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  • #7,541
  • Apr 9, 2015 12:12pm Apr 9, 2015 12:12pm
Hi Jason,


Quoting Jason Rogers
{quote} Hi Naddmer, I cannot speculate on how a hypothetical case would be treated.
you, an intelligent and bright person and brilliant communicator, are writing between your lines:"There are neither well defined processes at FXCM nor I would want to write about".

Each well defined process is able to catch a hypothetical case or it is not well defined otherwise.
The cherry on top is the term "I cannot speculate..." ...
You, who is in the know is in the need to speculate about the processes of FXCM?
This is excellent! Jason, you made my day. Thank you. God bless you.

Honestly: Do you really not know or are you not entitled to say?


Quoting Jason Rogers
{quote}In regards to questions 1 to 6 from your earlier post, there is a solution in the works for question 4.
Well - this is the commission. Nice from FXCM to get priorities right. Are you sure that it was question 4 and not question 3?


Quoting Jason Rogers
For questions 1, 2, 3 and 5, it turns out that these are all related to how the MT4 platform is linked to our back office to enable single sign-on functionality. This functionality allows FXCM clients to log into multiple platforms (MT4, Mirror Trader, Trading Station Desktop, Mobile and Web) with one username and password to use different platforms depending on whether they are at home, work or traveling or for different trading strategies. While there are no plans to restore the functions you mentioned in your questions at this time, I will post...
Would it raise some interest in you, that the Swap-information (question 1) is working well in demo but not in live?
--> MarketInfo(Symbol(), MODE_SWAPLONG) or MarketInfo(Symbol(), MODE_SWAPSHORT)

But if issue #1 works on demo, issue #4 is in the concept phase but not in demo and for issue 2,3,6 are no plans to restore the functionality then there is in fact some mismatch. Especially because you wrote some days ago about issue #3 that there is a work in progress and are now writing the same words about issue #4.

Can you check with the tech departement again, please? Techies tend to overspecify things in communication which leads to confusion in the marketing people.


Quoting Jason Rogers
In regards to question 6, the extra two digits past the decimal point that you see on your demo GER30 pricing allow for more accurate pricing and open up the possibility for tighter spreads on CFD trades. This is similar to how forex prices used to be quoted to the pip (4 digits after the decimal) but are now quoted to the tenth of a pip (5 digits past the decimal). This decimal pricing for CFDs is currently being tested on demos and will soon be rolled out to live accounts.
Is it too much of a hassle for FXCM to write some mails to their customers having both demo and live accounts about the ongoing changes which might affect the customers risk management? I came to it by chance this weekend while I was testing an EA on GER30 and was astonished that the risk calculation went hayward because 1 Pip == 100 Points now where 1 Pip was 1 Point earlier...


Best regards and thank you in advance for clarification.

Naddmer
  • #7,542
  • Apr 9, 2015 4:02pm Apr 9, 2015 4:02pm
Quoting Naddmer
Hi Jason, {quote} you, an intelligent and bright person and brilliant communicator, are writing between your lines:"There are neither well defined processes at FXCM nor I would want to write about". Each well defined process is able to catch a hypothetical case or it is not well defined otherwise. The cherry on top is the term "I cannot speculate..." ... You, who is in the know is in the need to speculate about the processes of FXCM? This is excellent! Jason, you made my day. Thank you. God bless you. Honestly: Do you really not know or are you...
Hi Naddmer,

With a real trade, there are actual audit reports the Trade Services Team can review to determine what happened. That's not the case with your hypothetical example. Furthermore, I'm not a member of the Trade Services Team, and it is only they who are authorized to make determinations regarding trade audits. Anyone who has a real trade they would like investigated is welcome to file a trade inquiry.

Quoting Naddmer
Well - this is the commission. Nice from FXCM to get priorities right. Are you sure that it was question 4 and not question 3? {quote} Would it raise some interest in you, that the Swap-information (question 1) is working well in demo but not in live? --> MarketInfo(Symbol(), MODE_SWAPLONG) or MarketInfo(Symbol(), MODE_SWAPSHORT) But if issue #1 works on demo, issue #4 is in the concept phase but not in demo and for issue 2,3,6 are no plans to restore the functionality then there is in fact some mismatch. Especially because you wrote some days ago...
My mistake. You are correct. I meant to refer to your question 3 (not 4) about the MT4 chart prices not yet matching our new super tight FX spreads: http://www.forexfactory.com/brokers.php#spreads A solution for this issue is currently in the works.

