Best Thread FXCM Discussion

[Jason Rogers]

Update: FXCM have agreed to honour my original stop and adjust my account by +£1865.03 but it can take up to 48hrs for this adjustment to be made.

All in all a stressful day but they have put right their mistake which is what matters
most.

Daren.

Hi Daren,

I'm happy to see we were able to correct the trade and make an adjustment. I have limited details at the moment on what happened, but there was an error with the execution of some trades on USD/CAD and we have made adjustments the trades impacted by this. I'm sorry about any stress this caused you, and I hope the manner and speed in which we corrected this gives you the confidence to continue trading. Please feel free to contact me at any time if you have any questions.

-Jason

 

[Black Swan]

Thanks BS, this was a real eye opener for me

Fwiw, I wouldn't use fxcm for SB, I'd stick to IG, or if you want a comparison (because you've got a bit inquisitive as to what's out there) I'd try cmc. On the basis that you have Peter of cmc, on his own thread in the spread betting forum on T2W, I'd be certain that any problem like that would be indentified and rectified asap, I'm still not entirely sure the SB-ers on T2W realise just what a bonus it is to have the CEO of the firm on here...

Glad to see Jason was as ultra professional as always in sorting it for you...scary eh..?

 

[dazzer_fx]

Fwiw, I wouldn't use fxcm for SB, I'd stick to IG, or if you want a comparison (because you've got a bit inquisitive as to what's out there) I'd try cmc. On the basis that you have Peter of cmc, on his own thread in the spread betting forum on T2W, I'd be certain that any problem like that would be indentified and rectified asap, I'm still not entirely sure the SB-ers on T2W realise just what a bonus it is to have the CEO of the firm on here...

Glad to see Jason was as ultra professional as always in sorting it for you...scary eh..?

Even though it has been rectified I'm still confused at what happened here.
I was watching the chart of this pair on FXCM's MT4 and Trading Station when it happened. If as they have explained a bad tick was offered and filled why did the charts not show this price. The lowest price on the chart was 0.98467, The bad tick
was some 300 pips below this why was it not plotted on the chart at the time until
it had been adjusted?

It is also worth pointing out IG's lowest price on this spike yesterday is 9857.2
this is just under 11 pips less. This can obviously happen but I am finding it dificult
to find a comparrison where the opposite happens on a spike?

Perhaps Jason could answer these questions when he has the time and information.

Daren.

 

[scose-no-doubt]

Maybe the chart was being fiddled and someone fat fingered a 5 instead of an 8 :s

 

[tar]

Even though it has been rectified I'm still confused at what happened here.
I was watching the chart of this pair on FXCM's MT4 and Trading Station when it happened. If as they have explained a bad tick was offered and filled why did the charts not show this price. The lowest price on the chart was 0.98467, The bad tick
was some 300 pips below this why was it not plotted on the chart at the time until
it had been adjusted?

It is also worth pointing out IG's lowest price on this spike yesterday is 9857.2
this is just under 11 pips less. This can obviously happen but I am finding it dificult
to find a comparrison where the opposite happens on a spike?

Perhaps Jason could answer these questions when he has the time and information.

Daren.

It is strange , but the important thing they gave back your money ...

 

[bedsit]

Even though it has been rectified I'm still confused at what happened here.
I was watching the chart of this pair on FXCM's MT4 and Trading Station when it happened. If as they have explained a bad tick was offered and filled why did the charts not show this price. The lowest price on the chart was 0.98467, The bad tick
was some 300 pips below this why was it not plotted on the chart at the time until
it had been adjusted?

.

Mind you there was a member (I think he's been banned in the meantime) - he posted a video comparing different data providers and them. There were some big discrepancies - it seems like they have their own quotes. Anyway 300 pips must be some sort of record even for them - AMAZING

Would avoid them like the plague.

 

[tar]

Mind you there was a member (I think he's been banned in the meantime) - he posted a video comparing different data providers and them. There were some big discrepancies - it seems like they have their own quotes. Anyway 300 pips must be some sort of record even for them - AMAZING

Would avoid them like the plague.

i saw this video , if this video is real then this is a good news for us , we can arbitrage between Fxcm and other brokers and make free money ! anyway i comapre there prices in my live account ( although i dont use it at the moment ) it is in line with other brokers ...

 

[Jason Rogers]

Even though it has been rectified I'm still confused at what happened here.
I was watching the chart of this pair on FXCM's MT4 and Trading Station when it happened. If as they have explained a bad tick was offered and filled why did the charts not show this price. The lowest price on the chart was 0.98467, The bad tick
was some 300 pips below this why was it not plotted on the chart at the time until
it had been adjusted?

Hi Daren,

It's important to keep in mind that the charts display the best bid and best offer. So even though you're seeing the best bid/offer from multiple competing banks, there is depth of market beyond the best bid/offer. For example, if Bank A is quoting 0.9845 on the bid and Bank B is quoting 0.9844 on the bid, you will see 0.9485 on both the platform and the charts. That's because it's the best bid price. If the order can't be filled at 0.9485, it could attempt execution at 0.9844 if that's the next best available price (even though that price is not reflected on the chart.

-Jason

 

[Trader1UK]

WTF is going on with FXCM,
Always, always hear shocking stories about them. I have accounts with many brokers and not had such nightmare problems like people have had with FXCM. This is one broker (thats if you want to call it a broker) i shall never ever open an account with. Lets see how the fraud case goes with FXCM.. Shocking!!
Looks like another Refco in the making !!!

 

[Trader1UK]

Shocking yes... A regular practice with FXCM i guess.

Its like a game of chance with them, if a client calls about trades being closed due to bad fills/ticks they investigate and may offer a refund, otherwise if the trader keeps quiet they get to keep the winnings due to their tactics. They like bending traders over.

