Compensation: When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to adding a markup to the spreads it receives from its liquidity providers and adding a markup to rollover. Under the Dealing Desk execution model, FXCM may act as a dealer and may receive additional compensation from trading.
Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.