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  • #8,301
  • Nov 26, 2015 6:05pm Nov 26, 2015 6:05pm
Quoting ForexOracle
It boils down to bad risk management from the part of the broker!! They could very well had managed their risk making certain pair go straight to MM model. They would be rolling in dough right now if they thought about something as simple as that. Now they come up with lame excuses like : " nobody could have ever predicted it" BS!!! Drew Niv is an idiot!!! Why the board does not kick him out is beyond me! Maybe they are as dumb or worst as he is. My main broker is Interactive. I also deal with tradestation and a few MM, nobody really needs FXCM....

Absolutely agree!
FF = Forex Faggots
  • #8,302
  • Edited 7:35pm Nov 26, 2015 7:18pm | Edited 7:35pm
Quoting flylizard
Logically if a broker is "genuinely" non dealing desk with all trades going to market, no matter what occurred in the market could affect the broker........unless they were running A and B books and got caught out......Or am I just being too simplistic and naive???
Yes you are in this case.

They were/are running a A-Book (aka "ECN"/STP model).
If they were running a B-Book they would have been stuck with a whole lot of EURCHF short positions - I dont need to explain what would happen then.

The reason why the A-Book failed at that time is there was just no liquidity at certain price-levels to cover all the (stop) orders from clients or margin calls the clients have gotten, resulting in a huge gap between beginning (all clients avg open prices received from the market) and ending balance (all clients avg closing price received from the market). So yes they genuinely were sending the trades to the market and the market LP's was causing this problem, not them at first instance. That said...everybody had issues around that time; LP's, brokers, platforms, all kind of traders. Some went bankrupt, some had to be saved, some are bought up and some are alive a kicking with a surplus this year and some didn't even got a scratch (Japan). For every winner there has to be a looser as well in trading if the primary incentive is to make money: that's just the root nature of that game as all may understand on this forum.
  • #8,303
  • Nov 27, 2015 6:13pm Nov 27, 2015 6:13pm
Quoting cyguy
{quote} define a 'real' deposit, more than 10k?
100k and north
FF = Forex Faggots
  • #8,304
  • Nov 28, 2015 1:11pm Nov 28, 2015 1:11pm
Quoting FlashCall
{quote} Yes you are in this case. They were/are running a A-Book (aka "ECN"/STP model). If they were running a B-Book they would have been stuck with a whole lot of EURCHF short positions - I dont need to explain what would happen then. The reason why the A-Book failed at that time is there was just no liquidity at certain price-levels to cover all the (stop) orders from clients or margin calls the clients have gotten, resulting in a huge gap between beginning (all clients avg open prices received from the market) and ending balance (all clients...
Thanks, very detailed, my confusion arose from being told that an A book was for big traders with lots above 20 at a time but small retail traders like myself were put on the B book whereby the broker would just keep the trade in house so to speak and assume the risk as most traders lose anyway, thus not taking much of a risk.
Thanks for clearing that up Flash Call
  • #8,305
  • Nov 30, 2015 2:42pm Nov 30, 2015 2:42pm
Quoting ForexOracle
It boils down to bad risk management from the part of the broker!! They could very well had managed their risk making certain pair go straight to MM model. They would be rolling in dough right now if they thought about something as simple as that. Now they come up with lame excuses like : " nobody could have ever predicted it" BS!!! Drew Niv is an idiot!!! Why the board does not kick him out is beyond me! Maybe they are as dumb or worst as he is. My main broker is Interactive. I also deal with tradestation and a few MM, nobody really needs FXCM....
Hi ForexOracle,

I'm glad to hear you had a very good experience trading with FXCM. We take great pride in the service we offer and in our No Dealing Desk (NDD) forex execution.

It's worth noting that the other broker you mentioned which also uses an ECN model reported a loss of $121 million in Q1 of 2015 as a result of the SNB event: https://leaprate.com/2015/04/interac...hs-on-results/

FXCM's losses were greater simply because we do a greater amount of forex volume. I believe our CEO Drew Niv stated it best:

At the time of the SNB announcement over 3,000 FXCM clients held slightly over $1 billion in open positions on EUR/CHF. Those same clients held approximately $80 million of collateral in their accounts. As you know this was the largest move of a major currency since currencies started floating 1971.

The EUR/CHF move was 44 standard deviation moves, while most risk management systems only contemplate 3-6 standard deviations. The moved wiped out those clients account equity as well as generated negative equity balances owed to FXCM of over $225 million. We believe that the FXCM system operated properly during this event.

The caveat of our no dealing-desk execution system is that traders are offset one for one with a liquidity provider. When a client entered a EUR/CHF trade with FXCM, FXCM Inc. had an identical trade with our liquidity providers. During the historic move, liquidity became extremely scarce and shallow, which affected execution prices. This liquidity issue resulted in some clients having a negative balance.

