Spread betting at FXCM

[Truth Seeker]

If I were FXCM I would offer 1 pip on the Dow, 1 pip on all FX majors, 1 pip on FTSE/Dax/CAC, you pay the extra because the platform is better, but it's not good enough to pay the spreads at current levels, I will give them a couple of months to get inline with others and listen to us, if they still haven't bothered I see no reason to trade with them anymore.

 

[Ross Spur]

If I were FXCM I would offer 1 pip on the Dow, 1 pip on all FX majors, 1 pip on FTSE/Dax/CAC, you pay the extra because the platform is better, but it's not good enough to pay the spreads at current levels, I will give them a couple of months to get inline with others and listen to us, if they still haven't bothered I see no reason to trade with them anymore.

They haven't taken much notice for a year or more, so why now!?

 

[Truth Seeker]

They haven't taken much notice for a year or more, so why now!?

Stuff them then, let them go down the pan for being greedy.

 

[Jason Rogers]

Update on CFD Trading Hours for Monday, 29 August

Update on CFD Trading Hours for Monday, 29 August

The UK100 will be unavailable for trading on Monday, 29 August 2011 in observance of the Summer Bank Holiday.

CFD trading hours for all symbols except the UK100 will be normal on Monday, 29 August.

Let me know if you have any questions.


- Jason

 

[pboyles]

What protections are in place to prevent customers being ripped off with slippage or platform freezes? Are there any or should we just trust you?

 

[tar]

What protections are in place to prevent customers being ripped off with slippage or platform freezes? Are there any or should we just trust you?

how about dont trade with them

 

[pboyles]

how about dont trade with them

That would be the best solution.

 

[Lord Flasheart]

i have to agree with some of the comments made in recent posts. I have an account with fxcm and will start having to use two brokers as from Monday. Reason,simple. My spread with them on majors for example EUR/USD is nearly always over 2, same on other majors. Where fxcm do well is the other pairs.There spreads are fantastic compared to others firms on pairs outside the big 4 Even the smallest bucket shops are giving 1 pip spreads on EU/EG/GU/UJ etc so as long as they are FSA regulated there is no reason not to use them.
They even give rake back as well. I have also seen extremely wide spreads from fxcm (16 pip on usd/chf 10.pm). Perhaps Jason could explain why we should stay with FXCM and swallow a 2.5 pip spread on EU etc. I wont accept the customer service argument etc.
Thanks

 

[wackypete2]

i have to agree with some of the comments made in recent posts. I have an account with fxcm and will start having to use two brokers as from Monday. Reason,simple. My spread with them on majors for example EUR/USD is nearly always over 2, same on other majors. Where fxcm do well is the other pairs.There spreads are fantastic compared to others firms on pairs outside the big 4 Even the smallest bucket shops are giving 1 pip spreads on EU/EG/GU/UJ etc so as long as they are FSA regulated there is no reason not to use them.
They even give rake back as well. I have also seen extremely wide spreads from fxcm (16 pip on usd/chf 10.pm). Perhaps Jason could explain why we should stay with FXCM and swallow a 2.5 pip spread on EU etc. I wont accept the customer service argument etc.
Thanks

Nice to see you. Hope all is well

Peter

 

[Jason Rogers]

What protections are in place to prevent customers being ripped off with slippage or platform freezes? Are there any or should we just trust you?

FXCM US provides daily trade reports to the NFA which monitors and supervises FXCM US's activity. The change to our execution process made last year adds positive slippage on all orders to all clients regardless of their jurisdiction, and the statistics for positive and negative slippage can be found on our website here.

 

[pboyles]

FXCM US provides daily trade reports to the NFA which monitors and supervises FXCM US's activity. The change to our execution process made last year adds positive slippage on all orders to all clients regardless of their jurisdiction, and the statistics for positive and negative slippage can be found on our website here.

Spreadbetting is not available to US clients so I'm afraid your answer is a bit of a smokescreen. Can you publish figures for slippage on your UK spreadbet accounts?

