Forex Capital Markets ( FXCM ) are foreign exchange markets where the currencies are been bought and sold continuously for profits. The Forex capital markets are present globally and transactions are non-stop in this market. Whether its USA or Tokyo, one would find aggressive forex brokers and dealers peering into their computer screens and on the telephone for minor changes that might affect this currency trade.
Forex Capital Markets is also known as an online foreign exchange market which is based in United State. FXCM provide services through its own online trading platforms and also through third party platforms. Forex Capital markets allow retail and institutional clients to speculate on global foreign exchange markets in what is known as margin forex trading. Outside the US, FXCM also provides trading in contract for difference (CFDs) on major indices and commodities such as gold and crude oil.
Forex Capital Markets was built in 1999 in New York. It was one of the early developers of online forex trading. In 2003, Forex Capital Markets entered into a partnership with Refco group, one of the largest US futures brokers at the time. Refco took a 35% stake in FXCM and licensed the Forex Capital Markets software for use by its own clients. Following the collapse of Refco in October 2005, Forex Capital Markets became entrenched in the Refco bankruptcy proceedings for a number of years. In 2003, Forex Capital Markets expanded overseas when it opened an office in London which became regulated by the UK Financial Services Authority. The same year it continued its overseas expansion and opened FXCM offices in France and Australia. Now Forex Capital Markets has its headquarters in New York and offices in Dallas, San Francisco, Hong Kong, London, Tokyo, Paris, Berlin, Sydney, Dubai, Beirut, Milan, Santiago de Chile, Athens, Jerusalem and Tel Aviv. FXCM also owns the Forex trading news and research web site.
The Forex Capital Markets business model allows retail clients to speculate on forex markets with leverage. . Forex Capital Markets promotes no dealing desk business model for its currency products, taking prices from a number of major banks and allowing clients to trade the best price at any given time. This is also known as a direct market access model, in contrast to a market maker model more commonly used by forex brokers.
In conclusion, forex capital markets, being still a relatively young and mostly underdeveloped compared to other segments of the financial markets. Forex Capital Markets given their intrinsic volatility represents a remarkable opportunity to the educated currency trader. FXCM Elements that will help us to succeed are incessant practice, thorough knowledge of the history, science and art of currency trading, ability to deal with trade failures and the perseverance to be a forex trader with discipline. According to Forex Capital Markets, the percentage of profitable customers ranged from 35% for those with accounts under $1,000, to 47% for those with accounts between $5,000 and $9,999.