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  • #3,021
  • Sep 5, 2012 5:09pm Sep 5, 2012 5:09pm
Quoting revoli
Jason

I have a live FXCM account and am not getting satisfactory answers so thought would try you. Spikes are reportdely occuring regularly at FXCM that are not present elsewhere. Why is this? Here is an example. http://www.forexfactory.com/showthre...4792&page=2590

Answers received from FXCM staff so far are dont believe what you read on BB's. Not inspiring confidence given I am trialling a live FXCM (micro) account in parallel to my current providers. Wonder if you can give an answer that would improve FXCM credibility...
Hi Revoli,

Thanks for your post and I'm always happy to help.

I noticed in that the post you referenced said something about it being "another example of a possible SL hunt by FXCM of its clients accounts". There's one big problem with that statement. FXCM does not determine the forex prices streamed on our platforms or the spreads. We have 10+ liquidity providers stream prices to FXCM, and the best bid and ask price is automatically fed into the Trading Station platform with a pip markup. So the prices you see are set by competing banks rather than by FXCM. As prices change so can the spreads, and wider spreads are the result less market liquidity. This is why you will often see spreads widen during news events or around rollover at 5pm ET as occurred in the post you reference. Many banks will briefly shut down and reset their servers, and those that remain active widen their spreads to about 10 to 15 pips. This usually only lasts a few minutes to allow the banks to check their systems, apply rollover interest and roll trades over to the new day.

In rare cases, a price spike could be the result of a bad tick (or incorrect price) from the liquidity providers that has made it through into the price feed. In these cases, we automatically adjust any trades impacted by the bad tick regardless of whether a client contacts us or not. So you can double check with us if you want to ask about a certain spike and whether it may be a bad tick.

I posted a more detailed explanation with examples of how pricing is determined in this post. I'm not sure which link you are referencing as not working, but this will likely give you the more detailed explanation you were looking for. If you're running into a broken link, let me know where you see it, so I can get it fixed.

Jason
  • #3,022
  • Sep 5, 2012 5:13pm Sep 5, 2012 5:13pm
Quoting Jason Rogers
Hi Doblece,

Your account must be set up as an MT4 account in order for the login details to work on the MT4 platform. Mostly likely the account details you have were only set up for the FXCM Trading Station. You can send an email to our Operations department at [email protected], from the email address we have on file for the account holder. In the email, you can request that the account be converted to an MT4 account. Allow a business day for your request to be processed, and then the login details will work on both...
Thank you so much!
In the end, I've downloaded the Trading Station and after a day's intensive I find it might be better to use that platform instead It's pretty much different than the WebStation (in better). So I'll have to practice for a while especially with the charting differences but all in all, I guess I won't have to switch and all that fuss!
  • #3,023
  • Sep 5, 2012 5:34pm Sep 5, 2012 5:34pm
Quoting mctrade
Hi Jason,

thanks for your response.

You might be right with your explanation, I don`t know at the moment now.
All I can say is that trading with FXCM`s Marcetscope platform is really confusing me.First it means that the spreads can increase a few pips during volatile market conditions or during news releases, now it means that FXCM`s liquid providers (the banks) can increase the spreads during non volatile market conditions and non news releases when the New York session is closing.And then for more than 10 pips depending on what forex pair...
Hi McTrade,

I can understand your frustration, but it's good you're asking these questions while you're still trading on a demo account and the lessons are free. It's important to understand the market risks before you trade with real money.

Everyone trades to make money, not only individual traders and but also the banks. The advantage of trading with FXCM, is that the banks cannot see where our clients have set their stops and limits. Also, banks have to compete with each other to get the order flow from our clients. Only the bank quoting the lowest buy price, and the bank quoting the highest sell price at any given moment will get to the screen of FXCM's platforms and get to offset orders from our clients.

In regards to your concern about spreads possibly widening during the end of the London and Tokyo sessions, that does not happen. By the time the Tokyo session ends, the London session is already in full swing. And by the time, the London session ends, it's the middle of the New York session. However, when the New York session ends, there are still a couple of hours before trading volume picks up again in Tokyo. It's a quiet time in the markets. That is actually why banks pick that time to reset their servers and roll over trades.

