http://www.dailyfx.com/story/topheadline/Forex_Trading_Conditions_Difficult_as_1221742363994.html New York, September 18, 2008 ― DailyFX.com (www.DailyFX.com) The currency market has recently been struck with adverse Bid/Ask spreads and unfavorable interest rate rolls stemming from evolution of a global financial crisis. Indeed, the lack of liquidity in today’s very volatile market place has made it difficult to assume leveraged positions. More succinctly for FX traders, the drop in market liquidity has led to the recent spike in overnight borrowing rates. In turn, this has led to tight or even negative interest rate rolls for many pairs at the interbank level. In reality, rollover in the Forex Market reflects more than just the benchmark interest rate differential between two currencies; and the true spread between accessible borrowing and lending rates helps us to understand why one trader could have to pay rolls even if he holds a long position in the highest yielding currency. Looking ahead, financial markets are likely to remain under a considerable stress; but the recent injections of liquidity by the world’s preeminent central banks and efforts to improve policy should help to alleviate some pressure in the financial system over time. Full Article: www.dailyfx.com
FXCM appreciates your concerns and would like to clarify a few of your questions. This week we have had large financial institutions fall due to what we believe was over exposure and taking on too much risk. FXCM strives to limit unnecessary risk. FXCM operates under a No Dealing Desk Execution model.* We provide you with streaming prices given to us directly from the banks and financial institutions. These are the prices you will see. Brokers providing you with lower spreads may be tailoring the prices given to them by the banks and holding the risk on their end. FXCM feels that it is in your best interest that we strive to limit our risk and will continue to provide you with the spreads and rollover rates we are receiving from the banks we work with. In volatile market conditions like these that have caused multi-billion dollar entities to go under, we believe it would not require very many losses to wipe out a multi-million dollar entity. If they go bankrupt because of the risk they took on, you lose as well from having your funds frozen in bankruptcy litigation for years. FXCM chose the no dealing desk execution model to avoid these conflicts and dilemmas with our clients. We apologies for this inconvenience, but will continue to only stream you the prices and rollover that are given to us directly from banks and financial institutions Thank you, Jaclyn Sales Public Relations Coordinator FXCM / DailyFX.com Financial Square 32 Old Slip, 10th Floor New York, NY 10005 Dir (646) 432-2463 Tel (212) 897-7660 jsales@fxcm.com ________________________________________________________________________ FXCM Facts •Forex Capital Markets LLC is one of the Largest Forex Dealer Members •More than 100,000 live accounts are traded on FXCM trading platforms •As of January 2008, an average of $350 billion in notional volume is traded each month on FXCM trading platforms •As of January 2008, there is in excess of $700 million in customer funds trading on platforms offered by FXCM ### About DailyFX.com •DailyFX.com is one of the world’s leading news and information sources for the currency trading community. •Wide international audience: Over 4 million page views a month. •Up-to-the minute news: From 10 to 20 articles and reports every day on the latest changes in the currency market. •Timely technical analyses: Close examination of promising chart formations. •Up-to-date analysis of fundamental influences: In-depth analysis of recent price moves, predictions of likely market moves and explanations of economic and political factors driving the market. •Economic Calendar: Complete release schedule of news events coming out of the G-10 countries, with sort and filter capabilities to rank each by importance and impact on specific currencies. •Forum: The DailyFX.com Forum is a serious online forum that avoids the “market noise” and irrelevant personal commentary that plague many forex blogs and forums. DailyFX strives to keep the DailyFX.com Forum the place where real traders go to talk about serious trading. •Free charts: Free forex charts for beginning, intermediate and expert traders, complete with live currency quotes •Live rates: Live currency rates around the clock. ### Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. *Please note that FXCM Micro, in its discretion, may or may not offset individual transactions unlike transactions in most FXCM Standard and Mini accounts.