Spread betting at FXCM

This is a discussion on Spread betting at FXCM within the Spread Betting & CFDs forums, part of the Commercial category; jason - so in effect you say you offer DMA is that correct? What are spreads on cable. To say ...

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Old Jun 29, 2009, 5:17pm   #16
 
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jason - so in effect you say you offer DMA is that correct? What are spreads on cable.

To say brokers and spreadbetters offer the same product is a bit misleading for some of the new guys here -- there are tax implications to be considered as you know.
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Old Jun 29, 2009, 5:22pm   #17
 
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Jason Rogers started this thread Hi Claudia,

I would say yes, but then I am biased since I work for FXCM . There would have to be an independent source or analysis to make that statement. I would hope that whichever broker you trade through you have at least made an independent decision yourself by testing the platform, charting, and spreads.

What I can tell you is that your trades will not be delayed due to order restrictions, re-quotes or restrictions on your trading strategies which typically occur with market makers.

The spreads are variable as prices are provided to FXCM from multiple global banks. FXCM takes those prices and then streams through the best bid and ask price for you to trade on. Here is where you can see a list of our spreads Forex Spreads | Spread Betting . As trading volume and price competition increases you will see spreads decrease. And as trading volume and price competition decreases, spreads can increase.


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Originally Posted by Claudia123 View Post
Jason- what can FXCM do for me that IG can't. I spread bet 5 days a week. Are your spreads better. are your fills quicker, charting package, platform reliabilty etc.

I don't want a demo before you say it - just honest answers. Is FXCM better than IG.
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Old Jun 29, 2009, 5:34pm   #18
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Originally Posted by Jason Rogers View Post
Hi gle101,

Happy to be here. Brokers and spread betting firms offer the same product, forex trading, but there are two methods of execution: market maker and direct market access (no dealing desk, straight through processing).

The majority of spread betting firms are market makers. They take the other side of all positions thereby profiting when you lose, and losing when you profit. This is a conflict of interest because it is in your brokerís best interest for you to lose money. Since a market maker can profit if the market moves against you, it is also common to get referred to a dealer when the price is unfavorable to the market maker. A good example of this is news trading.

With FXCM, every single order is sent directly to one of the 9 banks quoting on our system. As a result, FXCM does not profit when you lose money on a trade. Rather, we are compensated by marking up the price we receive from the bank. Thus, FXCM is strictly concerned with volume. Because of this there are no restrictions on trading styles or strategies such as scalping or news trading. There are no re-quotes.

-Jason
Thanks for your reply. If you don't give re-quotes, don't practice referral to a dealer and no other restrictions. That leaves pretty much slippage to watch out for. Well, I guess the best way is to try you out to see how well you execute. I am sure there will be some reports on this thread.
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Old Jun 29, 2009, 5:34pm   #19
 
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Jason Rogers started this thread Yes, that is correct, it is direct market access. Cable spread is typically 3.7 pips getting as low as 0.8 during peak trading periods. However, by all means view a demo to compare.

As discussed previously with rainmaker in the thread, the tax implications is what differentiates the "spread betting" account from the regular rolling spot forex. If you compare the two one against the other, it uses the same platform, execution, spreads etc. The reason why there is a separate spread betting account offered is because it is free of stamp duty and UK capital gains tax for UK individuals.

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Originally Posted by Claudia123 View Post
jason - so in effect you say you offer DMA is that correct? What are spreads on cable.

To say brokers and spreadbetters offer the same product is a bit misleading for some of the new guys here -- there are tax implications to be considered as you know.
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Old Jun 29, 2009, 5:38pm   #20
 
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Jason Rogers started this thread That is true. Slippage is one thing that can happen, but there are ways to control slippage. You have the ability to set market orders to fill as At Best or Market Range. At Best execution will get you into the market every time at the best price available. Market Range allows you to set a range of prices you are willing to accept, and it will fill at the best price in that range.

And I look forward to hearing about the feedback.

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Originally Posted by gle101 View Post
Thanks for your reply. If you don't give re-quotes, don't practice referral to a dealer and no other restrictions. That leaves pretty much slippage to watch out for. Well, I guess the best way is to try you out to see how well you execute. I am sure there will be some reports on this thread.
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Old Jun 29, 2009, 7:08pm   #21
 
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Originally Posted by jiggly View Post
what is the minimum bet per point spread betting on this platform?
hi jiggly,

The minimum bet per point is currently 0.60£. for the cable.

On the platform, your profit is in the counter currency. So if you are trading GBP/USD, your profit is in USD, and then converted back to GBP at the current exchange rate.

If each point is worth $1, then it is worth 0.60£ at the current exchange rate ( $1 / 1.60 = 0.60£). If you traded two lots, then each point would be worth 1.20£ and so forth.

If you are trading a pair that has the GBP as the counter currency, such as EUR/GBP, then it is equal to exactly 1£ per point since your profit is already in GBP.
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Old Jun 29, 2009, 9:19pm   #22
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Thanks for some informative answers, Jason. I understand that you can do this with FX, but what about index spread bets? Presumably you are the market maker in this case?
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Old Jun 29, 2009, 11:20pm   #23
 
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Originally Posted by Phil Mibbutz View Post
Thanks for some informative answers, Jason. I understand that you can do this with FX, but what about index spread bets? Presumably you are the market maker in this case?
They only offer FX by the looks of it Phil.

