Hello all,
FXCM is supposedly a non-dealing desk…but it says:
“No Dealing Desk (Please note FXCM Micro in its discretion may or may not offset individual transactions unlike transactions in most FXCM Standard accounts.)”
What’s this? Micro trading, or micro accounts do go through a dealing desk??
Thanks in advance!
Robert
Hello, Robert
That’s correct. Trade execution in an FXCM Micro Account is NOT Straight-Through Processing (STP) — also referred to as No-Dealing-Desk (NDD). There is nothing sinister about this. It’s a matter of trade execution EFFICIENCY for tiny lot sizes.
There are other differences between FXCM Standard Accounts and FXCM Micro Accounts that you should consider: on the plus-side, Micro Accounts typically have tighter spreads; on the minus-side, customer service is mainly through email and online chat, rather than telephone. But, you should get the facts straight from an FXCM rep.
You should take your questions about [B]Standard vs. Micro[/B] and [B]NDD vs. Dealing Desk[/B] (plus any other questions you might have) to Jason Rogers, FXCM’s representative here on the Forum.
Start by taking a look at this thread — 301 Moved Permanently — and, if your questions haven’t been answered there already, post them there. Jason is very good about answering questions promptly.
I trade through FXCM Micro (UK), and I have had zero problems with trade execution in my account.
I’ve been a client of FXCM for 5 years, since before NDD execution and micro accounts even existed. In my opinion, the horrors of dealing-desk execution are grossly exaggerated.
I hope that helps you.
fxcm is a good broker, shame they can’t provide the same parameters for their micro accounts though.
Micro accounts are transitioning to NDD execution. Several thousand have been switched up until now, and the rest are in the process of switching.
Hi,
FXCM is market maker 1000% in micro account. Don’t expect anything else. Transparency is not FXCM quality.
Regards
13
Hi FX 13,
The fact that micro account execution was based through the dealing desk is disclosed in the FXCM Micro mission statement; however, micro accounts are transitioning over to No Dealing Desk execution at the moment. Several thousand accounts have transitioned over already and the remainder will be moving over to NDD execution shortly. The goal is to have all forex transactions executed via NDD. Details about the transition can be found on the micro website here New Forex Spreads | FXCM UK Currency Trading .
Jason
Hi,
You said “[B]at the moment[/B]”. Nothing prevent you from rolling back. & Non dealing desk doesn’t mean that all orders are routed to market. It’s just your price feed is automaticly managed that’s it! & today such automatation is far more effective than dealing desk in the past.
Can you say that all you don’t have such algo to modify your spread.
Aren’t you a market maker in micro?
Regards
13
Hi Jason,
You said [B]at the moment[/B], that means in the past there was a dealing desk behind & nothing prevent that in the future!
[B]Also having [U]no dealing desk[/U] doesn’t mean that ALL orders are routed to market![/B]
FXCM is a market maker & not an ECN so not having a dealing desk only mean that’s automated & you can’t say that price spread depend only on liquidity providers. Currently you have an automated spread adjustement built in your server core feed.
Regards
13
Hi 13,
I’m not sure exactly what your point is since this has been discussed previously if you read earlier in the thread. Clint made a post earlier located here 301 Moved Permanently .
You can also read in more detail how NDD execution occurs on this thread where I gave step by step information on the NDD execution 301 Moved Permanently
If you have any additional questions, please feel free to let me know.
Jason
Hi Jason,
You didn’t reply regarding the point where nothing prevent you from moving back to NDD & that you had previously dealing desk over micro accounts!
Regards
13
Not to be repetitive, but I think this is probably the 4th time mentioned in the thread regarding your point that micro accounts were all previously through the dealing desk.
FXCM migrated from dealing desk to no dealing desk execution for mini and standard forex transactions in late 2006. At the time, it was a risk in changing execution practices, but our growth has shown the merits of a system in which there is no conflict between broker and trader. One of the biggest objections from traders, particularly scalpers, was having to deal with re-quotes, restrictions on where you can place stops and limits, and intervention on orders.
The original intention when launching FXCM Micro was to provide micro lot execution via NDD, but at the time execution would have suffered due to a limited number of banks willing to take micro lot orders. But that has changed.
Hi Jason,
No to be repetitive too. Nothing prevent you to roll back. It’s only up to FXCM.
Regards
& have a nice day
13
Hello, Jason. May i know how is the current situation.
currently all account are in NDD?
and may i know is ECN and MM different license.
since FXCM going to use NDD. Y not apply as ECN?
Hi Tony,
For regulatory registration, there’s no separate license distinguishing a market maker or NDD/STP broker. Brokers can offer forex trading as long as they are registered with US regulators as an FCM or RFED. However, each broker registered in the United States is required to explain their execution method in the trading agreement you sign when opening an account. So I would recommend reading the trading agreement of any broker you are investigating . FXCM has much more information on our website that goes over how our No Dealing Desk execution works Forex Execution | FXCM .
You can also find more information in the No Dealing Desk Q&A thread I have setup on BabyPips here 301 Moved Permanently .
-Jason