Traders choose FXCM because our No Dealing Desk Forex Trading Execution eliminates the conflict of interest between broker and trader. With this execution model, traders have complete anonymity from liquidity providers and do not have to worry about dealer intervention. Traders also trade without restrictions.1 They can scalp the markets, trade during news events, and even place entry orders inside the spread.
FXCM's No Dealing Desk Forex Execution Advantage
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 complete to provide FXCM with bid and ask prices. Liquidity providers include global banks, financial institutions, prime brokers and other market makers), The best spreads available to FXCM are then streamed to you with a small markup which may vary based on account type and liquidity provider.
The markup applies regardless of whether you make money on the trade, and regardless of how large your profit or loss is. Given that FXCM makes money on a per trade basis, we are motivated to dedicate resources to try to improve client profitability so that you continue to trade. With this execution model, FXCM does not benefit from customer losses.
The role of a No Dealing Desk broker is to act as a true middleman that offers access to the market and who collects a transaction fee for doing so.
When an order fills at a better or more favorable price than the price you request, it is considered a Price Improvement. FXCM offers price improvements on all orders subject to available liquidity. This means that you can potentially make more money if the market gaps or spikes favorably through your limit price. This is especially true in situations where the market is moving fast (e.g., during weekend gaps or around news events).
If you are looking to take advantage of price improvements, FXCM recommends you use limit entry orders to open positions and limit orders to close positions so that you can only receive your requested price or better. Price Improvements are not available for market orders when "Market Range" is set to zero. View FXCM's Price Improvement Video Series to learn more.
More on FXCM Execution
Due to the average notional trading volume that FXCM generates, FXCM has obtained close relationships with some of the most aggressive liquidity providers. Having multiple liquidity 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.
1 FXCM Trading Station and FXCM MetaTrader 4 allow for order sizes up to 50 million per trade. Traders have the ability to trade incremental sizes (multiple orders of 50 million for the same pair). With FXCM's dealing desk execution, the maximum order size is 2 million per trade with the ability to trade incremental sizes as well.