Thread: No-Dealing Desk Faq's

Originally Posted by webcome

And scalpers welcome!Welcome to place your trade 5 pips!!! away on both sides!It happens as Im writing!Are you out of capital FXCM-Micro?The only thing low in all that is your action against us small traders!You are out of trend now,when many many competitors try to do the opposite!To attract small traders!

We are implementing No Dealing Desk execution so you wont have these restrictions. As soon as the new execution style is put in place, you can place entry orders where ever you would like. Including inside the spread.


Walker

Hi Walker!

Thank you for your answers!I think not all the Micro traders are happy with the new Micro.No need to say that low spreads are our friends...and when something bad happens to them ,traders ,especially microtraders can be very unhappy.For intraday traders is like to die a little,and become something else in another life.Ok ,apart of the higher spreads(which is bad) what do I get and WHEN?Ì`ll try to list what I am interested in from The New Micro.If you have time you can correct me:

1)NDD-no conflict,which is good.
2)Place the order wherever I want on the chart, good too.
3)Same leverage and margins as of today?I supose the answer is Yes(which is good) but not explicit yet.Please confirm.
4)Same minimi deposit of 25USD?Please confirm
5)Scalping already confirmed.Good
6)No maximum deposit.Good

And now comes the WHEN?I know when I begin to pay for it but I dont know when I get the merchendise.This project is rather big and very important.You must have a hint of the (ND)D-Day or month.A rough estimate ,all slippage included,would be very appreciated.I secretly hope that you dont wait until breack-even..only joking

I appreciate the effort of FXCM to implement NDD for Micro
and I hope that the future will bring a discount even for us non10k.

Tradefully yours
webcom

Originally Posted by webcome

Hi Walker!

Thank you for your answers!I think not all the Micro traders are happy with the new Micro.No need to say that low spreads are our friends...and when something bad happens to them ,traders ,especially microtraders can be very unhappy.For intraday traders is like to die a little,and become something else in another life.Ok ,apart of the higher spreads(which is bad) what do I get and WHEN?Ì`ll try to list what I am interested in from The New Micro.If you have time you can correct me:

1)NDD-no conflict,which is good.
2)Place the order wherever I want on the chart, good too.
3)Same leverage and margins as of today?I supose the answer is Yes(which is good) but not explicit yet.Please confirm.
4)Same minimi deposit of 25USD?Please confirm
5)Scalping already confirmed.Good
6)No maximum deposit.Good

And now comes the WHEN?I know when I begin to pay for it but I dont know when I get the merchendise.This project is rather big and very important.You must have a hint of the (ND)D-Day or month.A rough estimate ,all slippage included,would be very appreciated.I secretly hope that you dont wait until breack-even..only joking

I appreciate the effort of FXCM to implement NDD for Micro
and I hope that the future will bring a discount even for us non10k.

Tradefully yours
webcom

3)Same leverage and margins as of today?I supose the answer is Yes(which is good) but not explicit yet.Please confirm.

Your instincts are correct , this will not be changed.

4)Same minimi deposit of 25USD?Please confirm

Correct again, this is set to remain the same as well.

You must have a hint of the (ND)D-Day or month.A rough estimate ,all slippage included,would be very appreciated.

I wish I could confirm a date, but even I dont know at this juncture . I will keep you posted on the forum, and clients will be contacted by email when the final transfer occurs.


Walker

Thank you for your prompt answers.Ok ,the WHEN remains yet to be answered.

webcome

Originally Posted by tomzx

Could someone please explain me what is trading inside the spread?

Currently , you are unable to place entry orders within five pips of the quoted bid/ask spread. With our move to no dealing desk, you will not see these restrictions will not apply . This means you can place stops and limits at any price.

Lets look at an example of placing an entry between the spread .



Here is a quote on the Eur.Usd . With NDD you can place an entry to buy or sell between these two prices . So you could potentially place an order to buy at 1.36265 .

With the current method, the closest you could place your entry would be at 136329 for a buy order , 5 pips away from the current market price.


Walker

Originally Posted by alextn

do they offer historical data over 5 years?

