I was wondering if you think FXCM is really a no dealing desk-broker? I know all their marketing is about NDD, but is it true? I've read a lot of comments on ForexPeaceArmy in which users reported about stop hunting and unfair trading conditions. And FXCM would make much more money by trading against newbies than with only "the broker" between the liquidity providers. Looking forward to comments One of their new banner ads on this site has 'got me going' i.
Just be very wary when reading broker reviews. OR a bad review has been posted by a 'virtual person' who works for another broker and cannot stand the fact that their competition is getting better reviews and ratings than them overall.
When reading broker reviews look for certain 'common threads' to emerge. And as if THAT is not bad enough: But also DO remember there are certain 'basics' to bear in mind most of which most new traders believe are broker 'moves'. A good example is this thing of 'slippage'. Always been a debatable point. Dealing desk or not is unimportant. If they have sort of a dealer plugin, e. Plus I agree with Dale. Slipping is a normal business. I'd rather look for reliable execution of your orders.
If that is okay, spreads not too wide, etc. If however slipping becomes too extensive or you won't get any orders filled or there are "issues", it is time to look for another broker I can also suggest to look at fpa.
If there are too many bad records The trading agreement you sign when opening an account with FXCM US specifies how orders are executed via NDD forex execution, it is disclosed in the documents we make available as a publicly traded company, and the execution model is described in detail on our website.
A dealing desk broker could possibly make more money by trading directly against their clients by going for more than the spread. From a business stand-point, this introduces more risk where you then have to be concerned with how they are managing their trading. If all of their traders begin to win, that could then result in larger losses for their business. Therefore revenues with NDD forex execution are tied to our clients trading volume rather than client losses and taking the chance of a dealer managing a position properly.
What I just described goes into the benefits from a business stand-point, not to mention the benefit of trading anonymously so that no single liquidity provider can single out a trader with re-quotes or dealer intervention. Hello, I cannot won't??? I just thought it amusing is all!!! Alright on second thought: Regarding your original query: Hope this helps and if you have more questions, then let me know.More...