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  • FXCM UK Reaches Settlement with FCA for Trade Execution Practices

    From marketwatch.com

    FXCM Inc., a leading online provider of foreign exchange (forex) trading and related services to retail and institutional customers worldwide, announces that its U.K. subsidiaries, Forex Capital Markets Limited (“FXCM Ltd”) and FXCM Securities Limited (“FXCM Securities”) (together “FXCM UK”), has entered into a settlement with the Financial Conduct Authority (“FCA”). The settlement addresses trade execution practices concerning the handling of price improvements on FXCM UK’s offsetting orders from August 2006 – December 2010. Under the terms of the settlement, FXCM UK has agreed to pay fines ... (full story)

Who cares. I dont trade anymore with them.
Once scalper always scalper
which broker you trade with @freemen.
GBP/USD
Another big bucket shop!!!!
etoro s.h.i.t for funn but I like ADMIRALMARKET.
Once scalper always scalper
Quoting timos
Another big bucket shop!!!!
...the biggest?
Carbon-Dioxide: the gas of life!
Should be band for good.
Quoting Exodus
...the biggest?
Most probably and is not first time they're are caught.
Just google "fxcm fine" and you will see they get fines almost every 1 to 2 years.
Aug 2011 Fined 2 million for same practice
http://forexmagnates.com/nfa-fines-fxcm-2-million-for-slippage-malpractices-fxcm-will-credit-clients-back/

Oct 2011 Fined 6 million more
http://forexmagnates.com/fxcm-ordered-to-pay-6-million-more-by-the-cftc-to-settle-allegations-of-failure-to-monitor-and-maintain-its-trading-systems/

FXCM Fined 14 million total in 2011
http://online.wsj.com/news/articles/SB10001424052970204524604576609022573405548
Friendly
eXchange
for Counting
Money
Carbon-Dioxide: the gas of life!
Quoting freemen
Who cares. I dont trade anymore with them.
Hi Freemen,

Even if you no longer trade with us, you might still eligible for a price improvement credit, if you had an account with FXCM UK between August 2006 to 17 December 2010. We're reaching out to all former and existing clients who were impacted. If your contact details have changed since you closed the account, please let us know, so we can send this information to your correct email address.

Also, regardless of where you trade now, you should care about whether your broker is giving you positive slippage. It's important to note that FXCM is currently one of the only firms in the industry to give price improvements on market and limit orders. I have mentioned over the past couple of years how many traders with other brokers currently experience re-quotes if the market moves in their favor, but often don't receive re-quotes for the better price when the market moves against them.

Earlier this month in their newsletter, the FCA announced a thematic review of best execution, which we welcome to introduce best execution standards across the industry that benefit traders in the same way our traders have benefited for years.
Quoting Sherpa
Aug 2011 Fined 2 million for same practice
http://forexmagnates.com/nfa-fines-f...-clients-back/

Oct 2011 Fined 6 million more
http://forexmagnates.com/fxcm-ordere...ading-systems/

FXCM Fined 14 million total in 2011
http://online.wsj.com/news/articles/...09022573405548
As far I remember they also had troubles with the NFA last year.
IMHO retail traders should look towards interactive brokers or Dukascopy. Perhaps Swissquote..maybe citi..


Quoting deepak925
which broker you trade with @freemen.
And if you'd never been caught you'd have just carried on regardless?


Quoting Jason Rogers
Hi Freemen,

Even if you no longer trade with us, you might still eligible for a price improvement credit, if you had an account with FXCM UK between August 2006 to 17 December 2010. We're reaching out to all former and existing clients who were impacted. If your contact details have changed since you closed the account, please let us know, so we can send this information to your correct email address.

Also, regardless of where you trade now, you should care about whether your broker is giving you positive slippage. It's important to note that...
Quoting josef
As far I remember they also had troubles with the NFA last year.
looks like they make more money through these practices than the fines. Forex is very hard, we don't need this kind of stuff.
Quoting Sherpa
Aug 2011 Fined 2 million for same practice
Hi Sherpa,

Our system was updated in 2010 to pass all potential price improvements to clients, and our clients have received the benefit of price improvements since that time. In our official statement, we mentioned that over the past 6 months alone FXCM clients have benefited from over $15 million in price improvements.

