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FXCM Discussion

  • #9,561
  • Oct 11, 2016 11:56am Oct 11, 2016 11:56am
Quoting HotPips
I've trading since 2009 and I just got ripped off by FXCM today. I was long SPX500 @2,140.38 at 11:19am, less that 10 minutes later I take a look back at my trade, for my surprise I was margin called @ 2,135.11, but the price never hit 2,135.11, the lowest it hit according to FXCM platform was 2,137.50. I even checked other providers and the price never even got close to that, for example on bloomberg the lowest the SP500 index has gone today, in that time frame, was 2,138.95 and I even had sufficient margin to hold the trade on the 2,138.95 move....
Thanks for sharing, HotPips, and please do keep us all updated. First I want to thank you for trading with FXCM for over 7 years. It's unfortunate you feel your SPX500 trade was executed incorrectly today. That's why I'm glad you reached out to the Trade Support Team and I hope you find their resolution for you favorable.

In the meantime, perhaps you could tell us more about what happened. You mentioned you were margin called. Is it possible you did not have adequate margin in your account to maintain your open positions?
  • #9,562
  • Oct 11, 2016 12:20pm Oct 11, 2016 12:20pm
Quoting Jason Rogers
{quote} Thanks for sharing, HotPips, and please do keep us all updated. First I want to thank you for trading with FXCM for over 7 years. It's unfortunate you feel your SPX500 trade was executed incorrectly today. That's why I'm glad you reached out to the Trade Support Team and I hope you find their resolution for you favorable. In the meantime, perhaps you could tell us more about what happened. You mentioned you were margin called. Is it possible you did not have adequate margin in your account to maintain your open positions?...
Hello Jason, I had sufficient margin for the real move on the bid price @2,138.95 low, not the lowest bid price you show on your system @2,137.50 in that time frame. I had sufficient margin for a move down to 2,138.55, but even if my margin was hit @ 2,138.50 (the bid price on other platforms didn't go there) you shouldn't have closed my trade 33.9 pips below my margin (@2,135.11). That's just unacceptable.
  • #9,563
  • Oct 11, 2016 12:50pm Oct 11, 2016 12:50pm
You shouldn't treat a margin call like a stop loss. I have seen this on a few occasions on trading forums, with various other brokers, for example Oanda. Its just not as instant as a stop. With a margin call close out a broker protects itself so that clients dont lose more than their balance. If you want out at a certain price, you should use a stop. By the way, in my opinion its rather insane to open a position not even 3 ES points away from a margin call.
  • #9,564
  • Oct 11, 2016 1:06pm Oct 11, 2016 1:06pm
Anyway, it's funny you're not even talking about the BS slippage of 33.9 pips I just got ripped off with by FXCM, and rather talking about my margin, or the margin I decided to trade this position. Please.
  • #9,565
  • Oct 11, 2016 1:21pm Oct 11, 2016 1:21pm
Thats what i mean, i wouldnt even call it slippage like with a stop order. They dont have to margin call you right on the second. And you are by far not the first one getting a worse price on a margin call than expected. May i ask why you choose to not have a stop?
  • #9,566
  • Oct 11, 2016 3:58pm Oct 11, 2016 3:58pm
Quoting MoneyD
I want to more specifically talk about the idea of 'Positive Slippage', as I think that it is a myth that needs to be debunked. I had entered a GBPCAD trade at noon earlier today @ 1.6693, luckily on the right side, with a stop set @ 1.6740 and a target @ 1.6603, then, later on in the evening, the pair violently crashes by a staggering 750 Pips in less than 2 minutes, blasting through my target and filling my order @ 1.6602, how much positive slippage did i benefit from this massive move ? 1 measly pip, that was it.
Hi MoneyD,

While I can appreciate your disappointment and not having received more positive slippage on your GBP/CAD short trade in light of the GBP flash crash, it's important to understand why this specific example does not disprove the fact that you can potentially receive positive slippage on all your orders and of more than 1 pip. In fact, traders received positive slippage on more than 16 million orders executed through FXCM between January 2015 and March 2016 alone. That's an average of over 1 million orders per month benefiting from positive slippage.

