You have to read it in context of my whole post. Where I am saying, you must be able to trade within the spread.
Is FXCM a market-maker?
- Thread starter montmorencyt2w
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No its not as simple as that. Prospreads are bound to the future prices. They don't offer smaller stake size. I don't know, but I am quite sure you can trade within the spread as well. The company is categorized as spread betting due to the fact they add a spread betting wrapper to the future quote. Very smart idea, but the draw down is, they are stuck with the future prices. The only way to change my mind on this would be if they don't hedge all bets in the real market. My guess is they do, and you are in fact trading the future, and at a hefty price as well (at least on the indices).
I don't think they do hedge every bet. Someone from Prospreads mentioned strategic hedging.
If what you saying is correct then they are definitely a market maker.
nunrgguy
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I'd add that I've been testing an FXCM spreadbet account for a while now and apart from some early rather worrying server issues all has been good. Of course they aren't ECN but for my purposes have been good. No requotes and so far (fingers crossed) not been slipped once.
Do I care whether they are bucket shop or DMA. As long as I'm allowed to trade in the way I trade and there are no problems then...no, having said that I haven't sized up that account yet and have yet to see what happens when trading larger sums.
montmorencyt2w
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Good - Please keep us posted. It is a pity that we have never (in my time here, or at least that I have noticed), seen experiences being posted from a wide range of people about FXCM, particularly the spread-betting arm. Either their customers who are members here are happy and don't want to say anything, or are unhappy and don't want to say anything, or there are few of their customers who are members of T2W. Considering how prominent they are in the industry, I find this surprising.
I would also like to see more experiences being posted about Prospreads
(who have not, now I think about it, responded to my query about mini FX contracts, either here or in email). I think in their case, their fairly specialised offering doesn't have a wide appeal. (One might imagine that offering mini contracts would broaden that appeal, but then it might be getting away from their target market).
Jason Rogers
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Hi nunrgguy,
Let me know if you ever have technical problems, and we'll have tech support investigate with you to get it resolved.
Cheers,
Jason
