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).
