FXCM to Offer Metatrader

This came as a complete surprise to me but I absolutely welcome it. FXCM announces they will offer Metatrader in 2008.

FXCM plans to introduce the MetaTrader online trading platform in the beginning of 2008.Because many traders have expressed an interest in this trading platform, we would like to keep them informed of our progress. Please complete the form below if you would like us to send you information about the upcoming release of MetaTrader.

http://www.fxcm.com/metatrader-platform.jsp

Popularity: 10%

Free Forex Tick Data

The only place I know where you can get free forex tick data is at Gain Capital’s site, http://ratedata.gaincapital.com but from my experience and from other traders I’ve spoken too, the data is spotty at best.  There are gaps, format differences, and data overlaps.  What can you expect though, the data free.  I tried for a long time to fill gaps and clean up the data but I gave up.  There was just too much data and it was going to be impossible to verify.

A trader sent me an email a couple of days ago about Oanda providing tick data.  It’s free but with a condition.  You have to have at least a $1000 account with Oanda.  You then can request tick data for one currency pair (GBP/USD, EUR/USD, USD/JPY, USD/CAD, or USD/CHF) that goes as far back as January 1st, 2004.  Oanda’s states that it may take up to two weeks for them to send the data to you and you can only have one request open at a time.  So if you want tick data for all five currency pairs, it will take about ten weeks.  

If you’re an academic faculty member, you don’t need an account open with Oanda.  You can get an exemption and obtain the data for free. 

More details are available at https://fxtrade.oanda.com/cgi/fxticks/order.cgi

For more forex related posts from the Forex Project, check out:

1. Forex Historical Data
2. Where Do I Get Forex Historical Data?
3. Building Up Historical Forex Data
4. Lots and Lots of Forex Data
5. Forex Real Time and Historical Data

Popularity: 10%

Support the Forex Project

Do you want to support the Forex Project and at the same time get a more in-depth view into 1 of the 24 remaining NFA registered forex brokers?  I’ve never explored Forex Club and don’t know much about them.  I like to keep my options open though when it comes to forex brokers so I’m always on the lookout to find out more about one.   To support this website, you’ll need to fully sign up for a demo by clicking on the link to the right…. or don’t.

 

 

Popularity: 7%

The Latest Forex Broker Financial Situation

The December 31st, 2007 FCM report was released from the CFTC and processed on http://www.brokerontop.com today.   Some notable mid-cap Forex brokers who remain in financial shape based on Excess Net Capital are:

1. Oanda’s excess net capital decreased 1.85% from the previous month to 149 million dollars.
2. FXCM’s excess net capital decreased marginally from the previous month to 61 million dollars.
3. Gain Capital (Forex.com) excess net capital decreased almost 2% from the previous month to just over 44 million dollars.

1. Interbank FX excess net capital decreased by over 40% from the previous month to 15.7 million dollars.
2. FX Solutions excess net capital decreased by 49% from the previous month to 13 million dollars.

Popularity: 5%

Four Forex Brokers Cease to Exist

I missed this on Friday but the NFA announced that four forex brokers ceased operations due to the $5 million capital requirement.  They don’t announce which four.  I noticed an "Under Maintenance" page from Direct Forex which had reported to the CFTC in November but other than that, there’s no for me to know at this point.

It’s definitely not GFS Forex and Futures which have a note on their website stating they received a $6 million capital infusion.  So they’re fine for now. 

Popularity: 4%

Did Brokers Prepare For NFA Requirement Changes?

I guess we'll find out sooner or later but Forexds has an interesting comment regarding the whole thing:

"I know that many of the small FCM fishes have become IB's to established FCM's in December or sold their books to the likes of FXCM. But ALL of the names you mention in your note have posted the higher capital (I know for a fact that MB Trading and FX Club have). Alpari is a new comer to the US, but very well established in Eastern Europe. The higher net cap requirement of $10m is no surprise to FCM and they've had months to prepare and get the capital in order. You wont get the DEC data from the CFTC site until 6 weeks from now, though."

For those of you that aren't versed in the common acronyms you see in forex, FCMs are Futures Commission Merchants.  IB's are introducing brokers (defined as a futures broker who has a direct relationship with a client, but delegates the work of
the floor operation and trade execution to another futures merchant.)  Some IB's may be fund managers and some could just be considered salespeople, "introducing" traders to a larger broker and taking a commission and a cut of the spread.

Popularity: 4%

New Research Your Broker Site

I spent my remaining vacation days of 2007 designing a new site that ranks FCMs (Futures Commission Merchants).  This has been a site that I’ve been wanting to develop for over a year but just never got around to it mostly because I knew it would take a lot of data parsing and compilation.  I’m launching it today fully functionaly but with more features in the works.  In a nutshell, you can search for your broker, view the financial data they’re required to report, view their ranking trends over 60 months, view any regulatory actions against this broker, and more.  These reports are the best thing we have as traders in identifying a broker that may be financially troubled or fit.  Seeing trend data may also assist in viewing how this particular broker is financially progressing.

Click the thumbnail picture on the right to see an example of Oanda who is ranked 31st overall and 6th in the mid-cap broker category.

You can check out the site at http://www.brokerontop.com

Popularity: 2%

Forex Brokers Will Be Affected

Forex brokers will feel the affects of the amendments to NFA financial requirements section 11 and the interpretive notice entitled "Forex Transactions."  These amendments go into affect on December 21st, 2007.  

• New net capital requirement a minimum of $10 million or 10% of client assets for forex brokers offering greater than 100:1 leverage.
• New net capital requirement of $5 million or 5% of client assets are for FDM’s offering 50:1 leverage or less.
• In addition to the new net capital minimum, there are other financial requirements. They vary, depending on size of positions taken by a firm as well as the amount of customer deposits held. These new requirements will make the actual requirement much larger for a number of FDMs.  

I don't know if the smaller forex broker will be able to survive these requirements.  I'm sure we'll see for ourselves come December.

Popularity: 2%

Forex Arena

I have to say, CMSForex's advertisement is pretty good.  The U.S. Dollar, the British Pound, the Japanese Yen and the Euro fight it out in the middle of a coliseum packed with currency traders.

[youtube:http://youtube.com/watch?v=DK8WSNtCIN4]

Popularity: 2%

CFG Trader Goes Under

This news is about two weeks old but I've been meaning to post it anyway.  CFG Trader, also known as Forefront Investments Corporation, was suspended because they failed to maintain and produce current and accurate books and records.  They were forced to liquidate all of their customers open positions.  Similar to what happened to Refco, traders who had a balance of money at CFG may be screwed.  I received an email from FXCM where they state that they are trying to rescue about 3,800 of CFG Trader accounts.  This would need regulatory approval but FXCM would contribute approximately $1 million to make up the difference between the assets of CFG Trader and the funds owed to CFG clients due to under-capitalization.  Under this proposed agreement, supposedly no trader will lose any money.  

This just confirms what others and myself have said previously about the risk of trading forex.  Not only do you have to worry about your individual trade risk, but you also have to worry about whether your broker is going to go broke or not.  This has been a known risk factor when trading forex and if you want to trade forex, you're just have to live with it.  Do your research and pick a broker that has financial stability.  I've mentioned ways in which you can protect yourself as much as possible in previous posts.  In addition to broker research, you should only keep whatever money is necessary in your account and periodically take your profits out.

You can read more of my previous posts here:

How Can I Prevent Fraud When Trading Forex?

Is Your Money At Your Forex Broker Safe?

Forex Broker Financial Data

FXCM Compliance Officer Response

Popularity: 3%

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