FXCM explains its execution model, Dealing Desk gone

Following my request for more information about FXCM’s execution model, Jacklyn Sales from was kind enough to write the following

broken_tableFollowing my request for more information about FXCM’s execution model, Jacklyn Sales from was kind enough to write the following detailed explanation.

Many of us heard conflicting reports and stories about FXCM’s Dealing or Non Dealing desk due to some bias and much ignorance. It became time for FXCM to set the record straight and we learned officially what their model is:

Clarifications on FXCM’s Execution Models:

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FXCM uses No Dealing Desk execution for our Standard accounts as well as other account types, such as Mini and Active Trader, which constitutes 90% of our trading volume. Every “No Dealing Desk” trade is executed back to back with one of the world’s premier banks or financial institutions, which compete to provide FXCM with bid and ask prices. The best spreads available to FXCM are streamed to traders with a small markup, which is generally one pip or less for major currency pairs.

FXCM Micro execution is different from FXCM’s Standard/Mini account execution, and is explained in full on our Web site at http://www.forexmicrolot.com/mission-statement.jsp. To sum it up, FXCM Micro trades are not individually offset: banks prefer to have less trading tickets and larger trade sizes. As a result, offering No Dealing Desk execution for micro lot trades could invite less consistent spreads and poorer execution. For this reason, individual FXCM Micro trades are not directly offset, and FXCM’s trading desk manages the aggregate risk of the total net FXCM Micro trading positions.

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FXCM is now in the process of rolling out a CFD trading platform for our non-U.S. clients. We are working towards a No Dealing Desk solution for this product; however, the CFD platform currently cannot be described in this way.

FXCM is committed to No Dealing Desk execution and is working to offer all FXCM products with No Dealing Desk execution. At this time, 90% of our trading volume is No Dealing Desk.

I hope this better explains the way FXCM execution works on both Standard/Mini accounts (No Dealing Desk) and on FXCM Micro accounts (automated FXCM Micro execution).

Kindest regards,

FXCM

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