Dodged a bullet, but has FXCM lost all of it's integrity.

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Old Feb 5, 2015, 1:01pm   #1
Joined Apr 2013
Dodged a bullet, but has FXCM lost all of it's integrity.

So the SNB debacle took place, and FXCM share price collapsed. A hot flush rushed through my body, as I thought the inevitable might happen, and reading the unfortunate demise of Alpari compounded this feeling with bucket loads of interest, all the wise words of others about not keeping all your money with one broker filled my head with "I told you so", yet my naiveté, and greed in profit accumulation kept me using FXCM mainly.

I decided to pull my money out, but there seemed to be no change in my account size, Hmm, something's not right here. Then I decided to call, and there was no response. Oh dear, it seemed the wreath was already made, and FXCM was about to join the likes of MF Global, and the latterly deceased Alpari.

Luckily for me, and others FXCM got a bail out, and monies were withdrawn.

I have now decided to keep monies under the FCA compensation guarantee, and every time I reach the limit, to keep withdrawing.

I have always had amounts in other brokers which I keep open to see the price differences with FXCM, and it is safe to say they are nigh on the same. Yet after the SNB debacle, I am now seeing vast differences in prices, spikes that were never seen before seem to be appearing, spreads seem to be astronomically wider around news events, which were previously not there, trend lines which are drawn on 1 min bar high/lows, seem to be shifting slightly as the day progresses, and I have changed timeframes, then back to the original time frame.

WTF is going on with FXCM. Is this a case of FXCM not giving a rat's derriere about it's customers anymore, and just raping their accounts to make sure the ensuing loan they have gets paid off quickly. Could it be a case of FXCM thinking "we tried to have a little integrity, that didn't work, lets revert back to the bucket shop methods of our past. After all our customers are addicted gamblers, who will keep up with their addiction".

I appreciate the main consensus would be to switch brokers, but the FXCM platform is fantastic to use with everything so simple, even a layman like me can use it. Easy to calculate what your percentage risk is in pounds, and pips, thus easy to calculate profit target, which has to be worked out, for the way I trade. I wish not to risk 1%, yet end up losing 1.35% if the trade goes wrong, as my calculations were guesstimates, and in an environment where getting in quickly(for me) is of utmost importance.

What are your views on this, and more importantly, what broker would people recommend.

Best
John
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Old Feb 5, 2015, 1:36pm   #2
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Originally Posted by Mr Fox View Post
I have now decided to keep monies under the FCA compensation guarantee, and every time I reach the limit, to keep withdrawing.

I have always had amounts in other brokers which I keep open to see the price differences with FXCM, and it is safe to say they are nigh on the same. Yet after the SNB debacle, I am now seeing vast differences in prices, spikes that were never seen before seem to be appearing, spreads seem to be astronomically wider around news events, which were previously not there, trend lines which are drawn on 1 min bar high/lows, seem to be shifting slightly as the day progresses, and I have changed timeframes, then back to the original time frame.

WTF is going on with FXCM. Is this a case of FXCM not giving a rat's derriere about it's customers anymore, and just raping their accounts to make sure the ensuing loan they have gets paid off quickly. Could it be a case of FXCM thinking "we tried to have a little integrity, that didn't work, lets revert back to the bucket shop methods of our past. After all our customers are addicted gamblers, who will keep up with their addiction".
If you have the funds for that, which you do, I'd always recommend trading futures on a real, transparent and regulated market with a real broker who doesn't win when you lose, who just earns his commission, like eg www.interactivebrokers.etc.

Particularly in light of FXCM's past:

"A few days ago I reported that FXCM was slapped with a class action suit over alleged fraud and racketeering. Today I bring you the full lawsuit document. Here are some of the more interesting details and you can read it in full yourself in the below embedded document.

The Plaintiff, William H. Sanders, claims to have lost over $150,000 to FXCM over the years due. Two main topics the lawsuit deals with is the Demo accounts which serve to attract clients while not simulating real market conditions and when clients do switch to live they receive completely different execution and the execution itself where it is claimed that FXCM is in fact a market maker which actively goes after profitable clients. The main excerpts are below:

Plaintiff, William H. Sanders, just like thousands of other customers, was lured into transacting business with Defendant, FXCM, buying and selling foreign currencies in what is known as the foreign exchange (“Forex”) market, but little did Sanders, or any of the others, know that FXCM intended to, and did, systematically bilk them out of their account money through an elaborate scheme of fraudulent tricks, devices, and artifices. What was represented to Sanders and others as a foreign currency trading platform developed upon professed principles of “fairness, honesty, and integrity,” which was supposedly rooted in providing customers with a true market trading experience, totally devoid of dealer intervention and market manipulation, was in truth a platform predicated upon deceit and trickery that systematically looted the accounts of customers who, like Sanders, placed their trust in FXCM.

