Forex Capital Markets; the leading online foreign exchange trading provider, well known as FXCM, announces its integration with QuantConnect; an online platform for automated trading or rather black-box trading. This is to the advantage of the algorithmic traders, since they will now be able to easily access historical data of any stock from the FXCM with less time and effort.
With the two working together, clients of QuantConnect will be able to get access to the historical timing, pricing and quantity of stock orders of FXCM within minutes; a process called back-testing. The advantage that comes with this is that, there are no restrictions on strategies. This eliminates the use of the desk execution system, since trading will be live. FXCM uses a unique business model known as a direct market access; DMA model or rather No Dealing Desk; NDD model; that enables clients to trade the best price anytime of the day.
QuantConnect has over twenty four thousand active participants in its forums, who receive answers of the issues they face with their algorithmic strategies for trading. Hence, the integration will make it easy to give instant and satisfying services to all its clients. This is because of them being able to access information from FXCM without having to pass through several processes and spending days to complete the process. Algo trading uses a computer program and complex algorithms in order to come out with trading strategies that would yield optimal returns. A complex algorithm, without affecting the price of the stocks or aiding an increase in purchase costs, enables investors to obtain the best price possible.
FXCM prioritizes better services to its clients. This is evident from: their partnerships with other online service providers; development of tools and resources; while still ensuring that its clients get precise and comprehensive solutions to their algorithmic trading issues. According to the CEO during the announcement, Algo traders are of much value especially in the open source model due to its high flexibility and it having some of the most useful strategies, as well as the back-testing of stocks.
This online foreign exchange trading provider offers a variety of services for its customers. The customers are able to work with the FXCM partners or even directly use the FXCM data center using a cross connect if they have a rack space. All this is possible with the use of the Application Programming Interface solutions. In order to reduce delay while offering services, FXCM provides a Metrolink access that connects data centers directly, to cater for the needs of the clients who have a rack space outside the data center of FXCM. Also, for those clients who prefer using different rack spaces, FXCM has partnered with several Virtual Private Server (VPS) providers to offer a variety for the clients but have a physical presence in FXCM data center.
Some of the benefits that come with the integration between FXCM and QuantConnect include: Clients are able to execute strategies on their own. Also, they will be able to get a historical data of stock orders from FXCM within minutes, which is in contrast with the desk execution system that takes a long time to give out results. To add on the good news is the fact that FXCM will automatically grow and expand its market share, since faster and reliable services are now available for their clients at any given time.
FXCM has grown tremendously since its formation in the year 1999. Apart from its integration with QuantConnect, it has formed several partnerships that have brought significant changes to its operations. Some of which include its partnership with one of the largest United States brokers at the time; Refco group in 2003. Refco licensed the use of FXCM’s software by its clients. In the same year, it opened an office in London which was under the control of Financial Conduct Authority. Also in 2010, it went public and began trading on the NYSE. While in 2016, it expanded its services and established an office in South Africa.
All these developments, among many others show that FXCM is ever growing and continues to grow especially with its current integration with QuantConnect. This is one of the developments FXCM has made in years of its existence that will possibly lead to its sweeping growth in the near future.