Spread betting at FXCM

[Jason Rogers]

Why not charge a commission rather than a spread markup? Because the spread mark up is worse for the client than charging an equivalent amount to 1 pip commission isn't it?

Hi Shakone,

For traders that would prefer to pay a commission/spread combination, we have the active trader program available. The active trader program also has the ability to lower commissions for an overall lower transaction cost as trading volume increases.

FXCM's spreads are available for you to review in both a demo and live account to view the cost for placing a trade.

Jason

 

[Jason Rogers]

Hi Jason Rogers,

Thanks for the useful information as always. The reason I asked is because I stopped using MT4 some time ago, specifically for the problems I mentioned. I guess it's once bitten twice shy! Does the fact that the MT4 platform is directly connected mean that a trader won't suffer from the order rejection problem when you used to go through "their" servers. Does this mean TSII is going to play second fiddle to MT4, regarding updates etc., or will both platforms be available side by side for the future? When you have a spread betting account with FXCM, would you be able to use both platforms at the same time? I don't mean simultaneously, but can you chop and change.

Hi LBP,

The MT4 not having to go through a 3rd party bridge would mean one less step in the execution process. While this is only very small fractions of a second, it would mean an improved and faster execution experience. Order execution is dependent on available liquidity, and whether the order itself is rejected depends on how the order is setup. The maximum deviation setting in the MT4 order window allows you to limit the amount of negative slippage you are willing to accept. If the price you click on is no longer available, it will fill at the next best available price considering liquidity is available within the deviation you have specified. Setting a small maximum deviation restricts the possible execution prices, therefore it could result in a higher rejection rate. Whereas setting a larger maximum deviation would provide a better chance of execution but also more possible slippage. Just consider the trade-off between increasing and narrowing the max deviation range, and its impact on execution.

If you setup an account on MT4, you can login to the Trading Station platform with your MT4 login. The reverse is not true for Trading Station accounts. There are a few functionality limitations you should be aware of if logging into your MT4 account on the Trading Station platforms:

1. Trailing Stops: If you have a trailing stop on the MT4 platform, it will not appear in the Trading Station platform due to differences in trailing stop logic between the platforms. Trailing stops are still available, but they need to be utilized from the MT4 platform.
2. "In Pips" Orders: Trading Station allows you to set Stop and Limit orders by distance "in pips" from the current market price when creating a market order and entry order. MT4 does not support this advanced order type, so the functionality in Trading Station when logging in with your MT4 account is not be available.
3. OCO Orders are not available in Trading Station for MT4 accounts due to limitations within MT4.

 

[lilbitpipsy]

If you setup an account on MT4, you can login to the Trading Station platform with your MT4 login. The reverse is not true for Trading Station accounts. There are a few functionality limitations you should be aware of if logging into your MT4 account on the Trading Station platforms:

1. Trailing Stops: If you have a trailing stop on the MT4 platform, it will not appear in the Trading Station platform due to differences in trailing stop logic between the platforms. Trailing stops are still available, but they need to be utilized from the MT4 platform.
2. "In Pips" Orders: Trading Station allows you to set Stop and Limit orders by distance "in pips" from the current market price when creating a market order and entry order. MT4 does not support this advanced order type, so the functionality in Trading Station when logging in with your MT4 account is not be available.
3. OCO Orders are not available in Trading Station for MT4 accounts due to limitations within MT4.

Hi Jason Rogers,

Thanks for the clarification on the MT4 platform. Just out of curiosity, how was the Trading Station platform created; was it created from scratch, in-house by FXCM, or was it based on another platform.

The following questions are for the TSII platform. With regard to trailing stops, is it possible to place the trailing stop based on a distance from a chart indicator/overlay, or is it only to a fixed price/pip difference. Also, is it possible to automate entry/exit based on either chart indicators/overlays or other means, or is the platform purely mechanical based trading only.

Thanks.

LBP

 

[Jason Rogers]

Hi Jason Rogers,

Thanks for the clarification on the MT4 platform. Just out of curiosity, how was the Trading Station platform created; was it created from scratch, in-house by FXCM, or was it based on another platform.

The following questions are for the TSII platform. With regard to trailing stops, is it possible to place the trailing stop based on a distance from a chart indicator/overlay, or is it only to a fixed price/pip difference. Also, is it possible to automate entry/exit based on either chart indicators/overlays or other means, or is the platform purely mechanical based trading only.

Thanks.

