FXCM: new pricing model for FOREX trades

Is Zorro (or its upcoming update) prepared for the new pricing model of FXCM for FOREX trades with spreads and commissions?

Thanks, Sphin

Sphin, any info on the upcoming changes? link to their site?

I see, this information is only available on their german site (at least I didn't find it on US/UK):

http://www.fxcm.com/de/markte/devisen/forex-spreads/

The current Zorro version will recognize the new spread, but not the commission. Thus the historic simulation will use the old account model. This does not matter much, as the transaction costs basically stay the same. But if you update AssetsFix.dta, the simulation becomes wrong, as it gets the new low spread but not the commission.

In live trading it does not matter. All transaction costs are automatically subtracted from the profit.

jcl, does this only apply to German FXCM accounts? Do other FXCM accounts (opened through UK, US, etc.) stay the same? If it applies to all of us, can you provide the links in other languages? At least in English since it seems to be the forum's main language at this point...

Thanks.

It does only apply to your account if you get notice from FXCM by email. Otherwise your account is unaffected by the change.

Thanks.

I have a FXCM US account and I got the email today.

"FXCM is taking the next steps to evolve our famous No Dealing Desk forex execution. We’re introducing an exciting NEW forex-pricing model with raw spreads1 and low commissions that significantly reduces trading costs for our most popular currency pairs. FXCM will now provide you raw spreads from our liquidity providers. FXCM is now primarily compensated by transparent low commissions per lot.

To ensure you have sufficient time to manage positions and learn about the new pricing model your account is scheduled to upgrade automatically after trading closes Friday, October 3 2014."

That's exactly the mail in english I got 2 weeks ago. Seems they changed Europe first.

Hi Sphin. Do you have a US account? From what I read on-line, I thought this was a US-only update?

Thanks.

Now there is no spread difference between their standard account and active trader account.

No it's not US only. I already have the new spreads since about one week, here in Germany.

Thanks royal. So it appears to be US & Germany clients only so far...

Think of the rest of us out in the cold as you enjoy your new spreads!

Hi jcl, & others. FXCM told me today:

a) German & French accounts are already on the new rates
b) US accounts are being converted now to the new rates
c) UK accounts will begin receiving notice next week and be converted October 26
d) The new rates apply to currencies only - CFD rates are the same

jcl, from what you wrote above, Assets.dta will pick up the new spreads, but not the commissions, correct?

For Testing using the new rates, could we copy an updated Assets.dta to AssetsFix.dta and then simply increase the spreads by the commission amounts? I realize this wouldn't be 100% accurate since 1/2 the commission is charged on entry and the other 1/2 on exit, but it seems it would be close enough...

Thanks.

Oops - sorry for being too late! DdlV, I have a german account. And I think what jcl answered at the beginning of the thread is a quite good work around.

No problem, Sphin! Thanks.