The scheme deployed by FXCM was complex and varied, utilizing aggressive and pervasive marketing and advertising campaigns, including television, internet, seminars, webinars, and other media, portraying FXCM as a foreign currency trading platform where investors could trade foreign currencies in a true market environment. The advertisements were specifically targeted to convey a sense of trust and transparency to potential FXCM customers and to gain the customers’ confidence in FXCM’s trading platform. To further bolster customers’ confidence in its platform, FXCM enticed customers to use FXCM’s practice or demo account (hereinafter, the “Demo Account”) to simulate an FXCM trading experience. But the Demo Account, just like the myriad advertisements, misled customers about the true nature, functionality, and performance of the platform. Once lured into opening an account, customers were subjected to a staggering array of stratagems and ploys, some using extremely sophisticated computer software based upon complex algorithms and high-speed computers, to deceive the customers into believing that their trading was being affected by normal market forces, while in reality FXCM traded against its own customers."


Continued:
http://forexmagnates.com/full-detail....12EskuuG.dpuf

You really need to know who you're getting in bed with. Don't trade against bookies or bucket shops.
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Old Feb 5, 2015, 1:43pm   #3
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Re trading against ya:

"Still, until now, FXCM tended to win even when its customers lost. In disclosure statements mandated by the U.S. Commodity Futures Trading Commission, customers are told upfront that such currency trading isn’t carried out on regulated exchanges.

“WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER,” the CFTC warning reads in capital letters. “As a result, when you lose money trading, your dealer is making money on such trades.”

http://www.bloomberg.com/news/2015-0...y-trading.html
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Old Feb 5, 2015, 1:58pm   #4
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Re trading against ya:

"Still, until now, FXCM tended to win even when its customers lost. In disclosure statements mandated by the U.S. Commodity Futures Trading Commission, customers are told upfront that such currency trading isn’t carried out on regulated exchanges.

“WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER,” the CFTC warning reads in capital letters. “As a result, when you lose money trading, your dealer is making money on such trades.”

http://www.bloomberg.com/news/2015-0...y-trading.html
Thank you for the info BSD.

I'll give them a call now.

Best
John.
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Old Feb 5, 2015, 5:42pm   #5
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Not touching them with a barge pole!
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Old Feb 5, 2015, 7:19pm   #6
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Not touching them with a barge pole!
Hi @karmit,

Hindsight is a beautiful thing, however the issue I have with using another broker is exactly the same issue you have posted about in your thread.

That is the ease, and swiftness one can calculate all the necessary, yet accurate as possible calculations on a trade, and as you can appreciate, when one is working on a one minute chart, I only have a maximum of 20 seconds to work out all the parameters, and enter them into a deal ticket.

With FXCM, it is very quick to do so, however I appreciate change is sometimes good, but a hard thing to do.

Best
John
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Old Feb 6, 2015, 10:01am   #7
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Originally Posted by 30 second sign up View Post
Well, what I didn't do was, I didn't come back as a multi-nic.


Now if you wouldn't mind in keeping this thread topic related, that would be appreciated.

Best
John.
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Old Feb 6, 2015, 10:57am   #8
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Originally Posted by 30 second sign up View Post
So the Mod(s) were wrong on the skype sign up

So what is the difference between a fox & fear and C?

Wink John same same but different wink wink john

Maybe i am talking to me
It's a new dawn, a new year, we are in the throws of February, and I am grateful to be back, everyone's moved on from last year except you, you seem to be like a squirrel chasing a nut.

What that tells me is that the probability is very high that you're definitely a multi-nic with an axe to grind, who is naturally, revealing himself as someone who is a stirrer.

Now if you really don't want to get off my nuts, then take your Inspector Clouseau sleuthing, and try and find one, just one person who has been approached by me to join a Skype group, report this to the relevant persons, and get rid of me once, and for all.

Now, I ask you for a second time, please talk about issues topic related instead of showing your clear intentions for all to see of, goading others into a tit for tat argument.

Lots of Love
John
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Old Feb 6, 2015, 3:54pm   #9
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Mr Fox started this thread Following on from the earlier digression, and to get the thread back on topic, I decided to see what the spread differences are between FXCM and FXPROS, and the main reason was to see if FXCM stays within their usual parameters of a widening of spread around circa 20 pips, which seems to be the norm around NFP.