Let's take a look at your specific example. You mentioned you were short GBP/CAD from 1.6693 with a limit set at 1.6603. Below is a tick chart which shows your limit order was triggered and filled before the steep drop in GBP/CAD began.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp cad tick chart 2016 October 07.png Size: 51 KB


Quoting MoneyD
Now let's look at the other side of this scenario , say the GBP had rallied with the same violent speed, consequently knocking my stop out, how much negative slippage would I have been debited for in the event of such a horrid scenario playing out? Very probably, a shit-outta-luck amount of negative slippage. The standard explanation is of course that a stop-order turns into a market order, while a limit order guarantees that you will be filled at the specified price, 'or better'. But while one may be guaranteed to be filled at a specified price,...

When we zoom in on this tick chart, we can see more clearly how there were several ticks near your limit price after the order was triggered.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp cad tick chart zoomed 2016 October 07.png Size: 46 KB


Looking at this same information in a table view, we can see that from the point when the GBP/CAD first breached your limit price of 1.6603 at 19:07:07:315 New York Time on October 6th, there were multiple quotes at/above 1.6602 which is why your order was filled there. It's also important to consider the fact that your limit order at 1.6603 made you a buyer in the market when most traders wanted to sell. In order words, there was plenty of liquidity on the other side of the market to fill your order with little slippage.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp cad tick chart table mode 2016 October 07.png Size: 82 KB

If instead the market had gapped down through your 1.6603 limit with the next available price not appearing until 1.6500, then your limit order could have benefited from 100+ pips of positive slippage instead of 1 pip, because all your orders fill with FXCM's best available price.


Quoting MoneyD
I am a fairly recent FXCM customer, so far I am generally satisfied with the services, I have discovered some good things , like the simulation package of the Trading station platform, which is great
I'm glad you're pleased with our service overall and the new Simulation Mode on Trading Station Desktop in particular.

Quoting MoneyD
while other things leave room to be desired
I hope my explanation has addressed your doubts about positive slippage. Our goal is to provide you with excellent service all around. What are other areas where you feel we can improve? Your feedback is greatly appreciated.
  • #9,567
  • Oct 11, 2016 5:08pm Oct 11, 2016 5:08pm
Quoting pipmaster77
80% of trades experienced positive slippage, while only 30% experienced negative slippage. What they leave ot is the 80% experienced average of 1 pip of positive, while the 30% experienced average of 150 pips of negative.
That is simply not true, PM

While you try to make light of the execution stats FXCM makes publicly available to all traders, it's worth noting that not many other forex brokers in the world provide such detailed information regarding their own execution. Fewer still are regulated by the CFTC and NFA, the same bodies that oversee futures trading in the US. Furthermore, while you also try to make light of US regulations, it's worth noting that in compliance with NFA rules regarding Price Slippage and Price Re-quoting that were finalized in 2012, FXCM US provides daily trade reports to the NFA which monitors and supervises FXCM US's activity including information on the price where all client orders are filled and the corresponding price where those orders are offset with our liquidity providers.

Attached Image (click to enlarge)
Click to Enlarge Name: liquidity-providers-logo-group-desktop.jpg Size: 145 KB


All of FXCM's global trading entities including FXCM Australia and FXCM UK execute client rolling spot forex transactions as a riskless principal with FXCM US, so the same execution standards are applied for all of our clients worldwide. There are no re-quotes at FXCM, and all our clients around the world can benefit from positive slippage whenever it's available. As you already know, but I will repeat for others reading this, the latest execution stats from January 2015 through March 2016 showed the following:

  1. 78.71% of all orders had NO SLIPPAGE.
  2. 12.77% of all orders received positive slippage.
  3. 8.52% of all orders received negative slippage.
  4. 50.2% of all limit and limit entry orders received positive slippage.
  5. 39.9% of all stop and stop entry orders received negative slippage.

