Positive Slippage and Price Improvements - FXCM

Price Improvements

With FXCM's forex execution models, you can potentially receive price improvements on all orders as all orders fill with FXCM's best available price.

Our Technology: 16 Million orders with Price Improvements

MORE THAN 16 MILLION ORDERS POSITIVE SLIPPAGE FOR FXCM TRADERS
(January 1, 2015 through March 31, 2016*)

With FXCM's price improvement technology, all orders can receive positive slippage, or price improvements.1 This means 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 moves fast (during weekend gaps or around news events).

FXCM Highlights:

  • 78.71% of all orders had NO SLIPPAGE.
  • 12.77% of all orders received positive slippage.
  • 8.52% of all orders received negative slippage.
  • 50.2% of all limit and limit entry orders received positive slippage.
  • 39.9% of all stop and stop entry orders received negative slippage.

Forex Execution Transparency: FULL FXCM Statistics (PDF).

How To Maximize Positive Slippage

Use Limit and Limit Entry Orders

We recommend opening and closing trades using limit and limit entry orders in most cases, which guarantees your requested price or better without negative slippage. Remember that, although limit orders guarantee price, they do not guarantee execution, making order types an important consideration in any trading decision.

Trading Strategies

There are specific trading strategies and market approaches that may increase your chances of receiving positive slippage.

How to Minimize Negative Slippage

Create a Market Order

Use Market Range Order Types

When you trade with a market order, FXCM recommends setting the order type to Market Range to avoid potential negative slippage. Market Range allows for price certainty: You control the amount of negative slippage your order can receive on execution.

The range in pips assures that all or part of your order fills within the pip range (above or below) of the current market price if liquidity is available.

Example: Trading with FXCM's No Dealing Desk execution, you place a market order to buy five million units of EUR/USD with a market range of five pips. When the order triggers for execution, one of the following can occur:

  • Scenario 1: No liquidity is currently available within a five-pip range. The execution halts and the order is canceled automatically.
  • Scenario 2: Only three million is currently available within the five-pip range. Three million of your order executes within the five-pip range. The remaining two million is cancelled automatically.
  • Scenario 3: Ten million is available within the five-pip range. The entire five million executes within the range you specified.

For more information on executing orders, see How Orders Execute.

1 Price Improvements: All price improvements are contingent upon available liquidity at execution. Price improvements are available on all order types.

* January 15, 2015 was removed due to extreme market volatility. October 2, 2015, December 3, 2015 and March 10, 2016 were removed due to an FXCM system error producing higher than normal positive slippage.

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