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FXCM Discussion

  • #5,501
  • Nov 24, 2014 10:20pm Nov 24, 2014 10:20pm
Quoting Jason Rogers
{quote} It's my pleasure, Sam You should have received an email confirmation from our Operations department by now regarding the reactivation of your trading account. Please confirm that you received this email. Thanks, Jason
hi jason,
yes, i received this email confirmation and my account is active again now, many thanks!

regards, sam
Money is made by sitting, not trading. Jesse L. Livermore
  • #5,502
  • Nov 25, 2014 2:39am Nov 25, 2014 2:39am
Greetings to all and a Q for Jason Rogers.

Jason, as I have been studying the charts in MT4 for too many years, I find trying to trade with FXCM Trade Station ( TS ) very confusing. I refer to the jargon of MT4 compared to the jargon of TS. I wonder if you can identify for me ( and others I suspect ) which words in TS have the same meaning as these MT4 trading words ..
Sell Stop, which puts an entry to sell below current PA. ( Buy Stop would the reverse of course )
Take Profit, meaning is obvious
Stop Loss, meaning is obvious

My efforts with some TS words seem to use more than one meaning, eg, "Limit" seems to mean Stop Loss or Take profit depending on how a trade is set up ??

Alternatively, can I set up an MT4 demo A/c from FXCM without having to open a second A/c? I tried to do this recently and my e-address always lead me to open an additional live A/c ??? Or maybe I need to use a false name or a false or second email address ??

In addition, having read through most of the posts above, I add my compliments to you for your obvious commitment to assisting FXCM customers.
I hope FXCM is paying you adequate remuneration !! ( It has been some time since my last post ).

fairwind
Good Trading to All ---- fairwind
  • #5,503
  • Nov 25, 2014 6:01am Nov 25, 2014 6:01am
Quoting Jason Rogers
The fact is that there are 212,019 real faces of retail forex trading at FXCM. That's the total number of retail tradable accounts with us as of September 30th, 2014: http://bit.ly/1npdek8 If you want to draw some meaningful conclusions, then it's important to use a big enough sample size. That's what the DailyFX analysts did in a series of profitability studies on the anonymous trading records of tens of thousands of FXCM clients. They looked at profitability based on time frame, leverage, pairs traded and a host of other factors to...


I do agree that 212,019 is big enough a sample size.
IMHO the real issue is not a determination of common best practices.

The real questoin is: is forex trading profitable ?

FXCM takes in about 50 Million per month from commission from 212,019 active accounts.
From month-to-month do these accounts as a whole - at least - cover spread and commission ?

What is the $ increase / decrease per month for the customer accounts combined ?
Let's imagine that the 212,019 active accounts form a "composite trader", is that composite trader profitable ?
(New accounts opened during the period should not be included.)
Thanks.
  • #5,504
  • Nov 25, 2014 6:52pm Nov 25, 2014 6:52pm
Quoting flybiz08
Hi Jason, I was amazed with your new spreads even on mt4. I also understand that the commission for one round turn per standard lot is $8.
Hi Flybiz08,

I'm glad you like our new raw FX spread pricing: http://www.forexfactory.com/showthre...43#post7788843

Quoting flybiz08
Can you answer the following questions? 1. Does this new low spreads and commission apply to your standard accounts?
Yes, this new pricing is available on standard accounts with can be opened with a starting balance of $2000. Despite their name, it's worth noting that you can place mini lot ($1 per pip) and micro lot (10 cents per pip) trades on FXCM standard accounts.

Quoting flybiz08
2. What is the maximum leverage obtainable on the standard account and please provide me with a link on how I can increase my leverage above the default 200:1 that your firm offers?
We typically don't offer more than 200:1 leverage, though exceptions are sometimes made on a case by case basis. It's important to note that leverage magnifies both gains and losses. Forex brokers that offer higher leverage tend to be dealing desk brokers who can profit from their clients losses, but that's not our business model. FXCM offers traders No Dealing Desk (NDD) forex execution which means that we make our money off client trading volume, not client losses. Statistics show that traders who use lower leverage tend to be more profitable, and that's good for FXCM, because we want clients who will continue to generate trading volume for us.

