Whenever the customer profited, the broker would lose money, creating a conflict of interest. The increase was in response to the failures of some forex brokers, and it allowed FXCM to acquire new business from some of its smaller competitors who either ceased all operations or moved out of the US. In a "dealing desk" or market marker system, FXCM would be the counterparty to every trade and would profit only when its customers lost money, and would lose money whenever its customers profited. In FXCM began using the "no dealing desk" system of trading, stating that all customer trades were made with independent market-makers and that there would be no conflict of interest between FXCM and their customers. We earn fees by adding a markup to the price provided by the FX market makers and generate our trading revenues based on the volume of transactions, not trading profits or losses. Customers could only trade directly with their brokers who took the opposite side of the trade. In a "no dealing desk" system FXCM would act simply as a broker , getting a commission on every trade, while the banks and market makers took the risk on the trades and FXCM avoided a conflict of interest.