FXCM as a broker and/or data provider

Discussion in 'Data Sets and Feeds' started by 1358june, Nov 4, 2006.

  1. 1358june


    First a thank you to Elite Trader posters. I've learned a lot from discussions here that I couldn't find anywhere else.

    No reviews of FXCM as a broker. They seem to offer a lot of software options and educational opportunities but would appreciate any comments from users.

    Ensign Software has said they'll accept the FXCM data feed "soon" and offer it to their subscribers free. Any comments on the quality of the data and if it might be suitable for trading using Oanda instead of FXCM.
  2. cashflos


    I am relatively familiar with them. I recently closed an account elsewhere. They have 2 platforms for accounts under 10k (like mine). You can have a dealing desk, which is great for fixed spreads, "under normal conditions" (this is a mantra you will hear them repeat everytime they say it) and a platform for news trading. I have not traded the dealing desk, it is for long term traders or swing. Dealing desks need to make sure they can accept an order before you get into the market, this is too slow and costlyfor scalping.

    The no dealing is good for tight spreads, especially at the break of news, and speed of execution. They have a systems that trade your money for you. but I am not sure that is what you are after. For the systems and feeds and what not. I am no expert.
  3. 1358june


    Thanks Cash. Appreciate the feedback.
    Hear a lot of negitive stuff about FXCM but their website is so impressive. Like they're good guys.
    Good luck!
  4. Since I just cashed my last cheque from them after closing my account I figured I'd throw in my two cents. Yes they do have a nice website / web design firm. This means nothing when it comes to how good of a 'broker' they are.

    Id say they are neither a broker or data provider at their normal retail level (trading with the dealer desk). I would classify it more like an online gambling site. The 'market data' coming into their regular platform frequently strays from real market data, allowing for some serious arb opportunities. Though after 4 days of exploiting these they disable your access to their dealing desk and turn your account into a prop account. I am still sour grapes over this turn of events because I was pricing a nice shiny yellow Ferarri when they cut me off. If its too good to be true, it probably is.

    I tried to figure out why me trading their arbs always caused a profit on FXCM. Some theories I have is that FXCM lags market data going their retail platform allowing them to 'guarantee' prices and allows them to take a little extra profit on trades they accept. Another idea I had was that they were manipulating the price slightly to hit stops and limits and decided against locally changing them per client. Iv heard they have some litigations along these lines (see wikipedia). The final most realistic explanation would be that since they call themselves a 'market maker' that thier clients trades amongst themselves most of the time creating a mini forex market which is only slightly connected to the real one, hence why I call it gambling, they might as well rename EUR/USD to 'FxcmPoints' since it seems to be a completely seperate security most of the time.

    Once 'upgraded' to their no dealing desk account, they are nothing more than a slower more costly form of forex on IB (This is why I stopped trading with them). They will try a song and dance telling you how they are the only forex platform that routes to multiple banks (false) and how they are they largest retail forex provider (false).

    I have nothing against FXCM, I made some quick money off them, but I've been forced to move onto more professional forex providers.

    From my limited experience. Id go with Oanda or IB for forex trading. I hope that helps answer your question.
  5. Moe27


    so there no real advantage trading on there no dealing desk platform
  6. compared trading on the dealing desk, the differences are night and day. It all depends on what you are looking for. Compared to Oanda and IB, fxcm's no dealing desk has no advantages over them in my opinion.
  7. Moe27


    what or the spreads during news and can you trade the news with them and execution during news or they any good how do there plaform behave during news.
  8. I never attempted to trade on their no dealing desk acocunts during news events, the spreads were too high compared to other brokers.
  9. Moe27


    can't be that bad. not more then 10 pips lets say on the eur/usd or gbp/usd. also how was there execution
  10. cashflos


    I am a trader. I analyze fundamentals for long term trades and study price action for intra-day trades.
    Trying to pick off slow prices is called trading on price latency. Any and every broker in the world will cut you off when you do this. Period. You will continue to bounce form one broker to another, until you find you are black-balled on every regulated dealing desk in America. Dealing desks provide a sanitized environment for 2 types of traders.
    1. The rookie who needs fixed spreads and simple controls
    2, The long term trader that wants someone to guarantee him his stops. This business of 'guaranteeing' a stop is bastardizing the real instrument. A stop merely triggers a market order. There are only 2 basic types of orders in a market. A market and a limit.

    In one line you talk about aking advantage of latency (and I am sure at this time you were enomored with the firm), but then you note this as proof that they are not connected with the market.
    When you take advantage of (which, granted, is your right to take advantage of an opportunity) you inhibit a market makers ability to continue providing the product others are seeking. You will find this time and again.

    With all due respect, the traders that survive, and show long term results Trade, they are students of the market and price action. I am not Buffet, but I am working on becoming a trader. For that, I find FXCM to be the best broker for my purpose.
    #10     Nov 7, 2006