Like the NFA action discussed in 2011, this FCA action has to do with positive slippage not being passed on in full when transactions were offset with liquidity providers prior to the 2010 update.

Taking a look at FXCM price improvements today…

Analyzing a total of 43,128,901 forex and metal trades executed by FXCM during the six month period of August 2013 -January 2014, 6,391,641 or 15% of the trades benefited from price improvements totaling $15,726,247. Of the total number of trades executed, 4,648,672 trades were limit and limit entry orders. Sixty percent of those limit and limit entry orders were positively slipped providing clients $7,296,520 in price improvements. Of the total trades executed in the six month period of August 2013 - January 2014 clients were executed at their requested price 73% of the time with no slippage. Only 12% of orders were slipped negatively.

As mentioned before, FXCM is currently one of the only firms in the industry to give price improvements on market and limit orders.
If 96% are losing do we really think they only make money on the spread and commission as an ECN and not your losses, who gets the rest, mr invisible market? Or the liquidity suppliers from the pool? Yeah right...

Quoting spike00spieg
looks like they make more money through these practices than the fines. Forex is very hard, we don't need this kind of stuff.
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  • | IP XX.XXX.22.223
I trade with fxcm and never had a problem, except finding the right trades...
there will be more mugs joining them everyday so what you dont use them. they are very good at giving BS.
If your broker regularly gets fined for ripping people off - surely that's a sign to change broker- if it's an option I don't understand why people don't use an MTF like LMAX and actually give their trading a decent chance of success.
There's only approx five brokers or banks on the retail side worth trading with and one spread betting firm. And this ECN or STP model is the most crooked piece of marketing ever seen in the industry. Ask your broker where your losses actually go anyone who thinks they only make on the spread and commission is sadly deluded.



Quoting messiah01
If your broker regularly gets fined for ripping people off - surely that's a sign to change broker- if it's an option I don't understand why people don't use an MTF like LMAX and actually give their trading a decent chance of success.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
Tg
Quoting josef
As far I remember they also had troubles with the NFA last year.
Unbelievable!!! Why don't they just close them down?! Send the board to jail for 10 years.
The fines and bad publicity just doesn't seem to resonate with the [email protected] community that is retail traders though does it? If it did they wouldn't keep on having recent record years...

Quoting extreme_one
Tg

Unbelievable!!! Why don't they just close them down?! Send the board to jail for 10 years.
Bingo

Quoting timos
Another big bucket shop!!!!
@ Jason Rogers
No matter what you say, FXCM is doing shady business, that's why they get fined every year.
FXCM: Foreign Xchange Currency Manipulators

Nothing but a bunch of crooks.

I can take the same trade with fxcm and any other broker.
The spread widening tactic by fxcm will close the trade while the EXACT same trade with other brokers stays alive. I have experienced this dozens of times.... DOZENS OF TIMES... YES - DOZENS

Trading is hard enough without a crooked broker like fxcm. After I share my experience with other traders I encourage every trader I meet to close their fxcm account. THEY ARE CROOKS.

Jason Rogers has never even had the courtesy to respond to my personal emails regarding my concerns. This inability to respond tells me how much they really care about client concerns, and I hope it demonstrates to each reader just how unimportant each trading client is to fxcm. THEY DO NOT CARE.

It is quite comical that Mr. Rogers only responds when the client concerns go public and the company he represents is getting bad press. You won't hear from him otherwise.
Quoting deanoracer
Jason Rogers has never even had the courtesy to respond to my personal emails regarding my concerns. This inability to respond tells me how much they really care about client concerns, and I hope it demonstrates to each reader just how unimportant each trading client is to fxcm. THEY DO NOT CARE.

