I want to share my experience with FXCM as well.
Been trading with them for approx. half a year now. The overall experience is more or less disappointing.
I am running a scalping approach, which is identically running on several other brokers (all DMA!) in parallel, and although Jason is not getting tired of repeating the large amount of liquidity providers, the execution and filling at FXCM is far from competitive, despite which numbers he is presenting.
Average slippage of 1-2 pips is regular and as I can see, that others can do better, it is somehow disillusioning - especially as FXCM is charging a comparable high amount of commission for that unsatisfactory liquidity!
Next to that I am using a rebate service for the account, where delays caused by FXCM are happening almost every month.
All in all I am thinking about switching my deposit to one of my other brokers, as there are better alternatives out there.
Sorry, but especially for scalping not recommended.
Thanks for your feedback, Drolph
You mention that you see 1 to 2 pips slippage regularly. As of the latest publicly available data from December 31, 2016, FXCM has 178,782 active accounts. It would be hard for us to have client base of this size if slippage was as large or as frequent as you have seen, so I would like to troubleshoot three possible causes with you.
1. Is it possible you are counting tenths of a pip, and not full pips? Note that if you are using the MT4 platform, then FXCM quotes prices to five digits past the decimal point. The MT4 platform may refer to the last digit automatically as 1 full pip, but the fifth decimal is actually only one tenth of one pip.
2. Is this slippage you experience on all types or orders or only stop orders? FXCM compiled stats on over 127 million orders execution through our platforms between January 1, 2015 and March 31, 2016. Furthermore, please note that US regulations require us to provide our execution data (for US accounts, however we apply the same execution standards worldwide) to the NFA including where client orders were filled and details regarding any slippage. Our execution stats show the following: https://bit.ly/2aK4ogm
* 78.71% of all orders had NO SLIPPAGE.
* 12.77% of all orders received positive slippage.
* 8.52% of all orders received negative slippage.
* 50.2% of all limit and limit entry orders received positive slippage.
* 39.9% of all stop and stop entry orders received negative slippage.
Note that while 78.71% of all orders had no slippage, 39.9% of stop orders received negative slippage. By contrast, 50.2% of limit orders receive positive slippage (price improvements). This is due to the momentum of price movement when such order types are triggered. The key point is that more FXCM client orders overall received positive slippage than negative slippage, and most orders received no slippage at all.
3. Are you placing orders during news events or other fast moving markets? Please note that at such times, slippage is more likely, but again this can be either positive or negative. Furthermore, FXCM provides clients with special order features (Market Range for Market Orders, and Range Entry for Entry Orders) that allow you to set a limit on how much negative slippage you are willing to accept. If the best available price in the market is beyond your slippage tolerance, then your order will be canceled instead of being filled with unwanted negative slippage. The beauty of these order features is they only limit your negative slippage, not your positive slippage: https://bit.ly/2bC2Md8
Please let me know if any of these three possible causes explain the slippage you witnessed. If not, please let me know that too, as I would be happy to have our tech support team investigate if there is some other cause, because again, what you describe is not in line with the experience of the vast majority of our clients, and our goal is to provide you with excellent service and execution.