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  • FXCM banned by CFTC after taking positions against clients

    From marketwatch.com

    FXCM has been banned from operating in the U.S. after the Commodity Futures Trading Commission found the retail currency broker had an undisclosed interest in the market maker that consistently "won" the largest share of FXCM's trading volume - and thus was taking positions opposite its retail customers. The CFTC also found that FXCM willfully made false statements to the National Futures Association in order to conceal FXCM's role in the creation of its principal market maker as well as the fact that the market maker's owner had been an FXCM employee and managing director. FXCM also agreed to pay a $7 million ... (full story)

Added at 5:21pm

  • CFTC Orders Forex Capital Markets, LLC (FXCM) to Pay a $7 Million Penalty for FXCM’s Defrauding of Retail Forex Customers

    From cftc.gov

    The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against Forex Capital Markets, LLC (FXCM) , its parent company, FXCM Holdings, LLC (FXCM Holdings), and two founding partners, Dror (“Drew”) Niv, and William Ahdout, who were, respectively, Chief Executive Officer of FXCM and Managing Director of FXCM, (collectively, Respondents). FXCM’s principal place of business is New York, New York; Niv resides in Connecticut; and Ahdout resides in New York. The CFTC Order finds that, between September 4, 2009 though at least 2014 (the Relevant Period), FXCM engaged in ... (full story)

Hahha hhehehahhahahah just what people were saying jason and you got caught out
Well thats interesting...
I visited their offices in NYC on 2003. I saw what was happening and ran far away.
Jason Rogers??
Can someone explain what the big problem of broker take the other side of the trade of retails? Assuming that if the trade close in profit and if the broker take the other side then they have to pay out the profit, of course if the trade close in loss then if they other the other side then there be in the money?
Quoting toptrader11
Can someone explain what the big problem of broker take the other side of the trade of retails? Assuming that if the trade close in profit and if the broker take the other side then they have to pay out the profit, of course if the trade close in loss then if they other the other side then there be in the money?
Broker can spike prices, take out stops and profit. Imagine trading against someone who knows exactly where your stop loss is...
Jasons nose must be about 10meters long
The fall of reputable broker
Quoting Soros
Jason Rogers??
THE ONE AND ONLY
So is this the tip of the iceberg? How many other ecn brokers are lying?
Quoting LuKa12
Jasons nose must be about 10meters long
SURE IS MATE
  •  Guest
  • | IP XX.X.237.243
If these stoploss hunting is done by forex brokers, will the price spike only in that broker or everywhere else?

I have seen tons of complaints on brokers who raise the price to hit Stoploss but the price in other brokers never touches the price. This is quite common.

But if the brokers are able to move the whole market to hunt stoploss then this is a real mafia strategy going on lol. millions will be lost and this will be a very big scam.
I think this is more about FXCM putting itself (through some bogus company) on top of the LPs they were using. Just shoveling some money into their own pockets. This may harm other LPs like citadel, jpm etc. so CFTC doesn't like it. Pls correct me if I'm wrong.
This is nothing new. Everybody knows they trade against their clients but they hedge against those positions so their net exposure to risk is zero. Oanda and any other other market makers all do the same thing. But as long as they hedge to render their net position to zero, it's fine. Why not ban Oanda too?

This is just CFTC and actually world-wide's crackdown on retail FX and they are just starting with the largest broker. I hope they realize all they are doing is just driving retail FX trading to be unregulated thus more risky for investors cuz Retail FX is NOT going away.
  •  Guest
  • | IP XX.XX.142.72
I was long time client of MFglobal then to FXCM.. Mfglobal Jon Corzine did the same thing fined 5million and banned from NFA and CFTC.. But no Jail time?? This is what will happen with Drew Niv and his Market Maker friend? lol They made millions of Market Making and I posted picks here to Jason years ago but got criticized from hardcore FXCM chumps on the forum..

The biggest problem is they still owe 192 million to Leucadia.. So folks they are finished just like MFglobal.. It took me 5 months to recieve my funds from MFglobal because the insurance company will go in and liquidate the broker.. So if you have funds in FXCM beware it may take time because everyone and there dog will be withdrawing money...

