How Does FXCM Software Work?

FXCM is one of the industry's leading brokerage services offering extensive options for the trade of CFDs and forex products. Markets for instruments facing underlying asset classes of equities, commodities and currencies are made available for trade via FXCM's technological infrastructure.

FXCM offers several distinct software trading platforms to clients, each with robust functionality pertaining to market analysis, order entry and trade execution. Currently, three software trading platforms are available:

  • Trading Station: FXCM's flagship platform, Trading Station is designed to be a viable option for new and veteran traders alike. Some of the built-in capabilities include dozens of preloaded indicators, charting applications, trade automation and mobile accessibility.
  • MetaTrader 4 (MT4): Considered by some to be the industry standard, MT4 is an extremely popular choice among active traders. Free Expert Advisors (EA) and Virtual Private Server (VPS) hosting are unique features of MT4 extended by FXCM.
  • NinjaTrader: NinjaTrader is a software suite aiding in the trade of futures and forex products. It gives traders the ability to build and test new ideas using the proprietary Strategy Builder, Market Analyser and Market Replay functions.

In addition to the platforms, an abundance of custom trading applications are available for purchase through FXCM Apps. For traders looking to integrate proprietary strategies and indicators into a preferred platform, FXCM supports custom coding and programming services.

Market Analysis And Trade Execution

The trading platform is a portal to the market, supplying traders and investors a means of directly observing and engaging price action. Price action is the movement of a security's price determined by market participants. As buyers and sellers are matched to one another at an exchange or marketplace, price fluctuates according to current supply and demand forces.

FXCM's software infrastructure employs leading-edge technology aiming to aid market participants in both the analysis of price action and trade execution within the marketplace. The technology is on display during the following progression of price discovery:

  1. Transactions At Market: As bids and asks are submitted remotely by traders, a market for a specific security is being made. Buyers and sellers are matched using servers located at the exchange or marketplace, creating price action.
  2. Real-Time Streaming Data: The price action created at the exchange is collected, checked for inconsistencies, packaged and distributed to market participants around the globe in real-time. The accuracy and timeliness of a live data feed is crucial to entering and exiting the market efficiently. Through a vast network of liquidity providers, FXCM facilitates the delivery of world-class CFD and forex data.
  3. Trading Platform: Lastly, the client's trading software receives and deciphers the data feed according to pre-programmed parameters inputted by the trader. The raw data is scrutinised by indicators and custom built strategies, as well as being presented visually in pricing chart format. Price action is analysed, and upon identifying an opportunity, orders are submitted to market for execution.

The amount of time that elapses between price action being determined at market and the data being made available to the trader often varies. As a general rule, faster is always better. FXCM provides several software-based options aimed to decrease trade-related latencies:

  • API Trading: An application programming interface (API) is the actual protocol for software function. API Trading offers clients the ability to connect directly to FXCM's price servers, streamlining the integration of the trading platform with market data, thereby substantially reducing latencies.
  • Virtual Private Server (VPS): FXCM offers a VPS Hosting Service, enabling clients to link their trading platforms to a dedicated, private server. VPS can be an asset in the implementation of automated trading strategies providing 24 hour market access.

Summary

For active traders and investors, analysing, interpreting and capitalising upon market behaviour is a major part of day-to-day operations. Being able to observe a specific market, identify an opportunity and act accordingly are key elements of conducting trade. In order to complete these tasks efficiently, access to a powerful software trading platform is a necessity.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites are provided as general market commentary and do not constitute investment advice. FXCM will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

MT4 and NinjaTrader are not proprietary platforms and therefore developed by third parties.

Third Party Links: Links to third-party sites are provided for your convenience and for informational purposes only. FXCM bears no liability for the accuracy, content, or any other matter related to the external site or for that of subsequent links, and accepts no liability whatsoever for any loss or damage arising from the use of this or any other content. Such sites are not within our control and may not follow the same privacy, security, or accessibility standards as ours. Please read the linked websites' terms and conditions.

Russell Shor

Russell Shor

Senior Market Specialist

Russell Shor (MSTA, CFTe, MFTA) is a Senior Market Specialist at FXCM. He joined the firm in October 2017 and has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the International Federation…

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Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

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