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Given what happened with EUR/CHF on January 15th, the industry is now looking very hard at any potentially similar issues, especially with the increased geopolitical risks in Southern and Eastern Europe. The primary change FXCM has made is to remove currency pairs from our platform that carry significant risk due to over-active manipulation by their respective government either by a floor, ceiling, peg or band. We also raised margin requirements for other pairs as well. Some of these changes will be permanent while others may change as geopolitical risks change.
If you have questions about our services at FXCM please send me a Private Message.
I'd really like to know what the reason for the termination is myself. I've heard of this happening to someone else as well. I mean, is active scalping customers considered some sort of problem for fxcm? I don't know why they'd have the commission structure the way they have it now and then be against scalpers because I'd assume it attracts scalpers.
I understand that @Jason Rogers can't comment on specific accounts, but maybe he can let us know if certain account activity like active scalping is a problem in the eyes of fxcm. Maybe there's some things we should avoid doing.
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I am actively scalping on FXCM and so far no problems. But the amounts I am trading are too small to be of any concern to them. It would be interesting if someone here who trades size could comment. But I think most people here trade futures. If FXCM is not a market maker, like they say, then it shouldn't matter, but then the micro mechanics of this business is so complicated who knows what the incentives are?
While I cannot comment on any specific case for security reasons, it's important to note that as a regulated firm, FXCM is required to follow Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines in our client screening process both before and after an account is opened with us. These regulations may prohibit us from providing service to a particular individual, and this impacts most financial institutions.
In regards to active scalping, this would not be a reason for your FXCM account to be closed, since we offer you No Dealing Desk (NDD) forex execution. On the NDD model, FXCM offsets each of your orders one-for-one with the best prices from competing liquidity providers. Since we don't take the market risk on the other side of your trades, we don't profit from your losses or lose from your profits. Instead, we make our money from your trading volume. That means active scalpers are some of our best clients, because of the higher volume they generate.
If you have questions about our services at FXCM please send me a Private Message.
Since we make money from your trading volume on our NDD model, we would love nothing more than for you to be profitable, so you can scalp on even larger trade sizes. In fact, we even offer an Active Trader account type specifically to attract and retain such clients. Active Trader accounts are designed for individuals and institutions that trade 10 million notional per month or deposit $25,000. When you open an Active Trader account, you gain access to a wide range of relationship managers, service specialists, forex instructors and market analysts who can help you get the most out of your account.
If you have questions about our services at FXCM please send me a Private Message.
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I believe that's a little bit of a misleading headline - to me it implies that FXCM is in trouble. The Bloomberg article says
Leucadia National Corp. said the value of its bailout loan to online currency-trading firm FXCM Inc. declined by more than $100 million even as the firm more than doubled its money on the deal.
The $300 million rescue loan and associated rights are now valued at $759 million, the New York-based parent of Jefferies Group said Wednesday in a regulatory filing. The company had valued the investment at $947 million as of March 31.
Leucadia also said it received $75.9 million in cash payments from FXCM during the second quarter, bringing the total received to $94.5 million.
Which implies to me that FXCM is doing well and that Leucadia made an excellent investment.