Yeah, but what about middleware? What about Virtual Deal Desk? In other words, what about manipulation from your broker, inbetween the time it leaves the client computer and is executed at the liquidity pool?
Since you mark up the spread from the banks and we can't see those prices (because you don't offer DOM Book through MT4), how do we know that the spread is being marked up 1 pip or 3?
How can the FXCM client be 100% certain that there are no proprietary plugins or code that can be used to manipulate prices?
You say in your Customer Agreement:
"Your ability to close your transactions or offset positions is limited to what your dealer will offer you, as there is no other market for these transactions. Your dealer may offer any prices it wishes, and it may offer prices derived from outside sources or not in its discretion...
Your dealer may offer different prices to different customers at any point in time on its own terms."
It also goes on to state in your No Dealing Desk Disclosure:
"The prices FXCM offers might not be the best prices available and FXCM may offer different prices to different clients."
Doesn't this basically give you free reign in terms of pricing for clients? If that's the case, and there's no transparency from the time an order is placed and filled, isn't it impossible to determine what, if anything is being manipulated in any given transaction?
Another interesting thing to note in your agreement is this:
"In some circumstances, FXCM may elect to remove you from "No Dealing Desk" model...In such a situation, you should be aware that FXCM may make more money if the market goes against you..."
Under what circumstances would this happen? Does this relate in any way to the "server migration" that seems to happen to some of your clients (after which it seems some long term profitable traders with you become unprofitable)?
Thanks for any insights.