Menu
Sister Sites

  • FXCM house of cards: 150 employees laid off

    From financefeeds.com

    FXCM begins to display damage to its commercial structure following its exit from its own domestic market as 150 staff are let go. In the aftermath of the astonishing revelations that FXCM has been banned from operating in the United States for trading against its customers, the beginning of what could well be the dismantling of one of the world’s largest electronic trading companies is beginning to make its presence felt. Just one day after the Commodity Futures Trading Commission (CFTC) took its action against FXCM, reaching a settlement of $7 million and insisting that FXCM along with CEO Drew Niv and senior ... (full story)

a real shame
Quoting glenngie
a real shame
How can you say it's a real shame when they are a bunch of crooks?
Quoting johnvr
{quote} How can you say it's a real shame when they are a bunch of crooks?
in the context of the 150 people that lost their jobs because of management being crooks
Quoting glenngie
{quote} in the context of the 150 people that lost their jobs because of management being crooks
Yeah, most of these people where probably regular honest hard working folk just doing a job. But who really knows....
" In the aftermath of the astonishing revelations that FXCM has been banned from operating in the United States for trading against its customers "

Not astonishing at all...
Quoting Mingary
" In the aftermath of the astonishing revelations that FXCM has been banned from operating in the United States for trading against its customers " Not astonishing at all...
Meanwhile.... Still operating everywhere else like nothing ever happened!
  •  Guest
  • | IP XX.XXX.124.254
When you read the full report on FXCM being banned by CFTC, it references a post made here in Forex Factory, about FXCM possibly engaging in market maker activities.

http://www.forexfactory.com/showthread.php?p=6079497#post6079497
I was on the brink of opening an account; glad I didnt
Carpe Diem
>>>one shark out<<<....>>>>>>>>>>>>a lot more is a live
Rule #1: Never Lose Money Rule #2: Never Forget Rule Number One
I wonder the effect of this will be to other brokers....if any?
Oanda makes no mystery about market making of theirs, while FXCM did quite the opposite during the period investigated , its history is quite a saga by the way , starting from bankrupcy , then SNB finally ban from operating in the USA.
anyone have a hard time pulling there money from fxcm? about to do that after this trade is closed ( US customer )
Quoting glenngie
{quote} in the context of the 150 people that lost their jobs because of management being crooks
No in the context of 150 people that lost their jobs on trumped up charges because CFTC wants to get rid of retail FX.

They disclosed clearly that they are market makers being a counterparty to all trades, see Item 12 in the attached document below. It's too bad FXCM is short on cash otherwise if I were them, I would sue CFTC's ass so hard that they are going to bankrupt the whole US treasury with legal fees.
Attached File(s)
File Type: pdf risk_disclosure_fxcm_llc_en.pdf   142 KB | 251 downloads
Make your losses in demo. Earn your profits live.
Quoting Forexia
{quote} No in the context of 150 people that lost their jobs on trumped up charges because CFTC wants to get rid of retail FX.
Hi Forexia,

While I cannot speak about the NFA or CFTC complaint specifically due to the nature of our settlement, I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims.

Part of our settlement with the NFA and CFTC was to close our US subsidiary, but there will be no changes for clients outside of the US. Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity.

Specifically, withdrawing from this business will free approximately $52 million in capital. We will use the proceeds from any sale of the US accounts, as well as the large amount of regulatory capital currently tied up, to reduce the balance of our loan from Leucadia.

With the reduction of this loan balance, along with sales of non-core assets that were previously announced, FXCM could be in a position to fully pay off the Leucadia loan before the end of this year. As a result, we will be in a better position to service our international customers and focus on our profitable subsidiaries.

Our full financials can be found here and we will announce our Q4 and Full year 2016 financials in the next few weeks.
Quoting Jason Rogers
{quote} Hi Forexia, While I cannot speak about the NFA or CFTC complaint specifically due to the nature of our settlement, I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims. Part of our settlement with the NFA and CFTC was to close our US subsidiary, but there will be no changes for clients outside of the US. Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity. Specifically,...

