FXCM Forex Capital Markets
Posted on January 24, 2008
Filed Under Forex Brokers |
Benifits:
Lower Spreads
• Euro/US dollar spread is frequently 2 pips, British pound/dollar 3 pips
• Trade on rates provided to FXCM by multiple global banks
• FXCM’s $350 billion in monthly volume drives price competition
• Fractional pip pricing Forex Online Trading Systemsfacilitates the tightening of spreads even further
No Dealing Desk Execution
• No conflict of interest between broker and trader
• No dealer intervention in trades
• Greater price stability during volatile markets
• Price providers (Banks) do not see your stops, limits, and entry orders
• Competition reduces the potential for market manipulation by price providers
No Trading Restrictions
• Trade during breaking news
• Place entry orders anywhere—even inside the spread
• Scalp the market
• Rollover transparency—all amounts are displayed in advance
• Receive positive rolls at all margin levels
Because the Forex market is an over-the-counter market with no centralized exchange, not everyone receives access to the same prices or quality of execution. The world’s largest banks tend to provide better prices and execution to institutions with the largest trade volume and the most solid financials. $200,000,000,000 ($200 billion) in notional volume per month is traded via FXCM’s trading platform, and FXCM is one of the most well-capitalized Forex Dealer Members. FXCM is one of the oldest and largest capitalized retail online Forex brokers. As a result, FXCM has built strong execution relationships with many of the worlds largest international banks. FXCM receives and is able to pass on the benefits of size, better prices, and better execution to our clients.
FXCM Group has made an unprecedented public release of its balance sheet and invites other firms within the forex industry to follow its example.
Highlights of the (unaudited) balance sheet include the following:
$120,136,206 In Capital (Assets Minus Liabilities)
$96,311,380 In Operating Cash (Excludes Client Funds)
Drew Niv, CEO of the global trading firm, commented: FXCM is proud of our financial discipline and strong balance sheet. We believe clients should have the necessary information to make intelligent choices. By releasing this information, we hope to set an example for the entire forex industry.
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