FXCM

[Torch]

"The FXCM policy of honoring stops and limits at the price specified by traders is a policy that still stands, meaning that in normal market conditions, or 99.99% of the time, you will be filled on all stop, limit, and entry orders-a standard created by FXCM that no other dealer follows. This, in turn, means that we still offer the greatest degree of precision in trading in the FX industry."

This is surely a major shift in their policy.
The audience at their Guild Hall talk were told clearly that stops were guaranteed.

 

[JonnyT]

As I have said on many occaisons Forex is full of modern day bucket shops.

You the punters have to decide who you are going to trade with.

Personally I am wary of anyone who makes there own market.

JonnyT

 

[JTrader]

"As I have said on many occaisons Forex is full of modern day bucket shops.

You the punters have to decide who you are going to trade with.

Personally I am wary of anyone who makes there own market.

JonnyT"


I agree - a market maker such as FXCM is at libertY to quote whatever price they see fit..........Does this bring us back to the idea that a company who are simply acting in a brokerage capacity, such as IB with their Ideal Pro spot forex service, are likely to be the best and most trustworthy service provider?

Is anyone using Ideal Pro? if so, how are you finding it in terms of execution speed, slippage on stop limit orders etc. etc.? have IB narrowed, or said anymore about when they will narrow the spreads on EUR/USD below 3 pips?

For a small trader such as myself, are there any comparable and accessible alternatives to Ideal Pro?

Many thanks

jtrader.

 

[TheBramble]

Isn't anyone who offers a spot FX service effectively making their own market?

 

[JTrader]

"Isn't anyone who offers a spot FX service effectively making their own market?"

Yes. However, with most of the retail forex brokers, they quote their price and do not place a clients order into the interbank market. With Ideal Pro, IB are acting only in a brokerage capacity - placing a clients order directly into the interbank market (with their range of liquidity providers) in order to get the best price. This eliminates the conflicts of interest that are present in other instances of retail forex.

 

[JTrader]

Conflict of interests?

....Thus IB with their Ideal Pro service, do not profit as a direct result of a traders losses.

How can any small trader trade with, and fully trust, a company that profits as a direct result of their losses? it just wouldn't make sense.

How far are such retail forex companies going to go to ensure that their clients are/aren't profitable?

While there is this conflict of interests, i cannot afford them with 100% of my trust.

 

[ilia king]

FXCM: Welcome to FXCM's Live Chat feature. You are now chatting with an FXCM representative. How can I help you?
you: I would like to know if you guarantee stops anymore?
you: Even at 1.30 with non farm payrolls
FXCM: FXCM still provides the highest level of trade execution at the most competitive price no matter the market conditions. The FXCM policy of honoring stops and limits at the price specified by traders is a policy that still stands, meaning that in normal market conditions, or 99.99% of the time, you will be filled on all stop, limit, and entry orders-a standard created by FXCM that no other dealer follows. This, in turn, means that we still offer the greatest degree of precision in trading in the FX industry.
FXCM: It is only in extremely abnormal market conditions-- which are rare but can happen— are we not able to honor this guarantee just like no other dealer could in any market. The only difference is FXCM has greater access to liquidity and thus, greater ability to execute conditional orders at the price specified than any other dealer. FXCM will continue to the best of our ability to fill your orders at their specified prices by using our own dominating access to liquidity.
you: This is a giant shift in your policy
you: the main thing separating you from your competitors is now gone
FXCM: not at all
FXCM: our competition hardly will ever be able to fill
FXCM: these orders in somewhat volatile conditions
FXCM: our policy still stands
you: so if at 1.30 your stop is not filled can you complain?
FXCM: except in abnormal market conditions
FXCM: we can always review your trade
FXCM: and with the exception of abnormal market conditions
you: and will you refund the money lost if the stop has not worked
FXCM: we will still honor your stop, limit and entry
FXCM: our advice is to simply not trade Non farms
FXCM: or any news release that can potentially lead to abnromal market conditions
you: The non farms are an easy trade for 100 pips
FXCM: you are free to trade it if you wish
FXCM: but if you do, know that it can lead
FXCM: to an abnormal market conditions
you: yet your stop has a chance of not being filled
FXCM: in which execution of your stops, limits and entrys
FXCM: may have to be at the next best price
FXCM: that is correct
you: what has led to this
FXCM: extreme market volatility
FXCM: which has lead to concentrated periods of chaotic market conditions
FXCM: and even times of temporary illiquidity in the interbank
you: ok, thank you
FXCM: which makes it impossible for any dealer to execute these orders
FXCM: because of our size and credit lines, we will still do our best
FXCM: and get you the best execution available in the market place
you: however I am sure you will lose the majority of your customers
FXCM: but we want you to be aware of the risks in the marketplace

A conversation I had with their chat facility

 

[c6ackp]

FXCM Trailing Stops

This new FXCM feature may be helpful to your strategy...

=========================================================================
Trailing Stop

FXCM announces the addition of an Automatic Trailing Stop feature to the FX Trading Station!

Both live and demo accounts can now set a stop-loss order that will electronically adjust itself as the market rate moves in the direction of your open position.

When setting a Stop-Loss order, you will now see an Advanced button. Clicking on that button brings up our new Trailing Stop feature. First check the box labeled Trailing Stop. Then you can enter the number of pips that you would like your stop-loss order to trail behind the current market rate. The stop-loss order will move up in increments of the pip value that you place in the Rate Min.Move field.

For Example:

You buy GBP/USD at 1.8241, and place a stop at 1.8231, with the trailing-stop feature set at 50 pips. If and when the GBP/USD rate goes to 1.8291, your stop-loss order will automatically move to 1.8281. This would lock in a profit of 40 pips. The stop loss order would move up continually every time the GBP/USD rate increases by 50 pips.

After setting your Trailing Stop rate, you can adjust it at a later time by left clicking in the Open Positions window under the column labeled Until Tr. Stop Move. A Stop Order window will come up, you can adjust the rate selected next to Rate Min. Move, and hit the Change button. You will then see the setting updated in the Open Positions Window.

 

[Torch]

Fun with spikes

Is it my imagination or does the combination of these new trailing stops and the wild spiking that members are experiencing give the lateral thinking trader the opportunity to line his pockets?

Heh heh!

 

[c6ackp]

Torch - I was thinking along the same lines. I guess it should be possible to profit from any spike, real or imaginery if one is fast enough - or maybe they fix it so it's not possible to get a fill on the imaginery prices.

As for the trailing stops, I've been doing (hourly) simulations for cable and I've found that trailing stops need to be quite loose to catch decent moves (35+). Trailing stops may mean more revenue for FXCM as trades being stopped out with plenty of giveback must be a massive earner for them as it's a common mistake.

Steve

 

[kjb]

Maybe we don't have to worry about this any more, FXCM seems to have done a moonlight, trading station kaput, websites kaput, no contact with clients. What a farce of a company

ps. FXCM's policy on stop/limit orders is clearly displayed on the UK website at:-

http://www.fxcm.co.uk/bulletpoint_noslippage.html

Perhaps they need reminding about double standards, misleading advertisements etc. and reported to the FSA.