copout , cant speak , well jason you lost me
KEEP THIS THREAD CLEAN
Quoting Pipslam
anyone have a hard time pulling there money from fxcm? about to do that after this trade is closed ( US customer )
I logged in and it made me change my password first, but the password fields were grayed out.....so I guess I will wait until it moves over to Gain
Quoting Jason Rogers
{quote} Hi Forexia, While I cannot speak about the NFA or CFTC complaint specifically due to the nature of our settlement, I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims. Part of our settlement with the NFA and CFTC was to close our US subsidiary, but there will be no changes for clients outside of the US. Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity. Specifically,...
How do you plan to convince your customers in your international brokerages that all is above board? Otherwise without damage control I can see where a lot of customers will pull there money out..IMO
  •  Guest
  • | IP XX.XXX.126.197
Quoting Pipslam
anyone have a hard time pulling there money from fxcm? about to do that after this trade is closed ( US customer )
Before this happen I've had no problem withdrawing from fxcm and started a withdrawal yesterday but with all the layoffs I'am not holding my breath that I will see it soon.
Quoting glenngie
{quote} How do you plan to convince your customers in your international brokerages that all is above board? Otherwise without damage control I can see where a lot of customers will pull there money out..IMO
They don't need to. Money is what ultimately matters. If people see that they are continuing to make profit while with FXCM and people do, they will stay. FXCM has always been consistently in third place in terms of trader profitability for 2015 and 2016:

http://www.financemagnates.com/forex/brokers/exclusive-us-q1-2015-forex-profitability-report-more-accounts-and-profits/

http://www.financemagnates.com/forex/analysis/exclusive-q1-us-retail-traders-profitability-falls-accounts-on-the-rise/

I dunno why they put IBFX before FXCM when FXCM's profit & is actually higher and have way more accounts.
Make your losses in demo. Earn your profits live.
  •  Guest
  • | IP XXX.XXX.94.162
I am with FXCM and have not had any problems with them. I am sorry to see this happen. I live in the US.
The shroud of the CFTC has fallen. They may be making their move. 1 down. 2 to go.
Remember, Red. Hope is a good thing, maybe the best of things...
so what does this mean for us, living outside the US?
  •  Guest
  • | IP XX.XX.142.47
That's why you never take trading ideas from someone that charges commissions. This is what makes the difference from professional traders and retails looking for nugets.
  •  Guest
  • | IP XXX.XXX.10.135
So any advice on which broker is best guys?
Thank you Forex Factory for the heads up, red flag "NO SWIMMING" alert.
Quoting iammarqueses
so what does this mean for us, living outside the US?
I'd read these customer's posts before continuing with them:

http://www.forexpeacearmy.com/forex-reviews/78/www.fxcm.com
Quoting g_ea3f2a40
So any advice on which broker is best guys?
You can start here (the first few are ads but they're marked as such). Sort by 'Rating' for best ranking:

http://www.forexpeacearmy.com/forex-reviews?c%5B0%5D=1&sort=-rating

gl/gt
  •  Guest
  • | IP XXX.XXX.10.135
Thanks seanmcgu. much appreciated.
Quoting iammarqueses
so what does this mean for us, living outside the US?
Nothing. Nothing at all.
Make your losses in demo. Earn your profits live.
  • Comment #30
  • Quote
  • Edited Feb 8, 2017 1:13am Feb 7, 2017 7:28pm | Edited Feb 8, 2017 1:13am
Quoting g_ea3f2a40
So any advice on which broker is best guys?
If you are outside of US, you have lots of choices, I would recommend IB or LMAX. If you have more money like $50K, Baxter FX is not too bad and you can also try HotSpot FX who used to be in retail FX until it decided to go institutional.

If you are in the US, then you are quite limited, there are only two brokers left basically, Oanda and Gain Capital. IB used to be there but had to get out after SEC banned leveraged FX trading by average traders. Out of the 2 brokers that are left, personally I would go for Oanda. At least they hedge against their net positions so they are risk-neutral according to their website. Gain Capital openly confirms that they do not. They trade against you at all times.
Make your losses in demo. Earn your profits live.
Quoting Pipslam
anyone have a hard time pulling there money from fxcm? about to do that after this trade is closed ( US customer )
Quoting glenngie
{quote} I logged in and it made me change my password first, but the password fields were grayed out.....so I guess I will wait until it moves over to Gain
Hi Pipslam and Glenngie,

First, I want to thank you both for being clients of FXCM. If you would like to withdraw your funds, please know that you can do so at any time.

Glenngie, the difficulty you had logging into your account sounds like a tech issue. I suggest you call our 24-hour live customer support at 1-888-50-FOREX so we can help you.