Jason
  • #3,024
  • Sep 5, 2012 5:39pm Sep 5, 2012 5:39pm
Quoting doblece
Thank you so much!
In the end, I've downloaded the Trading Station and after a day's intensive I find it might be better to use that platform instead It's pretty much different than the WebStation (in better). So I'll have to practice for a while especially with the charting differences but all in all, I guess I won't have to switch and all that fuss!
Hi Doblece,

In that case, you might like to know that several times a day, we run a live webinar that shows clients how to use the Trading Station including the charts. Click here for the schedule to attend.

Jason
  • #3,025
  • Sep 5, 2012 5:58pm Sep 5, 2012 5:58pm
Quoting Jason Rogers
Hi Doblece,

In that case, you might like to know that several times a day, we run a live webinar that shows clients how to use the Trading Station including the charts. Click here for the schedule to attend.

Jason
Thank you very much, although I had already traded on a TS demo some time ago, I am certain this will help me remember and master whichever details I am not aware of yet.

Regards
Caroline
  • #3,026
  • Sep 5, 2012 7:13pm Sep 5, 2012 7:13pm
Dear Jason,

Don't forget about my question

Quoting zam4ever
Thank you for above confirmation.

One more thing, for DD account, is the spread remain same if registered under IB? Or if directly register with FXCM, then will enjoy the better and lower spread?

As far as we know, some IB offering cashback or rebates if register account under them.

Please advise and cheers
  • #3,027
  • Sep 6, 2012 12:33am Sep 6, 2012 12:33am
Hi Jason,
I'm new to FXCM and also forex trading. Am just curious, for Copper, why FXCM offer 3 decimal point instead of 4 decimal? I understand most offer 4 decimal for Copper?

Another questions, what other commodities do FXCM plan to offer in the future?


Cheers.
Victor Yong
  • #3,028
  • Sep 6, 2012 1:32am Sep 6, 2012 1:32am
Quoting Jason Rogers
Hi High.Five,

FXCM still recommends No Dealing Desk execution as we believe it provides the best overall trading experience. For traders whose number one concern is spreads but whose starting account balance and trading volume are too low to qualify for Active Trader, we now offer a dealing desk option. Many dealing desk brokers have re-quotes as explained in the video. Our offering seeks to provide the best execution possible which is why our dealing desk has no re-quotes and does not manipulate...
Thanks for your reply Jason. I've just checked out the full comparison of both execution types. Could you shed a little more light on the conflict of interest in your dealing desk account type?
  • #3,029
  • Sep 6, 2012 8:59am Sep 6, 2012 8:59am
A smooth process converting NDD to DD account. The only drawback is to ensure that no active / open positions in your account during conversion process.

If you have open positions, then the best way is to open new additional account, and transferring minimum $50 or higher from current account. Once opened, request to convert it to DD account. If current account is cleared (no more open positions), just request funds transfer between these two accounts. I believe this is the fastest way to do / trade.

Please correct me Jason, if I'm wrong.

Let see for the next few months either my market orders will experiencing re-quotes or non-re-quotes, as stated in FAQ

cheers
  • #3,030
  • Edited 1:23pm Sep 6, 2012 9:37am | Edited 1:23pm
FXCM UK has launched new CFD products available for you to trade including Platinum, Copper, Palladium, Natural Gas, Bund, and Euro Stoxx 50.

Jason, by the way, could I re-confirm that :

Spot
1. EUSTX50
2. XPD/USD
3. XPT/USD

Future
1. NGAS
2. Copper
3. BUND

cheers
Attached Image
  • #3,031
  • Sep 6, 2012 3:58pm Sep 6, 2012 3:58pm
Quoting zam4ever
Thank you for above confirmation.

One more thing, for DD account, is the spread remain same if registered under IB? Or if directly register with FXCM, then will enjoy the better and lower spread?

As far as we know, some IB offering cashback or rebates if register account under them.

