You are very correct in this insight between an NDD and DD setup. NDD ensures that the risk of client positions is not taken on by FXCM and events such as yesterday can be very dangerous for a broker that is making a market and not managing risk or heaven forbid makes a mistake in managing that risk.
I've had great success in it. But I guess I'm a true "risk taker" who undergoes proper DD and finds strategies that work over time. Not a "risk taker" who wants to ban every market and exchange he's lost his shirt in....
please dont imply things I NEVER said. I CLEARLY pointed out that spreads do widen to some degree during volatile times such as Thursday. But the spreads that your platform showed, even the demo quotes on the website were far away from what I have seen and traded on the fx platform of Interactive Brokers and also what I have seen on EBS (through Bloomberg), both are tradable price feeds. Your spreads completely blew out and then even disappeared completely. A reliable broker shows prices even in distress. If you truly have access to "world class liquidity providers" then how come they pulled all bids and offers at some time while other professional platforms (non bucket shop brokers, after all you claim you are not a bucket shop and dont want to compare vs. others in that league) showed prices throughout the whole trading session, without a single seconds of no-show. Is it maybe that your firm (in regards to the IT outages of the platform) and your liquidity providers are after all not all that professional but rather try to steal a constant 1.-1.5 pips from the small fish during quiet hours and when it gets hot you leave them standing in the rain?
Quote from Jason Rogers:
Spreads can and most likely will increase during periods of market volatility. It's hard for me to believe that anyone would expect for spreads to stay normal during extreme market conditions such as we saw yesterday when JPY cross rates dropped 1000+ pips and the majors crossing big figures in dramatic fashion. FXCM's rates are determined by the best bid/ask price coming in from the 10 banks quoting on our platform, unlike with a dealing desk broker that may show an artificial spread despite what is actually occurring in the market.
There was a period during the market volatility yesterday when rates were not updating, and any traders having problems closing positions during this time should request a trade audit to have an adjustment made due to any problems occuring during the period. Please send any trade audit requests to sales@fxcm.com or contact client services by phone at 1-888-503-6739. Again, if at any time there is a disruption in trading due to a technical issue, we will udpate the site www.fxstatus.com to notify you about any technical issues occurring in real time. A trade audit can be requested by phone, email, or through an audit link placed on FXStatus.com while the tech issue is occurring.
