Best Thread FXCM Discussion

im sure others as well as myself would dearly love you to reply to in depth

Hi Mike,

Thanks for your post and I'm happy to help answer questions and have a discussion. The questions you're referencing are not tough questions, they're loaded questions intended to mislead forum members. You only have to take a look at a few of the claims to see the pattern. Below are some examples:

FXCM claims that does not re-quote. That is a lie.

There are no re-quotes when trading with FXCM, and the statement is simply made up without providing any proof.

FXCM loves to claim that it offers true Transparent DMA and a "no dealing desk" option.

If you visit the FXCM.co.uk website (or FXCM.com for US clients), the term DMA isn't even mentioned. Next I'll be hearing that FXCM claims to have invented forex trading. The things that try to get passed off as fact without providing any evidence are absurd, and not worthy of a response. Earlier this year Steve stated regarding the forum rules that:

5. If you persist in using inflammatory language and making claims that cannot be backed up by some evidence then there will be a very real risk that your post will be altered or removed.

Again I'm happy to have a discussion, but if completely false claims are made about FXCM, they will be disregarded.

Now on to your question asking for a detailed response. FXCM offers No Dealing Desk (NDD) forex execution, and I would be happy to explain for you step by step how NDD works and how it is different from your typical market maker broker.


1. Pricing: In the NDD model, FXCM acts as a price aggregator. We take the best available bid and best ask prices from 10+ liquidity providers, add a mark-up, and then the best price is streamed onto the platform. FXCM has no control over pricing, since it's determined by competition between the liquidity providers with our compensation just being the pip mark-up. Having multiple liquidity providers also ensures that no one provider can manipulate pricing. In a dealing desk model, the broker is the sole provider of pricing. They may look at the wider market as a reference point for their pricing, but pricing is ultimately set by the market maker who has an interest in seeing you lose if they choose not to offset your order.

Let's take a look at how the NDD pricing process works using a simple example involving 2 banks and prices quoted only to the whole pip (4 places past the decimal point). Below are 2 banks quoting GBP/USD pricing:

Bank A: 1.6168/Bid, 1.6170/Ask
Bank B: 1.6169/Bid, 1.6171/Ask​

FXCM takes the best bid from Bank B of 1.6169 and the best ask from Bank A of 1.6170 which make the best spread 1.6169/70. We then add a pip mark-up to the bid/ask making it 1.6168/71 which is what you see streamed onto the platform. This competitive process constantly takes place as new quotes are received.


2. Execution: In the NDD model, every order is offset one-for-one with one of the 10+ liquidity providers. I'll give an example continuing with Bank A and Bank B pricing from above. Let's suppose you decide to buy GBP/USD at the price 1.6171. The order is first sent to FXCM to buy at 1.6171 and FXCM in turn executes an offsetting transaction with Bank B at the price 1.6170. You have a long position at 1.6171 and FXCM has a long position at 1.6170 with Bank B thereby hedging the traders exposure. Our compensation was the 1 pip mark-up between the price you requested 1.6171 and the price which the order was offset with Bank B, 1.6170.

With a dealing desk broker, the broker may choose not to hedge trader positions. This means a traders profit becomes their loss and the loss becomes their profit presenting a conflict of interest.​


This entire process from start to finish is detailed in this video:



There was a suggestion made that it's better to trade on a commission-based pricing structure via an API with market depth information. In fact, this is one of the options we offer to Active Trader accounts. Interestingly though, the majority of them still choose to have their commission built into the spread as a pip markup similar to how we have it on retail accounts for simplicity. In the end, it comes down to personal preference. Whether the commission is charged separately or as part of the spread, it's a cost that has to be covered in order for a trade to be profitable.

The fact is that FXCM do manipulate the price to the disadvantage of the retail client and its been proved in the USA

FXCM does not manipulate prices. Our regulators required a change to our system in 2010 regarding positive slippage, and all FXCM clients can experience positive slippage even while many of our spread bet competitors may not offer it. An easy way to check is whether your limit orders are ever filled at a better price especially if the market price gaps through your limit.