Not a bad business model eh FXCM!!!

 

[tar]

@ Si55AMG : did u comment on your own post after 5 minutes

seems the stock market didnt like the grounds of the law suit , FXCM stock UP :cheesy:

http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined

______

stock sold off after monthly metrics

http://finance.yahoo.com/q?s=fxcm&ql=1

 

[Black Swan]

@ Si55AMG : did u comment on your own post after 5 minutes

seems the stock market didnt like the grounds of the law suit , FXCM stock UP :cheesy:

http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined

At a guess I'd suggest FXCM have multi suits versus them at any one time, as does any major financial firm. This class action just managed to hit the radar with the MSM..

 

[Trader1UK]

@ Si55AMG : did u comment on your own post after 5 minutes

seems the stock market didnt like the grounds of the law suit , FXCM stock UP :cheesy:

http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined

i think i did lol, wasnt meant too... watching charts all day and replying late at night is not a good idea !!

 

[Jason Rogers]

Its like a game of chance with them, if a client calls about trades being closed due to bad fills/ticks they investigate and may offer a refund, otherwise if the trader keeps quiet they get to keep the winnings due to their tactics. They like bending traders over.

Hi Si55AMG,

When an error occurs with execution such as with a bad tick, we will contact the trader and make the adjustment. You may even find that you're contacted by FXCM before you even know about it.

FXCM uses No Dealing Desk forex execution and it eliminates the conflict of interest present with dealing desk brokers. This means a traders loss is not FXCM's profit, but rather FXCM is compensated by a pip mark-up on the spread. As volumes increase, so does FXCM's revenue. Our forex execution is explained in great detail on the website, and I would be happy to answer any questions you have about our execution.

-Jason

 

[dazzer_fx]

Hi Si55AMG,

When an error occurs with execution such as with a bad tick, we will contact the trader and make the adjustment. You may even find that you're contacted by FXCM before you even know about it.

FXCM uses No Dealing Desk forex execution and it eliminates the conflict of interest present with dealing desk brokers. This means a traders loss is not FXCM's profit, but rather FXCM is compensated by a pip mark-up on the spread. As volumes increase, so does FXCM's revenue. Our forex execution is explained in great detail on the website, and I would be happy to answer any questions you have about our execution.

-Jason

Hi Jason

Could you actually explain how a 'bad tick' happens as in your previous post you said you
had limited information at that time, I assume you have been updated on this.

Daren.

 

[scose-no-doubt]

Yes, Jason. Are you saying that the spike was due to the one of the banks' feeds or it was an error on your side because I find it hard to believe that an institutional market maker is gonna let 300 pops slip.

 

[Jason Rogers]

Hi Jason

Could you actually explain how a 'bad tick' happens as in your previous post you said you
had limited information at that time, I assume you have been updated on this.

Daren.

Hi Daren,

Occasionally the pricing engines of our bank providers makes a mistake and sends an invalid quote. We have several filters in place to try to prevent these bad prices from making their way to our clients and triggering orders. Occasionally these filters do not catch a price and causes a bad tick. If a bad tick does impact pricing, we will make any necessary adjustments.

-Jason

 

[scose-no-doubt]

Pricing engine? I thought a feed would be a simple bid/ask.

 

[Jason Rogers]

Pricing engine? I thought a feed would be a simple bid/ask.

Hi scose,

There are 10+ separate bid/ask being quoted. The best bid/ask feed doesn't magically sort itself . The prices from the banks enter the BBOE (Best Bid Offer Execution) pricing engine and the best bid/offer is quoted onto the platform with a pip mark-up.

For example, on the bid of EUR/USD you may have the following prices at one instant from 10 separate banks: 1.35600, 1.35602, 1.35598, 1.35599, 1.35600, 1.35603, 1.35602, 1.35587, 1.35589, 1.35601 . So out of those 10 separate price feeds being streamed by the banks, the best bid is displayed on the platform with a pip mark-up. From the example, 1.35603 is the best bid so that is the best bid price. If there's a 1 pip mark-up you see 1.35593 streamed onto the platform due to the 1 pip mark-up (keep in mind that the bid price moves 1 pip down when a 1 pip "mark-up" is added). The price streams are fed into the pricing engine, and the pricing engine displays the best bid on the platform.

We have a video put together showing how this back-end process works, albeit with only two banks in the example to make it easier to follow

Let me know if you have any questions.

-Jason

 

[dazzer_fx]

Hi scose,

There are 10+ separate bid/ask being quoted. The best bid/ask feed doesn't magically sort itself . The prices from the banks enter the BBOE (Best Bid Offer Execution) pricing engine and the best bid/offer is quoted onto the platform with a pip mark-up.

For example, on the bid of EUR/USD you may have the following prices at one instant from 10 separate banks: 1.35600, 1.35602, 1.35598, 1.35599, 1.35600, 1.35603, 1.35602, 1.35587, 1.35589, 1.35601 . So out of those 10 separate price feeds being streamed by the banks, the best bid is displayed on the platform with a pip mark-up. From the example, 1.35603 is the best bid so that is the best bid price. If there's a 1 pip mark-up you see 1.35593 streamed onto the platform due to the 1 pip mark-up (keep in mind that the bid price moves 1 pip down when a 1 pip "mark-up" is added). The price streams are fed into the pricing engine, and the pricing engine displays the best bid on the platform.

We have a video put together showing how this back-end process works, albeit with only two banks in the example to make it easier to follow

Let me know if you have any questions.

-Jason

Just looked at this video, so if a rogue tick is received surely it wouldn't make
any diference as there are other banks offering correct bid/offers against it.
Also the filter doesn't seem that complex if it can't pick up a 300 pip step
descrepancy?