History of FXCM Group
The FXCM Group is a leading provider of online foreign exchange (FX) trading, CFD trading, spread betting and related services. Founded in 1999, the company's mission is to provide global traders with access to the world's largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on FX trading and provides trading tools, proprietary data and premium resources. FXCM Pro provides retail brokers, small hedge funds and emerging market banks access to wholesale execution and liquidity, while providing high and medium frequency funds access to prime brokerage services via FXCM Prime. FXCM is a Leucadia Company.
FXCM Group's Liquidity Providers and Prime Brokers
FXCM Group's liquidity providers include global banks, financial institutions and other market makers. FXCM Group currently has a number of liquidity providers, including but not limited to: – Barclays Bank, PLC – Citadel Securities LLC – Citibank N.A. – Deutsche Bank AG – FASTMATCH INC – XTX Markets Limited – UBS AG – Morgan Stanley & Co., LLC – Commerzbank - HC Technologies LLC. FXCM Group also has a number of Liquidity providers that stream pricing through the FastMatch Electronic Communication Network. FXCM Group's Prime Brokers include Citibank N.A. and Jefferies Financial Services, Inc.
How Do Liquidity Providers Compete?
Each liquidity provider streams through a direct feed of executable buy and sell prices to FXCM. FXCM's Price Engine selects the best buy price and the best sell price, which result in the best available spread. FXCM's spreads are transparent and some of the lowest in the industry. FXCM is the counterparty to all trades that a client undertakes. In no way does a liquidity provider act as the manufacturer or counterparty in the context of any transaction with a client.
Liquidity providers are also ranked by their order rejection rate, spreads, and latency. FXCM constantly evaluates and monitors the ranking of our liquidity providers and takes any appropriate actions if necessary aiming to provide best available price to our clients. Through assessing our liquidity providers' execution performance together with our internal risk management framework, FXCM may offset multiple trades in blocks. By holding ourselves and our liquidity providers to such high standards, we strive to provide the best possible customer experience.
What Do Liquidity Providers See?
When a trader places an order, FXCM hedges the position immediately. For example, a buy order in the example above would go to liquidity provider #2. To the liquidity provider, all orders appear as Market Orders from FXCM and contain no information about the trader. Since your stops, limits, and your entry orders are invisible to these price providers, we create an environment free of price manipulation. When we combine this with no re-quote trading you have the opportunity to confidently trade all market conditions, even during key news events.