Brokers News

FXCM UK order execution saves its customers over 150 million in a year and a half

Aug 03 2016
By Stanimir Zhelev , ForexBrokerz.com Find me on Google+

FXCM’s UK unit published a study on its website on Tuesday on the quality of its retail order execution in terms of pricing. According to the document, the retail clients' orders of FXCM UK received better prices than futures or interbank markets, which basically means that the broker’s execution quality saved its clients more than $150 million.

In fact, the broker uses a fiction to illustrate its attractive execution: its prices for retail clients are compared to the ones which would be offered if they chose to be market takers in the same venues where banks and HFTs are market takers. The ECNs compared in the study are leading forex market trading venues – Chicago Mercantile Exchange (CME), EBS and Reuters.

Here are the figures showing the study’s conclusions:

According to the conclusions made from the survey, FXCM was equal to or better than the quoted futures price in 81.34% of the cases, leading to potential savings of $42,529,156 for FXCM’s clients (Average savings per order: $1.02). As regards the comparison with the Interbank market, the broker’s pricing was equal to or better than the quoted interbank price in 94.83% of the cases, leading to potential savings of $114,588,455 for FXCM’s clients (average savings per order: $1.85).

Probably the most important conclusion that can be drawn from this study is that FXCM UK’s retail execution quality saved clients more than $150 million.

This study covers the period from October 1, 2014 to March 31, 2016 and is based on the trade data for UK clients on NDD execution (customers of FXCM Ltd).

Earlier this year FXCM released data from similar studies looking into the quality of execution of the retail orders of clients of Forex Capital Markets LLC for the period between 1 October 2014 and August 31, 2015, according to which the broker’s order execution saves clients over $90 million in 11 months.

FXCM UK explained that its liquidity providers offer better retail prices because they are only allowed to be price makers on retail client stream, and solely a retail client can take a price from the liquidity provider.

Part of the FXCM group, FXCM UK is the trading name of Forex Capital Markets LTD., which is authorised and regulated by the Financial Conduct Authority.

FXCM (NYSE:FXCM) is a leading broker of forex, contracts for difference (CFDs), and spread betting, which serves both retail and wholesale clients. The brokerage is a registered futures commission merchant (FCM) and a retail foreign exchange dealer (RFED) with the US Commodity Futures Trading Commission (CFTC). Apart from its UK unit, it has subsidiaries registered and regulated with the relevant authorities in Australia and France.

TAGS: fxcm fxcm uk order execution execution

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Broker	Advantages
	FXTM a regulated forex broker (regulated by CySEC, FCA and IFSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $5 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.
	easyMarkets is a CySEC and ASIC regulated broker offering access to over 300 trading instruments, tight fixed spreads, no slippage and a 50% deposit bonus.

	XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.
	FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.
	FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.
	FBS is a broker with cool marketing and promotions. It runs an ongoing monthly $999 forex contest, offers a $5 no-deposit bonus for anyone willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.
	FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.
	HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage - one of the highest in the industry.

	Exness is a leading forex broker, offering MT4 and MT5 platforms. Traders can take advantage from a true ECN environment and trade on ultra tight spreads, starting from 0 pips.

Broker	Country	Regulation	Platform	Min Deposit	Review
	Cyprus, UK, Belize	CySec, FCA, IFSC	MT4, MT5, Web	$5	Review Website
	Cyprus, Australia	CySec, ASIC	MT4, Web, Mobile app	$100	Review Website
	Australia	ASIC	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	CySEC	MT4, Web	$25	Review Website
	Cyprus, UK	CySEC, FCA	MT4, MT5	$1	Review Website

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