Please wait for a site operator to respond. You are now chatting with 'admin7'

admin7: Welcome to GCI Financial-Customer Support, how may I assist you?

you: Hi, my name is Christian and I am interested in FOREX

you: Could you give me some further input regarding your EUR/USD spread say in a EUR 5000 account

admin7: you can find a list of all our spread for all our instruments on our website sir admin7: http://www.gcitrading.com/spreads.htm

you: so its 3 pips, during news event and volatile markets, too?

admin7: yes sir.

you: so thats always at any time 3 pips, no exceptions?
you: i am just asking because there a re brokers out thre who widen the spread during those events

admin7: no sir, our spreads are constant

you: so that means i see a spread of 4 and i freeze the platform and mail you the screenshots as a proof you will have to cancel my trade in case a loss occurs, correct?

admin7: can you please direct your question to our dealer at this site http://www.gcitrading.com/cfdchat.htm . They will be in a better position to answer your question

you: but i am interested in forex and not in cfd's

admin7: they deal with all questions sir

you: ok i'll give it a try, thanks for your help

Please wait for a site operator to respond. All operators are currently assisting others. Thanks for your patience. An operator will be with you shortly. You are now chatting with 'CFD Dealer'

CFD Dealer: Hello. How may I help you today?

you: Hi my name is Christian, the other chatroom forwarded me to you. Its regarding the spreads. what i would like to know is whether eur/usd has always a 3 pip spread in a mini account.
you: anybody there?
you: hello... you: well, i think i better go to a broker who can answer questions, thanks for your time

CFD Dealer: i'm here sir
CFD Dealer: sorry about the delay
CFD Dealer: yes sir. EUR spread is fixed at 3

you: during news events too?
CFD Dealer: yes sir. the spread is always fixed
CFD Dealer: the price you may get filled at or requoted to will depend on market conditions naturally

you: so it may happen that i get a different price when the order is executed?

CFD Dealer: yes.
CFD Dealer: example
CFD Dealer: if you have an order set to buy at 1.5675 CFD
Dealer: the market is at 1.5660 right now
CFD Dealer: let's say some data came out and the market gapped up to 1.5690
CFD Dealer: +30 pips
CFD Dealer: you would be filled up to 90 and not at the price which was set at 75
CFD Dealer: since that is the "new" trading level

you: well but those price gaps rarely occur in eur/usd and in this case you should proof the gap with interbank quotes

CFD Dealer: yes sir. they are common during news/data release
CFD Dealer: which is normally scheduled
CFD Dealer: during regular market moves it is rare

you: price gaps of lets say 25pips are common during news events when liquidity is on top?
you: maybe we have a different understanding of gaps
you: Anyway, have just one more question. When I buy lets say 1 lot eur/usd. Do you put the order through to the interbank market?

CFD Dealer: yes sir

you: so there is no dealing/trading desk at GCI?
you: hello?

CFD Dealer: yes there is sir, but for more volatile and illiquid products which we clear throught the market

you: but eur/usd is the most liquid cross?

CFD Dealer: exactly. which is why there is no desk per say for that
CFD Dealer: those are auto filled in the market

you: so for eur/usd you fill directly with interbank?
you: and when i trade lets say chf/jpy i am gonna trade against your desk, i.e. you take the opposite position?

CFD Dealer: no, we find an opposite counterpart for you

you: where? within GCI clients?

CFD Dealer: yes, and in the general market if necessary as well
CFD Dealer: liquidity will not be a problem if that's what you're trying to ask

you: so if there is no counterpart you would go with that order to interbank market as well?
you: no what i am trying to figure out is where trades are going ultimately.

CFD Dealer: ok, well yes, the interbank market

you: and dealing desk and counterparty
you: but if it were so like you described why is there no market depth on your platform for EUR/USD?

CFD Dealer: because we can only fill on prices which are trading in the market

you: yes of coures, therefore customers should see market depth and trading should be anonymously
you: because thats not the case i suspect your dealings desk takes the opposite psotion
you: and it will depend on the traders performance whether you trade against him or fill the order at the interbank market

CFD Dealer: no sir.
CFD Dealer: have you tried our demo?

you: yes

CFD Dealer: that is the basic premise of how the system works. so when you enter an order it goes through

you: it always depends (counterpart, dealing desk or interbank-market)
you: so you are telling me your dealing desk takes never the opposite position?
you: you are not an ecn-broker, you dont charge commissions and you have a fixed spread. that would make no sense

CFD Dealer: sir, do you have any specific dealing related queries? these are just general queries which you can address to info@gcitrading.com
CFD Dealer: they will send you all information you request
CFD Dealer: we have other live clients who seek attention relating to live tickets

you: well those are dealing related question and my emails were never answered
you: and i wont open an account before i dont know where orders are going

CFD Dealer: where have you sent emails?

you: info@gcitrading.com
you: but maybe you should just let me know whether you take opposite positions, i mean thats the job of a market maker

CFD Dealer: no sir

you: of course it is, you mentioned that in illiquid pairs dealing desk intervention takes place

CFD Dealer: yes, to find a match in the market
CFD Dealer: that's what i said
CFD Dealer: not that we take the opposite side
CFD Dealer: we act as a broker sir

you: and as a market maker because there are fixed spreads
you: and i cant see on your platform interbank quotes with market depth
you: so why dont you give cm interbank quotes?

CFD Dealer: sir, the quotes we offer are market quotes

you: sorry there are not. i have interbank quotes from an ecn broker and there were very different from yours
you: nobody pays 3 pips spread in eur/usd in interbank

CFD Dealer: what do you mean sir? that is the competitive spread at the moment
CFD Dealer: some brokers offer 2

you: you mean market makers . ecn-brokers offer 0.5 pip more 1 pip commission (depensd always on market depth)
you: i mean this is not interbank the market you are talking about and where orders are going. thats gci market.
you: if you can send me a written statement by email to xxx@xxx assuring that all orders are going directly to the interbank market, i will open an account

you: can u do this?
you: Hello? And when i am talking about interbank-market i mean that volumes of the orders will be reported to central bank and ultimatley to Bank for International Settlement in Basel

CFD Dealer: ok sir. please make this request formally via email.
CFD Dealer: send to trading@gcitrading.com

you: i will, maybe i'll get an answer this time
you: and thanks for your time

CFD Dealer: You're Welcome. Have a nice day. Thank You for contacting GCI Financial Ltd. We value your business.

Unbeantwortete E-Mail

To whom it may concern:
I had an online chat with one of your employees from the dealing desk yesterday.

The topic was where and how orders get filled. He assured me that, for instance, when I place a market-buy order 3 Lot EUR/USD that it would enter the interbank market without dealing desk intervention. Moreover, he laid down that your dealing desk never takes the opposite position and only looks for a counterpart within GCI clients to fill the order. If a counterpart cannot be found the order would go to interbank market.

What I do not understand is why your platform does not show interbank quotes and market depth if that’s the case. Moreover, GCI is not an ECN-Broker but a FOREX market maker and charges a fixed spread and no commission.

If my orders go to interbank (assuming there is no counterpart) those orders and their volume must be reported to the corresponding central bank and ultimately to Bank for International Settlement (BIS). This reporting should also go to your clients. However, I checked your platform and there is no such reporting.

Hence, I must conclude that counterpart can be either within GCI clients or GCI itself which would make perfectly sense since GCI is a market maker.

I am looking forward to receive some further input from you on this issue.

Best regards,

Christian