Quoting flybiz08
3. Does an automatic switch take place to convert a client with a standard account who surpasses $25,000 in trading balance to the active trader account? Or does the client have to apply for his account to be converted from standard to active trader account when his trading balance exceeds $25,000. I expect your swift response as always. Thank you.
Accounts are not automatically converted to Active Trader status, so if you reach the 25K level, please reach out to me via private message. I can have one of my colleagues in our Active Trader department follow up with you.
  • #5,505
  • Nov 25, 2014 7:09pm Nov 25, 2014 7:09pm
Quoting sam69
{quote} hi jason, yes, i received this email confirmation and my account is active again now, many thanks! regards, sam
It's my pleasure, Sam!
  • #5,506
  • Nov 25, 2014 7:43pm Nov 25, 2014 7:43pm
Quoting fairwind
I wonder if you can identify for me ( and others I suspect ) which words in TS have the same meaning as these MT4 trading words .. Sell Stop, which puts an entry to sell below current PA. ( Buy Stop would the reverse of course )
Hi Fairwind,

I would be happy to answer your questions.

Quoting fairwind
Sell Stop, which puts an entry to sell below current PA. ( Buy Stop would the reverse of course )
On Trading Station, this is referred to as a Stop Entry (SE) order to sell. Watch the video on this page called How to Create an Entry Order: http://bit.ly/1tsl4KV

Quoting fairwind
( Buy Stop would the reverse of course )
This is referred to as a Stop Entry (SE) order to buy. Watch the video on this page called How to Create an Entry Order: http://bit.ly/1tsl4KV

Quoting fairwind
Take Profit, meaning is obvious
This is referred to as a Limit (L) order on Trading Station. Watch the video on this page called How to Create a Limit: http://bit.ly/1tsl4KV

Quoting fairwind
Stop Loss, meaning is obvious
This is referred to as a Stop (S) order. Watch the video on this page called How to Create a Stop: http://bit.ly/1tsl4KV

Quoting fairwind
My efforts with some TS words seem to use more than one meaning, eg, "Limit" seems to mean Stop Loss or Take profit depending on how a trade is set up ??
That is not the case. A Take Profit order is a Limit order. A Stop Loss order is a Stop order.

Quoting fairwind
Alternatively, can I set up an MT4 demo A/c from FXCM without having to open a second A/c? I tried to do this recently and my e-address always lead me to open an additional live A/c ??? Or maybe I need to use a false name or a false or second email address ??
Your forum profile mentions that you live in Australia. Here's the MT4 demo registration link for FXCM AU. Please use your real name and email on the form: http://bit.ly/1HF9SFg

Quoting fairwind
In addition, having read through most of the posts above, I add my compliments to you for your obvious commitment to assisting FXCM customers. I hope FXCM is paying you adequate remuneration !! ( It has been some time since my last post ). fairwind
I've been with FXCM for almost 10 years now, and it's an absolute pleasure to talk with traders all day, since I am one myself! That said, part of my job here on the forums is to relay client requests to our senior management. Therefore, I will be sure to report your feedback to them regarding my remuneration.
  • #5,507
  • Nov 25, 2014 8:18pm Nov 25, 2014 8:18pm
Hi Jason,

I live in Chile and I have an account with FXCM Chile. Unfortunately they are not in a rush to tighten the spreads as FXCM has done and the customer service is not great.
Do you know if I have any chance to open an account with FCXM UK?. Every time I open any FXCM web site it redirects me to the FXCM Chile site, so I'm not able to communicate with any other FXCM branch!
Any help would be appreciated.
Saludos
  • #5,508
  • Nov 25, 2014 8:25pm Nov 25, 2014 8:25pm
Quoting Mingary
{quote} I do agree that 212,019 is big enough a sample size. IMHO the real issue is not a determination of common best practices. The real questoin is: is forex trading profitable ? FXCM takes in about 50 Million per month from commission from 212,019 active accounts. From month-to-month do these accounts as a whole - at least - cover spread and commission ? What is the $ increase / decrease per month for the customer accounts combined ? Let's imagine that the 212,019 active accounts form a "composite trader", is that composite trader profitable...
Hi Mingary,

