Spread betting at FXCM

[Jason Rogers]

FXCM Trading Expo in Las Vegas: September 9-11, 2011

FXCM will be hosting another trading expo in Las Vegas at the Rio on September 9-11, 2011. The expo will take place on the weekend this year, so hopefully gives everyone a better opportunity to make it. Here's the registration page http://www.fxcmexpo.com/e-mail-signup/. We look forward to seeing you there, and say hello if you're able to attend as I may be there also.

-Jason

http://www.youtube.com/watch?v=4WmRiaVl8Ik​

 

[Jason Rogers]

The Vegas expo schedule for Sept 9-11, 2011 has been released. A list of beginner and advanced sessions can be found attached to this post.

 

[bedsit]

Hi Jason.
I've tried demo account and prices were a bit different from other data providers.
Do you use virtual dealing desk software?

 

[Jason Rogers]

Hi Jason.
I've tried demo account and prices were a bit different from other data providers.
Do you use virtual dealing desk software?

Hi bedsit,

I can confirm that we do not. The virtual dealing desk software was created by Metaquotes as a tool for a dealing desk to manage the risk created from making a market. On FXCM's NDD forex execution, every trade is offset immediately with a liquidity provider thereby eliminating the market making risk. Our compensation is derived through the spread in the form of a pip mark-up, and any increase in slippage does not result in additional gain for FXCM. You can receive positive slippage on trades, and that positive slippage does not result in a loss for FXCM. Orders are filled dependent on liquidity.

-Jason

 

[bedsit]

Hi bedsit,

I can confirm that we do not. The virtual dealing desk software was created by Metaquotes as a tool for a dealing desk to manage the risk created from making a market. On FXCM's NDD forex execution, every trade is offset immediately with a liquidity provider thereby eliminating the market making risk. Our compensation is derived through the spread in the form of a pip mark-up, and any increase in slippage does not result in additional gain for FXCM. You can receive positive slippage on trades, and that positive slippage does not result in a loss for FXCM. Orders are filled dependent on liquidity.

-Jason

Thank you Jason

 

[Black Swan]

Hi Jason.
I've tried demo account and prices were a bit different from other data providers.
Do you use virtual dealing desk software?

Has this plug in stuff come as a bit of a shock/revelation to you?

 

[bedsit]

Has this plug in stuff come as a bit of a shock/revelation to you?

Hi Swan.

Not really. I've only followed some instructions how to find a decent broker:

'Do your research before you open an account with any broker. It may also be helpful to ask them if they use virtual dealing desk software. Ask them to send you a written statement saying that they do not. If they refuse or do not answer then simply move on and DO NOT open an account with them'

 

[Jason Rogers]

If you're long the CHF, beware of rollover charges increasing (especially on EUR/CHF) as a result of the Swiss National Banks cut to short term interest rates last week. Overnight rates for the CHF have fallen to record lows which is part of the SNB's attempt to make it less attractive to buy the CHF. The result being that it is more expensive to hold long positions in the Swiss Franc.

Below is a screenshot from Bloomberg of overnight rates in the franc, and the full article from DailyFX can be found here http://www.trade2win.com/boards/for...ailyfx-signals-strategies-40.html#post1642292

Let me know if you have any questions.

-Jason

 

[Truth Seeker]

Jason

When are FXCM going to reduce their currently wide spreads to fall in line with other SB companies?

Thanks TS

 

[Ross Spur]

Jason

When are FXCM going to reduce their currently wide spreads to fall in line with other SB companies?

Thanks TS

It's a mystery. Almost seems like they don't want clients.

 

[tar]

Jason

When are FXCM going to reduce their currently wide spreads to fall in line with other SB companies?

Thanks TS

re forex spreads :unlike other SB brokers Fxcm is not a market maker so i dont think they can do anything about it maybe they can lower it by half pip only .

re indices : they have tight spreads on ftse , dax and cac , maybe they will cut the dow from 4 to 2 points .

 

[Ross Spur]

re forex spreads :unlike other SB brokers Fxcm is not a market maker so i dont think they can do anything about it maybe they can lower it by half pip only .

re indices : they have tight spreads on ftse , dax and cac , maybe they will cut the dow from 4 to 2 points .

You'd have to be fairly mad to trade the Dow with a 4pt spread, when you can get 2pt routinely, 1pt, 0.9pt and 0.8pt in some cases.

 

[Truth Seeker]

You'd have to be fairly mad to trade the Dow with a 4pt spread, when you can get 2pt routinely, 1pt, 0.9pr and 0.8pt in some cases.

I agree. They are shooting themselves in the foot. They have a good platform but untradable spreads for the day trader. I have an account with them, have done for a couple of years, but don't use it since a year ago. Over 2 pips for euro spread most of the time, are they mad? They don't execute fast enough for me either.

FXCM, if you want to be the head of the spreadbetting arena it's easy what to do.

Reduce your spreads to fall in line with other SB companies.

Reduce your min amount to open an account to say £500.

It's not that hard and you can be the leader as the other SB companies trading platforms are very poor compared to yours.