Yes, we do have historical data for the NDD price feed. You can find information here.

http://forexforums.dailyfx.com/gener...-download.html (Historical Data Download)



Walker

Hi Twig,

Originally Posted by Twig

1) If we now need to have to pay the full spread price on 'Micro Account' shouldn't that entitle everyone on a micro account to the same privileges of having a Standard Account, ie full support, phone & chat services.

2) Former micro clients should automatically get the '1 pip' reduction regardless of the amount they have in their accounts, particularly those that have had been a client for years and had their accounts automatically moved to a micro account, and have supported FXCM all this time and because of this support the 'BANKS' now want to support the Micro clients directly.

1 & 2) On the No Dealing Desk execution model, FXCM makes money through pip markups (which are really commissions) on the spreads we receive from multiple global banks. We do not profit when you lose, or lose when you gain. The more trading volume we receive the more money we make, thus, the more we are able to spend on client support features.

Telephone and chat support are free services available to all FXCM Standard account holders because they provide more trading volume than FXCM Micro account holders. FXCM Micro’s low starting balance and flexible trade sizes provide new traders with a popular way of entering the market. Clients who are ready to place larger trades of at least 10k in size can upgrade to an FXCM Standard account and receive the benefits of full-service support by clicking HERE.

Originally Posted by Twig

3) Quoted from 'Walker forexforums dailyfx com/fxcm-micro-no-dealing-desk-execution/154873-what-no-dealing-desk-execution)',
"as we stream the best available spreads directly to our trading platforms with a small markup, which is generally 1 pip or less for major currency pairs." How can FXCM give Micro clients a '1 pip' reduction if this is the case as FXCM will not make any money on the trades, according to the above quote.
On the other hand if FXCM can afford to give this 1 pip advantage/edge and make money, why not give it to everyone???

3) The 1 pip markup is on both the sell price and the buy price. For example, if the banks are providing us a raw prices of 1.36800 on the sell price, and 1.36805 on the buy price, then that's a "raw" spread of 0.5 pips. With our 1 pip markup, the client will see a sell price of 1.36790 and a buy price of 1.36815, for a "retail" spread of 2.5 pips. Clients who have a balance of at least $10,000 on March 18th qualify for a 1 pip spread reduction, so their sell price and buy price are marked up by only 0.5 pips on each side. In this scenario they would see a sell price of 1.36795 and a buy price of 1.36810, for a "reduced" spread of 1.5 pips.

Originally Posted by Twig

4) If the banks/FXCM now want this extra straight through processing, shouldn't that actually make the spreads less, not more. How can one Company like FXCM, magically give cheaper spreads formally in 'Micro' and still make millions in profits, but the huge trillions of dollars and trades of the worlds banks cannot offer these low spreads????

4) On the No Dealing Desk execution model, we do not profit when you lose, or lose when you gain. That means in order for FXCM to be profitable on the No Dealing Desk execution model, FXCM makes money through pip markups (which are really commissions) on the spreads we receive from multiple global banks

Originally Posted by Twig

5) Why not keep the 'status quo', leave it the way it is, or at least give micro clients the choice of what they prefer!!! Or have the old micro spreads and new micro spreads run at the same time, clients choice!!!.

6) It's the many thousands of small account holders that have made the Micro successfull but FXCM is only as usual looking after the big end players/clients of whom if had $10,000 in their account in the first place would have had to been or transfered to a 'Standard Account'!

5 & 6) FXCM believes that No Dealing Desk trade execution is the fairest and most transparent execution model that we can provide to clients because it eliminates potential conflicts of interest between us as the broker and our clients who trade with us. We do not wish to have any conflicts of interest with our clients, and when we first launched FXCM Micro, we planned to offer No Dealing Desk execution. However, the banks would not stream prices in micro lots. This was simply unheard of in the foreign exchange industry. Our FXCM Micro traders have since placed over 30 million trades totaling 200 billion in notional volume, and the banks have changed their minds. As a result, we are preparing to offer No Dealing Desk execution to our Micro clients so you too can enjoy the same execution benefits that Standard account holders currently receive. The first step in this process is to bring micro pricing in line with what is available on standard accounts.