Please advise and cheers
Quoting zam4ever
Dear Jason,

Don't forget about my question
Hi Zam,

I couldn't forget about you

I had to double check with our Introducing Broker department regarding your question. It turns out that the answer depends on the specific IB as to whether you can open a dealing desk account through them to get the new lower spreads. If there is a particular IB you are interested in, it would be best to contact them directly to ask whether they support the DD execution type.

Jason
  • #3,032
  • Sep 6, 2012 6:51pm Sep 6, 2012 6:51pm
Quoting victoryong
Hi Jason,
I'm new to FXCM and also forex trading. Am just curious, for Copper, why FXCM offer 3 decimal point instead of 4 decimal? I understand most offer 4 decimal for Copper?

Another questions, what other commodities do FXCM plan to offer in the future?


Cheers.
Victor Yong
Hi Victor,

Welcome to the forum

I checked with our trading desk regarding your question, and the reason we quote copper prices to 3 decimals is because that is how the underlying futures market is priced. You can click here for a complete list of our CFD products including commodities.

I'll post an update in this discussion thread if we introduce any new commodities or other CFD products.

Jason
  • #3,033
  • Sep 6, 2012 7:03pm Sep 6, 2012 7:03pm
Quoting High.Five
Thanks for your reply Jason. I've just checked out the full comparison of both execution types. Could you shed a little more light on the conflict of interest in your dealing desk account type?
Hi High.Five,

I'm happy to go over that with you. We discuss this in the dealing desk section of our website, and I'll include that information below, so everyone here can read it as well. Please let me know if there is anything in particular you need clarification on.

In the dealing desk model, FXCM acts as a market marker, setting the prices and spreads on which you trade. In this execution model, FXCM is on the other side of your trades. We can see your stops and limits and we profit from your trading losses. This is true for all brokers that offer dealing desk execution.

Lower Spreads

Because we create the prices on which you trade, FXCM's dealing desk is able to offer lower spreads than those provided by the No Dealing Desk (NDD) model. While FXCM believes that NDD execution provides the best overall trading experience, we also offer dealing desk execution as an option for traders whose primary concern is low spreads.

Our Dealing Desk is Different

Dealing desk execution is used by most brokers in the forex industry. However, FXCM's dealing desk is different because we use the FXCM NDD price feed as a base to derive prices and execute orders. This means that our dealing desk execution shares important features with our NDD execution:

 

  1. No re-quotes
  2. No restrictions on stops and limits


But no matter what similarities the two execution models share, there are fundamental differences between them, and you may experience certain trading limitations when you trade with our dealing desk. This is why we recommend NDD execution for most clients.

Trading Limitations

Operating a dealing desk can be riskier than providing NDD execution because we (the market maker) are on the other side of your trades. When you are long a currency pair, we are short. When you are short, we are long. Likewise, when you trade profitably, we may experience trading losses. Most dealing desks manage their trading losses by interfering with their client's trading such as re-quoting their orders, delaying their execution, skewing prices, or widening spreads. We do none of that at FXCM. If your trading style exposes us to more risk than we care to manage, we will simply change your execution type to NDD, where there are no restrictions on the trading style or strategy used. This is how FXCM can comfortably offer both options without having to resort to the "dealer intervention" that is common at many forex brokers.

Automated strategies and strategies that trade at a high frequency or scalp the market are least suitable for dealing desk execution. We encourage traders who use these types of strategies to open an account that provides them with NDD execution, which is compatible with all trading strategies.

Jason

  • #3,034
  • Sep 6, 2012 7:44pm Sep 6, 2012 7:44pm
Quoting zam4ever
A smooth process converting NDD to DD account. The only drawback is to ensure that no active / open positions in your account during conversion process.

If you have open positions, then the best way is to open new additional account, and transferring minimum $50 or higher from current account. Once opened, request to convert it to DD account. If current account is cleared (no more open positions), just request funds transfer between these two accounts. I believe this is the fastest way to do / trade.

Please correct me Jason, if I'm wrong.

Let...
Hi Zam,

The NDD to DD transfer forms (FXCM UK | FXCM AU) don't have a section to specify the amount of money you want to transfer. The forms assume you will be transferring the entire balance. If you would like to continue trading on NDD while your new DD account is being set up, then instead of using the transfer forms, I would suggest sending an email to our Operations department at [email protected].