If you are truly concerned about manipulative pricing, then I would think you would be leading the charge against brokers that re-quote. A dealing desk broker could selectively use re-quotes in their own best interest instead of treating all trades the same. Here's an example which will make it very clear how re-quotes work in the interest of brokers that use them.

Suppose there's a major news event that has the ability to move the market substantially within a matter of seconds, and you're trading GBP/USD. The current price is 1.6160, but the market gaps to 1.6180 and continues moving higher immediately when the news is released. If you buy and happen to get 1.6160 then the broker is stuck holding a short position at 1.6160 for a 20 pip loss and growing!

If it happens only a few times, then no big deal, but if the broker continues to get picked off like this, you're hurting their bottom line. This is when you are most likely to be hit with a re-quote for the "correct market price" of 1.6180. What happens if you decide to sell instead? In that case, you sell at 1.6160 and the market immediately moves to 1.6180 resulting in an immediate profit of 20 pips for your broker. The dealer looks like a trading genius. Why re-quote the better price of 1.6180, you got exactly the price you wanted. So you can see how re-quote practices are often one-sided in the market maker's favor. As mentioned previously, there are no re-quotes at FXCM.

Jason
 
FXCM does not manipulate prices. Our regulators required a change to our system in 2010 regarding positive slippage

Slight glossing over there...
 
This happened to me today:


Today I just caught the price of NGAS changing by one or 2 pips after I made an order so I got in contact with FXCM support.

Support told me the market is on a break. I asked how I could have made an order while on break. They told me that the order is created but it isn't executed. They then sent me a PDF showing that the market for energies is on a break (21:15-00:00GMT).

I then asked again how the price is fluctuating. They said they can see that and looked into it. After a while they came back and said there's a typo in the pdf and the market actually closed at ~18:00GMT.

I then said 'how can the price fluctuate if the market is closed?' to which they said 'price can fluctuate as the market never really closes'.


OK guys... WTF!
I felt a little bit like the time I caught the dealer in a casino looking at cards as dealt.

I'm a bit new to this but this isn't making much sense?

Exact times and amounts were:
23:35-23:49GMT - Price fluctuating on closing price 3.611-3.617, symbol NGAS. Spread 10, Pip cost 0.62, Open 3.627 (didn't see it change but might have missed it), P/L -12, Gross P/L -7.42
 
I'm a bit new to this but this isn't making much sense?

Hi Jago,

Sorry for the confusion, but hopefully I can clarify this for you. The weekly trading hours for NGAS are from Sunday 22:00 GMT to Friday 20:45 GMT. In addition, there is a daily break from 21:15 GMT to 00:00 GMT.

When trading is closed for the weekend, you will not be able to place or modify any orders, and no existing orders will be triggered. During the daily break, you can place or modify stop and limit orders, but you can't open or close any positions. Stop and limit orders will not trigger during the daily break.

Also, I notice that your forum profile says you live in the UK. Note that British Summer Time doesn't end until this weekend. That means for now, the daily break for NGAS is from 10:15 PM to 1:00 AM your time. After this weekend, the UK will revert back to GMT time, and the daily break for NGAS will be from 9:15 PM to 12:00 AM your time.

Jason
 
Last edited:
New CFD Trading Hours for End of Summer Time in Europe

On Sunday, October 27th at 01:00 GMT, the clocks in Europe will go back one hour, because of the end of Summer Time. Below are the CFD trading hours that will be in effect starting next week. Changes are highlighted in yellow.

c85.png


Have a great weekend! For those of you in Europe it's an hour longer :D
 
New Trading Hours for End of Daylight Savings Time in US

This coming Sunday, November 3rd, the clocks in the US will go back one hour, because of the end of Daylight Savings Time. That means the trading hours for forex and some CFDs will change in terms of Greenwich Mean Time (GMT). Below are the trading hours that will be in effect starting next week. Changes are highlighted in red.

dnqu.png


Please let me know if you have any questions.