Originally Posted by Twig

7) FXCM used to have a 'MINI Account' but closed that down to a MICRO to give everyone with less account holdings better spreads to operate their small accounts with zero direct support to make it cheaper, apart from this forum where some new threads/posts has to go through a Moderator before it is uploaded to forum.

7) FXCM eliminated the distinction between MINI and STANDARD accounts. That means if you upgrade to an FXCM Standard account, you can place trades as small as 10k (sometimes called a mini lot) and still receive the benefits for live support via phone and chat. FXCM Micro’s low starting balance ($25) and low minimum trade size (1k) provide new traders with a popular way of entering the market, but for clients who are ready to place orders of 10k in size or larger can upgrade to an FXCM Standard account by clicking HERE.

Originally Posted by Twig

From FXCM Micro website

Keeping Expenses Low Keeps Spreads Tight
One of the most important considerations for the forex trader is spread. In order to provide you with tight spreads for 1K lot sizes (as little as 15 cents per lot for EUR/USD), we control expenses, such as costly support services. Instead of providing these services to you by phone or IM, we have innovated extensive self-help sections so that you can find immediate answers on our Web site. Of course, you will receive a personalized response via e-mail for anything related to your account, and you can log on to our interactive forums for trading- and service-related questions. To avoid the expense of administrative overhead, FXCM Micro offers only self-trading, individual accounts.

So how do you now justify raising spreads unless you give FULL SUPPORT?

FXCM believes that No Dealing Desk trade execution is the fairest and most transparent execution model that we can provide to clients because it eliminates potential conflicts of interest between us as the broker and our clients who trade with us. Click HERE for details on all the benefits of No Dealing Desk execution. On the No Dealing Desk execution model, we do not profit when you lose, or lose when you gain. That means in order for FXCM to be profitable on the No Dealing Desk execution model, FXCM makes money through pip markups (which are really commissions) on the spreads we receive from multiple global banks. We are making the special offer of a 1 pip spread reduction to clients with a balance of $10,000 because of the higher trading volume these accounts will generate.

Originally Posted by Twig

Yeah how is that FXCM makes a thread to ask questions and voice their concerns but won't answer any questions or have any say whatsoever.???

We are happy to address all the questions and concerns of our clients in regards to this transition to No Dealing Desk execution. Please continue ask questions as they come up. The positive feedback we have received from FXCM Standard account holders in regards to No Dealing Desk execution is one of the reasons we want to extend the benefits of this execution model to FXCM Micro clients. For details on the benefits of No Dealing Desk trade execution, click HERE.

Originally Posted by Twig

They are it looks like, just going to bulldoze this increased spread onto the Micro clients.
We all should get the 1 pip reduction regardless.

To reiterate, on the No Dealing Desk execution model, we do not profit when you lose, or lose when you gain. That means in order for FXCM to be profitable on the No Dealing Desk execution model, FXCM makes money through pip markups (which are really commissions) on the spreads we receive from multiple global banks. We are making the special offer of a 1 pip spread reduction to clients with a balance of $10,000 because of the higher trading volume these accounts will generate.

Originally Posted by Twig

Obviously FXCM is not content to just make several hundred million profit each year, they want to expand that to billions, just like every other greedy @$#%$% Company out there.Use everyone up to start a business & get profitable and then stick the boots in.
Yeah thanks alot FXCM
Twig

FXCM has the ability to profit from either a Dealing Desk or No Dealing Desk execution model. Our motivation for switching to No Dealing Desk is to provide the best quality of trade execution that we can to our micro clients, just as we do for our standard account clients. Click here to read more about the benefits of No Dealing Desk execution.

Thanks for posting your questions and concerns, Twig.


Suhail

The low spread was key. The increase in spread only benefits FXCM here, not the traders.. I'll be looking for another broker now.

I am a little confused, if the no dealing desk means we are paying standard spreads then the question is, were we paying some thing before in terms of delayed price feeds or some other technique that was not visible to us that made it appear that there were small spreads when fact those spreads were absorbed in some other way within the system? I personally don't care much either way at the moment but it seems a little odd that the lower value trades of a micro could be of lower spread than a standard account in the first place.

fxcm should know that the only reason traders love micro account is bcoz the spread.... fxcm should make a survey first before apply new changes to fxcm micro account. micro account traders trade in small amount with small capital...
so please fxcm... think before u change this regulation.

