When FXCM acquired Lucid Markets in the summer of 2012, we stated in the public presentation ( that Lucid won't be making markets for retail clients on our No Dealing Desk (NDD) forex execution, and that's still the case today.
Lucid makes markets for our institutional clients ( and retail DD clients who account for less than 1% of our retail volume, but there is no internalization whatsoever on our NDD execution as all order flow goes to independent third party liquidity providers global banks, financial institutions, and other market makers.
FXCM's deep and diverse pool of liquidity providers helps to ensure that our NDD prices are reliable not set by a single provider and that they do reflect the broader forex market. Client orders automatically fill from the NDD price feed, which is the best available bid and ask prices from all of our liquidity providers after FXCM's fixed mark-up that acts as a commission. It's important to note that client orders are anonymous to these banks and HFTs, which means they can't see client stops, limits, or entry orders; they only see market orders coming from FXCM when a client's order price has been triggered.