Spread betting at FXCM
- Thread starter Jason Rogers
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tar
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first of all this fine has nothing to do with negative slippage , it is about some of the unpaid positive slippage b4 Fxcm changes the way they treat positive slippage during the NDD process at Aug 2010 , check this :
"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"
Truth Seeker
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****e stinks whatever way you want to word it.
tar
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What this has to do with our topic , i am not defending them i dont care about Fxcm , all i said there is nothing suspicious regarding the NFA fine .
Truth Seeker
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tar
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I like this bit the best...."all i said there is nothing suspicious regarding the NFA fine"
u r welcome , come everyday :cheesy:
tar
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scose-no-doubt
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Setting up a lovely new swing highish bull trap?
wackypete2
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No. Influx of new traders looking to cash in on the positive slippage they've all heard tell about.
Peter
Jason Rogers
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Hi pboyles,
Friday's action from the NFA primarily concerns positive slippage, and I would like to shed more light on how positive slippage with FXCM's NDD forex execution system used to work prior to August 2010 and how it has worked since then.
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.
It is important to note: By the end of 2010 FXCM enhanced its execution system to offer price improvements on all trades. You may remember from my forum posts last August that I announced positive slippage for limit and limit entry orders on this thread. All orders now eligible to receive positive slippage, and all price improvements are subject to available liquidity.
The settlement amount and the client price improvement credit will have no negative impact on FXCM's financial balance sheet because several founding partners of FXCM have reimbursed the company for the credit and the fines. As of June 30, 2011, FXCM Inc. had over $200 million in cash and no debt.
FXCM's goal is to have a fair and transparent system, and we are proud to offer an execution system that passes on any price improvements.
Please let me know if you have any additional questions.
-Jason
Jason Rogers
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Hi TS,
I know I've posted this before but to reiterate, FXCM maintains a no re-quote policy for stock indices, metals, and oil. We will offer the lowest spread possible in order to maintain this policy.
I can announce that we have reduced the spread on the AUS200 stock index over the weekend down to 1 pip during local market hours and 2 pips out of hours.
-Jason
Not a great leap forward if possibly 2% of the people around here trade AUS200. It's the 4pt US30 that most of us find baffling if C"" can offer 0.9pt and no requotes?
