They are fine, but best suited to day traders, or long term traders, not scalpers - they experience higher slippage than most other live account brokers i have tried when things get volatile.
With FXCM, slippage can be either positive or negative.
It's important to note that to this day, some brokers may still not provide positive slippage to their clients, while others may provide positive slippage on some order types, but don't provide it on other order types. Still other brokers will re-quote their clients when the price moves in their clients' favor but fail to re-quote when the price moves against them.
By contrast, there are no re-quotes at FXCM, and our clients receive the full benefits of any positive slippage that's available. A one-year study of over 83 million orders executed through FXCM between September 1, 2013 and August 31, 2014 revealed the following:
- 76.2% of all orders had NO SLIPPAGE.
- 13.5% of all orders received positive slippage
- 10.2% of all orders received negative slippage
- More than 58% of all limit and limit entry orders received positive slippage
- 52% of all stop and stop entry orders received negative slippage.
Over the course of those twelve months, FXCM clients benefited from over $21 million in price improvements: https://bit.ly/P6lUzX
Notice how positive slippage is more common with limit orders, while negative slippage is more common with stop orders. That's due to the momentum of price movement when such order types are triggered. It's also worth noting that the Market Range feature on our Trading Station platform and the Enhanced* Maximum Deviation feature on our MT4 platform allow FXCM clients to limit the amount of negative slippage they receive, while still enjoying the full benefits of any positive slippage that's available.
* On the MT4 platforms of some other brokers, the Max Dev feature is unavailable, or if it is available, then it will limit both your negative slippage and your positive slippage equally. By contrast, FXCM enhanced how Max Dev works on our MT4 platform allowing you to limit your negative slippage while still enjoying the full benefits of any positive slippage.