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FXCM review
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FXCM review

  #1 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
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Big Mike's Avatar
 
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FXCM review

Please share your thoughts (good or bad) about FXCM if you are or have been a customer of FXCM directly.

Forex Trading | Currency Trading | Forex Broker | Forex | FXCM

Thx,
Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

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  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
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I been a customer for a number of years and don't have anything bad to say about them.a few years ago had a few issues but they cleaned up thier act and are ok. I have had accounts with a few other brokers as well and they are the best overall in my experience. One last note I don't use mt4 or5 ..did a demo and hated it, I just use generic platform and its fine for me. My only complaint resides with all the changes that have been put in place because of our big brother nanny state government but they all have to comply so...

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  #4 (permalink)
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FXCM

I used FXCM (micro) to test some strategies (purely manual). I had good experience with them even though their spreads are much worse than say Dukascopy.

They had a major crash of their system on a Friday afternoon and they refunded the money lost during the outage. It was all of a few bucks (micro acct But it was the thought that counted I suppose.

Cheers
Jungian

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  #5 (permalink)
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Market Maker

Futures Edge on FIO

Which products do you trade?

 
Fxcm is a market maker and from my understanding was notorious for stop hunting and other sly activites like stopping traders put on trades, closing profitable trades.........etc Have things changed with forex market makers. Also, the centralised nature of futures makes it the main reason why traders should do futures trading rather than deal with market makers.

Maybe things have changed with fxcm and the forex?

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  #6 (permalink)
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traderandreas View Post
Fxcm is a market maker and from my understanding was notorious for stop hunting and other sly activites like stopping traders put on trades, closing profitable trades.........etc Have things changed with forex market makers. Also, the centralised nature of futures makes it the main reason why traders should do futures trading rather than deal with market makers.

Maybe things have changed with fxcm and the forex?

I will let @Jason Rogers from FXCM answer since he can best speak for FXCM. But your concerns/questions are actually the primary reason I've invited FXCM to do a webinar for us on November 8th:

https://futures.io/elite-circle/3383-upcoming-webinars-training-education-32.html#post165389

(more details to come)

I think that there are some misconceptions that are no longer true, so I wanted to get my questions answered and also allow for members questions to be answered as kind of a "forex vs futures" and "new to forex" type webinar.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
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  #7 (permalink)
 Vendor: www.fxcm.com 
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traderandreas View Post
Fxcm is a market maker and from my understanding was notorious for stop hunting and other sly activites like stopping traders put on trades, closing profitable trades.........etc Have things changed with forex market makers. Also, the centralised nature of futures makes it the main reason why traders should do futures trading rather than deal with market makers.

Maybe things have changed with fxcm and the forex?

Hi traderandreas,

FXCM is not a market maker for forex transactions, and I think this is a good opportunity to explain in detail how our NDD forex execution (agency model) differs from traditional forex brokers acting as a market maker (principal model). I have to apologize ahead because this is going to be a long but detailed post

First, let's go over how the quotes on the platform are determined. FXCM receives pricing from 10+ liquidity providers, and the pricing engine displays onto the platform the best bid/ask price plus a pip mark-up which is FXCM's compensation. The pip mark-up essentially acts as a commission on the trade. Let me give an example for a little more detail. Let’s suppose Bank A and Bank B are each quoting prices for GBP/USD. Here’s what each bank is quoting on the bid/ask:

Bank A: 1.6025 X 1.6027
Bank B: 1.6024 X 1.6026

The best price being offered on the sell side (bid) is 1.6025 by Bank A, and the best price being offered on the buy side (ask) is 1.6026 by Bank B. Therefore 1.6025 X 26 would be streamed onto the platform with a pip mark-up. If there's a mark-up of 1 pip, you would see 1.6024 X 27 on the platform for a 3 pip spread. I've dumbed down the example to 2 liquidity providers to make the example easy to explain, but this price competition is occurring with 10+ liquidity providers sending multiple quotes per second. Having multiple liquidity providers ensures that no one liquidity provider can manipulate pricing to their advantage.