 

[Jason Rogers]

Perhaps Jason could explain why we should stay with FXCM and swallow a 2.5 pip spread on EU etc. I wont accept the customer service argument etc.
Thanks

Hi Lord Flasheart

Spreads on NDD forex execution are set by price competition amongst the 10+ liquidity providers on the platform and not by FXCM. The best bid/ask price received from 10+ liquidity providers is streamed onto the platform with FXCM’s pip mark-up.

You mentioned that even the smallest bucket shops are giving 1 pip spreads (and some as low as 0 pip) however these brokers are likely making the market taking the other side of your position and therefore control the spread along with any re-quotes and intervention from their dealers. You often get what you pay for in terms of quality of execution, as I have seen from reading through the thread of a broker offering 0 pip spreads.

I agree with you that customer service isn’t the sole deciding factor when making trading decisions, but neither are spreads. Trading platform, quality of execution, spreads, system stability, and additional services are also a factor as we consistently see from traders that move from other brokers.

I would say the spread on EU has been slightly wider than what I remember before the summer and seasonality can play a role in spreads if liquidity decreases or market volatility increases. September tends to mark an increase in trading when traders are coming back from their summer vacations so we’ll see what this brings.

- Jason

 

[plague dog]

this really is a bit disengenuous

Spread Betting companies must pay 3% of client losses in gaming duty to the customs and excise. If you match hedge every single trade then this is not possible. If a client loses £1000 then you must pay £30 in taxes. Imagine that this was made with a £10 bet.. this would equate to 3 pips.

either you are being 'economical with the truth' or ' you are adding such a huge spread to the actual quote that it doesn't matter' (my best gues) or FXCM being an american company do not actually know about this requirement !

In reality nobody in their right minds could call companies like IG Index or Capital Spreads 'bucket shops'. If you are quoting 2.5 pips wide on the Eur/Usd i should bloody well hope that every trade gets executed.:cheesy:

Companies quoting just 1 pip at least have an excuse for rejecting a trade request.

plague

 

[pboyles]

The change to our execution process made last year adds positive slippage on all orders to all clients regardless of their jurisdiction,

So we can safely assume that prior to that date you retained positive slippage and passed on negative slippage to all clients, not just US based clients. When will you refund all the money you obtained from non US clients?

 

[Ross Spur]

these brokers are likely making the market taking the other side of your position and therefore control the spread along with any re-quotes and intervention from their dealers. You often get what you pay for in terms of quality of execution, as I have seen from reading through the thread of a broker offering 0 pip spreads.

- Jason

But this is the spreadbetting thread and all SBs are making the market, otherwise they wouldn't be SBs?

 

[Lord Flasheart]

But this is the spreadbetting thread and all SBs are making the market, otherwise they wouldn't be SBs?

absolutely. I can only compare what I see, even if they are taking the other side and I may suffer an exagerated move to take my stop. They are still 1.5 pips better than FXCM
I just hate havii two accounts, just wish 1 firm had all the best prices. It really is the only gripe i could have withFXCM, the four biggies,spreads are poor, bnut isnt that what we mainly trade

 

[Jason Rogers]

But this is the spreadbetting thread and all SBs are making the market, otherwise they wouldn't be SBs?

Yes, the majority of SBs act as the market maker. However, FXCM uses No Dealing Desk execution for forex trades in spread betting accounts which means we are not making the market.

- Jason

 

[neil324]

Why Don't FXCM offer SB through MT4 and are there any plans to in future?

 

[Truth Seeker]

Yes, the majority of SBs act as the market maker. However, FXCM uses No Dealing Desk execution for forex trades in spread betting accounts which means we are not making the market.

- Jason

Really? Then can you explain why the executions are much slower even to the point sometimes not worth bothering at high volitile times with your sb fx than your normal fx? Surely, they should be identical?

 

[Ross Spur]

Yes, the majority of SBs act as the market maker. However, FXCM uses No Dealing Desk execution for forex trades in spread betting accounts which means we are not making the market.

- Jason

But surely there's no 'real' market in FX, so you're still mm-ing?