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  • #7,481
  • Mar 31, 2015 10:48am Mar 31, 2015 10:48am
Quoting Jason Rogers
{quote} Hi Mybest, Non-disclosure agreements with our liquidity providers mean I can't name them. However, several of these LPs were mentioned in our October 2014 Investor Presentation (page 6). Many of them are able to offset individual micro lot orders for our clients, and this has been the case since 2010 when FXCM first extended our No Dealing Desk...
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  • #7,482
  • Mar 31, 2015 11:24am Mar 31, 2015 11:24am
Quoting Jason Rogers
{quote} Hi Mybest, Non-disclosure agreements with our liquidity providers mean I can't name them. However, several of these LPs were mentioned in our October 2014 Investor Presentation (page 6). Many of them are able to offset individual micro lot orders for our clients, and this has been the case since 2010 when FXCM first extended our No Dealing Desk...

Thank you Jason for clarification.
Another question, what if a CHF tragedy months ago repeat on future? Is FXCM already has solution to prevent this kind of giant loss?
Good Things Come to those who patiently wait
  • #7,483
  • Mar 31, 2015 12:09pm Mar 31, 2015 12:09pm
Quoting mybest
{quote} Thank you Jason for clarification. Another question, what if a CHF tragedy months ago repeat on future? Is FXCM already has solution to prevent this kind of giant loss?
Given what happened with EUR/CHF, the industry is now looking very hard at any potentially similar issues, especially with the increased geopolitical risks in Southern and Eastern Europe. The primary change FXCM has made is to remove currency pairs from our platform that carry significant risk due to over-active manipulation by their respective government either by a floor, ceiling, peg or band. We also raised margin requirements for other pairs. Some of these changes will be permanent while others may change as geopolitical risks change.
  • #7,484
  • Mar 31, 2015 1:02pm Mar 31, 2015 1:02pm
An unfathomable mystery still remains!!

Why in the world would a broker abandon a MM model to become an ECN.

The ECN only source of revenue is the commission, which calculated is very similar to the price of spreads on a MM.

Now a MM on top of the spreads they still get all the losses from their customers.

Logically the MM seem to be a lot more profitable than the ECN........unless.........traders suddenly become profitable as a whole.

Are traders on ECN net profitable?

Last time the brokers posted their numbers, traders on both ECNs and MMs are net unprofitable so.......

Gosh!! I wish so bad I could know the real reason why FXCM became an ECN
So, you think you have rights? LOL
  • #7,485
  • Edited 4:05pm Mar 31, 2015 3:54pm | Edited 4:05pm
Quoting ForexOracle
Gosh!! I wish so bad I could know the real reason why FXCM became an ECN
With No Dealing Desk (NDD) forex execution, FXCM offsets each of your orders one-for-one with the best available prices from competing liquidity providers. That means we don't profit from your losses or lose from your profits. Instead, we make our money from your trading volume. Therefore, we want you to be profitable, so you will continue trading.

Offering NDD allows us to welcome trading strategies such as scalping that might be discouraged by some other brokers, and there are no re-quotes with FXCM. Traders value these benefits which is why our client base has grown to 222,719 tradable retail accounts as of the latest publicly available data: http://bit.ly/1GJZayo
  • #7,486
  • Mar 31, 2015 4:13pm Mar 31, 2015 4:13pm
So whitch one is the daily candle on DAX ? FXCM's or IG's ?
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  • #7,487
  • Mar 31, 2015 4:23pm Mar 31, 2015 4:23pm
Quoting Alone.
So whitch one is the daily candle on DAX ? FXCM's or IG's ? {image} {image}
Hi Alone.

The daily candles on FXCM's Trading Station platform begin and end at 5pm New York time (AKA New York Close). Check your other charts to see what time their daily candles begin and end as it may be different.
  • #7,488
  • Mar 31, 2015 7:57pm Mar 31, 2015 7:57pm
Quoting Jason Rogers
{quote} With No Dealing Desk (NDD) forex execution, FXCM offsets each of your orders one-for-one with the best available prices from competing liquidity providers. That means we don't profit from your losses or lose from your profits. Instead, we make our money from your trading volume. Therefore, we want you to be profitable, so you will continue trading. Offering NDD allows us to welcome trading strategies such as scalping that might be discouraged by some other brokers, and there are no re-quotes with FXCM. Traders value these benefits which...
First let me say that as a trader I believe NDD is the best for me (again speaking as a trader) so I'm not bashing you guys.

But still reading through your answer I can't believe a broker giving up on all the traders losses in order to just HAVE MORE CUSTOMERS!!

I find it so hard to believe that the fees you guys charge would be more advantageous than spreads+customers losses.

And I'm not even touching on the point of the risk exposure a NDD model brings with it.

I understand that without customers a broker is nothing. But the MM seem to be doing pretty well, even with their dirty tricks.