This includes data from both the DD execution we provide to Mini accounts and the NDD execution we provide to Standard and Active Trader accounts.

  • #9,568
  • Oct 11, 2016 5:20pm Oct 11, 2016 5:20pm
Thanks once again Jason, for your explanations
  • #9,569
  • Oct 11, 2016 5:45pm Oct 11, 2016 5:45pm
Quoting forexvert
{quote} how do you use the simulation package in your advantage?
Quoting MoneyD
{quote} It allows you to trade historical price events for many different forex pairs at different time frames and time intervals, just as you would trade in real time using the platform's features, it has a couple of bugs but its generally a great tool to practice and hone in your trading strategy.
Thanks for sharing that info, MoneyD

Forexvert, you may also be interested in my earlier post about the new Simulation Mode on Trading Station Desktop: http://www.forexfactory.com/showthre...80#post9091680

Please let me know if you have additional questions.
  • #9,570
  • Oct 12, 2016 10:17am Oct 12, 2016 10:17am
Why do so many orders get rejected? I would say roughly 30% of my entries are rejected.
Attached Image (click to enlarge)
Click to Enlarge Name: Rejected22.png Size: 6 KB
Attached Image
  • #9,571
  • Oct 12, 2016 10:24am Oct 12, 2016 10:24am
Quoting angus
Why do so many orders get rejected? I would say roughly 30% of my entries are rejected. {image} {image}
Hi Angus,

Are you running an EA? It would be hard to tell why these orders are rejected without having more details about what's happening on your account. I notice your forum profile mentions you live in South Africa. We recently opened an office there, and I would be happy to arrange a tech call for you with one of my colleagues to troubleshoot this issue. Please feel free to send me a private message with your contact details and the best time when we can reach you.
  • #9,572
  • Oct 12, 2016 11:21am Oct 12, 2016 11:21am
Quoting Jason Rogers
{quote} Hi Angus, Are you running an EA? It would be hard to tell why these orders are rejected without having more details about what's happening on your account. I notice your forum profile mentions you live in South Africa. We recently opened an office there, and I would be happy to arrange a tech call for you with one of my colleagues to troubleshoot this issue. Please feel free to send me a private message with your contact details and the best time when we can reach you.

Ok, thanks.
  • #9,573
  • Oct 12, 2016 11:27am Oct 12, 2016 11:27am
Quoting Jason Rogers
{quote} Hi Angus, Are you running an EA? It would be hard to tell why these orders are rejected without having more details about what's happening on your account. I notice your forum profile mentions you live in South Africa. We recently opened an office there, and I would be happy to arrange a tech call for you with one of my colleagues to troubleshoot this issue. Please feel free to send me a private message with your contact details and the best time when we can reach you.
Yo Jason

Another South African here. Does your SA office operate through South African banks, or do my deposits still have to go to some overseas bank/entity? Basically - is it fully localized, or is it just a web front-end for SA residents?

Thanks
  • #9,574
  • Oct 12, 2016 11:51am Oct 12, 2016 11:51am
Quoting Jason Rogers
I hope my explanation has addressed your doubts about positive slippage. Our goal is to provide you with excellent service all around. What are other areas where you feel we can improve? Your feedback is greatly appreciated.
Hi Jason, thanks for the detailed explanation, which I must say is a much better and reasonable explanation than what I had received from customer service the day the incident occurred. I also however still think that the standard data posted on the FXCM website RE: positive/negative slippage, should be accompanied with the average pips of the accounts that gained in positive slippage relative to those that lost in negative slippage, as just the frequency stats of slippage by itself does not paint the full picture and could be misleading, it's a bit like a trader broadcasting a win rate of 80% without saying anything about the magnitude of the average win relative to the loss.

With respect to improvements, I have reported a couple of bugs in the simulation mode to your tech team that, according to them, will be fixed for the next update. The other area that is of concern to me is how well your platform will behave for trading news events, as that is one of my trading strategies that has been profitable for me in the past, admittedly, I do not have enough data points yet to make an informed conclusion on how well the FXCM platform will handle it, but I will after I have traded enough news related events on the platform.

