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FXCM shut down (banned by CFTC from operating in the USA)
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FXCM shut down (banned by CFTC from operating in the USA)

  #31 (permalink)
Trading Apprentice
Chicago IL USA
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: Gain Capital
Favorite Futures: ES
 
kishisaki's Avatar
 
Posts: 23 since Aug 2012
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warcious View Post
What is their URL?

https://www.tradeking.com/forex/index.htm

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  #32 (permalink)
Elite Member
Brisbane + Australia
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: CQG, NinjaTrader Brokerage
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Posts: 94 since Oct 2016
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No accounts for Australia unfortunately.
And they say they do not work with Ninjatrader.
No options!

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  #33 (permalink)
 Vendor: www.orderflowdashpro.com 
North Carolina
 
Futures Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
 
Posts: 364 since Nov 2011
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Below are the actual details-- sorry if already posted. It sounds like their counter parties, the other liquidity providers, may also have been impacted. It sounds like the conflict of interest became a problem when their HFT trader started "hanging" trades. But, it doesn't sound like that was on purpose. It sounds like the problem was due to how they were marketing. My analysis may be wrong but it sounds like if they had admitted the relationship then they may not have got in trouble. However, I'm not sure whether or not other liquidity providers knew they may not have been on a fair playing field either.

http://www.cftc.gov/idc/groups/public/@lrenforcementactions/documents/legalpleading/enfforexcapitalorder020617.pdf


Quoting 
In September 2011, an FXCM executive raised "Compliance Concerns" with members of
FXCM's Compliance department, noting a problem with HFT Co "hanging orders" that arose
from "the fact that the [HFT Co] adapter is different technology than the rest of the bank
adapters." An FXCM compliance officer responded: "Given the sensitivity of the counter party
involved we would prefer the events don't happen so that we do not draw unwanted attention."


Quoting 
The Forex Factory post, anonymously written by "fx insider," stated: "So I just heard
something interesting from a friend about FXCM' s 'no dealing desk'. Apparently their largest
liquidity provider by far is a small firm named [HFT Co], which is owned by FXCM itself and
was set up solely to act as counterparty to FXCM clients. They sit on top of FXCM' s liquidity
pool with last look so that for every FXCM trade, they can choose whether to take it or pass it on
to normal liquidity providers. Can anyone confirm this? It would be interesting to know how
much information is shared."



Last edited by tpredictor; February 7th, 2017 at 02:01 AM.
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  #34 (permalink)
Elite Member
Manchester, NH
 
Futures Experience: Beginner
Platform: thinkorswim
Broker/Data: TD Ameritrade
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tpredictor View Post
Below are the actual details-- sorry if already posted. It sounds like their counter parties, the other liquidity providers, may also have been impacted. It sounds like the conflict of interest became a problem when their HFT trader started "hanging" trades. But, it doesn't sound like that was on purpose. It sounds like the problem was due to how they were marketing. My analysis may be wrong but it sounds like if they had admitted the relationship then they may not have got in trouble. However, I'm not sure whether or not other liquidity providers knew they may not have been on a fair playing field either.

http://www.cftc.gov/idc/groups/public/@lrenforcementactions/documents/legalpleading/enfforexcapitalorder020617.pdf

Right, this is extremely dirty and I hope the other liquidity providers are not precluded from bringing forward a civil suit.

The other thing that's really dirty about this settlement is that the said affiliate of FXCM had made profits well in excess of the $7 million settlement by the 3rd year of its operation. (Its revenues were above the $100 million mark.)

Where's @nanex when you need him?

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  #35 (permalink)
Elite Member
Manchester, NH
 
Futures Experience: Beginner
Platform: thinkorswim
Broker/Data: TD Ameritrade
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tpredictor View Post
Below are the actual details-- sorry if already posted. It sounds like their counter parties, the other liquidity providers, may also have been impacted. It sounds like the conflict of interest became a problem when their HFT trader started "hanging" trades.

Another injustice from all of this is that CFTC incorrectly labels this firm as a "HFT trader". There's nothing in the spirit of "HFT" when you are slower than your competition and given a structural advantage over every other liquidity provider in the pool. If they're 'hanging trades', it probably means that they were slowing down the other liquidity providers who are using their speed to provide FXCM's clients with better pricing. Both FXCM's clients and these HFT firms were being taken advantage of.