Good Luck to everyone and I feel your pain!! God Bless!
So is the Jason Rogers account going to be revoked now?........nah....didn't think so...pfffffffffffff
Quoting g_bc9c2220
I was long time client of MFglobal then to FXCM.. Mfglobal Jon Corzine did the same thing fined 5million and banned from NFA and CFTC.. But no Jail time?? This is what will happen with Drew Niv and his Market Maker friend? lol They made millions of Market Making and I posted picks here to Jason years ago but got criticized from hardcore FXCM chumps on the forum.. The biggest problem is they still owe 192 million to Leucadia.. So folks they are finished just like MFglobal.. It took me 5 months to recieve my funds from MFglobal because the insurance...

I agree they all do it but when they advertise that they are a NO DEALING DESK its hard dispute? lol
so what other forex brokers are outhere? for U.S customers
in addition to what you said. If a fx broker take the other side (like indeed happen on Jan, 15, 2015 on the EURCHF flash crash) they will have to pay the winning side bigtime and bankrupts customers wont be able to pay the huge bill.
I have FXCM, but I don't ever recall having any issues with them.. Granted I'm not a big boy trader. My max trade is around 0.18 lots....

I'm assuming I should withdraw my money and find a new broker? I have no clue what broker I might entertain for my new account though, any suggestions for US? Only looking for forex, easy on the commissions, the more pairs available, the better.
does anyone know the name of the Market Maker company FXCM created?
Crooks, Id rather just trade with no leverage on IB. Or go overseas.
lol didnt expect that from a big and reputable broker.. pfffffft
moreover, loot 77 million and pay 10% as fine; sucks. should be more than that and may be distribute that to the trader impacted.
Yeah these brokers get away with murder and get a slap on the wrist..
I think the main difference between FXCM and Oanda is that the latter discloses the fact that it's a market-maker whereas the former misled its clients by hiding behind the fiction that it did not trade against them. I don't use either brokers, fyi. But I commend the CFTC for this move and hope other regulators follow suit.
  •  Guest
  • | IP XX.XXX.124.35
This is such a game between CFTC and the brokers with no regard for the traders. Is CFTC going to distribute $7 million among all the FXCM US account holders. What about the traders who have been defrauded.
hooo man, that sucks! I took my money out of fxcm in november because of their dropping stock price, good thing I did that prior! Sad though, I liked their trading station, and taking money and depositing money was really easy.. oh well overseas here we come!
Quoting kminler
So is this the tip of the iceberg? How many other ecn brokers are lying?
If you read their terms, almost all clearly state that they are the counterparty of your trades and that the may or may not hedge/forward your position to a LQ provider (in its sole discretion).
Also, if they offer bonuses and/or negative balance protection then I think it is more likely that they are MM, or how could they give away free money?

But as long as the broker allows to review the history of prices (including bid and ask) then it is unlikely that the broker spikes price against individuals.

I know only about global prime that offers trade receipts upon request to see which LQ provider took your position. But also their T&S contains the famous sentence from above...

The retail market sucks. Finding a good broker is rare, maybe better go with futures trading.
But in the end, maybe a mixed MM and ecn is not bad after all, as long as they don't play tricks.
I think this is how most of the retail forex brokers operate today: they are "fake ecn", so really MM for all consistently losing traders, but once you start making profits consistently I think they will start to forward your orders to the LQ providers and maybe even copy your trades.
WoW!!! Glad I took out all my money 2 months ago from them.. :O
  • Post #31
  • Quote
  • Edited at 8:55pm Feb 6, 2017 8:33pm | Edited at 8:55pm
fx insider called them out on this forum, and that reference to Forex Factory including the entire post written by fx insider are a part of the findings in the lawsuit. And specifically mentioned the Jason Rogers response which was a complete lie.. ( Page 6)>>> http://www.cftc.gov/idc/groups/publi...rder020617.pdf
All I have been doing is switching brokers since Dodd Frank. And most of my other US brokers got bought out.....soon I might me moving to Pango Pango and trade from there
Quoting brinkclan
I have FXCM, but I don't ever recall having any issues with them.. Granted I'm not a big boy trader. My max trade is around 0.18 lots.... I'm assuming I should withdraw my money and find a new broker? I have no clue what broker I might entertain for my new account though, any suggestions for US? Only looking for forex, easy on the commissions, the more pairs available, the better.
Looks like they are selling their accounts to Gain Capital FinPro Trading accepts US clients but I haven't traded live with them yet but I was able to open an account.....US citizen choices are getting very slim
You know.... you can make mistakes, and you can lose money, in fact you can lose everyone's money... the markets are tough to beat.

