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The Weird and Wonderful World of Forex

Mar 29 • Forex Trading Articles • 6145 Views • 2 Comments on The Weird and Wonderful World of Forex

Use a dealing desk forex broker and at some stage you’ll probably start to notice a strange pattern emerging. Stuff that just doesn’t make any sense at all, repeated over and over again till it becomes more or less the accepted norm.

This is what we mean by the weird and wonderful world of forex. Also known as “stuff you broker says might not be the stuff your broker does”.

A broker by definition is a facilitator, a go-between. Brokers match a buyer to a seller and make a commission for the introduction. A broker has two duties to perform, depending on who he’s acting for. To get the highest possible offer from the buyer, or the lowest possible price from the seller.

Things start to get a bit more complicated when a broker also has an interest in the outcome of the transaction. Take a real estate broker for example. If he owns a share in a particular property and stands to make a profit from the sale price, how hard is he going to work in getting the price down a potential buyer? Answer is, probably not very hard at all.


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In the case of dealing desk forex brokers, that’s pretty much the case. Dealing desks don’t always hedge client trades, meaning they could well be left holding losing positions. You make money – they lose. You lose – they profit. If they can bias things in their favour they just might. After all, dealing desk brokers employ traders and my guess is they don’t employ them to lose money.

Considering they know where your stops are and have been known to re-quote in the past… You can probably guess where this is going.

FXCC doesn’t have a dealing desk. We don’t have any risk to hedge and all your trades go directly to our liquidity providers. You trades remain anonymous and all our providers ever see is the FXCC system.

We though the world of online forex was so weird and wonderful we even wrote a report about it, titled, perhaps a bit unimaginatively, The Weird and Wonderful World of Forex.

Give us an email address in the form at the top and we’ll get your copy straight to you. It’s well worth the read, even if we say so ourselves.

2 Responses to The Weird and Wonderful World of Forex

  1. Anthony Oloyula says:

    If u don’t have dealing desk and you add ur commision and add 1 pip extra to the spread, why do u say u don’t influence the price? how is it good for me?

    • FXCC Blog says:

      Adding 1 extra pip(basically our commission) to the spread on the commission-free account is done automatically. This 1 pip does not change to 1.3 or 0.5 pips, the spread on a commission-free account will always have exactly 1 pip over the spread displayed on the commission account. Since this is the only transparent addition to the spread, disclosed on our website, we do not manipulate the prices in our favour and this is clearly displayed with the price improvement. You can have a look at the slippage information regarding price improvement and see exactly why we do not manipulate the prices. Also, FXCC’s profits come from the commission the client is paying us, which is a constant 1 pip per round trip. We profit from the high volume traded by our clients, not from the outcome of their trades.

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