This differs from a forex broker acting as the market maker (dealing desk) since a market maker is making the market. The dealing desk broker can set it's own pricing regardless of what their bank relationships may be offering them.

Second, let's go over how order execution works after the order is submitted. With FXCM's NDD forex execution, every order is immediately executed back to back with one of the several liquidity providers on our platform. Continuing with the pricing in the previous example, let's suppose you place a market order to buy GBP/USD at 1.6027. When you submit the order, the order is sent to FXCM for the price 1.6027 and FXCM routes the order to Bank A offering to sell at the price 1.6026. If the order is accepted, Bank A has a short position at the price 1.6026, you have a long position at the price 1.5027, and FXCM has gained 1 pip in revenue (difference between 1.6026 and 1.6027).

What if there is slippage? We can take the example one step further. If multiple orders are submitted or are waiting for the same price, there is then a queu for the orders to be executed. There is also a limited amount of liquidity at each point. For example, Bank A may be offering to sell 1 million notional amount of GBP/USD at the price 1.6026. If there is 1.2 million notional of traders orders waiting to be executed, that means 200k worth of orders will be slipped or cancelled depending on whether the trade is setup At Best or Market Range order. For this example, let’s say the order is submitted as an At Best market order. Your order arrives at Bank A, but the price 1.6026 is no longer available. The order is then re-submitted at the next best available price which happens to be 1.6027 from Bank B. The trade is executed so Bank B has a short position at 1.5027, you have a long position at 1.6028, and FXCM has gained 1 pip in revenue. Despite the slippage on the trade, FXCM’s revenue remains the same. And slippage isn't always negative. If the order can be filled at a better price, then your order is filled at the better price again dependent on liquidity.

This execution process differs from a dealing desk broker acting as the market maker. A dealing desk has the option to either offset client positions or internalize the risk by taking the other side of the trade. If the broker's dealing desk takes the other side of the trade, then the traders loss becomes the brokers profit and the brokers profit becomes the traders loss. This presents a conflict of interest between the broker and trader, and the conflict of interest is eliminated by FXCM's NDD forex execution.

Another advantage with NDD forex execution is that all orders are anonymous. The liquidity providers see orders as coming from FXCM rather than individual traders. Therefore traders can't be singled out with re-quotes or order restrictions as you may have when trading with a market maker.

Thanks for taking the time to read this, and please feel free to ask any questions if anything is unclear.


-Jason

If you have questions about our services at FXCM please send me a Private Message.
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  #8 (permalink)
Trying to make a plan...
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FXCM and Ninjatrader

Hi,

In the thread below, Big Mike mentioned FXCM and Ninjatrader. Is it true that FXCM are working with Ninjatrader so we would be able to trade FXCM account via ninja ? I don't think this is available now ?

https://futures.io/elite-trading-journals/13943-richwaters-trading-journal-14.html#post164745

rgds

Stocktastic

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  #9 (permalink)
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Stocktastic View Post
Hi,

In the thread below, Big Mike mentioned FXCM and Ninjatrader. Is it true that FXCM are working with Ninjatrader so we would be able to trade FXCM account via ninja ? I don't think this is available now ?

https://futures.io/elite-trading-journals/13943-richwaters-trading-journal-14.html#post164745

rgds

Stocktastic


It is true that NinjaTrader and FXCM have entered into an agreement to provide an interface from NinjaTrader to FXCM. Barring any unforseen circumstances, we hope to deliver a production version in Q1 of 2012.

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  #10 (permalink)
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NinjaTrader View Post
It is true that NinjaTrader and FXCM have entered into an agreement to provide an interface from NinjaTrader to FXCM. Barring any unforseen circumstances, we hope to deliver a production version in Q1 of 2012.



hello, it would be only for forex? or that will also include cfd?

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