But the LIES. The LIES are jail time. They made more than 10 times the fine. And they STOLE it from every one of their clients. Where's that 7 Million dollar fine going to go? Not to the clients that were stolen from. Either put 'em in with Beau Diamond.... or let Beau Diamond out.
Quoting glenngie
All I have been doing is switching brokers since Dodd Frank. And most of my other US brokers got bought out.....soon I might me moving to Pango Pango and trade from there
Trump wants to get rid of dodd frank, maybe we will see new brokers popping up?
I will be sure to stay tuned for more details.
Now Jason need to do all the explanations. Poor guy
Was anyone surprised by this?
What does this mean for clients of FXCM? Does trading cease for them? Should I pull my money? Does this change anything?
If you have an account at FXCM, it will be transferred to Forex.com in the near future.
Quoting toptrader11
Can someone explain what the big problem of broker take the other side of the trade of retails? Assuming that if the trade close in profit and if the broker take the other side then they have to pay out the profit, of course if the trade close in loss then if they other the other side then there be in the money?
Well, imagine if you were playing a game of battleships, only your opponent could see exactly where all your battleships were placed. Do you see the problem?
I hope other reguators step up and ban them too. Still operating in many countries.
Quoting Price
Where's that 7 Million dollar fine going to go?
To the bigger crook - CFTC!!
Quoting mrhigurashi
{quote} Well, imagine if you were playing a game of battleships, only your opponent could see exactly where all your battleships were placed. Do you see the problem?
Couldn't have explained it better.
Quoting Forexia
{quote} To the bigger crook - CFTC!!
Yeah lol. I think someone from FXCM decided not to pay his protection money to CFTC....
I'm thinking we won't be seeing Jason around FF anytime too soon
Quoting toptrader11
Can someone explain what the big problem of broker take the other side of the trade of retails? Assuming that if the trade close in profit and if the broker take the other side then they have to pay out the profit, of course if the trade close in loss then if they other the other side then there be in the money?
Exactly! You said it yourself. If the broker takes the other side, if your trades landed in profit, then they will have to pay out the profit. And WHY would they let you do that? It's like you bet against the casino and every time when you win, the casino has to pay out your winning and every time when you lose, it gains your winning. You think the casino will let you win all the time and tries not to win against you at the same time?

Now FXCM just like Oanda claims that they hedge your positions so they are neutral. It's like the casino that you are betting against hedges your bet with another player so it won't lose money either way. If you win against the casino the casino will be also winning at the same time and if you lost, then it won't win either. Now CFTC The Big Brother claims that's not what FXCM is doing. So it's their word against CFTC's.
Quoting mrhigurashi
{quote} Yeah lol. I think someone from FXCM decided not to pay his protection money to CFTC....
Or they can't pay anymore cuz apparently they owe $192 million on the loan to Leucadia National Corp., the company that bailed them out after the Jan. 15 Swiss franc fallout. So CFTC killed it and tossed its carcass to Gain Capital to devour.
FXCM clients were denied favorable price improvements due to the abusive trade execution practices of Effex Capital. This effectively amounts to an asymmetrical slippage policy, which is against the law in the United States. It is also a practice that FXCM had been fined for as far back as 2011. For this reason, FXCM was found to have failed "to observe high standards of commercial honor and just and equitable principles".
FXCM provided misleading information to the NFA in trying to conceal their relationship with Effex Capital.
FXCM failed to implement a satisfactory anti-money laundering program, in violation of NFA compliance rules
FXCM failed to implement a satisfactory policy for equitable margin and liquidation
FXCM failed to collect security deposits for retail forex trades
FXCM failed to give equitable treatment to clients when price adjustments were required
FXCM failed to provide complete trade data to the NFA
FXCM failed to correctly calculate the required minimum capital reserves (adjusted net capital) to protect against bankruptcy
FXCM failed to promptly notify the NFA of its capital deficiencies
FXCM failed to keep adequate liquid cash reserves to cover its liabilities to its retail forex trader clients
FXCM failed to comply with chief compliance officer requirements
FXCM failed to implement an adequate risk management and mitigation program
FXCM failed to adequately supervise its employees and officers
Quoting mrhigurashi
FXCM clients were denied favorable price improvements due to the abusive trade execution practices of Effex Capital. This effectively amounts to an asymmetrical slippage policy, which is against the law in the United States.
LOL What a joke!! Just for that, Gain Capital should be the first to go along with like 99% of the retail fx brokers in USA.
http://www.forexscamalerts.com/forex...-broker-review

