May-23-2012Brokers:Swissquote launches Swiss DOTS - a derivatives trading system
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May-01-2012Signals:xForex provides traders with free forex signals
May-24-2012Market:Chinese Pmi Hsbc Drifts Further Lower Into Contraction at 48.7

Execution can be slow only during news

So what's up then with the criticism on FXCM's execution in some other reviews?

Actually, the only time that execution can be slow at FXCM is during news events (i.e. just before or just after an important financial announcement). One should, however, not blame the broker for the reduced execution speeds during such events because it is a natural thing that will occur at any broker. The reason for this is that the market becomes extremely volatile around major announcements and a huge number of orders is placed in a very short period of time since a lot of traders out there like to trade on news. This results in possible slippage since your orders cannot always be filled as you planned under conditions of extreme volatility. As said, this can hardly be called a FXCM problem and it is more a general market issue. We would like to stress the fact there are much more strategies available then news trading so a good option could be to avoid news trading altogether (also because it is very risky).

forextradingpal.com 2009-09-27