LBP

The Trading Station platform was created from scratch by FXCM. It has come a long way since I started at FXCM back in 2005, and the platform gets about 2-3 updates per year based on our traders feedback.

The trailing stop available through the order window can only create the trailing stop based on fixed price/pip difference, but the automated trading abilities in the platform could probably take care of any custom trailing stop you want. FXCodeBase has some custom strategy trailing stops such as this Parabolic SAR trailing stop FXCodeBase.COM: Forex Chart Indicators and Development • View topic - SAR trailing stop . Or if you're feeling adventurous, you could try coding your own trailing stop based indicator for the platform in LUA. I know close to nothing about coding so I won't be much help here . FXCodeBase also takes requests if you have something in mind you would like created.

Jason

 

[lilbitpipsy]

Hi Jason Rogers,

I have looked through FXCodeBase.COM: Forex Chart Indicators and Development • View forum - Custom Strategies to see if there was anything close to what I was looking for, but couldn't find anything. I'm not a coder either, so it would probably take to much time to go through everything just to get automation into my trading. I might bite the bullet if I start to deal in multiple markets or the amount of trades per month go up by a significant amount, but personally I can't wait for automation to be a simple point-and-click affair...without the coding! :cheesy:

A quick question about client funds. I take it these are held segregated to FXCM company funds. Is that a different account for each client or are all client funds bundled into one segregated account? In the event of insolvency etc., does that mean the client would get all their money back regardless of the amount, or would it only be up to the FSA limit...50K I think?

 

[Jason Rogers]

Hi Jason Rogers,

I have looked through FXCodeBase.COM: Forex Chart Indicators and Development • View forum - Custom Strategies to see if there was anything close to what I was looking for, but couldn't find anything. I'm not a coder either, so it would probably take to much time to go through everything just to get automation into my trading. I might bite the bullet if I start to deal in multiple markets or the amount of trades per month go up by a significant amount, but personally I can't wait for automation to be a simple point-and-click affair...without the coding! :cheesy:

Lol, I wish it were that easy. If you can create that program that does this, you may have the next big thing. I've seen quite a few programs that seek to make it easy to build automated strategies, but it becomes more complex once you try to add any customization to the strategy. You may be able to find some traders on the forum willing to code a strategy for you, and there are also paid programming services.

A quick question about client funds. I take it these are held segregated to FXCM company funds. Is that a different account for each client or are all client funds bundled into one segregated account? In the event of insolvency etc., does that mean the client would get all their money back regardless of the amount, or would it only be up to the FSA limit...50K I think?

FXCM UK client funds are segregated in accordance with FSA client money rules. I'm not sure whether this is one account or multiple accounts, but the compliance department could probably help on this one if you send an email over to compliance (at) fxcm.com . Regardless, client funds are required to be segregated and cannot be used to benefit other creditors in the event of a default. The 50k you're referring to is most likely the Financial Services Compensation Scheme (FSCS), and it is the UK's statutory fund of last resort for customers of financial services firms. In the event financial services firms were to become insolvent and unable to return all client funds on deposit (as necessary) clients then have the option to file a claim with the FSCS to recoup their funds. The maximum level of compensation for eligible claims is £50,000. Lots more information can be found on the FSCS website FSCS > Questions and Answers.

Another important consideration when trading with any broker is the type of execution model they use because it could impact their business risk. Many spreadbet brokers take the opposite side of their client's trades and then offset the risk as they see fit. If the broker doesn't offset the risk, then the traders loss could result in a profit for the broker, and a profit for the trader could result in a loss for the broker. Not the best situation if all of your clients are profitable . FXCM's NDD forex execution model reduces this risk by offsetting every transaction one-for-one, and our compensation is the pip mark-up on the spread. FXCM makes a market for CFD products, but you'll notice that those products are limited products in which the underlying tends to offer decent liquidity.

FXCM UK is a part of FXCM Inc., an NYSE listed company, and our most recent financial release can be found here FXCM - Investor Relations - Press Release

Jason

 

[Jason Rogers]

CFD Trading Hours & Forex Rollover for Easter 2012

Please take note of changes to the following CFD trading hours for Good Friday and Easter. There is no change to forex trading hours, but forex trades will be affected by holiday rollover this week.

For example, on Friday, April 6th there will be no rollover interest for most currency pairs. For details look at the rollover calendar.

