FXCM dealing desk model reintroduced


15 September, AtoZForex.com, Lagos – In the midst of FXCM’s difficulty; being faced by very low share prices and plagued by debt, the firm has announced the settlement of an additional amount to Leucadia. This will put the total amount payed so far to $115 million.

Having offloaded its Hong Kong and Japanese arms at a profitable bargain, the broker has streamlined it’s activities. The company is also looking into ways to boost its revenue, prompting the reintroduction of its dealing desk model.

The evolution

When FXCM Inc. first came into business, it started out as majorly a market maker. As the industry evolved, so did the firm. The company then went full A-book, such that its proceeds where based strictly on commissions from client trades. By the of 2014, it made a full on-boarding to the A-book model across all its subsidiaries.

In need of funds, lets go B-book!

The FX broker, who was once regarded as the largest in the world desperately, needs to increase its revenue flow. Hence, the re-introduction of the B-book model, which it previously ditched to go full A-book. The dealing desk has been reintroduced to cater for clients who open accounts via the London based subsidiary, FXCM UK. Clients where officially notified of the new development via email. With large debts still looming from the aftermath effect of the SNB disaster of January 15, 2015, where it incurred about $265 million in losses. The company is forced to seek more streams of income. The loan from Leucadia National kept the company from going bankrupt, and ever since, the loan has paid up about $115 million of this debt, having failed to recover negative balances from clients.

What is new with the mini account?

With the FXCM dealing desk model, comes the re-introduction of some features like the 1:400 leverage for clients trading Forex. Also, minimum deposit allowable of £50 on such accounts which it terms “mini accounts”. However, the maximum leverage on CFDs remains at 1:200.

On the other-hand, the mini accounts only allows for trading on the MetaTrader 4 and FXCM’s own proprietary platform Trading Station. Also, the amount of pairs tradable here is limited to just 18 pairs. This creates a tradeoff for clients, to trade with higher leverage, you have to compromise for less diversification in tradable instruments.

Read also: FXCM Rakuten deal sealed!

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