Dear Mr Suhail (FXCM) in reply to your reponse below,

3) The 1 pip markup is on both the sell price and the buy price. For example, if the banks are providing us a raw prices of 1.36800 on the sell price, and 1.36805 on the buy price, then that's a "raw" spread of 0.5 pips. With our 1 pip markup, the client will see a sell price of 1.36790 and a buy price of 1.36815, for a "retail" spread of 2.5 pips. Clients who have a balance of at least $10,000 on March 18th qualify for a 1 pip spread reduction, so their sell price and buy price are marked up by only 0.5 pips on each side. In this scenario they would see a sell price of 1.36795 and a buy price of 1.36810, for a "reduced" spread of 1.5 pips.

So now the little micro account holders whom have built in size and supported FXCM all this time are getter to have to pay more in spreads by 1 pip, whilst others who can afford and would have had to go to a standard account previously get a 1 pip reduction,. How's that fair??

4) On the No Dealing Desk execution model, we do not profit when you lose, or lose when you gain. That means in order for FXCM to be profitable on the No Dealing Desk execution model, FXCM makes money through pip markups (which are really commissions) on the spreads we receive from multiple global banks

Ahh yeah!!! I already knew that!!! that's what we are talking about the increased spread or in other words the increased profits of FXCM


5 & 6) FXCM believes that No Dealing Desk trade execution is the fairest and most transparent execution model that we can provide to clients because it eliminates potential conflicts of interest between us as the broker and our clients who trade with us. We do not wish to have any conflicts of interest with our clients, and when we first launched FXCM Micro, we planned to offer No Dealing Desk execution. However, the banks would not stream prices in micro lots. This was simply unheard of in the foreign exchange industry. Our FXCM Micro traders have since placed over 30 million trades totaling 200 billion in notional volume, and the banks have changed their minds. As a result, we are preparing to offer No Dealing Desk execution to our Micro clients so you too can enjoy the same execution benefits that Standard account holders currently receive. The first step in this process is to bring micro pricing in line with what is available on standard accounts.

Hey hang on here a minute, how can that be "in line with the Standard account", if FXCM is giving unfairly some Micro holders a 1 pip reduction, ie; less than what you stated 'in line with Standard Account holders'



FXCM believes that No Dealing Desk trade execution is the fairest and most transparent execution model that we can provide to clients because it eliminates potential conflicts of interest between us as the broker and our clients who trade with us. Click HERE for details on all the benefits of No Dealing Desk execution. On the No Dealing Desk execution model, we do not profit when you lose, or lose when you gain. That means in order for FXCM to be profitable on the No Dealing Desk execution model, FXCM makes money through pip markups (which are really commissions) on the spreads we receive from multiple global banks. We are making the special offer of a 1 pip spread reduction to clients with a balance of $10,000 because of the higher trading volume these accounts will generate.

If that is true then the reduction should go to those that have already have a high trading volume compared to there account size, I have traded approximately 1700 trades how does that not constitute "high Volume"?

There is no guarantee that just because an account holder has $10,000 in their account that they are going to trade large volumes. I would beg to differ and say that they would be more cautious as they now have more to lose.

Besides they could just like anyone else regardless of their account size take one single trade and wipe out their whole account, so FXCM only profits on two sides of one trade!!!!


To reiterate, on the No Dealing Desk execution model, we do not profit when you lose, or lose when you gain. That means in order for FXCM to be profitable on the No Dealing Desk execution model, FXCM makes money through pip markups (which are really commissions) on the spreads we receive from multiple global banks. We are making the special offer of a 1 pip spread reduction to clients with a balance of $10,000 because of the higher trading volume these accounts will generate.

If you are giving the reduction for the reason above, then what constitutes a large volume??

What is this number of trades???

I reiterate that all current Micro Account Clients regardless of account size should get the '1 pip reduction'.