Haha, good luck FXCM customers!
what you everybody thinks about forex.com
i already file a withdraw from FXCM
Quoting lioslim
what you everybody thinks about forex.com i already file a withdraw from FXCM
Wise move.
who would you guys recommend then for us traders?
The whole system is a scam. FXCM steals $77 million from it's clients then CFTC comes in takes 10% commission from it and pretended they did their job. What baloney... How about returning the entire $77 million from the clients they scammed?
Quoting Wulfgar
Id rather just trade with no leverage on IB. Or go overseas.
Really?

Then why not just trade stocks, instead, if you want zero leverage ?
Bye Bye Spot FX !!!!
Quoting Mr Breakout
{quote} Really? Then why not just trade stocks, instead, if you want zero leverage ?
I trade everything. Stocks, options, futures, cash FX, bonds. Its always just a question of time frame and risk. I haven't traded leveraged spot fx since 2013
Quoting toptrader11
Can someone explain what the big problem of broker take the other side of the trade of retails? Assuming that if the trade close in profit and if the broker take the other side then they have to pay out the profit, of course if the trade close in loss then if they other the other side then there be in the money?
They have internal knowledge of the clients stops and positions and are doing their trading with the only evil wish to rob their customers.
This is the problem.

If they did know anything about the customer's position there will be no problem
Quoting ivofx
{quote} They have internal knowledge of the clients stops and positions and are doing their trading with the only evil wish to rob their customers. This is the problem. If they did know anything about the customer's position there will be no problem
Ok let just say they know their client stop loss, but they can't control the fx price movement of the market. Sure they might spike the price a bit if it close to stop loss, but if the price move close to your stop loss chances are you are wrong and the price probably will hit the stop loss.
Quoting toptrader11
{quote} Ok let just say they know their client stop loss, but they can't control the fx price movement of the market. Sure they might spike the price a bit if it close to stop loss, but if the price move close to your stop loss chances are you are wrong and the price probably will hit the stop loss.
Market makers can control the price that you see on your chart, not to mention adding up huge spreads on news events. It's not just FXCM doing it, almost all broker with dealing desk.
RIP FXCM
I wonder what fine would have been levied had it been a European company?
If there was fraud involved, then the proper criminal legal authorities at DOJ and FBI should enter and criminal cases brought against the responsible parties. White collar, highly paid executives have skated too many times without consequences to their own funds and their own freedom.
FYI, if you aren't trading small accounts (<$5000), there are more brokers in the USA than fxcm/gain, forex.com, oanda. Just do a little digging
  • Post #66
  • Quote
  • Edited at 7:45pm Feb 7, 2017 9:32am | Edited at 7:45pm
Hahahahhahahahaha where's Jason Rogers now
FXCM rubbish cunts
Quoting Dimi.A
Hahahahhahahahaha where's Jason Rogers now FXCM rubbish cunts
Mexico? Drinkin some of that FXCM cool aid!
Where is Jason ?
  • Post #69
  • Quote
  • Edited at 10:29am Feb 7, 2017 10:17am | Edited at 10:29am
That was before SNB when FXCM loses its shirt , hence the loan from Leucadia. Most probably their losses came from being unable to recoup clients' déficits , indicating they were not market makers at less for these clients.
Quoting Mingary
Where is Jason ?
He just published the offical statement from FXCM on the FXCM Discussion thread...... probably better to stay silent, if he still has a job.

He wasn't shy in promoting FXCM over many years all over this place..... interesting to compare his statements here on FF with the offical CFTC statement. Howmany times did he explain that after 2010 FXCM did not take any positions against the retail customers...


Quoting Jason Rogers
{quote} .... For all forex trades placed by our clients on standard FXCM accounts, we are a no dealing-desk broker and offset each trade one-for-one with our liquidity providers, and only make money on trades not customer losses.....
This is a perfect example for all retailers to see how your are getting ripped of on an epic scale on a daily basis. FXCM just took this positions against you through a second company fully controlled with a privilege access to their dealing desk.....

http://www.cftc.gov/PressRoom/PressReleases/pr7528-17

Quote: " FXCMs Undisclosed Interest

Contrary to these representations, the Order finds, FXCM had an undisclosed interest in the market maker that consistently won the largest share of FXCMs trading volume and thus was taking positions opposite FXCMs retail customers. FXCM, the Order finds, formulated a plan in 2009 to create an algorithmic trading system, using an FXCM computer program that could make markets to FXCMs customers, and thereby either replace or compete with the independent market makers on FXCMs No Dealing Desk platform. Although FXCM eventually spun off the algorithmic trading system as a new company, in actuality the company remained closely aligned with FXCM, according to the Order. This market maker received special trading privileges, benefitted from a no-interest loan provided by FXCM, worked out of FXCMs offices, and used FXCM employees to conduct its business, the Order further finds.