While clients could not cover their margin call with us we still had to cover the same margin call with our banks. When a client profits in the trade FXCM gives the profits to the customer, however, when the client is not profitable on that trade FXCM Inc. ends up having to pay the liquidity provider.
  • #8,306
  • Nov 30, 2015 2:55pm Nov 30, 2015 2:55pm
Quoting flylizard
{quote} Thanks, very detailed, my confusion arose from being told that an A book was for big traders with lots above 20 at a time but small retail traders like myself were put on the B book whereby the broker would just keep the trade in house so to speak and assume the risk as most traders lose anyway, thus not taking much of a risk. Thanks for clearing that up Flash Call
Hi Flylizard,

To address your confusion, FXCM offers No Dealing Desk (NDD) forex execution on all Standard accounts which can be opened with as little as $2000. The minimum trade size on our NDD execution is 1 micro lot (AKA 1000 currency units or about 10 cents per pip).
  • #8,307
  • Nov 30, 2015 2:59pm Nov 30, 2015 2:59pm
Hi Jason ...good work..

It must be tough with all this -ve energy... i keep saying this.. .. FXCM is one of the best brokers out there...i use them for CFD trading...

If you are looking for stability and credibility...FXCM is the way to go...
practising coitus interruptus
  • #8,308
  • Nov 30, 2015 3:07pm Nov 30, 2015 3:07pm
Quoting avibe
Hi Jason ...good work.. It must be tough with all this -ve energy... i keep saying this.. .. FXCM is one of the best brokers out there...i use them for CFD trading... If you are looking for stability and credibility...FXCM is the way to go...
Thanks Avibe, it means a lot to hear that from you!
  • #8,309
  • Nov 30, 2015 3:27pm Nov 30, 2015 3:27pm
Quoting Jason Rogers
{quote} Thanks Avibe, it means a lot to hear that from you!
no worries chief... just mute the -ve voices ..hence my signature..... you are not alone...many customers appreciate FXCM..ciao

Most traders are misinformed create negative collectivist pedestrian comments to what they know nothing about
practising coitus interruptus
  • #8,310
  • Nov 30, 2015 9:37pm Nov 30, 2015 9:37pm
I read the comparison between mini account, standard account and active trader and noticed the restrictions saying:
Quote
Price arbitrage strategies are prohibited
I did not understand what it means. Please elaborate as a plain language. Thanks!
  • #8,311
  • Dec 1, 2015 1:11am Dec 1, 2015 1:11am
let me guess chief buddys pals or workmates




Quoting avibe
{quote} no worries chief... just mute the -ve voices ..hence my signature..... you are not alone...many customers appreciate FXCM..ciao Most traders are misinformed create negative collectivist pedestrian comments to what they know nothing about
people leave, but this thread will go on for ever
  • #8,312
  • Dec 1, 2015 7:25am Dec 1, 2015 7:25am
Quoting Jason Rogers
{quote} Hi Flylizard, To address your confusion, FXCM offers No Dealing Desk (NDD) forex execution on all Standard accounts which can be opened with as little as $2000. The minimum trade size on our NDD execution is 1 micro lot (AKA 1000 currency units or about 10 cents per pip).
HI Jason,
is the NDD model available on spread betting accounts?
Also why can't i load the TS app using my phone unless i have a very strong wi-fi signal whereas I can easily load an MT4 app,, alas this is in use with another broker and don't wish to create a conflict

regards,
Paul
  • #8,313
  • Dec 1, 2015 3:53pm Dec 1, 2015 3:53pm
Quoting flylizard
{quote} HI Jason, is the NDD model available on spread betting accounts?
Hi Paul,

Yes, FXCM offers No Dealing Desk (NDD) forex execution on our Standard spread betting accounts.
(Spread betting accounts are available only to residents of the UK and Ireland.)

Quoting flylizard
Also why can't i load the TS app using my phone unless i have a very strong wi-fi signal whereas I can easily load an MT4 app,, alas this is in use with another broker and don't wish to create a conflict regards, Paul
While I don't have problems connecting to Trading Station Mobile on my 4G connection, it's possible the TS mobile app requires more bandwidth than the MT4 mobile app as you have observed. If you prefer the MT4 mobile app, it's worth noting that you can set up an MT4 spread betting account with FXCM. Your login details will give you access not only to MT4 (desktop and mobile) but also Trading Station (desktop, mobile and web), so you can use all five platforms.

You can test your connection to our MT4 mobile app with a demo MT4 spread betting account.
  • #8,314
  • Dec 1, 2015 4:11pm Dec 1, 2015 4:11pm
Quoting Askjo
I read the comparison between mini account, standard account and active trader and noticed the restrictions saying: {quote} I did not understand what it means. Please elaborate as a plain language. Thanks!
Hi Askjo,

As you have noted, FXCM offers No Dealing Desk (NDD) forex execution on our Standard and Active Trader accounts. For this reason, there are no restrictions on the forex trading strategies you can use on these account types.

By contrast, we offer dealing desk execution on our Mini accounts, and price arbitrage strategies are prohibited. FXCM determines, at its sole discretion, what encompasses a price arbitrage strategy, and Mini accounts using prohibited strategies may be switched to No Dealing Desk execution.