That said, if you would like to continue trading uninterrupted, FXCM has signed a non-binding letter of intent with GAIN Capital Holdings, Inc. (“GAIN”) under which GAIN would purchase FXCM's US customer accounts. The transaction is subject to regulatory approval and a definitive agreement. FXCM and GAIN are working to determine the timing for the account transfer and expect to provide further information in that regard in the coming days.

We will for the interim period continue to service its U.S. customers and to provide top quality trade execution pending the customer-account sale and business withdrawal. FXCM will also be working diligently to be sure that an account transition to GAIN’s retail brand, FOREX.com, will be orderly, expeditious and seamless.

We want to express our most sincere thanks to all our US customers who have been with us over the years and wish you all the best following this transition.
Is someone always on the other side of a trade? whats the big deal if you know who it is?
Thanks I do this often.
I'm still trading my account with you guys, i hope losing the US market can make you guys focus more with better service and stuff. And just to let you people know that if you continue to trade against me you'd be losing more
Trading is not for everyone.
  •  Guest
  • | IP XX.XX.144.90
Jason - I'm assuming when the transition takes place, we will be trading the Gain trading platform and utilizing their charts?
Anyone else out there using NinjaTrader with FXCM? I do wonder how this will affect NinjaTrader.
Quoting charterjoe
Is someone always on the other side of a trade? whats the big deal if you know who it is?
Well someone is ALWAYS on the other side of a trade. That's true in every sense. I mean otherwise it won't be called a trade; you don't trade with yourselves. The difference in a market-making model which is prevalent in FX (NOT just in retail but really in all levels) is that it's the broker that you opened your trade with that's on the other side of the trade so there is a conflict of interest on your broker's part in that it will lose when you profit and it will only win when you lose. So as a result, brokers have been found to manipulate the trade and engage in many dishonest practices just to make sure you don't win. So as you can see, it will be very hard, almost impossible for the trader to make money with those brokers. You just become an ATM machine to those brokers. And when the traders make too much money, they actually get kicked out by the broker because the broker is losing too much money.

Now having said that, NOT all brokers are unscrupulous in manipulating trades to profit at the traders' expense when they are the counterparty of traders' transaction. Some DO pass the orders onto other market players, banks, hedge funds, other traders, institutions to fill so the brokers do not have any vested interest in traders' profitability anymore. Some pass the orders on all the time which is what they are SUPPOSED TO DO (in that case you are really trading as if it's on an exchange so everything is fine; there is no risk of the broker profiting at your expense). Some brokers pick and choose; they pass on the large orders from the profitable traders onto other market players to fill to let them deal with the losing risk and they fill the small orders and/or from unsuccessful traders themselves to win at those traders' expense, a practice known as "B-booking". In essence, the brokers have two books, the "A-book" that contains traders who are good and/or trade in large size, those they pass onto other market players so those "A-book" traders enjoy true ECN as if they are trading on an exchange, and another "B-book" that contains traders who are not so successful or who are just starting out and/or trade in small sizes, for those traders, the broker would take the other side of the transaction because those traders are not successful so the broker has a higher chance of winning when they are on the other side or the trade size is small so even the broker loses, it won't lose too much. Read this link: http://forextraininggroup.com/forex-...maker-hybrid/# It explains in lot more detail about everything I just said.

Moral of the story: There ARE good brokers out there but you just need to be very careful in choosing them and you have to be very vigilant and astute when dealing with them.
Make your losses in demo. Earn your profits live.
Quoting LexOrandi
Anyone else out there using NinjaTrader with FXCM? I do wonder how this will affect NinjaTrader.
No effect on Ninja Trader at all because they also deal with Gain Capital since Gain Capital is going to absorb FXCM so it's still with Ninja Trader.
Make your losses in demo. Earn your profits live.
the two bastards will probably change their names ...and possibly their faces...and back in business again in another form or entity...
Jason Rodgers comments mention the word "Us" a lot... or is that just me...?
Quoting CKSCswing
I was on the brink of opening an account; glad I didnt
You dodged a bullet but you won't next time!
٩(- ̮̮̃-̃)۶
Quoting Jason Rogers
{quote} I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims.
Which means you're as guilty as hell.
If you were innocent, you would deny the claims.
Come with me if you want to live....
You know what guys? I think Tradingview is jinxed. Whoever they partner with end up having problems. Think about it. First it was Exante, which came under pressure from Malta, then they moved to FXCM and now FXCM has problems. Who's gonna be next, I wonder.
Always remember the famous quote by Meyer Lansky, the father of the modern US mob.

