One of the biggest name in forex market. FXCM has establish themself as a leader in forex trading.
FXCM's No Dealing Desk Forex Execution aims to provide transparent and fair execution. Every trade is executed back to back with one of multiple liquidity providers,§ which compete to provide FXCM with bid and ask prices. The best spreads available to FXCM are streamed to you with a small markup.
Lower Spreads
No Dealing Desk Execution
- No conflict of interest between broker and trader
- No dealer intervention in trades
- Liquidity providers do not see your stops, limits, and entry orders
- Competition reduces the potential for market manipulation by price providers
No Trading Restrictions*
- Trade during breaking news
- Place entry orders anywhere—even inside the spread
- Scalp the market
- Rollover transparency — all amounts are displayed in advance
- Rollover credit eligibility — not restricted by account margin level
Facts about FXCM, Inc. (“FXCM”)
Due to the average notional trading volume that FXCM generates, FXCM
has obtained close relationships with some of the most aggressive
price providers. Having multiple price providers is especially important
in volatile markets, when one or two liquidity providers may post wide
spreads, or simply avoid quoting any price at all. With multiple
liquidity providers quoting prices to FXCM, there are competitive
spreads, even during market-moving news events.FXCM does not take a market position—eliminating a major conflict of interest. A dealing desk broker, which acts as a market maker, may be trading against your position. However, with our No Dealing Desk Forex execution, we fill your orders from the best prices available to us from the liquidity providers. These prices include our mark-up, which may vary based on account type and liquidity provider. While an individual liquidity provider may try to skew its prices off the market, the unattractive price on the bid or ask side will lose the price competition and as a result, not factor into the prices streamed to you. At FXCM, prices are not subject to manipulation by a broker or a liquidity providers dealing desk.
While our competitors are beginning to follow our example of offering No Dealing Desk Forex execution, we have successfully implemented it. Excellent bid and ask prices are not meaningful unless you have a reliable trading platform to execute trades. Our trading platform is tested in all market conditions.
FXCM aims to provide clients with the best pricing available and to get all orders filled at the requested rate. However, there are times when, due to an increase in volatility or volume, orders may be subject to slippage.
Trade Directly From Charts Learn More
- Place trades on the chart without toggling
- Save your works—charts, multiple layouts, and templates
- View all positions directly on the chart
Trading Platform Options Learn More
- Choose one-click, double click, or click-and-confirm order entry
- Manage your leverage — FXCM LLC offers a maximum of 50:1*
Account Features
- Rollover amounts are posted in advance
- It is FXCM's policy to credit accounts to a zero balance when debit balances occur as a result of trading.
- Denominate your account in one of six currencies
Overview
The information contained on this page is intended to inform prospective and current traders of some of the features and risks associated with off-exchange retail forex trading. The content is primarily geared towards FXCM Trading Station II functionality, but it may also be used for general information regarding execution in the forex market. Order types and execution procedures may vary depending on which platform is utilized. Please be advised, no single document can completely address each and every risk associated with transactions in a financial market.
Slippage
FXCM aims to provide clients with the best pricing available and to get all orders filled at the requested rate. However, there are times when the expected price on an order is different than the executed price. On the most basic level, slippage occurs when there is insufficient liquidity at a desired price. The size of a client order, the Time In Force on the order, and the volume available at the quoted price are key factors that influence final execution.
Market Orders
The "Market Range" market order allows traders to manage the amount of potential slippage they are willing to accept on a market order. Zero indicates no slippage is permitted. When zero is selected, the trader is telling FXCM his order may only be executed at the exact price requested. The Time In Force will also affect the execution of a market range order. If Fill or Kill ("FOK") is utilized then liquidity for the entire order must exist for the trade to be filled. If Immediate or Cancel ("IOC") is utilized then liquidity must exist for at least some of the order to be filled. Additionally if the size of the IOC order exceeds available liquidity then only the portion of the order that can be filled will be executed and the remaining amount will be rejected.