Trading, whether it's in forex or futures, is a zero-sum game. For any given trade, there are both a buyer and a seller, and both a winner and a loser. If it weren't for transaction costs (spreads and/or commissions), then the "composite trader" you ask about, would have a net return of zero (no profit, no loss) since all the winners and losers would cancel out each other. However, there are transaction costs in all markets. Therefore, even though I don't have access to the exact data, I can tell you that the "composite trader" you ask about would have a net negative return overall due to transaction costs, regardless of where they trade.

What conclusions can be drawn from that?

  1. Trading carries a risk of loss, and therefore may not be suitable for all investors. In fact, we say that in our risk disclosures.
  2. In order to be successful at trading, one must be above average. That is why my earlier point about best practices is relevant.

By studying the habits of the most successful traders, we can learn from them. For example, statistics show that only 20.91% of accounts with a balance less than $1000 are profitable, while 37.37% of FXCM clients with a balance over $5000 are profitable. This is due to the lower effective leverage used by larger accounts.

http://media.dailyfx.com/illustratio..._Picture_4.png


The same study also revealed that FXCM trading accounts with a balance of $10,000 or more had a profitability rate of 44.09%!

Furthermore, what differentiates us from many other forex brokers is our No Dealing Desk (NDD) forex execution model, which means that FXCM does not take a market position, eliminating a major trading conflict of interest. Dealing desk brokers may actively trade against your positions. They can profit when you lose. Alternatively, they may lose when you profit. Because of this, dealing desk brokers are incentivized to manipulate your orders. They may for example place restrictions on stops and limits or re-quote your orders.

FXCM's NDD execution model does none of this. Your orders automatically fill from the NDD price feed, which is the best available bid and best ask prices from all of our liquidity providers. Additionally, your orders are anonymous to the liquidity providers. They cannot see your stops, limits, or entry orders; they only see market orders coming from FXCM. That means FXCM clients have one less thing to worry about in their pursuit of profits, and we strive to provide the highest level of customer support, education and technology to help them with the rest, because profitable traders are our best clients.
  • #5,509
  • Nov 25, 2014 8:30pm Nov 25, 2014 8:30pm
Quoting Darth Vader
Hi Jason, I live in Chile and I have an account with FXCM Chile. Unfortunately they are not in a rush to tighten the spreads as FXCM has done and the customer service is not great. Do you know if I have any chance to open an account with FCXM UK?. Every time I open any FXCM web site it redirects me to the FXCM Chile site, so I'm not able to communicate with any other FXCM branch! Any help would be appreciated. Saludos
The Force is strong in you. http://www.pixeljoint.com/files/icons/darth_vader.gifHow can I resist? Please send me a private message with the email address we have on file for your account, and I'll look into this for you.
  • #5,510
  • Nov 26, 2014 2:06am Nov 26, 2014 2:06am
Quoting Jason Rogers
{quote, in part } That said, part of my job here on the forums is to relay client requests to our senior management. Therefore, I will be sure to report your feedback to them regarding my remuneration.
I hope that works out for you Jason .... LOL .... AND thanks for your informative response regards my learning Trade Station!!
Good Trading to All ---- fairwind
  • #5,511
  • Edited Nov 27, 2014 12:30am Nov 26, 2014 3:41am | Edited Nov 27, 2014 12:30am
Quoting Jason Rogers
{quote} Hi Mingary, Trading, whether it's in forex or futures, is a zero-sum game. For any given trade, there are both a buyer and a seller, and both a winner and a loser. If it weren't for transaction costs (spreads and/or commissions), then the "composite trader" you ask about, would have a net return of zero (no profit, no loss) since all the winners and losers would cancel out each other. However, there are transaction costs in all markets. Therefore, even though I don't have access to the exact data, I can tell you that the "composite trader"...
Thanks for the reply. Ok, so I realize now that for every dollar invested with our "composite trader" the best that he can hope for is a return of 1 dollar less transaction cost..
This means that the 212 000 accounts will generate 50,000,000 per month in revenue to the broker with no profit to the customers as a whole. And, it is achieved by traders who believe they are -- or can become -- above average.
This applies to all forex brokers not just FXCM.
It is hard to believe, then, that anyone actually wins; especially long term.
It really puts into question the value in studying the habits of "the more successful traders". In the best case scenario, the data indicates that a trader's success must be temporary (attrition rate skewed towards winners)
Now how do I open my own forex brokerage company? (:
  • #5,512
  • Nov 26, 2014 6:30am Nov 26, 2014 6:30am
Quoting Jason Rogers
{quote} The Force is strong in you. {image}How can I resist? Please send me a private message with the email address we have on file for your account, and I'll look into this for you.
It is indeed. Thanks, I'll pm you.
  • #5,513
  • Nov 26, 2014 5:12pm Nov 26, 2014 5:12pm
I'm out of the office until Monday, December 1st and will respond to your questions when I return.