A friend who worked on Wall Street too him out for lunch and afterwards on a tour of the NY Stock Exchange floor. Lansky said -

"Looks like I joined the wrong mob".

There are more crooks, shysters, thieves and all round outlaws operating in the financial markets worldwide than in the rackets. And the big one's have a trump card - they've bought off the regulators, the politicians and in some places like NY, the Judges.

And for anyone who remembers a famous online poster from years back called HyperTiger he had another famous quote -

"When the opening bell rings it's the start of a massive crime spree'.

Having said all of that, it's a great business and I love it!
Road To Wisdom? To err and err and err again, but less and less and less...
You cant blame them for hedging there risk. But poorly done compared to the larger guys, they already messed up with the chf unpegg. Looks like there analysts are rookies. There better of employing guys from this forum ahah
So, Forexia, based on your lengthy explanation (thanks BTW), which brokers would you recommend for U.S. folks?
FXCM still remains the best broker, best execution, best customer relations, etc. And I've been with quite a variety.
Quoting Jason Rogers
{quote} ..... I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims. ....
Jason, so really not even a little sense of guilt on your side, no apology to your customers? For me it looks as FXCM was happy to settle before NFA/CFTC start to dig deeper....

FXCM collaborated directly with EFFEX Capital, who has been founded and is controlled by FXCM. While you personally stated an lot of times that FXCM is not a market maker sind 2010 and is not the counterparty of your customers trades, and has no incentives to trade against customers, FXCM through EFFEX was and probaly still is the counterparty of almost all of these trades. FXCM just outsourced there market maker business in a separate company, which handeled these trades. By doing so, they extracted 110mio USD from FXCM customers from 2010 - 2014. 70 % of that, or 77mio they paid back to FXCM in the form of rebates..... So you see no wrong doing here? Really?

Is that relevant for the international customers of FXCM? I bet it is. As soon as a broker has an incentive to trade against his customers opens pandoras box and here we have a proven example of such a broker. Just because you outsourced in in a seperate company makes it this no better.

Can you tell us more about EFFEX Capital positioning on Jan 15th 2015?
To how many customers was EFFEX Capital the counterparty on that particular day an how much they gained out of it?

This is a question that needs to be looked at by NFA / CFTC. They settled with FXCM, but maybe its worth looking a little bit more into EFFEX Capital in this nice little collaboration?
I just closed my account with them. A little over 10k, ill check back in when funds are transferred.
  •  Guest
  • | IP XXX.XXX.203.123
Quoting Jason Rogers
{quote} ..... FXCM has signed a non-binding letter of intent ......
Is this non-binding letter of intent two-ply or three-ply?

Toilet paper has greater functionality then a non-binding letter of intent.

And after use both should end up in the same place.

Is there no shame at all for completely manipulating and lying to your customers? That was a rhetorical question.
Quoting Forexia
{quote} . They disclosed clearly that they are market makers being a counterparty to all trades, see Item 12 in the attached document below. It's too bad FXCM is short on cash otherwise if I were them, I would sue CFTC's ass so hard that they are going to bankrupt the whole US treasury with legal fees. {image}
How come you defend FXCM and last year your reaction on the same issue regarding Gain you argumented exactly the opposite way......

Quoting Forexia
{quote} Well it's not surprising if this is what Gain Capital really does to its clients. I mean traders today are lot more informed and smarter than 10 years ago when retail forex really started; we can tell if a broker is a market maker. And from a realistic point of view, when you are not making any money, why would you want to stay with the broker? You won't be able to anyway even if you want to, because the broker would've taken it all away from you in trading against you. Hopefully with this http://financefeeds.com/no-trading-clients-european-regulator-cites-conflict-interest-financefeeds-investigates/,...
I especially like the " Hopefully with this http://financefeeds.com/no-trading-clients-european-regulator-cites-conflict-interest-financefeeds-investigates/, brokers like Gain Capital will be gone for good!"


Are you on a paid damage control mission for FXCM? Just asking....
Karma strikes back.

Have you ever seen so many legal companies chasing the same bait.....Wow.

