FXCM Markets - 5%

Hi jcl. FXCM has told me there is another account type available through an un-regulated subsidiary called FXCM Markets. These accounts are not currently scheduled to get the new currencies rates at all, but pay 5% interest on average Usable Margin, paid monthly.

A few questions:

a) Since CFD's are unchanged by the new rate structure, this seems like a no-brainer for trading Z3?
b) Is there an easy way to account for this interest in Testing results? Or would it need to be an additional after-Testing calculation?
c) If the latter, is there a way to easily get Usable Margin figures for the life of the equity curve?
d) If not, what summary variables within Test provide the simplest path to calculate it? Something like store each month's average (Equity-UsedMargin), and then at the end loop back and add CR to all the values?
e) Wondering if it makes any sense to consider this account for Z12 &/or Z5?

Thanks.

I have not heard of this model, but 5% interest sounds good especially for systems that trade relatively rarely, such as Z3.

Calculating the interest in the simulation would require that you know the capital on the account. So this is only possible when the Capital variable is set. In that case you can easily write a function that sums up the interest on any bar.

Thanks jcl. Yes, it sounded interesting to me too. I'll explore it further...

Or for accounts that are 'over capitalized' by security fanatics in fear of a margin call ...

DdlV, are there infos about this model public available or was it an individual offer? At least on the German FXCM site I can't find anything about it.

Thanks, Sphin

This thing here?

http://www.fxcm.com/markets/advantages/earn-interest/

Not for european accounts I think



http://www.fxcm.com/markets/forms/fxcmm-transfer-form/

Ah ... I guess the fact of unregulated conflicts with the law of those countries.

Thanks!

Hi Sphin. Sorry for the delayed reply. Thanks for the detailed research - I hadn't gotten that far yet. "and other countries"... Wonder if it's really available to anyone?!

Also wonder what the real downside to "unregulated" is? Never done one of those before...

Thanks.

Sounds like a kind of 'wild west market', means no FCA/PRA, no assurances/guarantees nor similar. For it's called 'FXCM Market' I think if there are any rules, they are the rules of FXCM. I would read contract & conditions very carefully.

Hi Sphin. I thought the whole FX world was a "wild west market"? From what I've read, even the regulated accounts/companies seem to have pretty significant problems. Hopefully this won't be significantly worse... Time will tell. It seems worth a shot... Wish me luck!

Best wishes for your trial, if I could I would try it too.