FXCM explains its execution model, Dealing Desk gone

Following my request for more information about FXCM’s Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term 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:

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 https://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.

FXCM is now in the process of rolling out a CFD Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term 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