 

[pboyles]

Lol, I wish it were that easy. If you can create that program that does this, you may have the next big thing. I've seen quite a few programs that seek to make it easy to build automated strategies, but it becomes more complex once you try to add any customization to the strategy. You may be able to find some traders on the forum willing to code a strategy for you, and there are also paid programming services.



FXCM UK client funds are segregated in accordance with FSA client money rules. I'm not sure whether this is one account or multiple accounts, but the compliance department could probably help on this one if you send an email over to compliance (at) fxcm.com . Regardless, client funds are required to be segregated and cannot be used to benefit other creditors in the event of a default. The 50k you're referring to is most likely the Financial Services Compensation Scheme (FSCS), and it is the UK's statutory fund of last resort for customers of financial services firms. In the event financial services firms were to become insolvent and unable to return all client funds on deposit (as necessary) clients then have the option to file a claim with the FSCS to recoup their funds. The maximum level of compensation for eligible claims is £50,000. Lots more information can be found on the FSCS website FSCS > Questions and Answers.

Another important consideration when trading with any broker is the type of execution model they use because it could impact their business risk. Many spreadbet brokers take the opposite side of their client's trades and then offset the risk as they see fit. If the broker doesn't offset the risk, then the traders loss could result in a profit for the broker, and a profit for the trader could result in a loss for the broker. Not the best situation if all of your clients are profitable . FXCM's NDD forex execution model reduces this risk by offsetting every transaction one-for-one, and our compensation is the pip mark-up on the spread. FXCM makes a market for CFD products, but you'll notice that those products are limited products in which the underlying tends to offer decent liquidity.

FXCM UK is a part of FXCM Inc., an NYSE listed company, and our most recent financial release can be found here FXCM - Investor Relations - Press Release

Jason

You've got a compliance department? Where were they when you were ripping off your customers with your dodgy slippage practices? If they'd been on the ball you'd be $20 million better off. Any word on you reimbursing your non US clients yet?

 

[davide70]

Hi Jason Rogers,

I'm living in UK by a few months, so could be interesting opening a spread betting account. On post 622, you are writing that there will be availbale soon an mt4 spread betting account.

seem really interesting, and I have some questions about it:
a)which are the differences, a part the tipical lot size of the spread betting, from the MT4 standard platform ?
b) any EA is allowed? even scalping EA?
c)I see that the Stop level is Zero into the mt4 spread betting demo that I have downloaded, is it the same in the real account ?
d) how much is the leverage of the mt4 spread betting account?
e) which are the minimum and the maximum operation allowed?
Thank you
David

 

[Jason Rogers]

Hi Jason Rogers,

I'm living in UK by a few months, so could be interesting opening a spread betting account. On post 622, you are writing that there will be availbale soon an mt4 spread betting account.

seem really interesting, and I have some questions about it:
a)which are the differences, a part the tipical lot size of the spread betting, from the MT4 standard platform ?
b) any EA is allowed? even scalping EA?
c)I see that the Stop level is Zero into the mt4 spread betting demo that I have downloaded, is it the same in the real account ?
d) how much is the leverage of the mt4 spread betting account?
e) which are the minimum and the maximum operation allowed?
Thank you
David

Hi David,

The MT4 Spread Betting account is available now. You can click here to set one up.

Our regular MT4 platform and our spreadbet MT4 platform offer the same trade execution. The only difference is that the spreadbet MT4 has a "spreadbet wrapper" on the regular account, providing potential tax benefits for residents of the UK and Ireland.

That means you can trade 0.01 (micro) lots on the MT4 platform risking as little as 10 cents per pip. FXCM accepts all EA’s including scalping EA’s and there are no re-quotes. The real account will let you place your stops as close as 1 pip away, just like on the demo account. You have the choice of using up to 200:1 leverage to magnify your gains and losses.

I’m not sure what you mean by “the minimum and the maximum operation”, but if you are referring to order size, your trade can be as small as a 0.01 (micro) lot. Your maximium trade size will depend on how much money you have available in your account as margin.

Since you are interested in MT4, you might want to check out our new FXCM Apps store at FXCMapps.com.

Jason

 

[davide70]

thank you, everything is clear
David

 

[Jason Rogers]

CFD Trading Hours for May 1st Holiday

Just a heads up for everyone.

The following indices will be closed for trading on May 1st due to the holiday in Europe: GER30, FRA40, ITA40, SWE30 and SUI30.

Normal trading hours will resume on May 2nd.

 

[Jason Rogers]

Holiday Rollover

Hi Everyone,

Due to the Golden Week holidays in Japan, all Yen crosses will have 5 days’ worth of rollover interest today except for GBP/JPY which will have 6 days’ worth.

