I would but you guys fucked me for all my life savings in 1 week !
FXCM server is down again ! ! !
- Thread starter T-Bone Trader
- Start date
I would but you guys fucked me for all my life savings in 1 week !
No it's not, you're counterparty and you mark up price!
Jason Rogers
ET Sponsor
Hi cabletrader,
The screenshot you posted from the trading agreement affirms the statement I made "Every order is executed back to back with a global bank or financial institution."
For accounting purposes, FXCM is the counterparty to your transaction because you don't have credit lines with the banks, therefore the banks will not deal with you directly. Every trade that you place on a no dealing desk account is executed back to back with a global bank or financial institution. And it states this very clearly in the trading agreement:
"ALTHOUGH FXCM IS THE COUNTERPARTY TO EACH OF YOUR TRADES, IF YOUR ACCOUNT(S) IS TO BE TRADED UNDER A "NO DEALING DESK" MODEL FXCM LIMITS RISK TO ITSELF BY IMMEDIATELY HEDGING (OFFSETTING) THE TRADES AND POSITIONS IT ENTERS INTO WITH YOU 1-FOR-1 WITH ONE OF SEVERAL BANK MARKET MAKERS. AS A RESULT, FXCM DOES NOT PROFIT WHEN YOU LOSE MONEY ON A TRADE. RATEHR, FXCM IS COMPENSATED BY MARKING UP THE PRICE IT RECEIVES FROM THE BANK MARKET MAKER."
FXCM is not profiting on traders losing money through the no dealing desk platform. A markup is charged, which can vary from 1-2 pips depending on the currency pair, which is what I mentioned earlier in the thread. The bid/ask price you see on the platform is the best bid/ask price out of those 9 different banks. If you want to see the bid/ask price competition, then we have the active trader platform available for you to use. A commission is charged on the active trader platform instead of a mark-up to the spread.
The NFA requires every forex dealer member to notify all traders very clearly exactly how transactions are being executed on the platform, whether through a dealing desk or no dealing desk/straight through processing. That is why we provide the information which you posted.
For now, FXCM Micro does aggregate trades through the dealing desk first since only 2 of the 9 banks providing prices to FXCM are currently accepting micro lots directly. This is also disclosed in the trading agreement and on the FXCM Micro website http://www.forexmicrolot.com/mission-statement.jsp
Jason
The screenshot you posted from the trading agreement affirms the statement I made "Every order is executed back to back with a global bank or financial institution."
For accounting purposes, FXCM is the counterparty to your transaction because you don't have credit lines with the banks, therefore the banks will not deal with you directly. Every trade that you place on a no dealing desk account is executed back to back with a global bank or financial institution. And it states this very clearly in the trading agreement:
"ALTHOUGH FXCM IS THE COUNTERPARTY TO EACH OF YOUR TRADES, IF YOUR ACCOUNT(S) IS TO BE TRADED UNDER A "NO DEALING DESK" MODEL FXCM LIMITS RISK TO ITSELF BY IMMEDIATELY HEDGING (OFFSETTING) THE TRADES AND POSITIONS IT ENTERS INTO WITH YOU 1-FOR-1 WITH ONE OF SEVERAL BANK MARKET MAKERS. AS A RESULT, FXCM DOES NOT PROFIT WHEN YOU LOSE MONEY ON A TRADE. RATEHR, FXCM IS COMPENSATED BY MARKING UP THE PRICE IT RECEIVES FROM THE BANK MARKET MAKER."
FXCM is not profiting on traders losing money through the no dealing desk platform. A markup is charged, which can vary from 1-2 pips depending on the currency pair, which is what I mentioned earlier in the thread. The bid/ask price you see on the platform is the best bid/ask price out of those 9 different banks. If you want to see the bid/ask price competition, then we have the active trader platform available for you to use. A commission is charged on the active trader platform instead of a mark-up to the spread.
The NFA requires every forex dealer member to notify all traders very clearly exactly how transactions are being executed on the platform, whether through a dealing desk or no dealing desk/straight through processing. That is why we provide the information which you posted.
For now, FXCM Micro does aggregate trades through the dealing desk first since only 2 of the 9 banks providing prices to FXCM are currently accepting micro lots directly. This is also disclosed in the trading agreement and on the FXCM Micro website http://www.forexmicrolot.com/mission-statement.jsp
Jason
Quote from cabletrader:
No it's not, you're counterparty and you mark up price!
Jason Rogers
ET Sponsor
Hi T-Bone Trader,
I remember you posted about this in a previous thread:
http://www.elitetrader.com/vb/showthread.php?s=&postid=2505589#post2505589
The offer I made in my reply post still stands if you want to private message me ( jrogers@fxcm.com ). That is what I am here for.
Jason
You're counterparty.
You decide by how much the quotes you receive from your liquidity provider(s) should be adjusted before reaching the clients platform, in other words it's FXCM who decide the prices which traders can trade on.
FXCM's agreement clearly states "THE PRICES FXCM OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE"
The impression you're trying to give here is misleading (nothing new for FXCM if you consider their NFA regulatory action history!)
If you're here to assist existing customers then great, but if you're here to solicit new clients then you probably need to be aware of 2-36 ("....initiates, spreads, or condones statements that convey false information..."), I understand you're already on thin ice after your FIFO fiasco regarding stops and limits!
That's assuming you are actually an FXCM representative!
Here we go......
Quote from davidmaria1:
Here we go......
lol, I'm a stickler for NFA rules
I don't really mind this Jason guy but FXCM is a marketmaker, not a broker or pure agent, let's call it what it is, and it's micro offering is just a good 'ole bucketshop model.
I guess it's not really a lot different to Oanda when it come to it, same complaints, same tricks, just Oanda don't charge commission.
Jason Rogers
ET Sponsor
Quote from cabletrader:
You're counterparty.
You decide by how much the quotes you receive from your liquidity provider(s) should be adjusted before reaching the clients platform, in other words it's FXCM who decide the prices which traders can trade on.
FXCM's agreement clearly states "THE PRICES FXCM OFFERS MIGHT NOT BE THE BEST PRICE AVAILABLE"
The impression you're trying to give here is misleading (nothing new for FXCM if you consider their NFA regulatory action history!)
If you're here to assist existing customers then great, but if you're here to solicit new clients then you probably need to be aware of 2-36, I understand you're already on thin ice after the FIFO fiasco!
That's assuming you are actually an FXCM representative!
Hi cabletrader,
No impressions are intended when the facts are clear. As explained before, FXCM is the counterparty to your transaction because you don't have credit lines with the banks, therefore the banks will not deal with you directly. Each order is executed back to back with a global bank or financial institution. You quoted one section from how no dealing desk execution works which is misleading.
If you want to compare the mark-up on the FX Trade Station versus a feed where a commission is paid instead, then we have the active trader platform for you to see the pricing and liquidity.
Please feel free to go through my posts. I am here to answer topics related to FXCM and add to discussion on a neutral basis.
Jason