Beware: FXCM is autochanging some accounts to DD/MM on April 24

Hi all,

FYI, I've received a notice that unless I opt out by April 23, on April 24 FXCM will convert my account from NDD/ECN to Dealing Desk/Market Maker. They say this is due to demand and the new account will have lower costs and 400:1 leverage. However, in the fine print it also says no EA's and no API, which = No Zorro!

Has anyone else received this notice?

Thanks.

Well, if that is true: run!

From the German FXCM fraction I did not receive a mail with this content so far, maybe it's only a question of time. I guess "opt out" means to exit FXCM? DD is against their promotion but they changed already a lot since 1/15, but "no API" and "no Zorro" sounds not really good.

Optout means to keep the current account properties,

I've replied to FXCM to "Optout", I'll keep you posted when I receive any answer from FXCM,

Does that mean that any newly created account is not going to be able to select no dealing desk?

I also haven't received such a mail from the german part of FXCM. Will also post if I will and also the result of it.

Are there news about FXCM? I was considering whether or not to open an account with them. Or is it better to wait for Oanda/InteractiveBrokers? Some advice?

No answer?

I said already that I will keep you informed if I get any news from FXCM. Up to now I did not receive anything,

I replied to FXCM to opt-out. They answered to keep the account current settings.

I read recently that if the account is above 10K, they can change the leverage to 50:1 as well

FXCM Germany announced that they will automatically change 'little' accounts to the 'new mini accounts' (that means FOREX dealing desk too) since 18th of December this year but you can opt-out via formular. This concerns only to accounts of mine with a balance of 0 (which should have been closed already) and does not to another one with 2.5 K. I don't know what FXCM regard as 'little'.

I recommend to opt out. FXCM gave no clear information about the differences of the 'mini account' to a normal account, but their vague description sounds suspicious. You should not switch to a 'dealing desk' account.

I already opt-out as I read this:
"Konten, die der Dealing Desk Ausführung unterliegen, können Restriktionen bezüglich Scalping-Strategien, Newstrading, Expert Adivsors und API-Schnittstellen unterliegen"

(With DD there can be restrictions with scalping strategies, newstrading, EAs and API)

I recommend to change the broker. Seriously, it is not only vague information about the new dealing desk accounts, FXCM changed their terms and conditions significantly within 2015 (and of course according to the SNB impact) and the new formulations in German are partially not even whole sentences (my English is not so good that I would rely on my understanding of legal texts). Therefore I asked my contact at FXCM some questions about some new conditions and received as an answer that I should contact a lawyer. This is no way to deal with customers. I only keep a small amount of money at FXCM because it is actually the only way to trade with Zorro via API, without having MT4 involved.

It is something they can do without previous notice. One account can be ND today but tomorrow it can change into DD.
It can happen if the balance goes over 10k but also 8k or whatever without any reason.

So which broker? some suggestions?
When will be ready the API for Oanda or InteractiveBrokers?

The IB API will be included in the November update, but IB has its own problems. Minimum lot size is 20000 contracts. They charge many different fees and require $10000 initial deposit, which means you have to withdraw $3000 first before you even can start trading with the free Zorro version. Oanda is probably better suited for Forex trading.

So what would be the solution? Is there an Oanda API or need I to go with the MT4 bridge?

Hi Everyone,

FXCM's offer to switch accounts to the new Mini account setup was only extended to Standard accounts with a balance less than 2K. That's because a Mini account has lower margin requirements (0.25% for up to 400:1 leverage except in the US where regulations limit leverage to 50:1) allowing you to place more trades with a lower balance. By contrast a Standard account requires at least 1% margin for a maximum of 100:1 leverage.

FXCM offers traders the choice of opening either a Standard account on No Dealing Desk (NDD) execution (2K opening minimum) or a Mini account on DD execution (50 opening minimum).

Complete details comparing Mini to Standard accounts is available on the FXCM website, but below are the key differences.

A Mini account lets you trade with a smaller balance and higher leverage (up to 400:1 except in the US where regulations limit leverage to 50:1) on 18 of the most popular currency pairs on DD execution. A Standard account offers you No Dealing Desk (NDD) forex execution with more currency pairs (40) but the starting minimum is higher (2K) and leverage is limited to 100:1.

Thanks - but the main problem that I see is switching to DD execution. Assume someone had not opted out and is running an automated system via MT4 or the FXConnect API. What would happen? Would his system then not react anymore or crash when the account is switched behind his back?

Hi Jcl,

First, it's important to understand that no FXCM account is being switched from Standard to Mini behind anyone's back. Clients with an account balance less than 2k have been given advance notice of this option to switch to Mini, so they can opt out if they prefer.

In this way, FXCM is offering existing clients the same options available to new accounts. Any trader who opens a new FXCM account has the choice of opening either a Standard account with at least 2k, or a Mini account with less than 2k.

For risk management purposes, the maximum leverage that FXCM offers on NDD is 200:1. However, FXCM continues to receive demand for higher leverage from traders with lower balances. The Mini account caters to this demand by allowing up to 400:1 leverage (except in the US where regulations limit leverage to 50:1).

But what about the restrictions of the new mini accounts concerning automated systems via API or MT4? I read only that there may be certain limitations but not definitly if and which. I guess that's the most important fact for the users of this forum, a leverage 400:1 is nice but useless to most people in here if only tradable manually.

You make a good point, Sphin

While the 400:1 leverage (outside the US) makes the Mini account an attractive choice for manual traders with smaller balances, if your goal is to automate trades using MT4 or API, then you should opt for a Standard account, since those options aren't available on Mini.

FXCM welcomes all trading styles on our Standard accounts which offer you No Dealing Desk (NDD) forex execution.

Okay. Then I have to close my 1000€ account running Z7 and change the broker.

Thanks for the info.

Hi Sundance, there seems to be some confusion.

If you have an existing Standard account with FXCM, then you can opt out of the switch to Mini, even if your balance is 1000€.

The 2000€ minimum only applies to traders who want to open a new Standard account and don't have one already.