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Does the FCM take the other side of my trades and have a deal desk?

 Are you an STP/ECN or Market Maker and what is the difference?

 Who are your liquidity providers?

What are your Capital requirements and what are you currently holding in capital?

How tight can I expect to see spreads?

Will I be able to get executed during news events such as non-farm payrolls?

What are the margin requirements and can I trade into my margin?

 

  Advanced Markets, unlike most FCM's, does not take the other side of client trades. What this means is that we do not benefit whatsoever from clients losing money. All of our trades are immediately passed through to top tier banks thus creating a neutral position for Advanced Markets
 
  Questions & Answers

Here are seven key questions you should ask your broker.

Does the FCM take the other side of my trades and have a deal desk?

Advanced Markets, unlike most FCM's, does not take the other side of client trades. What this means is that we do not benefit whatsoever from clients losing money. All of our trades are immediately passed through to top tier banks thus creating a neutral position for Advanced Markets. We are only compensated by a small mark-up added to the bid and ask. We have no motive to see our clients not be successful, our motives are for our clients to be successful.


Are you an STP/ECN or Market Maker and what is the difference?

STP means straight through processing. This means trades are passed through the FCM to another broker or liquidity provider. A deal desk is considered a Market Maker because they control the price on which you trade. They can reject a trade or re-quote your trade to a new price that they determine. Advanced Markets posts the best bid/offer prices that come in from our banks, plus our small mark-up , right to your platform. So you are actually trading on the market moves that are created from the market, not someone's deal desk.


Who are your liquidity providers?

Advanced Markets gets its liquidity, or prices, only from leading FX banks. We do not get prices from other ECN's or FCM's. We have relationships directly with these banks to provide us pricing direct.


What are your Capital requirements and what are you currently holding in capital?

Advanced Markets has, and will continue, to meet the minimum net capital requirements set forth by the CFTC and NFA. Advanced Markets takes no market risk. We are always 100% hedged and showing a neutral market position. This ensures that our capital will remain stable. Companies that have had issues in the past were most commonly caused by losses in the market and how they managed this "risk" of taking on the other side of the clients trade. Our business model of not taking on this risk has always remained constant.



How tight can I expect to see spreads?

Due to the fact Advanced Markets posts the best bid/offer that comes in from our multiple banks, there are times our spreads may be 0 or less(inverted). Although these times are not frequent, it does show our desire to show complete transparency and not interfere with what the real "Market" is. Other companies may use this method, but will put a minimum price on all pairs, not really posting to the clients the true benefits of what the best bid/offer can deliver.


Will I be able to get executed during news events such as non-farm payrolls?

As a result of Advanced Markets not taking the other side of our clients trades, there is no trading risk to Advanced Markets and therefore no reason to interfere during volatile times. Your executions will remain constant during all market conditions. The banks stream prices and depth of market that are executable and real, so there is no reason for there to be a difference in execution during these volatile times.


What are the margin requirements and can I trade into my margin?

Margin requirements for all majors are 2%. All open positions will be liquidated if a client's account reaches this level.