Jason
 
Holiday Trading Hours for November

Below are the holiday trading hours for CFDs in November. Forex trading hours are as normal. Times below are in EST (GMT -5)

uapa.png
 
Update for Trading Station Mobile

We recently released an update to the Trading Station Mobile platform for smartphones and tablets. To confirm that you have the latest version (1.8.111513) look at the version number at bottom of the login screen. You can download the latest version of the app in the Google Play and Apple Stores.

wvok.png

You will also notice that there is now an option to view live currency and CFD rates directly from this screen without having to log into your account. Below are some of the other new features that have been added with this update:

zm8p.png

A. Share button to post your charts on social media such as Facebook and Twitter
B. New indicators including Donchian Channels (shown), OB/OS Oscillator, BB Percentage and BB Averages
C. Option to change chart background from black to white

7njw.png

Video news updates from DailyFX analysts
 
Holiday Hours for Christmas and New Years

Below are the trading and customer service hours for Christmas and New Years (all times in GMT)

Customer Service and Forex Trading Hours

s1fr.png

CFD Trading Hours

tbga.png


xwoc.png

Merry Christmas and Happy New Year!

Jason
 
Hi Everyone,

I will be out of the office for the next two weeks and will respond to any questions you post after I return on Monday, January 6th. If you need immediate assistance, please contact our 24-hour live customer support. Our holiday hours are in my previous post.

Merry Christmas and Happy New Year!

Jason
 
New York Close on MT4 accounts with FXCM

Hi Jason,

Can you let me know:

1) At what time does the daily candlesticks close on your charts?

2) Is Sunday's price data shown in a separate candlestick or is it included in Monday's candlestick? Another way of asking, is the FX week represented by five or six candlesticks?

3) Are the answers to 1) and 2) the same for all your products?

Thanks

Hi GTG,

Due to popular demand by our clients, New York Close charts are now available on FXCM's newest live MT4 server.

That means your daily charts will have 5 candles per week with no Sunday candle. Note that in order to make this possible, the time zone on this MT4 server is set to GMT+2 so that midnight on the charts corresponds to 5pm New York time (AKA New York Close).

742e.jpg

If you have an existing MT4 account with us on a server that's set to GMT, you can email [email protected] referencing your account number to request that the account be transferred to the new MT4 server with New York Close charts. Your account must be flat. Please allow a couple of business days for your account to be set up on the new server. You will receive an email with your new login details when the setup is complete.

* Please let us know your thoughts on our new MT4 server with New York Close charts. Based on your feedback, we can decide how many of our MT4 servers to keep on GMT time and how many to switch to New York Close.

** FXCM Trading Station charts have always been set to New York Close. Unlike with the MT4 platform, Trading Station allows you to display the time zone of your choice, and the daily candles will still begin and end at 5pm New York time.
 
CFD Holiday Trading Hours for January

Below are the holiday trading hours for CFDs in January. Forex trading hours remain as normal. All times below are in GMT.

240.jpg
 
If you visit the FXCM.co.uk website (or FXCM.com for US clients), the term DMA isn't even mentioned.
Jason


Can someone give me some clarification on the above quote, Is there a difference between DMA, STP and NDD ? Is there any way your order can be manipulated via NDD other than the standard broker mark-up ? or is this "mark-up" variable ?
 
Is there a difference between DMA, STP and NDD ? Is there any way your order can be manipulated via NDD other than the standard broker mark-up ? or is this "mark-up" variable ?

Hi Mike,

While I can't speak for how other brokers use those terms, when FXCM refers to NDD, we are talking about our No Dealing Desk forex execution. On this model, FXCM receives competing prices from 10+ liquidity providers. We take the best bid and ask being quoted at any given time and use those to offset client orders.