Maybe you guys want also to look a bit into EFFEX on Jan 15th 2015......and think about the retailers......they probably deserve a compensation more then the shareholders........

SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Notifies Investors of Class Action Against FXCM Inc. (FXCM) & Lead Plaintiff Deadline - April 10,

INVESTOR ALERT: GPM Announces the Filing of a Securities Class Action on Behalf of FXCM, Inc. Investors and Encourages Investors to Contact the Firm

IMPORTANT INVESTOR ALERT: Lundin Law PC Announces Securities Class Action Lawsuit against FXCM Inc. and Encourages Investors with Losses to

Bragar Eagel & Squire, P.C. Is Investigating FXCM Inc. (FXCM) on Behalf of Stockholders and Encourages Investors to Contact the Firm

FXCM NOTIFICATION: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In FXCM Inc. To Contact The

Glancy Prongay & Murray LLP Commences Investigation on Behalf of FXCM Inc. Investors

INVESTOR ALERT: Investigation of FXCM Announced by Holzer & Holzer, LLC

INVESTOR ALERT: Law Offices of Howard G. Smith Commences Investigation on Behalf of FXCM Inc. Investors

SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Announces Investigation of FXCM Inc. (FXCM)

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of FXCM Inc. - FXCM

FXCM ALERT: Shareholder Rights Law Firm Johnson & Weaver, LLP Commences an Investigation of Certain Officers and Directors of FXCM Inc.;

Robbins Arroyo LLP Is Investigating the Officers and Directors of FXCM Inc. (FXCM) on Behalf of Shareholders
  • Comment #52
  • Quote
  • Edited Feb 9, 2017 4:13am Feb 8, 2017 6:06pm | Edited Feb 9, 2017 4:13am
Quoting HudithePfupf
{quote} Are you on a paid damage control mission for FXCM? Just asking....
Well if you have read my comments correctly before you trolled, you wouldn't have asked me this question.

Quoting HudithePfupf
{quote} How come you defend FXCM and last year your reaction on the same issue regarding Gain you argumented exactly the opposite way...... {quote} I especially like the " Hopefully with this http://financefeeds.com/no-trading-c...-investigates/, brokers like Gain Capital will be gone for good!"
NEVER in any of my comments have I ever defended FXCM's action or feels that it's correct for any broker to trade against its clients. BUT my problem is with HOW CFTC took down FXCM, on a charge that FXCM is NOT guilty of, non-disclosure of trading against its clients which is NOT true. FXCM made full disclosure according to CFTC's requirement stating clearly that they are a market-maker, a counter-party to all trades of clients with words stipulated by CFTC, NOT of FXCM's. FXCM was trading against its clients but it also disclosed it just like any other broker. HOW can CFTC accusing FXCM of non-disclosure when FXCM made full disclosure using CFTC's own words?? This does NOT make sense.

FXCM maybe wrong in trading against clients (which is actually allowed by CFTC/NFA otherwise Gain Capital would have been banned LONG time ago and I still believe that Gain Capital should be banned if CFTC really wants to do something positive to protect the consumers) but CFTC is definitely wrong in the way it heavy-handedly banned FXCM with trumped-up charges this time. TWO wrongs does NOT make one right. That's my point. Now read it CAREFULLY before you respond because I don't want to repeat it again.
Make your losses in demo. Earn your profits live.
Quoting Forexia
{quote} Well if you have read my comments correctly before you trolled, you wouldn't have asked me this question. {quote} ...

Well if you have read and understood the CFTC statement correctly before you downplayed FXCM actions and behaviour we probably would be more or less on the same page.

I think the question - if you are on damage control - is valid and your reaction to call me troll is defensive and tells me I am probably not that far-off with my intuition.

Reading your recent posts tells me you are somehow entangled with the forex industry. You seem to have a dependency or a stake in it somehow - only you can explain what that is. As always their are multiple points of view to a problem. If I would know your motivation for these posts I could probably understand and respect your point of view - yet that doesn't mean necessarly I agree with you in this particular matter.
Quoting HudithePfupf
{quote} Well if you have read and understood the CFTC statement correctly before you downplayed FXCM actions and behaviour we probably would be more or less on the same page. I think the question - if you are on damage control - is valid and your reaction to call me troll is defensive and tells me I am probably not that far-off with my intuition. Reading your recent posts tells me you are somehow entangled with the forex industry. You seem to have a dependency or a stake in it somehow - only you can explain what that is. As always their are multiple...
Whether you agree with me or not is your prerogative and honestly I couldn't care less. I am still entitled to have my own opinion on what happened and I certainly do not owe anybody any explanation for my opinion.

