Shame On Fxcm

Quote from ddunbar:

Yep, you got it. FXCM is a market maker and therefore acts as a counterparty to your trades. Meaning, they trade against you.
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let's assume FXCM takes the other side of your trade. so what? how can FXCM move the market and if they do move their qoutes---seems like a brilliant way to profit for the trader monitoring for such misalignments. i wait for such times, they happen, but its not very often.

surfer
 
Quote from nlslax:

Thats what I was looking for. I like the trending of these markets, but I was reading too much here that said i must be missing something.

I didn't understand the last part though where you said the brokers you mentioned had a commission and then you mentioned a spread. Are you saying that the costs of commish and their smaller spreads combined are less than paying the spreads with a company such as FXCM?
Thanks.
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Yes and no. Depends on your time frame and your trading methodology. Anyway, every market has a spread. It's just bid and ask.

But what makes the market maker model potentially detrimental is that seek to serve their own interests. This thread is a testament to this. The incidence of Forex Market-Maker fraud continues. It's essentially a conflict of interest. They can never be impartial since they must make money off the spread. Stops, don't even think about it. Many horror stories about that.

Whereas, the ECN model is better even though they are still dealing with Market-Makers (Banks). The difference is, the ECN doesn't have to "widen" the spread in order to profit from it and remains impartial to your trades. You can often times trade inside the spread. Also, stops tend to be closer (0-2.5pips) to the price you set them at since the ECN doesn't have a need to make money off the spread. You get the best price the market order (wat a stop is once triggered) avail from whatever liquidity provider is elected at the time.
 
Quote from forex-forex:

Doesn't matter who "trades against you". If you are correct in market direction and your stops don't get hit you WILL make a profitable trade. I have followed the quotes from FXCM and they match yahoo quotes and the TV news almost to the pip.

The problem is with traders that set stops too tight. 100 pips moves and back are all to common and stops get taken out very easily.
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Depends on your trading style. For long termers, you're right. It won't matter. But most Forex players are short term if not day traders, it matters.
 
Quote from forex-forex:
Doesn't matter who "trades against you". If you are correct in market direction and your stops don't get hit you WILL make a profitable trade. I have followed the quotes from FXCM and they match yahoo quotes and the TV news almost to the pip.

The problem is with traders that set stops too tight. 100 pips moves and back are all to common and stops get taken out very easily.
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Quote from ddunbar:
Depends on your trading style. For long termers, you're right. It won't matter. But most Forex players are short term if not day traders, it matters.
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Could you post a FXCM trading report with times and quotes when your position was taken out? If not why?
 
Quote from forex-forex:

Could you post a FXCM trading report with times and quotes when your position was taken out? If not why?
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I don't have an account with FXCM. When I first started trading, I had an account with GFT. Put it this way, IB is superior to GFT in all the ways I already mentioned. So I have the fortunate experience of having been with a Forex "bucketshop" and a Forex ECN-type brokerage to draw from which helps me to appreciate IB. (minus one hiccup recently but that has been corrected by IB.)

In any event, here's a link to some of the points discussed. It's from Oanda's website. Anyone who wants can use it as a springboard for discussion or quiet reflection.

http://fxtrade.oanda.com/billofrights/ch1.shtml
 
Quote from forex-forex:

Doesn't matter who "trades against you".
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FXCM's objective is to get you to blow out your account and separate you from your equity. And there is no one standing in between FXCM and you to prevent FXCM from doing unethical things to bring about their desired outcome. Is that the kind of situation you want put yourself in? It puts you in a very weak position. Kind of like hiring a thief to take care of your house while you go on a three week vacation.

Much better to trade futures or use IB, COES, or other ECNs.
 
i've cancelled all my accounts with fxcm coz of their cockyness and provide no useful charts for free. now i'm with GFT and very satisfied.
 
Although the information on this thread has been posted elsewhere and overall in great detail on ET, this is a valuable discussion - not sure why it stopped out in May '06 other than a dead horse can not get more dead.
 
Are FXCM's crooks, who can say? Peoples say yes others say no. But what is sure is that there is no smoke without fire!
Beware of the smoke!!!:cool:

For my part, I used to trade with ACM (Swiss bucket) and I encountered the same; even worse!!! :eek:
 
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