The Order finds that FXCM and the market maker agreed that the market maker would rebate to FXCM approximately 70 percent of its revenue from trading on FXCMs retail forex platform. In total, through monthly payments from 2010 through 2014, the company rebated to FXCM approximately $77 million of the revenue it achieved. However, FXCM did not disclose to customers, among other things, that this company FXCMs principal market maker was a startup firm spun off from FXCM, the Order further finds.
Quoting galaf
That was before SNB when FXCM loses its shirt , hence the loan from Leucadia. Most probably their losses came from being unable to recoup clients' déficits , indicating they were not market makers at less for these clients.

They wern't the market maker through FXCM, but through there fully owned startup company that did most of the market making against the retailer positioning with privileged access to their dealing book. Seems they just outsourced the whole thing to efficiently trade against their customers....

So looking at this I draw the following conclusion: While FXCM did have to absorb the massive hit their customers took in the first place through negative balances, the outsourced market maker company must have made a killing at the same time, because it took the opposite side of the so hard hit retailers....... interesting thought, isn't it?

Does anybody know the name of that company? Is it part of the FXCM Group or a separete company?
Why was the relevant period just 2010 - 2014? Might be a good reason not to include Jan 2015, because than it could be obvious that they gained even more than FXCM lost at the SNB event?

Looks like an great chance for an investigative journalist.
Dig deeper - you may find a good story here!
  • Post #72
  • Quote
  • Edited at 3:08pm Feb 7, 2017 2:42pm | Edited at 3:08pm
Quoting Mingary
Where is Jason ?
Still there. He posted FXCM's press statement just yesterday and today again.
Quoting HudithePfupf
{quote} He just published the offical statement from FXCM on the FXCM Discussion thread...... probably better to stay silent, if he still has a job. He wasn't shy in promoting FXCM over many years all over this place..... interesting to compare his statements here on FF with the offical CFTC statement. Howmany times did he explain that after 2010 FXCM did not take any positions against the retail customers... {quote} This is a perfect example for all retailers to see how your are getting ripped of on an epic scale on a daily basis. FXCM just took...
Doesn't matter. FXCM posted on their website all the required legal disclosures: https://www.fxcm.com/legal/disclosure/ including the disclosure that they are a market maker, a counterparty to all trades, see Line Item 12 in the attached document below.

Whether they are a market maker themselves or through another of their subsidiary (it's called Effex Capital btw), a related company or through their mother, father, brother, sister, wife is irrelevant. The fact remains they made proper disclosures according to CFTC rules so those charges from CFTC is bs. They've prob. known this "undisclosed" company for years just didn't say anything until now it sees FXCM is in a vulnerable position now strapped with cash so it came down hard with these trumped up charges to take the it down, the biggest firm in retail FX thus starting their gradual process of eliminating retail FX.
Attached File
File Type: pdf risk_disclosure_fxcm_llc_en.pdf   142 KB | 143 downloads
Has or will FXCM notify any existing clients of changes the road or will there be a February surprise?
Unfortunately, most of the Brokers do the same things and when traders complain about them, most of legal offices and the worst " traders" said your loss is up to you not broker. This is one of the simplest way of defrauding by brokers they do lots of ways till make traders get loss, no need all the time of the day and market time they deceive traders. Just they need just one time to make and get all our asset and profit in your account. i have said and even i have lots recorded document to show their tricks about my brokers but none of legal offices follow them i think it's better all of us (Traders) here or other sites open a thread and show their brokers' problems till other traders not to open an account with them (Oandaa, Hotforex, etoro, etc) ....
Hello decentralized exchanges
Dont trade on broker..just trade on liquidity provider..
Quoting fdihlizm
Dont trade on broker..just trade on liquidity provider..
LOL you think liquidity provider is better? They are the ULTIMATE market maker in FX industry since there is everything is traded OTC. They are the ones who ultimately take the other side of every transactions. You think bucket shop at retail level is bad? Wait until you read this:
Attached File
File Type: pdf Banks _Bucketshop_ Retail Forex Brokers _ Winners and Losers from Swiss Franc Volatility.pdf   510 KB | 192 downloads


