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Fxcm New Ecn Platform
- Thread starter JDL
- Start date
this new platform is pure ecn with out fxcm playing games with the prices like they do on there retail platform, thats the benefit with tradinh with any ecn.Quote from cabletrader:
I don't see the benefit if you're paying a pip in commissions. Oanda's spread on Eur/Usd has been 1.2 recently (and as low as .9), how is FXCM better?
Quote from cabletrader:
I see, and who is counterparty to every trade? FXCM, right?
That doesn't mean anything, even on IB, where it shows the executing bank on the report, the ctpty is IB. Even if you trade through a primebroker on any other multibank platform, this is also the case. If it worked any other way, every client would need a relationship with every participating bank on the ecn - that's only realistic for bigger institutions.
Another reason is platform anonymity - but that's probably not really important for private traders.
FXCMs commission schedule isn't really attractive, and that's a pity, IB could really use some competition in the retail ecn space.
Quote from Pippi436:
That doesn't mean anything, even on IB, where it shows the executing bank on the report, the ctpty is IB. Even if you trade through a primebroker on any other multibank platform, this is also the case. If it worked any other way, every client would need a relationship with every participating bank on the ecn - that's only realistic for bigger institutions.
Another reason is platform anonymity - but that's probably not really important for private traders.
FXCMs commission schedule isn't really attractive, and that's a pity, IB could really use some competition in the retail ecn space.
All that means is FXCM, and all the other ECN-style and NDD marketmakers, can and do trade for their own benefit and against their clients, it's the nature of the game at this level. It doesn't automatically mean they're dishonest but there is a definite conflict of interest just the same as there is at any other bucketshop ie Oanda. They have the motive, the opportunity, and the means.
Quote from cabletrader:
All that means is FXCM, and all the other ECN-style and NDD marketmakers, can and do trade for their own benefit and against their clients, it's the nature of the game at this level. It doesn't automatically mean they're dishonest but there is a definite conflict of interest just the same as there is at any other bucketshop ie Oanda.
Well, that would mean that they would lie into the face of the regulator - at least within EU jurisdiction. According to EU directives, every broker must issue a 'Best execution' statement and disclose any conflict of interest. If they state they are 'agency only' (like i.e. HotspotFXi does) and really aren't, they would run into problems.
I personally don't really care, i only look who provides the most cost-effective and reliable way to trade. If a firm takes prop positions (be it against a client or keep an inventory to make a market) or not doesn't really influence the end-result (i just check executions against 3rd party marketdata).