I just found out that you can trade upto 50million with FXCM. I think that is the highest number I have seen so far. Looks like they have the largest liquidity among retail brokers. Can any other broker (including ECN type) handle 50millioin at clip?
I hope they don't bucket that..cause if they do it's more than the company's capital and thus rather scary
Do you really think FXCM trades against their clients for profit and they put those profitable traders in manual execution to make them loose? I don't think so. I am not big fan of FXCM but it just doesn't make sense. Does that mean there is no profitable retail client with auto execution with FXCM? Let's get real.
not bad if they guarantee the fills at the displayed price... on an ecn (hotspotfxi, currenex etc) there is no limit in terms of order size fyi
I thought you can only trade upto the amt they show on the platform. For IB, 5million at clip is the max size. Maybe I am wrong... I have never used ECN type.
Rationality, or "sense" (to quote from your post), dictates that the fx retailer bucket (hold) its customers' trades, not the contrary. A retailer would be negligent if it didn't hold the trades and use its pricing power and price algorithms to exploit the net position it owns as a result of the customers' positions. Does it also hedge some of the remoter risks of its net position? It might, because that, like trading against its customers, is the rational course. Pigs get fat, hogs get slaughtered, is the adage that comes to mind.
Currenex is usually good for about 160 million on a 3 pip spread for euro dollar. on the one pip spread it is good for about 30 million. Anyone trading moe than 50k with FXCM is insane, in my opinion.