If you work for one of those liquidity providers seeing you are a commercial member, sorry, your employer is just crooked if not more crooked than those scam brokers. Liquidity providers should be the first ones to be fined and banned especially for the s*** that they did during the SNB crisis. There is only one reason that they are still around; it's because they are too huge to be taken down.
Quoting Forexia
{quote} Doesn't matter. ...
I disagree. It does matter - it does extremly matter.

The truely relevant aspect in all of this is "good faith". This industry has lost everything related to good faith - so have most people working in this industry.

If you are a responsible person you know there is often a big gab between what is legal and what is right. The more our moral compass gets screwed, the more laws have to be made that we still can function as a society...... and there are far too much laws already, because of people thinking: "It doesn't matter..... ". they accept institutionalized fraud as a given and think everything that isn't forbidden is allowed. Although in the FXCM case it is very clear that they broke laws and your interpretation is totally wrong. Your attempt to trivialise this and make FXCM a victim is shocking. Face the reality - or it will hit you the very same way down the road.

It is up to us alone whether this world is a little better at the end of a day or a little bit more rotten than before. It's the small steps that matter, taken by billions of people.
I hope better brokers will appear to replace FXCM as the industry leader.
Will the sale of US clients be enough to stay alive in markets outside the usa??
At the end of the day is getting more and more difficult to be a retail FX trader. Is there not enough money to everybody??
Any one interested in bringing a class action suit against fxcm, the fine they paid should be returned the the traders that lost it, and because of their theft we have all suffered damages, so I think they should also pay punitive damages to each and everyone of us.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by FXCM investors and has currently gathered a series of parties wishing to be included in the claim, and is appealing for individuals or entities who purchased shares before February 6, 2017 to contact its offices.

If anyone is interested in getting together with me an contacting this law firm to represent us as traders, drop me a line.
I hope this law firm fails, I just bought stocks hours after the crash xD
Quoting Hurst
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by FXCM investors ...
Apparently, this does not include traders who may have suffered losses trading through FXCM's platform...?
No but I would imagine if 10 of us can get together we can mount a class action.
Quoting Limburger
I hope this law firm fails, I just bought stocks hours after the crash xD
hope you shorted it!
These guys deserve it , they even lied to me when talking to trading desk about broker practices. I left them way before this incident due to artificial spikes , not replicated by other brokers. The practice of hunting retail traders is well known , leading me to build a system that counters there moves and beats them at their own game by using various techniques. Experimentation also confirmed these findings so Brokers are after us , no matter what rubbish the sales team spins.
Gain Capital aquired FXCM Clients. Poor Clients. We say in our country that it is same as getting from mud in to the puddle...
Quoting xjames26
Gain Capital aquired FXCM Clients. Poor Clients. We say in our country that it is same as getting from mud in to the puddle...
Care to share your experience with Gain Capital?
Quoting Mr Breakout
{quote} Care to share your experience with Gain Capital?
i can and have on this forum , gain capital should also go
http://www.forexfactory.com/showthread.php?t=509987 gain capital and theres heaps on ff
Thanks, but surely we cannot judge Gain just by this one (isolated?) incident.
Quoting Mr Breakout
Thanks, but surely we cannot judge Gain just by this one (isolated?) incident.
PLEASE go look at the complaints against them here and other forums , isolated incident ...... naughty naughty gain
  • Post #96
  • Quote
  • Edited at 8:34pm Feb 12, 2017 8:23pm | Edited at 8:34pm
Quoting Aussi
{quote} PLEASE go look at the complaints against them here and other forums , isolated incident ...... naughty naughty gain
Well, there are also thousands and thousands of complaints against Ebay, Paypal, Amazon, Walmart, American Airlines, the United States Postal Service, Starbucks and just about any store or business worldwide but it still does mean that these businesses are deliberately scamming people.