Oh and to really clean up? Introduce MT4 to your SB division.

 

[goodtyneguy]

I agree. They are shooting themselves in the foot. They have a good platform but untradable spreads for the day trader. I have an account with them, have done for a couple of years, but don't use it since a year ago. Over 2 pips for euro spread most of the time, are they mad? They don't execute fast enough for me either.

FXCM, if you want to be the head of the spreadbetting arena it's easy what to do.

Reduce your spreads to fall in line with other SB companies.

Reduce your min amount to open an account to say £500.

It's not that hard and you can be the leader as the other SB companies trading platforms are very poor compared to yours.

Oh and to really clean up? Introduce MT4 to your SB division.

Good post TS, they'd clean up if they did that IMHO.

 

[potshot]

I opened up a demo account but as soon as I saw the spreads on eur/usd I didn't use the demo account. They say they encourage scalpers but trying to scalp with a 2.6 everage spread when opening and closing a trade is 5.2 of dead money on a trade. If I am scalping 10 pips per trade I have to make just over 15 pips to make 10 pips compared to 12 pips with SB firm. The spreads are no good to scalpers and somebody swing trades timing entry are not as important to when scalping so FXCM do not offer anything worth having over a sb company for me. I kept getting emails to from FXCM desperate for me to take out a full account but I had to tell them their spreads on forex are too high for me.

People on her who say 4 pips on the dow is untradable going back 10 years it was the norm and the dax at 4 point spread as well and some sb's dow spread was 6 points, ftse between 2 to 4 points ftse market hours and up to 6 points after 4.30pm and upto 8 points after 9pm. I think many of the sb's who are 2 points after 4.30 should come down to 1 point, I hate having to trade 2 point spread after 4.30pm so I use sb's who are 1 point spread 4.30pm until 9pm and I am tending to use them during the day as well.

 

[tar]

I opened up a demo account but as soon as I saw the spreads on eur/usd I didn't use the demo account. They say they encourage scalpers but trying to scalp with a 2.6 everage spread when opening and closing a trade is 5.2 of dead money on a trade. If I am scalping 10 pips per trade I have to make just over 15 pips to make 10 pips compared to 12 pips with SB firm.

Thank God this is not a math class :cheesy:

 

[x4x]

Their expensive spreads are the least of your worries (even though you only have to pay them once, not twice as you calculated):

http://forexmagnates.com/nfa-fines-...e-malpractices-fxcm-will-credit-clients-back/

 

[tar]

Their expensive spreads are the least of your worries (even though you only have to pay them once, not twice as you calculated):

http://forexmagnates.com/nfa-fines-...e-malpractices-fxcm-will-credit-clients-back/

That's for the unpaid positive slippage before Aug 2010 , nothing suspicious here i wouldn't worry ...

"FXCM’s platforms display the best bid/ask spread streamed from the firm’s liquidity providers plus FXCM’s mark-up. Every FXCM NDD forex trade is automatically offset in a two-step process, designed to ensure that FXCM does not profit from a trader’s losses. In the first step of the execution process, a trader clicks on the price and the order is sent to FXCM. In the second step, FXCM automatically sends the client’s order to one of its liquidity providers to offset the trade.
FXCM’s execution system prior to August 2010 only offered price improvements to clients in the first step of the process. If a better price became available on FXCM’s platform in the fraction of a second after the client submitted the order but before the order was received by FXCM, the client would benefit from the price improvement. However, FXCM’s previous execution system did not provide clients with price improvements in the second step of the execution process, even if FXCM was able to offset the order at a better price, excluding FXCM’s markup. FXCM enhanced the execution system in 2010 so that clients now benefit from price improvements in both steps of a transaction for all order types"

 

[pboyles]

That's for the unpaid positive slippage before Aug 2010 , nothing suspicious here i wouldn't worry ...

"FXCM’s platforms display the best bid/ask spread streamed from the firm’s liquidity providers plus FXCM’s mark-up. Every FXCM NDD forex trade is automatically offset in a two-step process, designed to ensure that FXCM does not profit from a trader’s losses. In the first step of the execution process, a trader clicks on the price and the order is sent to FXCM. In the second step, FXCM automatically sends the client’s order to one of its liquidity providers to offset the trade.
FXCM’s execution system prior to August 2010 only offered price improvements to clients in the first step of the process. If a better price became available on FXCM’s platform in the fraction of a second after the client submitted the order but before the order was received by FXCM, the client would benefit from the price improvement. However, FXCM’s previous execution system did not provide clients with price improvements in the second step of the execution process, even if FXCM was able to offset the order at a better price, excluding FXCM’s markup. FXCM enhanced the execution system in 2010 so that clients now benefit from price improvements in both steps of a transaction for all order types"

They took over 600k from clients and have been fined $2 million and you think its nothing to worry about? Wait till you see the list of other cases against them.

 

[tar]

They took over 600k from clients and have been fined $2 million and you think its nothing to worry about? Wait till you see the list of other cases against them.

they didnt take any penny from clients , did you read ?!!