GAIN Capital's FOREX.com releases trade execution scorecard
I only blogged but this new transparency trend in the forex industry a few days ago and here comes Gain
I only blogged but this new transparency trend in the forex industry a few days ago and here comes Gain with its new execution transparency initiative. Perhaps I need to start writing about the things I want more often… This is of course a direct result (if not a mandatory procedure) of Gain being fined $459,000 by NFA for numerous execution manipulations.
99.7 percent of trades executed in less than 1 second; 73 percent of limit orders price improved in December, 2010
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NEW YORK; LONDON; and SYDNEY, January 31, 2011-GAIN Capital (NYSE:GCAP), a global provider of online trading services, has released its first trade execution scorecard for its retail division, FOREX.com®.
The performance statistics for December 2010 reveal that 99.7 percent of trades on FOREX.com’s proprietary trading platforms are executed in less than one second, with an average execution speed of eight-hundredths of a second. It also demonstrates FOREX.com’s ability to deliver price improvement, with 73 percent of limit orders price improved in the period. The execution scorecard is now available on the FOREX.com website (www.forex.com); it will be updated on a monthly basis.
“The execution scorecard demonstrates the benefits of FOREX.com’s automated trade processing, which enables us to provide extremely fast trade executions and the opportunity for price improvement,” said Glenn Stevens, CEO, GAIN Capital. “Publishing our performance statistics on a regular basis will allow our customers to closely monitor execution quality and enable prospective customers to make a more informed decision when selecting a forex provider.”
FOREX.com Execution Scorecard – December 2010 (source: FOREX.com)
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FOREX.com’s execution statistics represent orders executed on FOREX.com’s FOREXTrader platforms during market hours between 1700 ET on November 30, 2010 and 1700 ET on December 31, 2010.
“The scorecard also illustrates our commitment to transparency,” said Mr. Stevens. “As our industry matures, this type of information will become the norm. For now, we are proud to lead the way in providing the highest level of disclosure about execution quality in the retail forex industry.”
About GAIN Capital
GAIN Capital Holdings, Inc. (NYSE:GCAP) is a global provider of online trading services. GAIN’s innovative trading technology provides market access and highly automated trade execution services across multiple asset classes, including foreign exchange (forex or FX), contracts for difference (CFDs) and exchange-based products, to a diverse client base of retail and institutional investors.
A pioneer in online forex trading, GAIN Capital operates FOREX.com®, one of the largest and best-known brands in the retail forex industry. GAIN’s otherbusinesses include GAIN GTX, a fully independent FX ECN for hedge funds and institutions, and GAIN Securities, Inc. (member FINRA/SIPC) a licensed U.S. broker-dealer.
With offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo; and Seoul, GAIN Capital and its affiliates are regulated by the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA) and the Securities and Exchange Commission (SEC) in the United States; the Financial Services Authority (FSA) in the United Kingdom; the Financial Services Agency (FSA) in Japan; the Securities and Futures Commission (SFC) in Hong Kong; and the Australian Securities and Investments Commission (ASIC) in Australia.
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FOREX.com is a registered trademark of GAIN Capital Holdings. All other trade names are the property of their respective owners.
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A trader also needs to know the *worst case* execution time, in seconds, for market orders. If 99% of the trades execute fine but that one all-important stop-loss order gets lagged for 10 seconds or more during volatility it can make a big difference to the P/L. The average and worst-case slippage of stop orders (excluding weekend or holliday gaps, but including news events) would be important to know as well, to be able to judge how risky and slippery a broker’s platform is. It would be useful to know this for order sizes of the minimum interbank lot size… Read more »
A trader also needs to know the *worst case* execution time, in seconds, for market orders. If 99% of the trades execute fine but that one all-important stop-loss order gets lagged for 10 seconds or more during volatility it can make a big difference to the P/L. The average and worst-case slippage of stop orders (excluding weekend or holliday gaps, but including news events) would be important to know as well, to be able to judge how risky and slippery a broker’s platform is. It would be useful to know this for order sizes of the minimum interbank lot size… Read more »
Price improvement from a broker which trades on a principle basis? Please tell me the audience is not so naive as to believe this means anything?
Speed of execution on a principle desk occurring quickly? You don’t say?
Apples to apples first then metrics. Principle vs. Agency is the concept that will clarify step 1.
All the rest comes from there, then again w/o order handling rules you cant have that either.
Post a bid, narrow the spread by 1/2 a pip, have a friend hit your new bid. If you cant do that then your at the wrong broker.
Simple
Price improvement from a broker which trades on a principle basis? Please tell me the audience is not so naive as to believe this means anything?
Speed of execution on a principle desk occurring quickly? You don’t say?
Apples to apples first then metrics. Principle vs. Agency is the concept that will clarify step 1.
All the rest comes from there, then again w/o order handling rules you cant have that either.
Post a bid, narrow the spread by 1/2 a pip, have a friend hit your new bid. If you cant do that then your at the wrong broker.
Simple
Hi Craig,
“Post a bid, narrow the spread by 1/2 a pip, have a friend hit your new bid. If you can’t do that then you’re at the wrong broker.”
Why do you say that? I don’t think it’s quite that simple.
Cheers,
Jim
Hi Craig,
“Post a bid, narrow the spread by 1/2 a pip, have a friend hit your new bid. If you can’t do that then you’re at the wrong broker.”
Why do you say that? I don’t think it’s quite that simple.
Cheers,
Jim
I agree with Trader here. If a broker really wants to demonstrate excellence, he needs to disclose his worst side as well. I recently had trouble placing a buy-stop order with LiteForex. My MT4 platform gave me the following message “Please wait for dealer’s answer. This might take a while.” (and I saved the screenshot, this is really what it said.). After 2-3 minutes of waiting the order cancelled out and I had to try 2 more times. After 3 attempts and approx 10 minutes my order finally went through. So this broker, and others no doubt, need to make… Read more »
I agree with Trader here. If a broker really wants to demonstrate excellence, he needs to disclose his worst side as well. I recently had trouble placing a buy-stop order with LiteForex. My MT4 platform gave me the following message “Please wait for dealer’s answer. This might take a while.” (and I saved the screenshot, this is really what it said.). After 2-3 minutes of waiting the order cancelled out and I had to try 2 more times. After 3 attempts and approx 10 minutes my order finally went through. So this broker, and others no doubt, need to make… Read more »
i ve been trading with forex.com 2.5 years tend too go in@market found them very fast ,i can place 3 orders moving stop towards price,within ten seconds never had order take more than 2 secs as i recall with very few missed quotes , if then orders were a lot slower,so stopped using if thens , as i like to go from 15 pips hard stop to 7 then 4 as fast as pos, ave spread 1.9 lowest 1.1 only when nothing happening 3/4, so far very little slippage few times against me somtimes my faver ,all in all ok
i ve been trading with forex.com 2.5 years tend too go in@market found them very fast ,i can place 3 orders moving stop towards price,within ten seconds never had order take more than 2 secs as i recall with very few missed quotes , if then orders were a lot slower,so stopped using if thens , as i like to go from 15 pips hard stop to 7 then 4 as fast as pos, ave spread 1.9 lowest 1.1 only when nothing happening 3/4, so far very little slippage few times against me somtimes my faver ,all in all ok