I downloaded the demo yesterday. Spreads look OK, comparable with MBT all told, but will have to take a closer look around news and fast markets and also in thin markets. Platform is fairly basic, but should be satisfactory for most. 10k lots, which is good for flexibility. I really liked the look of futuresbetting.com, but the 100k lot increment is way too restrictive for my MM schedule.

So, on first impressions, it looks good, and I particularly like the noises JR is making about FXCM not having the incentive to place profitable traders on manual execution. Of course, the only way to get a real idea of execution is to load up an account.

I've got a couple of questions which you might be able to help me with Jason:

Mobile trading? Is there any official software available for mobile trading on Windows mobile/iphone? I had a quick look but couldn't find much on the subject.

Are trailing stop orders held on FXCM servers and are not reliant on the users platform being connected for these to be triggered (as they are with MT4)?



And in general a question I have about spreadbetting - surely there is some kind of official definition of spreadbetting for taxation purposes which must be satisfied by those who offer the service, and does this definition not distinguish it from a regular trading account? As you have said, the only difference between the spreadbetting and spot forex account is in the name and the way orders are processed is identical. Can anyone elaborate upon this, or is 'spreadbetting' a magic word like 'open sesame', or kryptonite to the tax man?
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Old Jun 30, 2009, 7:36am   #24
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Originally Posted by Jason Rogers View Post
hi jiggly,

The minimum bet per point is currently 0.60£. for the cable.

On the platform, your profit is in the counter currency. So if you are trading GBP/USD, your profit is in USD, and then converted back to GBP at the current exchange rate.

If each point is worth $1, then it is worth 0.60£ at the current exchange rate ( $1 / 1.60 = 0.60£). If you traded two lots, then each point would be worth 1.20£ and so forth.

If you are trading a pair that has the GBP as the counter currency, such as EUR/GBP, then it is equal to exactly 1£ per point since your profit is already in GBP.
Jason, what are your standard margin requirements for say E/U & cable and what would be the minimums when SL is applied to a trade, thanks.
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Old Jun 30, 2009, 10:28am   #25
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They only offer FX by the looks of it Phil.
Yeah, think I was confusing them with ETX, as per the ad that seems to appear at the top of this board.
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Old Jun 30, 2009, 3:40pm   #26
 
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Originally Posted by Phil Mibbutz View Post
Thanks for some informative answers, Jason. I understand that you can do this with FX, but what about index spread bets? Presumably you are the market maker in this case?
Hi Phil,

The spread bet accounts only have FX at the moment. We have indices, but they're on the CFD platform. Possibly eventually we may have it on the spread bet platform as well. I'm checking on my side to see if this may be the case. But for the index CFD's, they are no requote CFD's. We offset the trade in real time for index trades as well.

Jason
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Old Jun 30, 2009, 3:50pm   #27
 
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Jason Rogers started this thread Thanks for the feedback birdt,

We are creating a mobile trading platform right now. Have tested it myself, but it's still going through development. So far, I know it will be compatible with at least Blackberry and iPhone. If you use something else, let me know what sort of device you use and I'll make sure to forward the information to our developers. No set date for release yet.

The trailing stops are held on FXCM's servers. So no need to worry about the platform being open on your computer. Also important, the banks cannot see where your stop loss orders are located since all orders are held on FXCM's server. The order only becomes active when the price is quoted and the order is then sent to the banks for execution.

-Jason

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Originally Posted by birdt View Post
I've got a couple of questions which you might be able to help me with Jason:

Mobile trading? Is there any official software available for mobile trading on Windows mobile/iphone? I had a quick look but couldn't find much on the subject.

Are trailing stop orders held on FXCM servers and are not reliant on the users platform being connected for these to be triggered (as they are with MT4)?
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Old Jun 30, 2009, 4:53pm   #28
 
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Jason Rogers started this thread hi rwb,

The margin requirement is 500£ per standard lot (100k). The smallest trading size is a mini lot (10k) in which case the margin requirement is 50£. The margin requirement is the same regardless of if there is a SL applied to the trade or not. This is true for the EUR/USD, GBP/USD and the majority of the currency pairs.

For some of the exotic currencies, the margin requirement could be higher such as for USD/ZAR, USD/MXN, EUR/TRY, USD/TRY, and the nordic currency pairs.

-Jason


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Jason, what are your standard margin requirements for say E/U & cable and what would be the minimums when SL is applied to a trade, thanks.
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Old Jul 15, 2009, 1:34pm   #29
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Hello Jason.

Is it possible to use Moneybookers to fund or withdraw money from the account.
I know it's not written non the web page but anyway
i wanted to know if maybe you offer this option on request.

Thanks.
Ciao.
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Old Jul 15, 2009, 4:14pm   #30
 
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Originally Posted by BetTreader View Post
Hello Jason.

Is it possible to use Moneybookers to fund or withdraw money from the account.
I know it's not written non the web page but anyway
i wanted to know if maybe you offer this option on request.

Thanks.
Ciao.
hi BetTrader,

I checked with the operations team on this one. It's not possible unfortunately, but I will include it in the list of requests we get for new features, products, etc.

Jason
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