Or at least the Micro clients that have demonstrated that they already trade volume compared to there current account size and therefore in the future would also possibly trade same large volume if they increased their account size at a later date..

Lastly FXCM is unfairly encouraging Micro account clients to possibly trade with more than they can afford, ie; FXCM is enticing clients to deposit a large sum of money into something that is known to be very risky and with great chance of lossing most or all of their account holdings, Risk Warning: Currency trading involves substantial risk of loss.

It could possibly be argued that if a Micro client did load up there account with $10,000 and then lost it, some legal action may be able to be taken, I don't know I ain't a lawyer
Regards
Twig
Approx 1700 LIVE trades - $20,000,000 notional value. Is that enough Volume???

Originally Posted by Walker E.

Currently , you are unable to place entry orders within five pips of the quoted bid/ask spread. With our move to no dealing desk, you will not see these restrictions will not apply . This means you can place stops and limits at any price.

Lets look at an example of placing an entry between the spread .



Here is a quote on the Eur.Usd . With NDD you can place an entry to buy or sell between these two prices . So you could potentially place an order to buy at 1.36265 .

With the current method, the closest you could place your entry would be at 136329 for a buy order , 5 pips away from the current market price.


Walker

Thanks Walker.

-how insane fxcm can give such offer to get 1 pip reduction, u fxcm are against what ur risk statement, always remember that micro traders are those newbie and some of them cannot affort to lose... i

-and thats true... $10,000 in account size does not guerentee they trade actively... so fxcm should give the 1 pip reduction to active traders who trades actively.... and that should be fair...

-we cannot sustain such loss with big spread since so many new traders here its insane for fxcm to increase the spread...

-fxcm must know that micro accouns is for individual with small capital and newbie but standard account is for traders who have large capital and they totally can afford to lose, thats totally different....

Originally Posted by uptick

The low spread was key. The increase in spread only benefits FXCM here, not the traders.. I'll be looking for another broker now.

Hi uptick,

At FXCM, we strongly believe that No Dealing Desk trading is the fairest and most transparent execution model we can provide to our clients. That is because No Dealing Desk execution means that at no point are we taking the market risk on the other side of our clients' trades, since we are immediately offsetting that risk with multiple competing banks on the system.

Since a profit for you would never mean a loss for us, No Dealing Desk execution improves FXCM's ability to provide quality trade execution in all market conditions, and for various trading styles (scalping, news trading, etc).

Our No Dealing Desk trade execution and the freedom and confidence it provides to traders have been enjoyed by FXCM Standard account holders for years. We always wanted to offer these benefits of No Dealing Desk execution to FXCM Micro clients and now that it is possible we are making that transition.

While we at FXCM believe that No Dealing Desk is the model that allows us to provide the best trade execution we can for the largest group of clients, I appreciate that you and traders like you, who were mainly attracted to the low spreads, are considering alternatives.

That is why FXCM is making a one-time special offer to existing micro clients. Increase your balance to $10,000 by March 18th and you will get a 1 pip spread reduction even as we transition over to No Dealing Desk execution.

Originally Posted by pippydogy

I am a little confused, if the no dealing desk means we are paying standard spreads then the question is, were we paying some thing before in terms of delayed price feeds or some other technique that was not visible to us that made it appear that there were small spreads when fact those spreads were absorbed in some other way within the system? I personally don't care much either way at the moment but it seems a little odd that the lower value trades of a micro could be of lower spread than a standard account in the first place.

Hi pippydogy,

When you consider in the costs of trading, the most obvious cost is the spread, but you also want to consider the quality of pricing and trade execution during times of volatility in the market and for trading styles such as scalping.

FXCM has always strived to provide clients with the best trade execution we can, but the old dealing desk model has its limitations since FXCM had to manage its risk in offsetting client trades. The No Dealing Desk trading model improves FXCM's ability to provide quality pricing for various market conditions and trading styles.

With No Dealing Desk, these trades are automatically offset by us with the bank that is quoting the best price at that moment in time from amongst multiple competing banks. It's a fundamental law of nature that competition breeds quality. When banks compete with each other for the business, our clients benefit from the quality in pricing and trade execution for various market conditions and trading styles.


Suhail