I mean some people will ALWAYS find an excuse to complain about anything, even if you sell them pure spring water.
Quoting Mr Breakout
{quote} Well, there are also thousands and thousands of complaints against Ebay, Paypal, Amazon, Walmart, American Airlines, the United States Postal Service, Starbucks and just about any store or business worldwide but it still does mean that these businesses are deliberately scamming people. I mean some people will ALWAYS find an excuse to complain about anything, even if you sell them pure spring water.
some might but from what i have read and MY OWN EXPERIANCE WITH GAIN = keep away
Quoting Mr Breakout
{quote} Well, there are also thousands and thousands of complaints against Ebay, Paypal, Amazon, Walmart, American Airlines, the United States Postal Service, Starbucks and just about any store or business worldwide but it still does mean that these businesses are deliberately scamming people. I mean some people will ALWAYS find an excuse to complain about anything, even if you sell them pure spring water.
My original broker was purchased by Gain. I can only speak from my experience but after then customer service was terrible. And although i personally had no loss due to this, i had found many really large spikes across their charts. When compared to other brokers these spikes on gains charts were at least 20 - 50 pips larger. When i asked them about the spikes i got the run around and was told many times it is probably an IT issue and it will be referred to IT. Never got an answer from them for the spikes. Now, this was a company purchased by Gain so after the purchase i dont know if Gain took complete control or left them to run things in the same way. All i can say is after Gain purchased them, things changed in a big way for the worse.
Quoting mrhigurashi
My original broker was purchased by Gain. I can only speak from my experience but after then customer service was terrible.
Are you talking about FXCM? If not, please be more specific.

Quoting mrhigurashi
And although i personally had no loss due to this, i had found many really large spikes across their charts. When compared to other brokers these spikes on gains charts were at least 20 - 50 pips larger.
Could you show us some screen-shots to add credibility to your testimony?
Thank you.
Can we just finally agree that Retail Forex is a casino and the house (brokers) will use any shenanigan possible for as long as they can get away with it to get your money ?
Quoting Mingary
Can we just finally agree that Retail Forex is a casino and the house (brokers) will use any shenanigan possible for as long as they can get away with it to get your money ?
No. only the market-makers are casino brokers. There ARE still ways to be fair brokers in retail FX even though it's an OTC market.
Quoting mrhigurashi
{quote} My original broker was purchased by Gain. I can only speak from my experience but after then customer service was terrible. And although i personally had no loss due to this, i had found many really large spikes across their charts. When compared to other brokers these spikes on gains charts were at least 20 - 50 pips larger. When i asked them about the spikes i got the run around and was told many times it is probably an IT issue and it will be referred to IT. Never got an answer from them for the spikes. Now, this was a company purchased...
Gain Capital is the biggest casino broker in retail FX. Not surprised by what your experienced. Who was your original broker, just out of your curiosity.
Quoting Hurst
Any one interested in bringing a class action suit against fxcm, the fine they paid should be returned the the traders that lost it, and because of their theft we have all suffered damages, so I think they should also pay punitive damages to each and everyone of us.
Well if you want the fines they paid to CFTC to be returned to the traders, you should sue the CFTC and NOT FXCM. FXCM has already paid the fine it's CFTC who's keeping it. This is the second time that CFTC fined FXCM for their trading practices. The last time CFTC fined FXCM for unfair slippages; that fine should be returned to the traders as well. So you should bring a class action lawsuit against CFTC to demand them to return fines from BOTH of the times to the traders.
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  • Edited at 3:10am Feb 13, 2017 2:50am | Edited at 3:10am
Quoting Forexia
{quote} No. only the market-makers are casino brokers. There ARE still ways to be fair brokers in retail FX even though it's an OTC market.
FXCM was not some fly by night outfit. I was one of the largest retail fx in the industry.
Be a bit crooked and obscene profits start to roll in: this is the business model of retail forex.
It is not possible to ask a company to be less profitable. They will have to be forced to be made less profitable by being honest.
Therefore very few retail fx companies will even consider starting or continuing their activities.
The ONLY REASON that Retail FX even exists is because they can implement some obscenely profitable strategies against their customers.
Remove this edge and retail forex will disappear.
  • Post #105
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  • Edited at 4:37am Feb 13, 2017 3:42am | Edited at 4:37am
Quoting Mingary
{quote} FXCM was not some fly by night outfit. I was one of the largest retail fx in the industry. Be a bit crooked and obscene profits start to roll in: this is the business model of retail forex. It is not possible to ask a company to be less profitable. They will have to be forced to be made less profitable by being honest. Therefore very few retail fx companies will even consider starting or continuing their activities. The ONLY REASON that Retail FX even exists is because they can implement some obscenely profitable strategies against their...
I absolutely agree.
In over a decade of fx trading and with many friends on the sellside, I know of NO retail honest brokers.
Many years ago here on FF, there was a breed of characters that made fun of those that told what was happening.
"Look how much WE are making.. - you guys are just stupid.. just dont know how to trade."
Theyve all disappeared..
I traded big, way back, and I was LUCKY enough to profit and figure the scams before they hit me.
And that on position trading. ie Fx asset deployment.
That why on my my profile.. I list "Status".. as SURVIVOR.
My tipping point.. was when through social accident in mid 00s I met two guys who made big bucks from sell-side businesses, and I always remember after XX Jack Daniels, one who boasted that he knew over 25 technical tricks to scam clients that couldn't be traced. And he was CTO in major and still reputable bank/brokerage. The other SVP trading in another.. just tried to shush him and laughed.
25?
Fx is with retail TCs ..a subzero sum game. Its little more than gambling. And the house will always win
As in everything.. there will be winning plays, even against the odds with specific strategies.. but as market change .. those winning strategies flip to loosers...
In a dozen years I personally know only two independent professional traders whose fully audited systems have endured more than 10 years. Both of whom have worked on sell-side as Chief traders/Strategists in Banks/Brokers. But for 99% of people here dreaming to make easy money from Fx in retail.. short terms success will ultimately overtime lead to loss.
My advice? dont get in.. and if you are in.. get out when you are ahead.
Quoting Forexia
{quote} No. only the market-makers are casino brokers. There ARE still ways to be fair brokers in retail FX even though it's an OTC market.
Yes, there are indeed legitimate brokers, people just need to move away from these mass marketed abattoirs and find a local broker you can form a relationship with who is true ECN and can prove to you their LPs and order pathways. Don't try to be cheap and just get what you think is the cheapest deal....cos guess what....it aint.