Anyways, I really enjoyed the time I traded with you guys and I hope to do business with you guys again in the future.
So, you think you have rights? LOL
  • #7,489
  • Apr 1, 2015 12:08pm Apr 1, 2015 12:08pm
Hi All,

Just a quick update on FXCM's trade audit practice. Per Jason's recommendation, I filed two trade audits with FXCM with them finding on both occasions in my favor and crediting my account the disputed difference. Although they didn't provide any real specifics on what caused the issues on my trade(just boilerplate generalities), they did investigate and credit my account.
  • #7,490
  • Apr 1, 2015 12:49pm Apr 1, 2015 12:49pm
Quoting surferncbad
Hi All, Just a quick update on FXCM's trade audit practice. Per Jason's recommendation, I filed two trade audits with FXCM with them finding on both occasions in my favor and crediting my account the disputed difference. Although they didn't provide any real specifics on what caused the issues on my trade(just boilerplate generalities), they did investigate and credit my account.
It's a numbers game. Do it to as many people as possible. Only a certain % will take action. They may be new, naïve, or just not know how to report it. Believe it or not, some may not even compare the chart with other brokers. Don't give them to much credit, you just happened to follow through, not everyone will. This company is attempting to pay back a 225 million dollar loan, they have brought back their dealing desk model, I just find it so hard to believe otherwise intelligent people are so naïve when it comes to forex brokers. Do your due diligence, there are many better options, they just aren't located in the US.
  • #7,491
  • Apr 1, 2015 2:19pm Apr 1, 2015 2:19pm
Quoting Profit Daily
{quote} ....I just find it so hard to believe otherwise intelligent people are so nave when it comes to forex brokers. Do your due diligence, there are many better options, they just aren't located in the US.
If they are not in the US, then they are not options.

If a trader has the money to move outside the US to trade, then he or she is better off opening a futures account and trading the ES with the big boys.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #7,492
  • Apr 1, 2015 3:07pm Apr 1, 2015 3:07pm
Quoting HiddenGap
{quote} If they are not in the US, then they are not options. If a trader has the money to move outside the US to trade, then he or she is better off opening a futures account and trading the ES with the big boys.
Don't really want to get into why spot is ten times better than futures, so I won't. However, it's funny you mention it, as that is exactly what the NFA is hoping to accomplish with all of their ridiculous regulations. Move everyone back to futures. Do you realize the decline in futures trading since spot became so popular. This is the real reason behind the " so called protect us from ourselves" regulations. US forex traders do not have anything close to the same opportunity as the rest of the world.
  • #7,493
  • Apr 1, 2015 3:36pm Apr 1, 2015 3:36pm
Quoting Profit Daily
{quote} Don't really want to get into why spot is ten times better than futures, so I won't. However, it's funny you mention it, as that is exactly what the NFA is hoping to accomplish with all of their ridiculous regulations. Move everyone back to futures. Do you realize the decline in futures trading since spot became so popular. This is the real reason behind the " so called protect us from ourselves" regulations. US forex traders do not have anything close to the same opportunity as the rest of the world.
This is not the appropriate thread for this discussion.

I'm sending you a PM.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #7,494
  • Apr 1, 2015 4:23pm Apr 1, 2015 4:23pm
Quoting Jason Rogers
{quote} Hi Alone. The daily candles on FXCM's Trading Station platform begin and end at 5pm New York time (AKA New York Close). Check your other charts to see what time their daily candles begin and end as it may be different.
is strange bcz most of the others candles much.i will check
  • #7,495
  • Apr 1, 2015 5:41pm Apr 1, 2015 5:41pm
Quoting Jason Rogers
A few weeks ago I mentioned our goal is to repay the Leucadia loan by selling certain non-core assets, and today we have announced the first:
//-----

hey jason.... selling non-core assets to pay off debts is like killin 2 ducks with one shot..... ..... happy huntin......
//----

opened a second account with fxcm the other day.... it's small, but still another .....

just noticed someone mentioning yall are, or have, brought back the dealing desk model..... is that true....

did not notice the option available when i opened the new account and actually my preference would be the dealing desk model if it would allow metatrader 4.....

searched your posts and googled the net but only found non-dealing desk, can not find any mention of it being offered.....

is it true..... thanks.....h
to trade and code, keep both simple... no call to impress....h
  • #7,496
  • Apr 1, 2015 6:24pm Apr 1, 2015 6:24pm
Quoting ForexOracle
{quote} First let me say that as a trader I believe NDD is the best for me (again speaking as a trader) so I'm not bashing you guys. But still reading through your answer I can't believe a broker giving up on all the traders losses in order to just HAVE MORE CUSTOMERS!! I find it so hard to believe that the fees you guys charge would be more advantageous than spreads+customers losses.
It's precisely because so many traders share your sentiments that we offer NDD. Our industry leading trading volume is a testament to the popularity of this model.

