higher accounting standards than currently exist in the FCM world. The Platt Group publishes an annual ranking of public accounting firms that could be used by FCM’s. Whether it is top 10 or top 25, the main point is that FCM’s must use a nationally recognized and respected accounting firm that could apply the same tough standards to FCM’s that publicly traded companies must meet.
While no one proposal will guarantee that a future FCM will not fail, these proposals will enhance the public’s due diligence capabilities by bringing greater market transparency and accountability to the world of futures/forex trading.
Jason Rogers
Senior member
- Messages
- 2,772
- Likes
- 93
Response to inquiries from GFT clients
Since GFT's announcement yesterday stating that they are pulling out of the US retail forex market, FXCM has received several inquiries from GFT clients. Below I wanted to address some of the most frequently asked questions.
Does FXCM still offer retail forex trading to US clients?
Why did GFT pull out of the US market?
FXCM's Director of Government Affairs Charlie Delano has been posting for the past 3 months on the importance of trading with a financially stable broker, and you can find his comments here.
Since GFT's announcement yesterday stating that they are pulling out of the US retail forex market, FXCM has received several inquiries from GFT clients. Below I wanted to address some of the most frequently asked questions.
Does FXCM still offer retail forex trading to US clients?
Yes, we have no intention of leaving the US retail market. In fact, we see this as an opportunity to get new business as smaller firms leave the US. FXCM has continued to grow in the US in terms of accounts and deposits, even as other firms have contracted, as you can see from the most recent quarterly reports from the CFTC.
Why did GFT pull out of the US market?
We can't speak for another company, but their announcement said it was a business decision. What we do know is that US forex regulations are some of the strictest in the world. A minimum of $20 million in capital is required just to be able to accept clients, and then additional capital is needed for open positions and customer assets. In this environment of lower volatility and lower interest rates many forex brokers are struggling to make money, and many have had to make drastic cuts.
That is why we feel FXCM's full transparency on its financials, and push for all firms to be more transparent as well is something that should be more important than ever to clients. Additionally, as one of the few publicly-traded forex brokers (NYSE: FXCM) our regularly published financial reports give our clients confidence in who they are doing business with that is not possible with a privately held broker.
That is why we feel FXCM's full transparency on its financials, and push for all firms to be more transparent as well is something that should be more important than ever to clients. Additionally, as one of the few publicly-traded forex brokers (NYSE: FXCM) our regularly published financial reports give our clients confidence in who they are doing business with that is not possible with a privately held broker.
FXCM's Director of Government Affairs Charlie Delano has been posting for the past 3 months on the importance of trading with a financially stable broker, and you can find his comments here.
Jason Rogers
Senior member
- Messages
- 2,772
- Likes
- 93
Holiday Trading Hours for Forex and CFDs
All times below are in Eastern Standard Time (EST)
Forex Trading Hours and FXCM Customer Service Hours
CFD Trading Hours for Christmas
CFD Trading Hours for New Year's
Happy Holidays from FXCM!
Forex Trading Hours and FXCM Customer Service Hours
CFD Trading Hours for Christmas
CFD Trading Hours for New Year's
Happy Holidays from FXCM!
FXCM Submits Reform Proposals to CFTC
FXCM has formally submitted its reform proposals to the CFTC for comment. We encourage everyone to contact CFTC as well to urge greater protections for the retail forex industry: http://comments.cftc.gov/PublicComme...m.aspx?id=1291
December 14, 2012
Via Mail and Electronic Submission
Mr. David Stawick
Secretary
Commodity Futures Trading Commission
1155 21st Street, N.W. Washington, D.C. 20581
Re: Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations: (RIN3038-AD88)
Dear Mr. Stawick:
Forex Capital Markets LLC (“FXCM”) is a retail foreign exchange dealer (“RFED”) and Forex Dealer Member of the National Futures Association (“NFA”). FXCM has been registered with the Commodity Futures Trading Commission (“CFTC”) as a Futures Commission Merchant (“FCM”) since 2001 and is one of the leading U.S. firms offering off-exchange forex trading to retail clients around the world. FXCM is proud of its position as an industry leader in retail FX both in the United States and globally. FXCM has been a staunch advocate for increased regulation for the U.S. forex industry and the protection of retail forex customers. FXCM submits these comments in response to the Commission’s November 14, 2012 rulemaking proposal (the “November 14th Proposal”) concerning “Enhancing Protections Afforded Customers and Customer Funds held by Futures Commission Merchants and Derivatives Clearing Organizations.”