The "At Market" orders do not prevent slippage or limit slippage to a specified range. An At Market order with a time in force of FOK indicates the order is to be filled immediately and entirely at an available market price. An IOC At Market order indicates the order is to be filled immediately, but not entirely, at an available market price. A GTC At Market order can be filled partially multiple times until the order is filled completely or the client cancels the remaining amount. The size of the market order, significant news announcements and rapidly changing market prices can result in execution at a different price than desired. If the size of the At Market order exceeds available liquidity then the order can be split into smaller orders at different prices.
Limit Orders
Limit orders will be filled at the desired price, better than desired price, or not at all. There is no execution guarantee with limit orders as client orders are filled at a first come first serve basis and may remove available liquidity. It is possible a limit price will be touched and the order will not fill. Limit orders will not be executed at a worse price than the desired price.
Stop Orders
Stop Orders behave like GTC At Market orders. The order is designed to limit a trader's losses but a stop order can be slipped from the desired price. The size of the order will also play a role in determining what price the order is filled at. If the size of the Stop order exceeds available liquidity then the order can be split into smaller orders at different prices.
Margin Calls
If account equity falls below margin requirements, the FXCM Trading Station will trigger an order to close some or all open positions. When positions have been over-leveraged or trading losses are incurred to the point that insufficient equity exists to maintain current open positions, a margin call will result, and open positions must be liquidated. In most cases, the FXCM Trading Station will close all open positions when a margin call is triggered. However, this is subject to liquidity, and in some illiquid scenarios, some positions may remain open. The size of the order(s) being liquidated play a significant role in the speed of execution and prices received. The larger the order being liquidated the greater likelihood of slippage and partial fills.
There is no price certainty on a margin call and there may be instances when liquidity does not exist at the exact margin call rate. As a result, account equity can fall below margin requirements by the time orders are filled, even to the point where equity account becomes negative. FXCM will not hold traders responsible for deficit balances in this scenario, but clients should be cognizant that all funds on deposit in an account are subject to loss. FXCM also recommends that traders use stop orders to limit downside risk in lieu of using a margin call as a final stop.
Delays in Execution
FXCM provides its clients with No Dealing Desk Forex execution. FXCM utilizes an STP (straight-through processing system) whereby client orders are sent through to liquidity providers and filled on their prices in a near-instantaneous fashion. During periods of high volume or an occurrence of hardware or software failure, hanging orders may occur. Also, in the event liquidity providers are unable to provide liquidity to FXCM your order may experience delays in execution or you may not be able to place orders entirely. The size of the order may also impede the speed at which the order is executed.
Keep in mind that it is only necessary to enter any order once. Multiple entries for the same order may inadvertently open unwanted positions.
If at any time you are unable to manage your account via the FX Trading Station, you may call the Trading Desk directly at +1 212-201-7300 or toll free at toll free in the U.S. and Canada or visit www.fxcm.com for contact information.
WIDENED SPREADS
FXCM strives to provide traders with tight, competitive spreads; however, there may be instances when spreads widen beyond the typical spread. During news events spreads may widen substantially in order to compensate for the uncertainty in the market. The widened spreads may only last a few seconds or as long as a few minutes. FXCM strongly encourages traders to utilize caution when trading around news events and always be aware of their account equity, usable margin and market exposure. Widened spreads can adversely affect all positions in an account.
GRAYED OUT PRICING
Grayed out pricing is a condition that occurs when there is no liquidity for a quote and FXCM has not received a new tradeable quote to refresh liquidity. Clients will be unable to place trades during grayed out periods.
HOLIDAY/WEEKEND EXECUTION
TRADING DESK HOURS
The quoted hours for the Trading Desk are from Sunday 5:15 PM (ET) to approximately 5PM (ET) on Fridays. The open or close times may be altered by the Trading Desk because it relies on prices being offered by liquidity providers.
Outside of these hours, most of the major liquidity providers are closed. The lack of liquidity and volume during the weekend impedes execution and price delivery.