Your broker is a key part of your trading business, get it right. If you choose to follow the lambs and get taken by these brokers, nobody to blame but yourself. We all know how they operate,it is widely reported, FXCM and Gain have been going through these motions since 2010 , why would you open an account with them when you know what is going on?
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Quoting Forexia
This is nothing new. Everybody knows they trade against their clients but they hedge against those positions so their net exposure to risk is zero. Oanda and any other other market makers all do the same thing. But as long as they hedge to render their net position to zero, it's fine. Why not ban Oanda too? This is just CFTC and actually world-wide's crackdown on retail FX and they are just starting with the largest broker. I hope they realize all they are doing is just driving retail FX trading to be unregulated thus more risky for investors cuz...
What you are saying is a called Matched Principal Broker, in theory FXCM did that but to a company owned by the same management and that company wasnt fair to customers, so customers didn't get the BBO like other brokers did.

Just my 2 cents is that FXCM from all the brokers seemed like one of the better options to trade with, this opens a pandora box
I remember they spiked down gold to close my positions i lost alot of money cause of their tactics.. can i get my money back? Might be over 50k usd
Tradersway is the worst.....
Forex.com....gain.....has the stupidest chart action.....sucks so bad, how do they sleep with themselves huh!
Quoting Gbp/jpy
Tradersway is the worst..... Forex.com....gain.....has the stupidest chart action.....sucks so bad, how do they sleep with themselves huh!
I'm sure they have no problem sleeping with all that money they extract from their clients...
everyone seems to go on a rant about their experiences and or subjective thoughts on brokers. No one seems to be giving advise on the next best U.S. broker to utilize. If not gain capital (forex.com) then who do you suggest a local U.S. trader use for their execution?

Best,

-Newb
I have some doubts on market maker. They take opposite potion to get safe from their side and they minimum of 2 spread per transition they will get it was the bread and butter of their business model.

How they able to make money other then spread value.

1. By using Virtual Dealer Plug-in they can spike the candle and get your stoploss triggered.

2. If we are in variable spread they can increase the spread on news times

3. They can do high frequency trading . They can able to execute the order before we do . (But still I don't know they may money from high frequency trading if any one know please explain in detail)

4. There is one more trading which was flash trading that also similar to high frequency trading

Now my question is all the above BROKER fraud happen for day retail traders only how it affects long days position trading will it be same. Need some thoughts from it

How the market maker need get the ZERO Spread. And how they pay commission to investment BANK.
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  • Posted: Feb 6, 2017 5:18pm
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