For example, that means if you buy 10k of GBP/JPY and keep the trade open through 5pm New York time today, you will earn $0.66 or 66 cents. On the flip side, if you sell 10k of GBP/JPY and hold that trade open through 5pm, you will pay $1.56. You can always check what amount of rollover you can earn or pay for holding a particular currency pair through 5pm by looking at the RollS and RollB on the Trading Station.

And to keep track of when holidays will affect the number of days of rollover, you can look at the Rollover Calendar at DailyFX.com

Jason

 

[Jason Rogers]

May Day Bank Holiday (UK)

Hi Everyone,

UK100 will be closed for trading from 07:00 to 20:00 GMT on Monday, May 7th for the bank holiday. All other CFDs, and all currency pairs will have normal trading hours.

Times below are GMT (EDT +4 hours).

Have a great weekend!

Jason

 

[Jason Rogers]

Trade with Friends

Hi Everyone,

We've had a lot of traders ask for a way to easily share trades on Twitter and Facebook. FXCM's Programming Services team has created a free app now available in the app store called Trade with Friends. The app will give you the option to automatically share your trades on Facebook and Twitter to discuss with friends or other traders. Below is a screenshot of what the post will look like on Facebook and Twitter:

Here's a quick guide on how to setup the app to share your trades.


Step 1. Installation and Login

a. Click here to install Trade with Friends from FXCMapps.com. When you land on the page, click the Purchase button at the top right. The app is free, but you still need to click on "purchase" to go through the quick app store process to access the download file. The installation works like other programs you have probably installed on your computer where you double click on the .exe file and go through the installation window that appears.

b. After completing the installation, double-click on the Trade with Friends icon on your desktop and enter your account login details. You will need an FXCM account login. If you don't have one yet, you can click here to register a free practice account. If you look in the screenshot below, you will see what the Trade With Friends icon looks like on the left, and the actual program on the right once it has opened.​

Step 2. Connecting to Facebook and Twitter

At the top left of the Trade with Friends app, click on “Login” and select Twitter. After selecting Twitter, an authorization box will appear for you to login to twitter. FXCM is not able to see your twitter password when you give authorization. The below screenshot shows buttons to click on and what will appear.

The same steps are used to authorize Facebook, but you would click on Login > Facebook instead.​

Please note: While FXCM keeps all of your trading information private, FXCMs privacy policy may not fully apply to clients exposing their own information publicly. Trade With Friends app allows you to broadcast your trading details. Users of this app make their own judgment about how much information and to whom they wish to share it with. Lack of proper privacy controls can share information to unwanted individuals and/or parties.

Please feel free to reply with any questions about setting up the app, and I would appreciate any feedback you have about the app.

Jason

 

[Ross Spur]

Any hope of NInjaTrader spreadbetting yet?

 

[Jason Rogers]

Any hope of NInjaTrader spreadbetting yet?

Hi Ross,

Not yet, but we hope to begin beta testing soon. If you are already using Ninja Trader and would like to participate in the beta testing, you can email me at [email protected]. I'll add you to our mailing list that will be contacted when the time comes.

Jason

 

[pboyles]

Hi Ross,

Not yet, but we hope to begin beta testing soon. If you are already using Ninja Trader and would like to participate in the beta testing, you can email me at [email protected]. I'll add you to our mailing list that will be contacted when the time comes.

Jason

Still working out the best slippage settings?

 

[Jason Rogers]

CFD Trading Hours for Memorial Day Holiday

Hi Everyone,

Monday, May 28th is Memorial Day in the US. As usual, the forex trading hours will be unaffected. Below are the holiday trading hours for CFDs.

Times are in GMT

Have a great weekend!

Jason

 

[Jason Rogers]

Margins changing this weekend

Hi Everyone,

This weekend margin requirements on several currency pairs will be reduced. This is to account for the weakening of the Euro and other currencies relative to the US dollar. Basically, if you have a US-dollar denominated account, you will now have to put less money in dollars as margin for your open trades.

Below are updated minimum margin requirements for FXCM LLC (US) accounts and FXCM LTD (UK).

Minimum Margin Requirements for FXCM LLC (US)

Click here for the expanded table


Minimum Margin Requirements for FXCM LTD (UK)

Click here for the expanded table​

Note that the margin requirements for FXCM Australia and FXCM Canada are unchanged.

Jason