We apply a fixed pip markup which acts as a commission. That means FXCM makes money from client trading volume, not client losses, and we make the same amount regardless of the price at which client orders are filled. Therefore, it's in our best interest for our clients to be successful, so they can grow their account size, place larger orders and be lifelong customers.
 
FAQ for MT4 Build 600

FXCM has recently received many inquiries from traders about MetaQuotes' latest update to the MT4 platform (Build 600). In the following posts, I'll provide solutions from our tech support team for the most frequently asked questions.

* If you have additional questions about MT4, please free free to ask them here, and I'll post the responses I receive from our tech support team.

Additional EAs, Indicators and Scripts for MT4 at FXCMapps.com
 
Last edited:
Where can I find my EAs, indicators, etc. on MT4 Build 600?

The latest version of FXCM MetaTrader 4 now saves your expert advisors, indicators, profiles, etc. in a different location on your computer. If you do not see your EAs and indicators in the navigator folder, your MT4 files are most likely still saved in the old folder location and are not recognized by the new version build of MT4.

Please follow the instructions below to move your files to the correct directory on build 600 of MT4.

1. First, find where you have your MT4 files saved currently. Below are the file types and location where these files may be currently saved on your computer. You may also want to check your desktop or downloads folders to see if you have copies of these files saved there.

ib4w.png



2. Open MT4 > click on File > Open data folder > then double click the MQL4 folder. This will show you where your experts, indicators, etc. should be saved on your computer. Unless you have UAC settings disabled the folder location will be C:\Users\[user name]\AppData\Roaming\MetaQuotes\Terminal\[32 character long MT4 ID]\MQL4

yrwn.png



3. Copy the files from the old location to the new location. For your EA's, for example, you will copy the contents of the C:\Program Files (x86)\FXCM MetaTrader 4\experts folder to C:\Users\[user name]\AppData\Roaming\MetaQuotes\Terminal\[32 character long MT4 ID]\MQL4\Experts

7o4f.png


Additional EAs, Indicators and Scripts for MT4 at FXCMapps.com
 
Last edited:
How to Recompile EAs and Indicators on MT4 Build 600

MetaEditor has changed in MT4 build 600 and as a result some expert advisors and indicators may have to be recompiled. Please follow the steps below to recompile your experts and indicators.

1. Open MT4 > go to File > Open data folder > double click on the MQL4 folder

2. Double click on the name of the expert advisor or indicator to open the file in MetaEditor.

zh5t.png


3. If there are any errors when compiling the expert or indicator you will see those appear at the bottom of MetaEditor. You will need to address these errors before you are able to add the expert or indicator onto an MT4 chart.

b9ru.png


Additional EAs, Indicators and Scripts for MT4 at FXCMapps.com
 
Backing up files on MT4 Build 600

Please follow the instructions below to save backups for your MT4 files (expert advisors, indicators, libraries, templates, and profiles). It's often a good idea to save a backup before uninstalling/reinstalling MT4, transferring files to another installation of MT4, etc.

1. Create a new folder where you would like for your backup files to be saved. To create a new folder right click > go to New > click on Folder.

eifs.png



2. Navigate to where your where your MT4 files are saved on your computer. Depending on the build of MT4 you are using they could be saved in a couple of different locations.

a. Build 509 and older: C:\Program Files (x86)\FXCM MetaTrader 4\experts

b. Build 600: Open MT4 > go to File > Open data folder > then double click on the MQL4 folder. Depending on your settings this may go to either folder location below.

i. C:\Users\[user name]\AppData\Roaming\MetaQuotes\Terminal\[32 character long MT4 ID]\MQL4\Experts

ii. C:\Program Files (x86)\FXCM MetaTrader 4\MQL4


3. Copy the folders you would like to save and paste them into the new MT4 backup folder.

1c1y.png



Additional EAs, Indicators and Scripts for MT4 at FXCMapps.com
 
Top