It's questions 1,2,4 and 5 that are related to how MT4 is linked to our back office for single sign-on functionality. In regards to why swap info could be working on your demo account, to which demo server are you connecting?

Quoting Naddmer
Is it too much of a hassle for FXCM to write some mails to their customers having both demo and live accounts about the ongoing changes which might affect the customers risk management? I came to it by chance this weekend while I was testing an EA on GER30 and was astonished that the risk calculation went hayward because 1 Pip == 100 Points now where 1 Pip was 1 Point earlier... Best regards and thank you in advance for clarification. Naddmer
Thanks for pointing out how the new decimalized pricing for CFDs impacted the EA running on your demo account. We often test new changes on demo servers before rolling them out to real servers for this very reason. I've shared your feedback with my colleagues about sending out an email notification.
  • #7,543
  • Apr 9, 2015 7:45pm Apr 9, 2015 7:45pm
Hmmm..
So for account less than 10000, your execution type is a Dealing Desk (Market Maker)?

Are you gonna be fair? No stop loss hunting etc..etc..
Good Things Come to those who patiently wait
  • #7,544
  • Apr 10, 2015 1:13pm Apr 10, 2015 1:13pm
Quoting mybest
Hmmm.. So for account less than 10000, your execution type is a Dealing Desk (Market Maker)?
Hi Mybest,

Just to clarify, if you have an account balance less than $10,000 then you have the choice of dealing desk execution. However, you also have the choice of No Dealing Desk (NDD) forex execution.

FXCM's new risk management policy requires the reduction of leverage on all NDD accounts up to a maximum of 100:1. In response to demand from traders, we have decided to offer a DD option to clients with less than $10,000 so they can get access to higher leverage up to 400:1.

Quoting mybest
Are you gonna be fair? No stop loss hunting etc..etc..
What sets us apart from some brokers offering a DD option is that we also offer an NDD option for our clients. That means, we don't have to resort to dealer practices like the kind you described.

Transparency has always been at the core of everything we offer at FXCM. While other brokers don't tell you what the restrictions are with their execution and you end up finding the hard way, FXCM provides you all the information you need to make the right decision and have an excellent up to your expectation trading experience.

On the DD option, we will face market risk as a result of entering into trades with clients. Because of this risk, FXCM needs to implement certain restrictions* during news events. Additionally, we may take steps to mitigate the risk arising from market making more effectively by transferring your underlying account to our NDD offering. FXCM may also choose to transfer your account to NDD should the equity in your account balance exceed the 10k maximum.

* The typical 2-5 pip minimum distance from current market rate for stop and limit orders on DD accounts could increase to upwards of 10 pips. Note that NDD accounts with FXCM have no such restrictions regarding order placement.
  • #7,545
  • Apr 10, 2015 4:38pm Apr 10, 2015 4:38pm
Quoting Jason Rogers
In response to demand from traders, we have decided to offer a DD option to clients with less than $10,000 so they can get access to higher leverage up to 400:1.
Does FXCM have the ability to offer this higher leverage to US clients?
  • #7,546
  • Apr 10, 2015 6:56pm Apr 10, 2015 6:56pm
Quoting nondisclosure00
{quote} Does FXCM have the ability to offer this higher leverage to US clients?
No
  • #7,547
  • Apr 11, 2015 12:41pm Apr 11, 2015 12:41pm
Hi
Please, let me know what did you do to resolve the momentary freezing when a relative high volatility, when I trade M5 time frame, sometimes MT4 have 3-4 seconds freezing when there is a relative high volatility, not only at news. Regards

Quoting h4xforum
Hi Jason! I did as you told me and my platform has been working very good, no freezing for about two days now. Thank you for taking the time.
  • #7,548
  • Apr 11, 2015 7:34pm Apr 11, 2015 7:34pm
FXCM: Negative Account Balance

Quoting Kjyzai
Not with FXCM. It is FXCM's policy to credit accounts to a zero balance when debit balances occur as a result of trading. One of the greatest concerns traders have about leverage is that a sizable loss could result in owing money to their broker. At FXCM, your maximum risk of loss is limited by the amount in your account. All accounts are tracked by our "Margin Watcher" feature. With the Margin Watcher feature, if account equity falls below margin requirements, the FXCM Trading Station will trigger an order to close all open positions. Why FXCM...
NOT ANYMORE!!