FXCM believes that in light of the bankruptcies of MF Global and PFG Best the regulations contained in the November 14th Proposal are necessary. However, we are concerned they do not go far enough in protecting the trading public and would therefore like to propose additional protections. Since the financial crisis of 2008, many FCMs and RFEDs have been struggling financially as the traditional business model for FCMs and RFEDs has come under enormous pressure. FCMs earn commissions on each trade their customers make; however, electronic trading has caused a price competition among FCMs that has resulted in falling commissions throughout the industry. RFEDs earn revenue on the bid/ask spread but tightening spreads in the industry have pressured RFED bottom lines as well.
Additionally, interest rates have plummeted depriving FCMs and RFEDs of a large portion of revenue derived from the interest collected on customer deposits. Furthermore, decreased volatility throughout all financial markets has lowered the amount of trading in general. This constant pressure on revenues can result in a firm making aggressive, losing bets with client funds (MF Global) or in outright fraud (PFG Best).
It is precisely because of this challenging business climate that we believe the following two proposals be given serious consideration.
Require all FCMs and RFEDs to employ a Top Ten Accounting Firm
One of the many reasons that Russ Wasendorf Sr. was able to get away with his Ponzi scheme for so long was that PFG Best had very poor internal accounting procedures. While no accounting firm is perfect, there should be much higher accounting standards for FCMs and RFEDs. The Platt Group publishes an annual ranking of public accounting firms that could be used by FCMs and RFEDs. Whether it is top 10 or top 25, FCMs and RFEDs should use a nationally recognized and respected accounting firm that will apply the same accounting standards that publicly traded companies must meet.
Require All FCMs and RFEDs to Publish a Consolidated Balance Sheet and Income Statement
Once a Quarter
Futures Commission Merchants are very unique in the world of finance. They hold customer funds that are supposed to be in segregated accounts but they have no insurance in the event the firm goes bankrupt. The entire system revolves around trust. But with that trust violated something more must be offered to ease the investing public’s mind, specifically, a complete, fully audited, and publicly disclosed consolidated balance sheet and income statement.
Currently, the CFTC publishes monthly “Net Capital” reports that disclose to the public how much money a FCM or RFED has set aside in capital. However, that report provides very little insight into how well the company is doing financially. By requiring FCMs and RFEDs to publish a quarterly, consolidated balance sheet and income statement the trading public will know how much risk they are taking with each firm since investors will be able to weigh the liabilities along with the excess capital that a firm has.
Furthermore, the published balance sheet and income statement should include everything (i.e. holding company’s financials) since what happens to other subsidiaries of the company can easily effect the regulated entity. Each company should be required to provide a link to these financial statements on its own homepage so that the public can conduct proper due diligence.
Too often, those FCMs and RFEDs that are on the edge of insolvency lure customers in by marketing unsustainable offers (low commissions, account opening bonuses) that temporarily puts off the inevitable. If traders have access to such a firm’s income statement they will be able to see for themselves that these kinds of marketing gimmicks may not be producing revenue for the firm (or even leading to losses) and this will allow the trader to make a safer choice and also discourage firms from engaging in uneconomical business practices. One customer found this out the hard way:
Peregrine Financial Collapse Cost Farhan Khan His Life Savings
“But Khan was not worried about risk or diversification when he moved his money to PFG Best, he said. He had been aggressively saving for years and wanted to venture into commodities, which can produce high returns though with increased risk, to further grow his $380,000 nest egg.
In December, Khan transferred all his money from a Charles Schwab account to PFG Best, attracted by low fees that were half the cost of Schwab's and the faster trading platform.”
Had customers like Khan known the poor state of the finances of firms like PFG (who routinely hard sell these illusory discounts) then such a tragedy could have been avoided.
