FXCM Transitions to No Dealing Desk Business Model
May 4, 2007 by Trader Rich
I haven't heard much from traders regarding FXCM's no dealing desk but an email I received from them today surprised me. FXCM states that they've already transitioned 95% of their clients to no dealing desk execution. Here are additional highlights:
- Over 95% of FXCM direct clients now trade with No Dealing Desk (NDD) Execution.
- Clients trading with NDD have seen spreads significantly reduced in 13 currency pairs.
- NDD eliminates the potential conflict of interest between trader and broker; all trading orders are passed through FXCM to global banks and financial institutions competing to offer the best price.
From what I've been reading on the forums, no one is very impressed with the no dealing desk option. I'd like to hear from others experiences.
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I don’t think NDD is the same as trading through ECN or is it??
Anyway, I’ve been on NDD for little over a month and it’s really no different than through deal desk at least on the surface. The sread on GBP/USD is mostly 4pips and you may be able to catch a 2-3pips once in a while throughout the day. EUR/USD is mostly 3pips and 1-2 on occasions. But if you like to have a position opened into a news event it may be a disadvantage b/c the spread can go say 8-10 pips or even more, whereas the deal desk option is fixed.