All FXCM account holders in the U.S. just got noticed this weekend:
They have changed their 'Master' Trading Agreement
If it happens again....

You're liable.

Attached Image (click to enlarge)
Click to Enlarge Name: fxcm2.jpg Size: 115 KB
"You Never Know.....Until You Find Out."
  • #7,549
  • Apr 13, 2015 12:59am Apr 13, 2015 12:59am
What a joke.

Then what is the difference now with borrowing money to trade?

Since we have to top up the maybe occuring negative balance.
Read the entire market, money is made on the main trend not the fluctuation
  • #7,550
  • Apr 13, 2015 3:18am Apr 13, 2015 3:18am
bad enough most of you can't trade now you want the broker to cover your loses in case the market go crazy
  • #7,551
  • Apr 13, 2015 3:37pm Apr 13, 2015 3:37pm
Quoting nondisclosure00
{quote} Does FXCM have the ability to offer this higher leverage to US clients?
Quoting PoundTrader
{quote}No
Hi Nondisclosure,

PoundTrader is correct. CFTC regulations limit the maximum available leverage on forex to 50:1 which is what we offer our clients in the US. Traders living outside the US have access to higher leverage through FXCM's global entities: http://bit.ly/1GE1Spi
  • #7,552
  • Apr 13, 2015 4:24pm Apr 13, 2015 4:24pm
Quoting Miche09
Hi Please, let me know what did you do to resolve the momentary freezing when a relative high volatility, when I trade M5 time frame, sometimes MT4 have 3-4 seconds freezing when there is a relative high volatility, not only at news. Regards {quote}
Hi Miche,

As this has worked for others, I can have one of our tech specialists look at your MT4 platform setup. After they have determined the exact cause, they can offer the appropriate solution. If interested, please send me a private message with the best phone number and time to reach you.

Thanks,
Jason
  • #7,553
  • Apr 13, 2015 4:44pm Apr 13, 2015 4:44pm
Quoting goldenequity
FXCM: Negative Account Balance {quote} NOT ANYMORE!! All FXCM account holders in the U.S. just got noticed this weekend: They have changed their 'Master' Trading Agreement If it happens again.... You're liable. {image}
Hi Goldenequity,

In the United States, CFTC Regulation 5.16 says that no Retail Foreign Exchange Dealer, Futures Commission Merchant or Introducing Broker may in any way represent that it will guarantee against losses. Therefore, this rule applies to all US forex trading accounts regardless of the broker.

That means, if a similar event to the January 15th SNB announcement happens again, US forex traders shall at all times be liable to their broker for any negative balance or debit balance in their accounts. Your forum profile mentions that you live in the US, so this CFTC regulation would apply to you.
  • #7,554
  • Apr 13, 2015 4:46pm Apr 13, 2015 4:46pm
Quoting Kofmaster
What a joke. Then what is the difference now with borrowing money to trade? Since we have to top up the maybe occuring negative balance.
Hi Kofmaster,

I notice your forum profile mentions that you live in Malaysia. CFTC regulations only apply to US forex trading accounts.

Since you live outside the US, it's worth noting that both FXCM UK and FXCM Australia (regulated by the FCA and ASIC respectively) offer traders a Negative Balance Policy as follows: Clients subject to the Negative Balance Policy who incur negative balances in excess of US $50,000 (determined by aggregating all of the client's negative balances across all accounts held by FXCM and any of its affiliate(s), incurred over a 24 hour period of time) will be responsible for and owe FXCM the value of the total negative balance above US $50,000, regardless of market conditions. Subject to certain exceptions, FXCM will waive the first US $50,000 of a client's total negative balance (determined by aggregating all of the client's negative balances across all accounts held by the FXCM group, incurred over a 24 hour period of time). This policy will apply to negative balances incurred during all market conditions, including exceptional market movements.