That means, if your strategy involves getting in and out of trades faster than the dealing desk can offset the risk on the other side, or poses some other challenge to the dealing desk from a risk management standpoint, then your account may be switched to our NDD execution, where all forex strategies are welcome.
  • #8,315
  • Dec 2, 2015 4:55am Dec 2, 2015 4:55am
Jason,

I was looking at the fxcm share price .. and noticed its struggling...

Are fxcm still well capitalised?

Also sorry to ask .. but should anything happen to fxcm what is the process to get money back ?
  • #8,316
  • Dec 2, 2015 12:21pm Dec 2, 2015 12:21pm
Quoting n_aftab
Jason, I was looking at the fxcm share price .. and noticed its struggling... Are fxcm still well capitalised?
Hi N_Aftab,

While I'm not authorized to comment on our stock personally, our CEO Drew made the following comments in our most recent earnings conference call:

"We have solid financial position and we believe that this is something that is not reflected in the stock, but we have $254 million in operating cash, $85 million in regulatory capital surplus. For our customers, the company has a very solid financial footing and we believe that will be reflected once we fix the optics of the stock next year."



It's important to note that the stock price is a reflection of shareholder value as a result of the Leucadia loan which we are on track to repay in Q1 of 2016.

Below is an excerpt from a LeapRate article that @shrike pointed out in an earlier discussion:

"most of the overall writeoff/loss is non cash and non operational, and has nothing to do with FXCMs operations and corporate health, but rather with accounting charges FXCM needs to take due to US GAAP accounting rules thanks to the future benefit that FXCM gave up to Leucadia."


Quoting shrike
Here is a nice article about FXCM stock price: http://leaprate.com/2015/08/misunder...and-valuation/ Its not very attractive to hold fxcm stock due to the loan-agreement with Leucadia. The core retail business is doing alright tho.

The terms of the Leucadia loan impact FXCM shareholders, not FXCM account holders. If you have any further questions about this, you're welcome to contact our Investor Relations department.


Quoting n_aftab
Are fxcm still well capitalised?
Since we are a publicly-traded company (NYSE ticker: FXCM) the details of our loan from Leucadia are well known. By contrast, most other forex brokers are privately-held companies, so it's hard to know how much debt they have on their books or the state of their finances. As highlighted above, FXCM is well capitalized, and you can confirm this for yourself by reviewing our financial data which are publicly available.


Quoting n_aftab
Also sorry to ask .. but should anything happen to fxcm what is the process to get money back ?
Furthermore, FXCM is in compliance with all regulatory capital requirements in the jurisdictions in which we operate. That is particularly noteworthy, since we are subject to a greater level of regulatory scrutiny as one of the only retail forex brokers in the world that is regulated on four continents.

Your forum profile mentions that you live in the UK, so you'll be happy to know that FXCM is regulated in the UK by the Financial Conduct Authority (FCA). That means your funds as an FXCM UK client are protected for up to 50,000 by the Financial Services Compensation Scheme.
  • #8,317
  • Dec 2, 2015 12:32pm Dec 2, 2015 12:32pm
appreciate you taking the time to respond Jason .. yes .. i have been a faithful customer for many years

good service and good platform .. it would take a lot for me to move to somewhere else.
  • #8,318
  • Dec 3, 2015 12:56pm Dec 3, 2015 12:56pm
Quoting Jason Rogers
{quote}price arbitrage strategies are prohibited.
Hi Jason, what are price arbitrage strategies?
  • #8,319
  • Dec 3, 2015 3:06pm Dec 3, 2015 3:06pm
Quoting Askjo
{quote} Hi Jason, what are price arbitrage strategies?
Hi Askjo,

As mentioned in my earlier post, if your strategy involves getting in and out of trades faster than the dealing desk can offset the risk on the other side, or poses some other challenge to the dealing desk from a risk management standpoint, then your account may be switched to our No Dealing Desk (NDD) execution, where all forex strategies are welcome. FXCM determines, at its sole discretion, what encompasses a price arbitrage strategy, and Mini accounts using prohibited strategies may be switched to NDD execution.
  • #8,320
  • Dec 4, 2015 9:41pm Dec 4, 2015 9:41pm
forgive me if this has already been asked (or please point me to a post that can help), why does the price feed for fxcm always seem like it is 1-2 pips away from actual entry and TP when looking at mt4 charts? I don't mean spread, this happens even when the spread for eurusd is 0.2 or so (when the spread is this small I can't account for the visual difference by saying 'well I'm looking at the sell feed when placing a pending buy stop). . . All the other brokers I have used never have price showing on the chart this far away from where the actual pending order is entered . . .
I really like the good reputation fxcm seems to have, but if I can't trust where price is showing on the chart, I can't trade it with my style of trading. Again, I've demo'd with about 5 other brokers and not had this issue. Hope this question makes sense. It's a bit difficult to describe what I actually mean. Thanks -Jason
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