de | cn | ru

Brokers News

FXCM Introduces Dealing Desk Forex Trading to the UK Market

Back in August this year FXCM, a forex broker notorious for its excellent No Dealing Desk (NDD) execution, introduced Dealing Desk trading to its customers from Australia.  The experiment must have been successful and FXCM is now introducing the Dealing Desk trading to the British market as well. I suppose that when FXCM first launched Dealing Desk execution in Australia, it was testing the waters to see whether offering a choice between NDD and DD globally would make sense.
 
The reasoning behind this was simple: dealing desk execution allows for significantly lower spreads. Nonetheless, this was a surprising move on behalf of the broker: as FXCM claims itself, Dealing Desk execution places the traders and the broker in a conflict of interests. While NDD brokers serve as mediators between the customers and the liquidity providers, charging a small commission for that, Dealing Desk trading providers determine the quotes and spreads themselves, thus becoming market makers and profiting directly from the customers’ losses. Even though they are often able to offer lower spreads, their customers suffer from slippage or re-quotes on their orders and stop/limit restrictions so at the end of the day, it might not be worthy to trade with a Dealing Desk broker at all. 
 
It is still unclear whether DD execution will be launched in the rest of the world – for now, the broker’s international website states the following: “FXCM does not take a market position—eliminating a major conflict of interest”.
 

The differences between FXCM’s Dealing Desk and No Dealing Desk models

 
Whether you sign up for a DD or a NDD account, FXCM will be able to see your orders; the Dealing Desk trading model, however, will allow it to use the information if gets from the orders placed in order to manipulate the market; i.e. you will not be trading anonymously.  
 
Dealing Desk accounts also have a cap on the maximum account balance allowed – a trader who signs up for such execution cannot have more than $50,000 in their account (there is no such restriction for NDD accounts).  On the plus side, DD traders will be benefiting from significantly lower spreads: 
 
FXCM spreads comparison
 
 
The maximum trade size for No Dealing Desk execution accounts is quite higher than the one of Dealing Desk ones: 50 million for NDD versus 2 million for DD. 
 
Dealing Desk also doesn’t allow for partial fills – e.g. it is not possible to have your orders broken down to pieces and filled at multiple prices; instead, all orders are filled at a single price. 
 
The last major difference between the NDD and DD trading models concerns trading strategies: FXCM warns that it reserves its right for risk management – in other words if you open a Dealing Desk account, the broker will have the right to change your execution if you employ strategies like scalping, automated trading or news trading
 
All differences considered, it is not surprising that FXMC encourages its customers to go for NDD execution – the advantages of that model are obvious. However, if you are a trader who doesn’t scalp or trade news, Dealing Desk execution with its lower spreads might be quite suitable for you. 
 
 

About FXCM Inc.

 
FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide.
  
At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM's U.K. subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
TAGS: FXCM  FXCM Australia  FXCM UK  dealing desk execution  no dealing desk execution  forex trading  forex spreads 

More news about FXCM

Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, IFSC MT4, MT5, Web $10 Review Website
Cyprus, Australia CySec, ASIC MT4, Web,
Mobile app
$100 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5,
IRESSTrader
$100 Review Website
UK, Cyprus, Australia FCA, CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia FCA, ASIC MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
Australia ASIC MT4, MT5 $100 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website

More Forex Brokers News

FXTM appoints Han Tan as a Market Analyst for Southeast Asia region

Apr 19 2019 13:28:36

  Global award-winning forex broker FXTM has just announced the appointment of Tan Chung Han (Han Tan) as a Market Analyst. Read more

FXTM gets a license from Mauritius’ FSC

Mar 28 2019 09:59:36

  Award-winning forex brokerage  FXTM (ForexTime) continues its ongoing global expansion. The broker announced it has acquired a license from the Financial Services Commission (FSC) of the Republic of Mauritius previous week. Read more

Fortrade is the first broker to get an ASIC license in nearly 2 years

Mar 20 2019 15:03:35

  Fortrade acquired a financial services license from the Australian Securities and Investments Commission (ASIC), which hasn’t been very welcoming of new retail forex broker applicants lately. Read more

FP Markets launches a suite of cutting-edge MT4 tools for traders

Mar 06 2019 14:31:42

  FP Markets, a market-leading Forex and CFD provider, launches MT4 Trader Toolbox, a suite of twelve online trading tools which will take their clients’ trading to the next level. Read more

Major broker IG launched its US website

Jan 31 2019 13:15:37

  Global brokerage IG launched its website intended for US retail clients (www.ig.com/us). Residents of the US (with the exception of those in Arizona or Ohio) can now register on the broker’s website in less than 5 minutes and start trading. Read more

FOREX.com announced important updates to its Web Trading platform

Jan 25 2019 15:13:43

  Major forex brokerage  Forex.com  proudly announced important updates of its in-house Web Trading platform, which will take your trading experience to the next level.   Accessible from all browsers and operating systems, Web Trading was launched in 2017. Read more

HotForex parent gets licensed by UK’s FCA

Jan 21 2019 12:31:59

  Less than a month after HotForex acquired license to operate in the UAE, the trading services provider gets an authorization by the Financial Conduct Authority of the UK. The UK subsidiary of the HF Markets Group, HF Markets (UK) Ltd. Read more

Rakuten Securities offers HK$700 prepaid cards as a welcome gift

Jan 18 2019 10:26:57

  Hong Kong forex broker Rakuten Securities offers up to HK$700 Spending Limit Prepaid Card as a welcome gift to new account registrants. Here are all the details you need to know about the company’s promotional offer, which is valid from now until the end of March 2019. Read more

XM applies for a forex dealer license in the US

Jan 11 2019 13:39:14

  The US subsidiary of major forex brokerage XM has applied for a membership with the National Futures Association (NFA). This became clear from a filing by the broker’s US entity Trading.com Markets Inc. (previously Trading Point US Inc.) with the NFA dated January 3, 2019. Read more

HotForex acquired DFSA license, commences operations in the UAE

Jan 08 2019 10:45:37

  HotForex is now licensed by the Dubai Financial Services Authority (DFSA) and announced it commences operations in the United Arab Emirates (UAE). The Dubai arm of the HF Markets Group, HF Markets (DIFC) Ltd., acquired the DFSA license in December last year. Read more

de | cn | ru