Quoting ForexOracle
I understand that without customers a broker is nothing.
We agree wholeheartedly. Since a market maker can profit from client losses, they can afford to take a short-sighted view with their clients. By contrast, since FXCM makes money from trading volume on our NDD model, we want our clients to be successful so they continue trading. That's why invest so greatly in education and resources to help our clients with their trading. The in-depth research conducted by our DailyFX analysts into the traits of the most successful traders is an example of this, as are the trading tools on FXCMapps.com.
  • #7,497
  • Apr 1, 2015 6:25pm Apr 1, 2015 6:25pm
Quoting surferncbad
Hi All, Just a quick update on FXCM's trade audit practice. Per Jason's recommendation, I filed two trade audits with FXCM with them finding on both occasions in my favor and crediting my account the disputed difference. Although they didn't provide any real specifics on what caused the issues on my trade(just boilerplate generalities), they did investigate and credit my account.
Thanks for the update!
  • #7,498
  • Edited 6:57pm Apr 1, 2015 6:38pm | Edited 6:57pm
Quoting Profit Daily
{quote} It's a numbers game. Do it to as many people as possible. Only a certain % will take action. They may be new, nave, or just not know how to report it. Believe it or not, some may not even compare the chart with other brokers. Don't give them to much credit, you just happened to follow through, not everyone will.
As Surferncbad mentioned, I was the one who recommended that he file a trade inquiry. I'm glad he followed through as I encourage all traders to do so if they have doubts about a particular trade. It's important to note that on our NDD model, we don't profit from client losses or lose from their profits. We strive to provide the best possible trade execution, and if a trade inquiry reveals there was an error on our part, we'll make the appropriate correction.

Quoting Profit Daily
This company is attempting to pay back a 225 million dollar loan, they have brought back their dealing desk model, I just find it so hard to believe otherwise intelligent people are so nave when it comes to forex brokers.
You raise a good point. Since we are a publicly-traded company (NYSE ticker: FXCM) the details of our loan from Leucadia are well known. In fact, in our most recent quarterly earnings presentation, we clearly outlined how we plan to repay this debt. By contrast, most other forex brokers are privately-held companies, so it's hard to know how much debt they have on their books or the state of their finances.

Over the past few years, FXCM has spent over $250 million dollars making strategic acquisitions building up our non-core businesses, mainly the institutional side as we tried to diversify the firm. We are now looking to sell some of those non-core assets; But, we are not in a rush and are looking to get the highest valuations for these assets.


http://i.imgur.com/SjOCUih.png



We are considering closing or selling smaller regulated entities that require large sums of capital requirements, but that offer increasingly low return on capital. In fact, just last week we announced this news: FXCM to Sell FXCM Japan to Rakuten Sec for $62 Million

The latter move allows us to free up significant amounts of cash that is currently trapped. We believe that in the near term we can pay down a majority of the loan. That's our goal. Despite the events of January 15th that resulted from the Swiss Franc movements, FXCM today remains in a strong competitive position:

  1. $303 million in consolidated operating cash
  2. $1.0 billion in customer equity
  3. 195,000 active retail FX accounts
  4. Global regulatory capital of $252 million versus $93 million minimum requirements (an excess of $159 million)

  • #7,499
  • Apr 1, 2015 6:47pm Apr 1, 2015 6:47pm
Quoting hayseed
{quote} //----- hey jason.... selling non-core assets to pay off debts is like killin 2 ducks with one shot..... ..... happy huntin...... //---- opened a second account with fxcm the other day.... it's small, but still another
That's great!

Quoting hayseed
just noticed someone mentioning yall are, or have, brought back the dealing desk model..... is that true.... did not notice the option available when i opened the new account and actually my preference would be the dealing desk model if it would allow metatrader 4..... searched your posts and googled the net but only found non-dealing desk, can not find any mention of it being offered..... is it true..... thanks.....h
Given what happened with EUR/CHF, the industry is now looking very hard at any potentially similar issues, especially with the increased geopolitical risks in Southern and Eastern Europe. The primary change FXCM has made is to remove currency pairs from our platform that carry significant risk due to over-active manipulation by their respective government either by a floor, ceiling, peg or band. We also raised margin requirements for other pairs as well. Some of these changes will be permanent while others may change as geopolitical risks change.

However, we have received demand for higher leverage (lower margin requirements) particularly from traders in emerging markets where the average account balance is smaller. Offering these traders a DD option in the future in addition to our existing NDD model will allow us to cater to their demand for higher leverage from a risk management perspective. We still expect the majority of traders to continue to choose our NDD model.

The reason you could not find the DD option is because you live in the US, and that option is currently only available in certain regions, primarily emerging markets for the reasons stated above.
  • #7,500
  • Apr 1, 2015 9:15pm Apr 1, 2015 9:15pm
Dear Jason, did you have (I am sure you have), or can you show statistics of your customers year by year?
Good Things Come to those who patiently wait
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