Thanks again.
  • #9,575
  • Oct 12, 2016 12:26pm Oct 12, 2016 12:26pm
Quoting alecsa72
{quote} Yo Jason Another South African here. Does your SA office operate through South African banks, or do my deposits still have to go to some overseas bank/entity? Basically - is it fully localized, or is it just a web front-end for SA residents? Thanks
Hi Alecsa72,

While FXCM South Africa is regulated by the FSB to provide you with local service, your funds are held with FXCM's UK-regulated entity (Forex Capital Markets Ltd). Depending on the currency in which your account is denominated (USD, EUR, CHF, etc.) your funds can be sent to one of the corresponding FXCM UK client accounts.

While clicking on "Show Bank Wire Details" will display the destination accounts, please keep in mind you also have the option of the other FXCM ZA funding methods. You can also visit our FXCM UK website for more information on client fund segregation and security.
  • #9,576
  • Oct 12, 2016 2:15pm Oct 12, 2016 2:15pm
Quoting Jason Rogers
{quote} Hi Alecsa72, While FXCM South Africa is regulated by the FSB to provide you with local service, your funds are held with FXCM's UK-regulated entity (Forex Capital Markets Ltd). Depending on the currency in which your account is denominated (USD, EUR, CHF, etc.) your funds can be sent to one of the corresponding FXCM UK client accounts. While clicking on "Show Bank Wire Details" will display the destination accounts, please keep in mind you also have the option of the other FXCM...
Thanks Jason
  • #9,577
  • Oct 12, 2016 10:54pm Oct 12, 2016 10:54pm
Hi Jason,

I am using FXCM trading station as my trading platform. I would like to know if there is a trade management EA that can manage multiple entries and multiple exits?

Thank you,

Okoso
  • #9,578
  • Oct 13, 2016 12:58pm Oct 13, 2016 12:58pm
How to get a Range Bar chart in Tradestation?
The Earlier You Start, The More Time You Have To Mess Up.
  • #9,579
  • Edited Oct 14, 2016 5:12am Oct 13, 2016 1:14pm | Edited Oct 14, 2016 5:12am
Quoting givemeachc
Could you elaborate and explain the conflicting info about FXCM account types? Thanks
Hi Givemeachc,

FXCM provides different trading options to our clients in different countries based on regional preferences and local regulatory requirements.

For example, FXCM's US entity provides forex, but not CFDs, and leverage is capped at 50:1 with no hedging allowed in compliance with CFTC regulations. By contrast, FXCM UK offers forex and CFDs for oil, gold, stock indices and shares with hedging and with up to 100:1 leverage on NDD forex execution for Standard and Active Trader accounts and 200:1 leverage for Mini accounts on DD.

FXCM Markets is an option for traders who value high leverage (up to 400:1) and the ability to earn interest on the usable margin in their account (5% fixed APR). However, it is not intended to be used by residents of the United States, Canada, European Union, Japan, Hong Kong, or Australia, since traders in those regions must trade through our locally-regulated entities.

Since you live outside those regions, you have the choice of trading through any of FXCM's entities. That means you have more trading options than I do here in the US, or other traders have in Europe! If you wish to open an account with FXCM UK or any of our other global entities, please reach out to my colleagues at [email protected] and they will be happy to assist you.
  • #9,580
  • Oct 13, 2016 4:57pm Oct 13, 2016 4:57pm
Quoting okoso
Hi Jason, I am using FXCM trading station as my trading platform. I would like to know if there is a trade management EA that can manage multiple entries and multiple exits? Thank you, Okoso
Hi Okoso,

You have several options depending on your exact trading needs:

  1. For example, there's Stage Trailing Stop
  2. Then, there's the Multiple Stops and Limits (for MT4)

If those don't meet your requirements, you can search on FXCMapps.com and FxCodeBase.com for other alternatives. If you don't find what you're looking for on those sites, you can either code your own custom strategy or reach out to my colleagues in Programming Services.

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