In addition, by requiring this additional disclosure customers will be able to watch out for firms who take excessive risks and have abnormally high volatility in their earnings, and other warning signs they may not be aware of. This would require firms to be more vigilant with the risks they are taking.
PFG Best highlights the need for putting the public interest ahead of the desire of many FCMs and RFEDs to keep their financials private. FCMs and RFEDs hold customer funds in trust. If a FCM or RFED goes out of business the collateral damage to the firm’s customers and to the confidence of market participants is far worse than with your average business, which is why the standards need to be much higher. In short, any FCM or RFED that holds customer funds in
trust needs to accept the costs that come along with that trust.
FXCM appreciates the opportunity to offer these comments to the Commission on the November
14th Proposal.
Sincerely,
Drew Niv
Chief Executive Officer
Forex Capital Markets LLC
55 Water Street, 50th floor
New York, NY 10041
FXCM has formally submitted its reform proposals to the CFTC for comment. We encourage everyone to contact CFTC as well to urge greater protections for the retail forex industry: http://comments.cftc.gov/PublicComme...m.aspx?id=1291
December 14, 2012
Via Mail and Electronic Submission
Mr. David Stawick
Secretary
Commodity Futures Trading Commission
1155 21st Street, N.W. Washington, D.C. 20581
Re: Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations: (RIN3038-AD88)
Dear Mr. Stawick:
Forex Capital Markets LLC (“FXCM”) is a retail foreign exchange dealer (“RFED”) and Forex Dealer Member of the National Futures Association (“NFA”). FXCM has been registered with the Commodity Futures Trading Commission (“CFTC”) as a Futures Commission Merchant (“FCM”) since 2001 and is one of the leading U.S. firms offering off-exchange forex trading to retail clients around the world. FXCM is proud of its position as an industry leader in retail FX both in the United States and globally. FXCM has been a staunch advocate for increased regulation for the U.S. forex industry and the protection of retail forex customers. FXCM submits these comments in response to the Commission’s November 14, 2012 rulemaking proposal (the “November 14th Proposal”) concerning “Enhancing Protections Afforded Customers and Customer Funds held by Futures Commission Merchants and Derivatives Clearing Organizations.”
FXCM believes that in light of the bankruptcies of MF Global and PFG Best the regulations contained in the November 14th Proposal are necessary. However, we are concerned they do not go far enough in protecting the trading public and would therefore like to propose additional protections. Since the financial crisis of 2008, many FCMs and RFEDs have been struggling financially as the traditional business model for FCMs and RFEDs has come under enormous pressure. FCMs earn commissions on each trade their customers make; however, electronic trading has caused a price competition among FCMs that has resulted in falling commissions throughout the industry. RFEDs earn revenue on the bid/ask spread but tightening spreads in the industry have pressured RFED bottom lines as well.
Additionally, interest rates have plummeted depriving FCMs and RFEDs of a large portion of revenue derived from the interest collected on customer deposits. Furthermore, decreased volatility throughout all financial markets has lowered the amount of trading in general. This constant pressure on revenues can result in a firm making aggressive, losing bets with client funds (MF Global) or in outright fraud (PFG Best).
It is precisely because of this challenging business climate that we believe the following two proposals be given serious consideration.
Require all FCMs and RFEDs to employ a Top Ten Accounting Firm
One of the many reasons that Russ Wasendorf Sr. was able to get away with his Ponzi scheme for so long was that PFG Best had very poor internal accounting procedures. While no accounting firm is perfect, there should be much higher accounting standards for FCMs and RFEDs. The Platt Group publishes an annual ranking of public accounting firms that could be used by FCMs and RFEDs. Whether it is top 10 or top 25, FCMs and RFEDs should use a nationally recognized and respected accounting firm that will apply the same accounting standards that publicly traded companies must meet.
Require All FCMs and RFEDs to Publish a Consolidated Balance Sheet and Income Statement
Once a Quarter
Futures Commission Merchants are very unique in the world of finance. They hold customer funds that are supposed to be in segregated accounts but they have no insurance in the event the firm goes bankrupt. The entire system revolves around trust. But with that trust violated something more must be offered to ease the investing public’s mind, specifically, a complete, fully audited, and publicly disclosed consolidated balance sheet and income statement.