Specific Exceptions: Each client's master trading agreement will detail all of the specific exceptions to the Negative Balance Policy. Some of the key exceptions to this policy include the following: negative balances incurred by legal entities, omnibus relationships, white label relationships, Eligible Contract Participants, Eligible Counterparties and/or Professional Clients (as defined in the client's master trading agreement) and/or negative balances incurred on share CFD positions or products traded on an exchange.
  • #7,555
  • Apr 13, 2015 5:18pm Apr 13, 2015 5:18pm
Quoting Jason Rogers
{quote} Hi Kofmaster, I notice your forum profile mentions that you live in Malaysia. CFTC regulations only apply to US forex trading accounts. Since you live outside the US, it's worth noting that both FXCM UK and FXCM Australia (regulated by the FCA and ASIC respectively) offer traders a Negative Balance Policy as follows: Clients subject to the Negative Balance Policy who incur negative balances in excess of US $50,000 (determined by aggregating all of the client's negative balances across all accounts held by FXCM and any of its affiliate(s),...
what if i own a offhore company in the bahamas and thats where it is located but i live in the u.s.a. can i still open a account with your U.K .company in my company name
  • #7,556
  • Apr 14, 2015 6:20am Apr 14, 2015 6:20am
Quoting Jason Rogers
{quote} Hi Kofmaster, I notice your forum profile mentions that you live in Malaysia. CFTC regulations only apply to US forex trading accounts. Since you live outside the US, it's worth noting that both FXCM UK and FXCM Australia (regulated by the FCA and ASIC respectively) offer traders a Negative Balance Policy as follows: Clients subject to the Negative Balance Policy who incur negative balances in excess of US $50,000 (determined by aggregating all of the client's negative balances across all accounts held by FXCM and any of its affiliate(s),...
So you mean the negative balance policy do not apply on me or any person who resides outside of US. Am I right?
Read the entire market, money is made on the main trend not the fluctuation
  • #7,557
  • Apr 14, 2015 2:23pm Apr 14, 2015 2:23pm
Quoting PoundTrader
{quote}what if i own a offhore company in the bahamas and thats where it is located but i live in the u.s.a. can i still open a account with your U.K .company in my company name
If you are the majority owner of the company, and you live in the US, then the account in your company's name would still have to be set up under US regulations.
  • #7,558
  • Apr 14, 2015 2:26pm Apr 14, 2015 2:26pm
Quoting Kofmaster
{quote} So you mean the negative balance policy do not apply on me or any person who resides outside of US. Am I right?
Since you live outside the US, you have the option of opening a trading account under UK or Australian regulations. Our FXCM UK and FXCM AU entitites offer traders a Negative Balance Policy as follows:

Clients subject to the Negative Balance Policy who incur negative balances in excess of US $50,000 (determined by aggregating all of the client's negative balances across all accounts held by FXCM and any of its affiliate(s), incurred over a 24 hour period of time) will be responsible for and owe FXCM the value of the total negative balance above US $50,000, regardless of market conditions. Subject to certain exceptions, FXCM will waive the first US $50,000 of a client's total negative balance (determined by aggregating all of the client's negative balances across all accounts held by the FXCM group, incurred over a 24 hour period of time). This policy will apply to negative balances incurred during all market conditions, including exceptional market movements.

Specific Exceptions: Each client's master trading agreement will detail all of the specific exceptions to the Negative Balance Policy. Some of the key exceptions to this policy include the following: negative balances incurred by legal entities, omnibus relationships, white label relationships, Eligible Contract Participants, Eligible Counterparties and/or Professional Clients (as defined in the client's master trading agreement) and/or negative balances incurred on share CFD positions or products traded on an exchange.
  • #7,559
  • Apr 15, 2015 8:51am Apr 15, 2015 8:51am
Quoting Jason Rogers
{quote} If you are the majority owner of the company, and you live in the US, then the account in your company's name would still have to be set up under US regulations.
what if i had a bahamas resident card but stll a u.s. citizen would i be able to open account with the u.k. branch with my bahamas company
  • #7,560
  • Apr 15, 2015 9:33am Apr 15, 2015 9:33am
Quoting PoundTrader
{quote}what if i had a bahamas resident card but stll a u.s. citizen would i be able to open account with the u.k. branch with my bahamas company
If you can get around US regulations, you have many, many better options than FXCM.
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