PRICES UPDATING BEFORE THE OPEN
Shortly prior to the open, FXCM refreshes rates to reflect current market pricing in preparation for the open. At this time, trades and orders held over the weekend are subject to execution. Quotes during this time are not executable for new market orders. After the open, traders may place new trades, and cancel or modify existing orders.
LIQUIDITY
Please be aware that during the first few hours after the open, the market tends to be thinner than usual until the Tokyo and London market sessions begin. These thinner markets may result in wider spreads, as there are fewer buyers and sellers. This is largely due to the fact that for the first few hours after the open, it is still the weekend in most of the world.
A comprehensive list of spreads can be found at www.fxcm.com/forex-spreads.jsp. For detailed insight on market hours and activity, please visit www.fxcm.com/forex-vs-stocks.jsp.
GAPPING
Sunday's opening prices may or may not be the same as Friday's closing prices. At times, the prices on the Sunday open are near where the prices were on the Friday close. At other times, there may be a significant difference between Friday's close and Sunday's open. The market may gap if there is a significant news announcement or an economic event changing how the market views the value of a currency. Traders holding positions or orders over the weekend should be fully comfortable with the potential of the market to gap. One of the great things about trading at FXCM is that outside of announced major holidays, the trading hours routinely close only once a week on the weekends, which corresponds with the hours of liquidity providers. In contrast, most stock exchanges close five times each week, and can gap significantly on each day's open.
WEEKEND RISK
Traders who fear that the markets may be extremely volatile over the weekend, that gapping may occur, or that the potential for weekend risk is not appropriate for their trading style, may simply close out orders and positions ahead of the weekend.
CHART PRICING VS. PRICES DISPLAYED ON THE PLATFORM
It is important to make a distinction between indicative prices (displayed on charts) and dealable prices (displayed on the FX Trading Station). Indicative quotes are those that offer an indication of the prices in the market, and the rate at which they are changing. Market watchers, such as S&P and eSignal, compile indicative quotes as a proxy for the market's actual movement. These prices are derived from a host of contributors such as liquidity providers and clearing firms, which may or may not reflect where FXCM's liquidity providers are making prices. Indicative prices are usually very close to dealing prices. Indicative quotes only give an indication of where the market is. Equity and futures traders dealing through a broker will see indicative quotes. Executable quotes ensure finer execution and thus a reduced transaction cost. Equity and futures traders are used to prices being the same at any given time, regardless of which firm they are trading through or which charting provider they are using and they often assume the same holds true for spot forex. Because the spot forex market is decentralized, meaning it lacks a single central exchange where all transactions are conducted, each forex dealer (market maker) may quote slightly different prices. Therefore, any prices displayed by a third party charting provider, which does not employ the market maker's price feed, will reflect "indicative" prices and not necessarily actual "dealing" prices where trades can be executed.
MOBILE TRADING PLATFORM
There are a series of inherent risks with the use of the mobile trading technology such as the duplication of order instructions, latency in the prices provided, and other issues that are a result of mobile connectivity. Prices displayed on the mobile platform are solely an indication of the executable rates and may not reflect the actual executed price of the order.
Mobile TS II utilizes public communication network circuits for the transmission of messages. FXCM shall not be liable for any and all circumstances in which you experience a delay in price quotation or an inability to trade caused by network circuit transmission problems or any other problems outside the direct control of FXCM. Transmission problems include but are not limited to the strength of the mobile signal, cellular latency, or any other issues that may arise between you and any internet service provider, phone service provider, or any other service provider.
Please note some features of the FXCM Trading Station will not be available on the FXCM Mobile Trading Station. Key differences include, but are not limited to, charting packages, daily interest rolls will not appear, and the maintenance margin requirement per financial instrument will not be available. Also, FXCM Micro account holders will be charged and debited a service fee of $0.10 per 1,000 unit lot for each trade entered using the Mobile TS II. It is strongly recommended that clients familiarize themselves with the functionality of the FXCM Mobile Trading Station prior to managing a live account via portable device.