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  #36 (permalink)
Market Wizard
Reading UK
 
Futures Experience: None
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shodson View Post
Another reason I don't trade forex: too many broker shenanigans

FXCM banned by CFTC after taking positions against clients - MarketWatch

Ive started the process of closing my accounts. Trading station is very good, executions are lightning quick, support team were always efficient, so overall a good experience but this news worries me.

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  #37 (permalink)
Sienna
Melbourne, Australia
 
Futures Experience: Beginner
Platform: Ninja Trader
Broker/Data: Ninjatrader Brokerage
Favorite Futures: Transiting to ES,CL, YM
 
Posts: 41 since May 2012
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Ninja also has PhillipCapital as a Future's broker on its website. The Australian arm actually allows FX trading:
Forex Trading » PhillipCapital Australia
Would that be an option for US users of Ninja, or non-US clients?

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  #38 (permalink)
Shakes
Alexandria, Minnesota
 
Futures Experience: Beginner
Platform: Ninja trader
Broker/Data: IB / IQFeed
Favorite Futures: Forex
 
Posts: 135 since Jun 2014
Thanks: 30 given, 33 received

Brokers and brokers

Hello,

a couple of notes on brokers for Forex and Ninja Trader.

Interactive brokers, is no longer taking retail clients.. You need millions to trade their or to trade unleveraged.

FXCM, we know the news and their going to Gain Capital.

Gain Capital, This is who will be taking FXCM retail accounts. They look to be an expensive broker with a lot of negative reviews. They have been fined a few times over the years. Here are the reviews at forexpeacearm.com http://www.forexpeacearmy.com/forex-reviews/66/www.forex.com

MB trading got on bought out by Trade King, I don't believe they support the Ninja Trader platform.

So if you have Ninja Trader and want to trade Forex. Your kind of screwed..


Last edited by Magiklair; February 7th, 2017 at 10:54 AM.
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  #39 (permalink)
Elite Member
Naperville IL
 
Futures Experience: Intermediate
Platform: MC(.NET&EL),Zorro,TT,TWS
Broker/Data: IB, OANDA, IQFeed
Favorite Futures: Futures, FOREX, Options, Stocks & ETFs
 
Posts: 9 since Apr 2015
Thanks: 2 given, 5 received

OANDA and MultiCharts, anybody?

Surprised no one mentioned OANDA...

When I compared brokers earlier 2016 I saw the following statistics and tracked back history many quarters up to the point when this statistics is available.
Exclusive: Q1 US Retail Traders Profitability Falls, Accounts on the Rise | Finance Magnates

It seems IB and OANDA usually have highest percentage of profitable retail customers. The reason behind this percentage could be complex, but I certainly do not want to use a broker where the odds seems to be against me the most. Plus FXCM almost collapsed during the CHF incident.

Since IB's ultra-low leverage is painful for retail customers (and someone just said they do not take small retail accounts anymore?), I picked OANDA.

So I am using MultiCharts.NET with OANDA for technical analysis and manual trade. OANDA also supports MT4 for free but I don't like their verbose C++ grammar; so for execution I actually used the Zorro platform for its light weight and simplicity in coding: Take Money From The Rich And Give It To The Poor (the free version is good to play with but you need the paid version to execute with OANDA)

So far I am happy with this setup and feeling lucky that I didn't get affected by the FXCM fiasco.

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  #40 (permalink)
Elite Member
san diego
 
Futures Experience: Intermediate
Platform: FXCM MarketScope, NT, Interactive brokers, AMP
Broker/Data: FXCM, Interactive Brokers
Favorite Futures: FOREX, IWM, SPY, XLE, NQ
 
Posts: 219 since Apr 2010
Thanks: 69 given, 122 received


FXCM still hasn't contacted its customers yet with any explanation. I have an FXCM account using NinaTrader. Ninjatrader has a Forex brokerage. I wonder if we can jut transfer to their broker, if we are already using NinjaTrader or was NinjaTrader actually an agent for FXCM?

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