Currently, the CFTC publishes monthly “Net Capital” reports that disclose to the public how much money a FCM or RFED has set aside in capital. However, that report provides very little insight into how well the company is doing financially. By requiring FCMs and RFEDs to publish a quarterly, consolidated balance sheet and income statement the trading public will know how much risk they are taking with each firm since investors will be able to weigh the liabilities along with the excess capital that a firm has.
Furthermore, the published balance sheet and income statement should include everything (i.e. holding company’s financials) since what happens to other subsidiaries of the company can easily effect the regulated entity. Each company should be required to provide a link to these financial statements on its own homepage so that the public can conduct proper due diligence.
Too often, those FCMs and RFEDs that are on the edge of insolvency lure customers in by marketing unsustainable offers (low commissions, account opening bonuses) that temporarily puts off the inevitable. If traders have access to such a firm’s income statement they will be able to see for themselves that these kinds of marketing gimmicks may not be producing revenue for the firm (or even leading to losses) and this will allow the trader to make a safer choice and also discourage firms from engaging in uneconomical business practices. One customer found this out the hard way:
Peregrine Financial Collapse Cost Farhan Khan His Life Savings
“But Khan was not worried about risk or diversification when he moved his money to PFG Best, he said. He had been aggressively saving for years and wanted to venture into commodities, which can produce high returns though with increased risk, to further grow his $380,000 nest egg.
In December, Khan transferred all his money from a Charles Schwab account to PFG Best, attracted by low fees that were half the cost of Schwab's and the faster trading platform.”
Had customers like Khan known the poor state of the finances of firms like PFG (who routinely hard sell these illusory discounts) then such a tragedy could have been avoided.
In addition, by requiring this additional disclosure customers will be able to watch out for firms who take excessive risks and have abnormally high volatility in their earnings, and other warning signs they may not be aware of. This would require firms to be more vigilant with the risks they are taking.
PFG Best highlights the need for putting the public interest ahead of the desire of many FCMs and RFEDs to keep their financials private. FCMs and RFEDs hold customer funds in trust. If a FCM or RFED goes out of business the collateral damage to the firm’s customers and to the confidence of market participants is far worse than with your average business, which is why the standards need to be much higher. In short, any FCM or RFED that holds customer funds in
trust needs to accept the costs that come along with that trust.
FXCM appreciates the opportunity to offer these comments to the Commission on the November
14th Proposal.
Sincerely,
Drew Niv
Chief Executive Officer
Forex Capital Markets LLC
55 Water Street, 50th floor
New York, NY 10041
tar
Legendary member
- Messages
- 10,443
- Likes
- 1,314
I feel i must give this review , i don't use Fxcm that often , i had some issues last month i couldn't close my open positions for 30 min but i could take a hedged opposite position which solved the problem, but i must say their wire withdrawals are really fast tried it twice ...
Jason Rogers
Senior member
- Messages
- 2,772
- Likes
- 93
Hi Tar,
I'm sorry to hear you had difficulty closing positions last month. Did you log a case with FXCM regarding the affected trades? If there was any error in our trade execution, the Audit Committee would make the appropriate credit to your account. If you would like to log a case now, you can complete this online form.
Jason
tar
Legendary member
- Messages
- 10,443
- Likes
- 1,314
Hi Jason , no need for that , as i said i immediately took a hedged position then i closed both positions later after that ...
Jason Rogers
Senior member
- Messages
- 2,772
- Likes
- 93
Seasons Greetings!
I posted our holiday trading hours earlier, but in case you missed it, here's a link.
Also, with holidays comes holiday rollover. Here's a look at what the rollover interest schedule will be like from now until the end of the year.
Happy Holidays to Everyone!
Jason
I posted our holiday trading hours earlier, but in case you missed it, here's a link.
Also, with holidays comes holiday rollover. Here's a look at what the rollover interest schedule will be like from now until the end of the year.
Happy Holidays to Everyone!
Jason