http://www.kclaborbeacon.com/My%20Pi...ksgiving-2.jpg
  • #5,514
  • Edited 7:47am Dec 1, 2014 5:40am | Edited 7:47am
Since FXCM commissions, I'm not always clear on their effective fees per trade. Spread is super low, but the commissions offset that.
Vita est simillimus forexum(Life is like forex)
  • #5,515
  • Dec 1, 2014 10:10am Dec 1, 2014 10:10am
Quoting dennis681
Since FXCM commissions, I'm not always clear on their effective fees per trade. Spread is super low, but the commissions offset that.
Seems quite competitive to me as far as US based brokers go!

Attached Image (click to enlarge)
Click to Enlarge Name: US_Brokers.png Size: 32 KB
  • #5,516
  • Edited Dec 2, 2014 10:26am Dec 1, 2014 6:16pm | Edited Dec 2, 2014 10:26am
Quoting dennis681
Since FXCM commissions, I'm not always clear on their effective fees per trade. Spread is super low, but the commissions offset that.
Hi Dennis,

The commissions on FXCM's new raw FX spread pricing are lower than the pip markups they replaced. That means your overall transaction costs are lower with our new pricing than with the old model. Below are two examples that demonstrate this.

http://i.imgur.com/veY7pcE.png


Please let me know if you have any further questions.

Thanks,
Jason
  • #5,517
  • Dec 2, 2014 9:10am Dec 2, 2014 9:10am
Hi Jason,

Since 2.30pm GMT today, the pip spread on FTSE 100 index has gone to 2 pips 3 times. Ok with that and understand that there are reasons probably BUT each time the sceens have frozen on TS2 AND MT4 (Itrade both)... One of the 3 occasions price went to one of my TP's but of course was not closed due to screen freeze. I just want to know if this i slikely to be an ongoing problem that's all. Thanks in advance.
  • #5,518
  • Dec 2, 2014 9:27am Dec 2, 2014 9:27am
Question Jason...

With MT4 a 10,000 unit of currency is 0.1.

What is the equivalent with Trading Station??

I think that it is 10, but I am not completely sure...
Mark ... Everything you have been told is a LIE
  • #5,519
  • Dec 2, 2014 9:55am Dec 2, 2014 9:55am
Hi Jason, I'm a frim of FXCM Itaaly since some years now and I'm satisfied of the provided service; the only matter is the spread that is not very tight but i see here that now there is a different arrangement, a smaller spread with a commission. Is this arrangement only for USA or is it available also here in Italy?
  • #5,520
  • Dec 2, 2014 2:36pm Dec 2, 2014 2:36pm
i heard the withdrawl process is very slow at fxcm, when i was with IBFX if you use a debit card the money was there like the next day, don't know if thats the case with fxcm i just heard traders here in the u.s. say it took them 5 days to get there money
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