It is quite comical that Mr. Rogers only responds when the client concerns go public and the company he represents is getting bad press. You won't hear from him otherwise.
Hi Deanoracer,

I apologize if you feel I was ignoring you. I wasn't aware you'd sent me any personal emails, since I primarily respond to traders here on the forums.

After seeing your comment here now though I just did a search in my email inbox for "deanoracer" but found no related results. Please send me your email again at [email protected] and shoot me a private message here on the forum telling me what email address you're using so I can watch for it.

I'm happy to address any concerns you have and will ask the Trade Services Team to review the trades you mentioned.
Quoting Spreadbetter
There's only approx five brokers or banks on the retail side worth trading with and one spread betting firm. And this ECN or STP model is the most crooked piece of marketing ever seen in the industry. Ask your broker where your losses actually go anyone who thinks they only make on the spread and commission is sadly deluded.
Ta-ta

http://www.youtube.com/watch?v=GOe64yE3GzI

http://www.forexfactory.com/showthread.php?p=6931963#post6931963
"To hold, you must first open your hand. Let go." - Lao Tzu
Quoting timos
@ Jason Rogers
No matter what you say, FXCM is doing shady business, that's why they get fined every year.
Hi Timos,

First, I want to thank you for expressing your views here. Obviously, there are others here who share your sentiments. I want to take this opportunity to say that you're right to be upset with us. FXCM should have passed on positive slippage to our clients from the beginning.

While the FCA settlement was announced just this Wednesday, the time period this relates to actually occurred from 2006 to 2010. It's same issue with the NFA action of 2011. It's important to note that in August of 2010, we enhanced our trading execution policy to ensure that our clients can receive positive slippage, and our clients have enjoyed the full benefits of any positive slippage ever since.

FXCM LLC provides daily trade reports to the NFA which monitors and supervises FXCM LLC's activity including information on the price where all client orders are filled and the corresponding price where those orders are offset with our liquidity providers. All of FXCM's global trading entities including FXCM UK execute client rolling spot forex transactions as a riskless principal with FXCM LLC, so the same execution standards are applied for all of our clients worldwide.

This recent settlement is a significant step in our efforts to put this legacy trade execution issue from back in 2010 behind us. We are also pleased with the announcement from the FCA of their thematic review of trade execution standards and hope it leads to the same price improvement benefits being implemented across the industry which FXCM clients have received for 4 years now.

FXCM is currently one of the only firms in the industry to give price improvements on market and limit orders. In the last six months alone, traders with FXCM benefited from over $15 million in price improvements.
What's the overall gist of those links? Tia.



Quoting vox dei
Ta-ta

http://www.youtube.com/watch?v=GOe64yE3GzI

http://www.forexfactory.com/showthre...63#post6931963
Quoting Squeeze
What's the overall gist of those links? Tia.
Not sure what you mean.

The 1st link is just my way of expressing agreement with SB's statement.

The 2nd link you should read. It contains info on how most 'brokerages' operate.
"To hold, you must first open your hand. Let go." - Lao Tzu
Sorry mate couldn't access you tube (blocked) and I just wanted an exec summmary of that thread. I'll try and read it.

Quoting vox dei
Not sure what you mean.

The 1st link is just my way of expressing agreement with SB's statement.

The 2nd link you should read. It contains info on how most 'brokerages' operate.
Quoting Squeeze
Sorry mate couldn't access you tube (blocked) and I just wanted an exec summmary of that thread. I'll try and read it.
Ah! OK. The youtube link wasn't important at all. It was just a bad quality trailer with Hannibal Lecter (Sir Anthony Hopkins) saying his famous 'Ta Da' line.

The FF link (2nd one) is the one that matters. Strongly advice reading it.
"To hold, you must first open your hand. Let go." - Lao Tzu
Well, from what I can read Global Prime is one broker whose marketing is mainly focus on how fair they are and therefore you would believe that they are not like the others.

Haven't yet tried them out though, due to them having only fx +gold, silver.
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  • Posted: Feb 26, 2014 6:40am
  • Submitted by:
     Newsstand
    Category: Forex Industry News
    Comments: 33  /  Views: 27,503