I have been on FF and a forex trader for quite some time now that my action speaks for itself.

Goodbye!
Make your losses in demo. Earn your profits live.
Can someone recommend me a good trading chart software that similar to FXCM trade station and is free to download.... I like their charting software, sadly now they ban in US.
Quoting toptrader11
Can someone recommend me a good trading chart software that similar to FXCM trade station and is free to download.... I like their charting software, sadly now they ban in US.
They are not porting that over to Gain Capital? Maybe you can post this question to the FXCM Discussion thread in the "Broker Discussion" section here on FF so the FXCM representative can give you an answer as to what will be happening to that software. You are not the only one who likes their software.
Make your losses in demo. Earn your profits live.
Well Gain used different charting software, I try their demo probably few years ago and I don't like it one bit. I guess I have to see if they really mmake any improving on their charting once this thing move over.
Quoting toptrader11
Well Gain used different charting software, I try their demo probably few years ago and I don't like it one bit. I guess I have to see if they really mmake any improving on their charting once this thing move over.
Well that's why I say, post your question in the FXCM Discussion thread. You never know, Gain Capital MIGHT adopt it if they see enough traders like it.
Make your losses in demo. Earn your profits live.
Quoting toptrader11
Can someone recommend me a good trading chart software that similar to FXCM trade station and is free to download.... I like their charting software, sadly now they ban in US.
You could try Tradingview.com
Quoting ikouki
I'm still trading my account with you guys, i hope losing the US market can make you guys focus more with better service and stuff. And just to let you people know that if you continue to trade against me you'd be losing more
why the hell would you stay with them knowing they screwed people out of money i'll bet people won't see any money that they lost either, crooks!
The Problem isn't that they were heavily involved in one of the Market Makers - I always suspected as such and am surprised it was only one. Actually - I've found their execution, service etc. to be among the fairest and most efficient out there....

The PROBLEM is that they LIED about it.!!!!!!!!!!!!!!! That is a Biggie.!!!!!!!!!!!!!!!!!!!!
  •  Guest
  • | IP XXX.XXX.203.123
Quoting ikouki
I'm still trading my account with you guys, i hope losing the US market can make you guys focus more with better service and stuff. And just to let you people know that if you continue to trade against me you'd be losing more
Do you understand that the split adjusted share value of FXCM has gone from $200 to $3. There is a genuine danger of bankruptcy. At that point you can consider all your money completely lost for several years as the trustees deal with unwinding the assets. Then after a few years, you will receive pennies on the dollar since you and an unsecured creditor.

Since you claim to be a profitable trader, you should fully understand the concept of risk and reward. You have skewed your assets far into the risk with no reward.
If anyone else requested their money back from FXCM here is some good news. I did receive all my money back from them today. It only took 4 business days for it to show up in my bank account. Hope everyone else will have the same story as I do.
Quoting Wtfman
I just closed my account with them. A little over 10k, ill check back in when funds are transferred.
I also got all my money back without issue. It took three business days. I feel the stock holders will take the biggest brunt of this fall.
Quoting g_4fc8f08b
Jason - I'm assuming when the transition takes place, we will be trading the Gain trading platform and utilizing their charts?
That is correct. Their support team can tell you more about the various platforms and charting options they offer.
Quoting nbfx
The Problem isn't that they were heavily involved in one of the Market Makers - I always suspected as such and am surprised it was only one. Actually - I've found their execution, service etc. to be among the fairest and most efficient out there.... The PROBLEM is that they LIED about it.!!!!!!!!!!!!!!! That is a Biggie.!!!!!!!!!!!!!!!!!!!!
Hi Nbfx,

I'm glad you were pleased with the execution and service we provided you. Thanks for being a client of FXCM.

While the nature of FXCM's settlement with the US regulators prohibits me from commenting on the specifics, I want you to know we continue to stand by the quality of our trade execution in general and our No Dealing Desk (NDD) forex pricing in particular.

