FXCM Traders Can Now Benefit from Price Improvements on Limit Orders

Discussion in 'Forex Brokers' started by FXCM-PR, Aug 13, 2010.

  1. FXCM-PR

    FXCM-PR ET Sponsor

    FXCM recently enhanced its No Dealing Desk forex execution model by adding Price Improvements†. As of July 12, 2010, if a better price becomes available before your limit order executes, FXCM’s No Dealing Desk execution engine will automatically give you the best available price.

    The Old
    A common inconvenience to most No Dealing Desk execution models is that limit and limit entry orders always fill at the limit price—even if the market price gapped or spiked favorably through it. At the same time, stop orders can fill at a worse price.

    The New
    Now with FXCM Price Improvements, your limit and limit entry orders can receive positive slippage. That means you can potentially make more money if the market gaps or spikes favorably through your limit price. This is especially true in situations where the market is moving fast like during weekend gaps or around news events.

    How Does It Work?
    To illustrate how a Price Improvement can mean more money for you, consider the following example.

    - Friday: You decide to hold a 10K EUR/USD buy position through the weekend, in light of a G20 meeting on Saturday. You create a limit order on the trade at 1.3260 anticipating a possible gap when trading opens.
    - Saturday: The G20 meeting is very positive for the Euro-zone, which could help your trade.
    - Sunday: As trading opens, the EUR/USD price gaps through your limit price of 1.3260, from Friday’s close of 1.3242 to 1.3275.

    The Old: Previously, your limit would have filled at your requested limit price of 1.3260.

    The New: Now, with FXCM Price Improvements, since the market gapped through your limit price, your trade could close at 1.3275, providing you with a Price Improvement of up to 15 pips.

    “Exchange traded instruments already benefit from positive slippage.” said Drew Niv, CEO of FXCM. “With FXCM Price Improvements, FXCM is bringing the forex industry more in line with these common practices, making trading even more fair for our clients.”

    To see Price Improvements in action, FXCM recommends using limit orders to close trades. Easily see when you get a Price Improvement by comparing the limit price that you requested with the limit price where you were filled.

    FXCM Holdings, LLC Facts

    FXCM Holdings, LLC is a leading global forex and CFD broker* that caters to both retail and institutional markets. Founded in 1999, FXCM is one of the largest brokers, regulated by several of the world’s most respected financial authorities.

    At the heart of FXCM’s client offering is No Dealing Desk forex trading. Clients have market access to some of the world's largest liquidity providers which enables FXCM to offer clients spreads as low as 1 pip on major crosses. Clients also have the benefits of mobile trading, one-click order execution and trading from real-time charts. FXCM LTD’s CFD product offers no re-quote trading and allows traders to trade oil, gold, silver, and stock indices, along with forex on one platform. In addition to currency and CFD trading*, FXCM offers educational courses on forex trading, and provides free news and research through DailyFX.com.

    †All price improvements are dependent upon available liquidity.

    *Please be advised that CFD accounts are not available to residents of the U.S. or its territories. Additionally, FXCM LTD offers spread betting exclusively to UK residents. Residents of other countries are NOT eligible.

    Trading foreign exchange and CFDs on margin carries a high level of risk, and may not be suitable for all. Read full disclaimer.
  2. might be impressive, if you can demonstrate the improvement that the average limit order experienced, based on all limit orders and all improvements that any of them experienced, on average
  3. Jason Rogers

    Jason Rogers ET Sponsor

    This is something we are working on.

    On another note, we've put together a video giving a visual of how NDD execution works:

    <center><object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/wkeqcfvojHA?fs=1&amp;hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/wkeqcfvojHA?fs=1&amp;hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object></center>
  4. bstay


    Does the FXCM's TradingStationII able to display open positions and pending orders graphically on the charts? I am looking for something similar to the picture here, where the green and yellow labels are tagged to dotted lines indicating the positions/orders. (I can also adjust the order on chart by clicking on and moving the dotted lines.)
  5. Jason Rogers

    Jason Rogers ET Sponsor

    Hi bstay,

    All of the options you mentioned are available on the Marketscope charts inside the FX Trading Station II. (see below)


    The label colors for the stop, limit, and initial entry are customizable. Plus an arrow will appear above the candlestick where you entered the trade. The arrow will be green if the trade is in a profit and red if in a loss.

  6. Jason Rogers

    Jason Rogers ET Sponsor

    Here's a video that details how price improvements work on FXCM's platform:

    <object width="640" height="385"><param name="movie" value="http://www.youtube.com/v/1lZoSJLGURc?fs=1&amp;hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/1lZoSJLGURc?fs=1&amp;hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="640" height="385"></embed></object>
  7. Jason Rogers

    Jason Rogers ET Sponsor

    Back in October I posted a video which explains how FXCM's NDD forex execution works. Here is a video for comparison explaining dealing desk execution when your broker is acting as the market maker.

    <object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/PdnFsMJe1hQ?fs=1&amp;hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/PdnFsMJe1hQ?fs=1&amp;hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object>

  8. Jason Rogers

    Jason Rogers ET Sponsor

    With the NFP release coming up on Friday, price improvements can play a role in improving the execution price on your orders whether it be using limit entry orders to fade the initial move or using limit orders to take profit. Here's a video we put together on using limit and limit entry orders during news events.

    <iframe title="YouTube video player" class="youtube-player" type="text/html" width="640" height="390" src="http://www.youtube.com/embed/LZYNSnP0ZWY" frameborder="0" allowFullScreen></iframe>