In the email, you can say that you want to keep trading on NDD for now, but would like them to create a new DD account number for you with a zero balance. When they email you your new DD account number, you can then make a transfer request for the amount you want by logging into www.myfxcm.com with your NDD account details. That way your trading is not interrupted.

Jason
  • #3,035
  • Sep 6, 2012 8:20pm Sep 6, 2012 8:20pm
Quoting zam4ever
FXCM UK has launched new CFD products available for you to trade including Platinum, Copper, Palladium, Natural Gas, Bund, and Euro Stoxx 50.

Jason, by the way, could I re-confirm that :

Spot
1. EUSTX50
2. XPD/USD
3. XPT/USD

Future
1. NGAS
2. Copper
3. BUND

cheers
Hi Zam,

While we use information from the relevant futures markets as a reference in determining the prices for many of our CFD products, it's best to divide the CFDs into two groups. The first group is all the CFD products that do not expire. This group includes all Index CFDs such as EURSTX50, and Metal CFDs such as XPT/USD and Copper. These CFDs show a spot price for the underlying product, and open positions earn or pay rollover at the end of each trading day.

The second group is all the CFD products that do expire. This group includes BUND and all Energy CFDs such as NGAS and USOil. These CFDs show a futures price, and there is no rollover. BUND positions expire quarterly. You can see the exact expiration dates on Page 13 of the CFD Product Guide. NGAS and Oil CFDs expire monthly. You can see the exact expiration dates on Page 9 of the CFD Product Guide.

Jason
  • #3,036
  • Sep 7, 2012 12:19am Sep 7, 2012 12:19am
Quoting Jason Rogers
I had to double check with our Introducing Broker department regarding your question. It turns out that the answer depends on the specific IB as to whether you can open a dealing desk account through them to get the new lower spreads. If there is a particular IB you are interested in, it would be best to contact them directly to ask whether they support the DD execution type.
I e-mail them (cashbackforex) and they said the spread is remain same, and I will enjoy same rebate. To validate this claim, could I use Active Trader spread as baseline to compare my DD account spread? Supposedly, the AT and DD account spreads are same, am I right?

cheers
  • #3,037
  • Sep 7, 2012 12:23am Sep 7, 2012 12:23am
Quoting Jason Rogers
The NDD to DD transfer forms (FXCM UK | FXCM AU) don't have a section to specify the amount of money you want to transfer. The forms assume you will be transferring the entire balance. If you would like to continue trading on NDD while your new DD account is being set up, then instead of using the transfer forms, I would suggest sending an email to our Operations department at [email protected].

In the...
Thanks for above advise.

At this moment, I have one NDD account (with few open positions), and one DD account (no open positions with balance $100, fund transferred from NDD account during creating new additional account). I informed them that I still need to have NDD account until all open positions are closed. After that, request to transfer all balance fund to DD account.

cheers
  • #3,038
  • Sep 7, 2012 12:34am Sep 7, 2012 12:34am
Quoting Jason Rogers
While we use information from the relevant futures markets as a reference in determining the prices for many of our CFD products, it's best to divide the CFDs into two groups.

The second group is all the CFD products that do expire. This group includes BUND and all Energy CFDs such as NGAS and USOil.
Nice!

I agree and that is a better way to manage the trading products, expiration vs non-expiration.

cheers
  • #3,039
  • Sep 7, 2012 7:08am Sep 7, 2012 7:08am
Quoting okehiedon
Jason Rogers

I just observed that the FXCM MT4 sometimes does not close trades on reaching take profit price. When it happened the first time I just taught it was a one time error. It has happend again despite the fact that the stop loss and take profit levels were entered when the trade was taking.


I have attached the chart showing price well below the take profit level entered when the trade was taking. This happened today.
Jason Rogers

Reference my last post. The problem has also extended to my life account. On a Eur Usd trade, price was well past take profit but did not close. It was showing the yellow colour.

Tried to close the trade manually but could not until price retraced below the TP level before it closed.
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  • #3,040
  • Sep 7, 2012 7:39am Sep 7, 2012 7:39am
Worst of all no connection on my live acct at NFP. This is bad
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