You’re a good man Clint to have in an underdog’s corner, but FXCM is no underdog. Indeed, FXCM is one of the MOST profitable FOREX brokerage houses ever and will continue to be.
The above FXCM quote is saying their DD is offered as a service(forget FXCM profiting) for traders who want tighter spreads. The traders they’re talking about are scalpers whose “primary concern” is to trade the tightest spreads possible to have a chance to close in the money. FXCM, like every other DD brokerage KNOWS, it is this category of traders(scalpers) that incur the greatest number of losing trades, hands down, thus making scalpers arguably the largest pool of the most profitable traders to trade against. And yes, FXCM within their DD platform, trade against their clients with reckless abandon. This is where they make their money. Heavy handed? I believe indeed they are, like every other Dealing Desk operation. I’m still waiting for FXCM to present any argument for traders to participate in a DD platform beyond “primary concerns”. So far there is only this carrot of tighter spreads, which frankly are easy to match from their NDD competition.
In the above FXCM quote, please notice where FXCM attempts to distinguish themselves from bucket-shops by insisting they do not manipulate. Then too, please notice where they mention not only here, but many times repeating the same text throughout their literature, “FXCM may, at our sole discretion and at any time, change your execution type to NDD”. You have to know Clint, here they are talking about scalpers who win more than lose against their FXCM DD, admitted in their own words “exposes us to more risk than we’re comfortable with”. If you or anyone, becomes unprofitable for FXCM, they WILL “manipulate” your account, if only from one type to another. Should I trust them to refrain from other forms of manipulations, with it being so easily achievable? No, not with my money.
Where I respect your commitment to what has worked for you Clint, if you drop a dollar on the sidewalk, some otherwise trusted neighbor may very well pocket it with a clear conscience. Unfortunately, the abuses we’re discussing can’t be regulated and are very simple to achieve great profits from. No other reason for offering a DD platform beyond improved spread(barely competitive with many NDD brokerages) has been attempted.
V:42:
P.S. I’m not the only trader who recognizes Dealing Desks as a corrupt business model, and it will remain a red flag for an otherwise great brokerage house.