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- Full listing profile: FXCM broker profile
Is FXCM safe?
- Investor protection: UK Financial Services Compensation Scheme (FSCS)
- Regulation: FCA UK, ASIC Australia
- Publicly traded: NASDAQ:FXCM
- Segregated account: yes
- Guaranteed Stop Loss: no
- Negative Balance Protection: yes
Is FXCM trusted?
- Information transparency: sufficient
- Customer service: prompt, helpful
- FXCM website: semi-detailed, updated
- FXCM popularity (by visitor count): top visited
How FXCM works
FXCM uses Jefferies Financial Services Inc (JFSI) as a prime broker for FX trading and as a liquidity provider for FX trading. FXCM pays JFSI a prime broker fee for the prime broker services. Leucadia Investments has become the majority economic owner of FXCM. Leucadia Investments and JFSI are both part of Jefferies Financial Group.
FXCM's Prime Brokers include Citibank N.A. and Jefferies Financial Services, Inc.
FXCM is the counterparty to all client orders and accounts for approximately 60% of the total execution volume. FXCM has utilised third party execution venues to fill client orders.
Each liquidity provider streams through a direct feed of executable buy and sell prices to FXCM. FXCM's Price Engine selects the best buy price and the best sell price, which result in the best available spread. FXCM's spreads are transparent and some of the lowest in the industry. FXCM is the counterparty to all trades that a client undertakes.
FXCM Execution Model
FXCM acts as the counterparty to every transaction.
FXCM may choose to act as the buyer when you sell and the seller when you buy. As a result FXCM's interests may be in conflict with yours.
Execution: FXCM is your counterparty to every transaction. FXCM aggregates bid and ask prices from a pool of liquidity providers and is the final counterparty when trading forex/CFD on FXCM's trading platform.
Compensation: When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging fixed lot-based commissions at the open and close of a trade, adding a markup to the spreads it receives from its liquidity providers for certain account types, and adding a markup to rollover, etc.
Active Trader Accounts: Active Trader accounts offers spreads plus mark-up pricing or spreads plus commission pricing depending on your equity level and trading volume.
https://www.fxcm.com/ca/ - Canadian - runs operated by Friedberg Direct (powered by FXCM technology) FXCM refers Canadian clients to open accounts with Friedberg Direct.
Accounts are opened with and are held by Friedberg Direct which clears trades through a subsidiary within the FXCM group of companies (collectively, the "FXCM Group"). Customers of Friedberg Direct may, in part, be serviced through subsidiaries within the FXCM Group. The FXCM Group does not own or control any part of Friedberg Direct and is headquartered at 20 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom.
Friedberg Direct offers its clients No Dealing Desk ("NDD") Forex execution. Friedberg Direct utilizes an STP (straight-through processing system) whereby client orders are sent through to liquidity providers, which include global banks, financial institutions, and other market makers, and filled on their prices in a near-instantaneous fashion.
With Friedberg Direct MetaTrader 4, all orders execute using instant execution.
A 0.1 pip mark-up is added to spread for the use of MT4. The 0.1 pip is in addition to the regular mark-up Friedberg Direct adds to the spreads it receives from liquidity providers. Friedberg Direct MetaTrader 4 allows for order sizes up to 50 million per trade. Traders have the ability to trade incremental sizes (multiple orders of 50 million for the same pair). The Friedberg Direct MetaTrader 4 Platform does not show pip costs.
Firedberg Direct is compensated through the bid-ask spread or through charging a commission depending on your account settings and product traded. (Client Agreement)