Attachment 185088 (link not showing FXCM SPREAD @20 VS FXPRO SPREAD AT 2)

The above seems to be ok, and around the norm, but still far to high, and for longer compared to FXPRO,


The below. What can I say,

Attachment 185090(link not showing FXCM SPREAD @47 VS FXPRO SPREAD AT 26)


47 pip spread.



47 pip spread

Oh come on, thats just not cricket.

@Jason Rogers Could you please explain to me why there is such a difference in spreads please.

Also, why there seems to be a spike up on FXCMS charts taking out the latest high where tight stops may have been, yet this is not even seen on Dukascopy.

fxcm-chart.png

dukascopy-chart.png

I look forward to your response.

Best
John

Last edited by Mr Fox; Feb 6, 2015 at 3:57pm. Reason: links not showing photo of spread differences
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Old Feb 6, 2015, 4:01pm   #10
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Originally Posted by Mr Fox View Post
Following on from the earlier digression, and to get the thread back on topic, I decided to see what the spread differences are between FXCM and FXPROS, and the main reason was to see if FXCM stays within their usual parameters of a widening of spread around circa 20 pips, which seems to be the norm around NFP.

Attachment 185088 (link not showing FXCM SPREAD @20 VS FXPRO SPREAD AT 2)

The above seems to be ok, and around the norm, but still far to high, and for longer compared to FXPRO,


The below. What can I say,

Attachment 185090(link not showing FXCM SPREAD @47 VS FXPRO SPREAD AT 26)


47 pip spread.



47 pip spread

Oh come on, thats just not cricket.

@Jason Rogers Could you please explain to me why there is such a difference in spreads please.

Also, why there seems to be a spike up on FXCMS charts taking out the latest high where tight stops may have been, yet this is not even seen on Dukascopy.

Attachment 185094

Attachment 185096

I look forward to your response.

Best
John

cant open the attachment.. what was fxcm and fxpro straight after non farms and for the next 1 minute?
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Old Feb 6, 2015, 4:09pm   #11
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cant open the attachment.. what was fxcm and fxpro straight after non farms and for the next 1 minute?
fxcm-vs-fxpro-1.png

fxcm-vs-fxpro-2.png

It wouldn't let me attach them earlier.

Best
John.
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Old Feb 7, 2015, 11:02am   #12
 
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Just seen this thread. I opened up an account with FXCM as they are not market maker broker as I have an account with Spreadco which is. Bit worried now! I am using FXCM to trade currency pairs on a daily and long term basis. Any other recommendations for decent UK brokers with good mobile software with reasonable charges as I have tried a few demo accounts. I have only got a small balance to start with 2k GBP. Thanks
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Old Feb 7, 2015, 11:40am   #13
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Just seen this thread. I opened up an account with FXCM as they are not market maker broker as I have an account with Spreadco which is. Bit worried now! I am using FXCM to trade currency pairs on a daily and long term basis. Any other recommendations for decent UK brokers with good mobile software with reasonable charges as I have tried a few demo accounts. I have only got a small balance to start with 2k GBP. Thanks
For the moment I am still with FXCM, however that does not mean I will be staying with them, or leaving just yet.

It's very undeniable, but FXCM does have the easiest, and best platform to use, and if only other brokers copied their platform.

I was given a heads up from @BSD, and I'm awaiting for them to give me a call. If not I'll probably go with Dukascopy.

I seldom trade news events unless I'm in a trade before hand, but what you need to realise is, when data spikes are that out of the norm, the data for the next 1-2 hours afterwards is unreliable also, as the new high created, is a false high, trend lines are out, as will most dynamic indicators will be, if that makes sense.

I've been informed that FXCM are doing a software update this weekend, and a good friend of mine cynically suggested "they are more likely placing a more advanced HFT bot back into their trading systems to revert to old tactics of shagging their own clients out of their money, but doing it quicker this time". I personally don't think his thinking holds water, but with some of the skull doggery that goes on, who knows.

P.S. Please don't think I'm having a go at FXCM, as, as I have stated I am a client, they have been good to me, and I've done very well, but the facts posted are undeniable, and I have asked @Jason Rogers to respond, so we can get the official line, of why the data is so skewed.

Best
John.
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Old Feb 10, 2015, 8:20am   #14
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i understood that recently (pre snb) fxcm had made their product and spreads more competitive.
i will start screenshotting comparisons between them and lmax etc when im trading and will post them here
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Old Feb 10, 2015, 8:22am   #15
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cant get much better than this tho
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