mr fxcm
your spreads are far too high. Also the extra charge in your nightly rollover charge is far too high since besides the difference in currencies overnight bank rates you add on a percentage charge every night which is sneaky and not necessary since you claim your only profit is from the spreads.
secondly you are the opposite of the traders and the trades do not go into the market at all. You are market makers and mainly make money when clients loose. You can claim all you want that this is not true but it is easy to lie when no one can proove otherwise....
Dear competitor,
Seeing as you are a member of the spreadbet industry, I could understand that you are obviously biased towards the broker you are working for, and no surprise that our competitors would feel the need to attack us since we present an alternative execution model without re-quotes or dealer confirmation that traders have been moving to. It tells us that we are obviously doing something right.
Our No Dealing Desk forex execution presents a clear alternative to what traders traditionally had access to, and NDD eliminates the conflict of interest that exists between the broker and trader when the broker is making the market.
With NDD forex execution, 10+ liquidity providers stream prices to FXCM and our traders see the best bid/ask spread on the platform with FXCM's mark-up (or commission if you prefer). A dealing desk broker or market maker has complete control to set pricing regardless of what their bank relationships may be offering. When you place a trade with FXCM's NDD forex execution, the order is automatically offset one for one with one of the 10+ liquidity providers. A dealing desk broker or market maker is taking the opposite side of your transaction and can trade against clients if they choose not to offset the transaction. This presents the scenario where the broker can profit from traders losses or lose if the trader profits. The financial stability of the broker can depend on how well the broker's dealers are managing that risk. If the broker mismanages the risk, then the financial stability of the broker comes into question.
Regarding slippage, both positive and negative slippage is possible with FXCM, but slippage is determined by available liquidity from the 10+ liquidity providers and not by FXCM. A dealing desk broker or market maker decides the slippage you receive on any trades and can use re-quotes as a tool to enforce slippage.
Just ask yourself this: Have you ever received a re-quote in your favor for a better price than what you requested? Often times, a dealing desk broker is more than happy to honor the price you click on when the market is moving against you. If the market moves in your favor, then it will likely result in a re-quote for the "correct price" due to latency in your internet connection or some other reason. So... price moves in your favor and the dealer keeps the positive slippage. Price moves against you and you get a re-quote. Whenever your broker is making the market, the traders interest of making money is not necessarily in the brokers interest if the trader's profit results in their loss. If you had a problem with FXCM's positive slippage practices in the offsetting transaction between FXCM and the liquidity provider before July 2010, are you as vehemently opposed to spreadbet brokers re-quoting as they do now instead of giving their traders the price they clicked on with positive slippage? I would find it a bit hypocritical if you do not apply the same standard to other brokers. Traders on FXCM's NDD forex execution receive both positive and negative slippage dependent on liquidity.
Our rollover amounts for both forex and CFDs are transparently located in the dealing rates window of our trading platform for anyone to compare, and we provide a monthly rollover calendar through DailyFX going months in advance so our traders are informed as to when there may be changes to daily rollover
Rollover Calendar | Forex Education | DailyFX .
While forex transactions with FXCM are executed via NDD, FXCM does make the market for CFD transactions for oil, gold, silver, and stock indices. It was our original intention when launching CFDs a few years ago to make them NDD, but the transaction size requested by our traders was less than the minimum transaction size offered on exchange for the underlying product. It is also why we offer CFD trading in large liquid products where risk can be managed appropriately through the underlying, and not in hundreds of possibly illiquid cfd's that could result in a significant risk for both ourselves and our clients. There may come a point in the future when they will be NDD, and we look forward to that day. Regardless, our CFD products have no re-quotes or dealer confirmation. I know that spreads for some traders are the only factor they focus on when trading, but if that were the only factor everyone focused on then WorldSpreads probably would have had more clients than FXCM. Experienced traders know that the spread is but one important factor in addition to others. The spreads we charge are set so that we can offer the best execution possible without re-quotes or the games you may have to play when entering or exiting the market at other brokers.
Jason
. We aim to offer fair and competitive spreads for our clients, while also providing the best execution possible. If you see a 0-1 pip spread on your platform yet receive re-quotes when the market moves in your favor or always get the price you click on when you’re on the wrong side of the market, then the spread doesn’t mean much at all.