Consider what happened on January 15, 2015 with the SNB flash crash:

The majority of retail forex traders were long EUR/CHF when the Swiss National Bank made their surprise announcement to abandon the 1.2000 exchange rate floor they had established for the pair. Had FXCM been on the other side of client trades, we would have made money when EUR/CHF dropped and retail traders took massive losses on their long positions.

The moved wiped out those clients' account equity as well as generated negative equity balances owed to FXCM of over $225 million. The caveat of our NDD model is that traders are offset one for one with a liquidity provider. When a client entered a EUR/CHF trade with FXCM, FXCM Inc. had an identical trade with our liquidity providers. During the historic move, liquidity became extremely scarce and shallow, which affected execution prices. This liquidity issue resulted in some clients having a negative balance.

While clients using NDD forex execution did not cover their margin call with us we still had to cover the same margin call with our liquidity providers. As a result, FXCM ended with a regulatory capital shortfall. Accordingly, FXCM needed to get a loan to cover this balance, which we did. For anyone that still thinks FXCM is running an FX dealing desk on our NDD model, the SNB event demonstrated that is not the case.

How does our NDD model work?

FXCM uses 16 liquidity providers to create a best bid best offer price stream for clients. LPs selected to price retail clients are forced to adhere to an extremely high standard of execution beyond just price including consistently low rejection rates, low latency, minimum quote sizes and high fill ratios even during market events.
We discuss in our UK execution study the criteria we use to rank our liquidity providers which you can see listed in question 13 of the FAQ. FXCM's liquidity providers are ranked based on compliance to these standards which we identify as providing the best customer experience possible. Being a top ranked liquidity provider is important. Liquidity providers with the best pricing according to these rules may gain an advantage over other liquidity providers which could result in a large increase in orders captured. Poorly performing liquidity providers are ranked lower for order flow and ultimately could be removed from our platform until they return to compliance.


Also, the results of this study show FXCM UK retail client order prices to be better for FX than futures prices (74.97% of the time) and interbank prices(91.56% of the time).*

_________________________________

* The study does not in away way attempt to represent that FXCM maintains a particular capacity or performance level. The figures in this study are provided for information purposes only, and are not intended for trading purposes or advice. FXCM is not liable for any information errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. Past results are not indicative of future performance.


Material Assumptions

FXCM's Retail Clients are defined as individual, joint, and corporate accounts trading on our retail price stream.

The comparison to each of the Futures and Interbank data is made at the time that the FXCM client order is executed. Normal market slippage and slippage due to rejections by liquidity providers are already included by the time the FXCM client order is executed. However, there is an assumption that there is no slippage on the Futures or Interbank market data.

In order to maintain consistency, Futures Market data and Interbank data used the same acceptable ranges in market trades. The summary of findings is based on the assumption that the maximum acceptable difference between the FXCM price and the Interbank/Futures market price is 5 pips in either direction.

Fees that a participant would pay on the Futures or Interbank market, such as CME Exchange Fees, NFA Fees, FCM Fees, Clearing Fees, and other commissions, were excluded from the study. Similarly, FXCM Commissions are excluded from the study.
Quoting Forexia
{quote} No in the context of 150 people that lost their jobs on trumped up charges because CFTC wants to get rid of retail FX. They disclosed clearly that they are market makers being a counterparty to all trades, see Item 12 in the attached document below. It's too bad FXCM is short on cash otherwise if I were them, I would sue CFTC's ass so hard that they are going to bankrupt the whole US treasury with legal fees. {image}
Yup, was a bit confused here at start, but this is exactly what I have been aware of since I started using FXCM back in 2009. I've had a FXCM Micro Account and when asking about their execution model over phone I was told that they did the other side of the trade. A few years ago I was considering opening an account for my son, and got the same answer over the phone again. I don't see how it can get more fair than that. I never had any problems. I've traded a lot and are very critical about every detail when it comes to what is happening. To me there was never any problems FXCM taking the other side of the trade. If I lost, it was my fault. Another ting, I don't remember how many years back, but without being able to detect it FXCM had detected faulty pricing in their system on some trades. For that I got over $300 refunded to my account. So I don't really understand the problem here. I have always been happy with FXCM and would be sad to see them go.
  • New Comment
  •  Guest
  • | IP XX.XXX.49.72
Join FF
  • Story Stats
  • Posted: Feb 7, 2017 8:54am
  • Submitted by:
     Newsstand
    Category: Forex Industry News
    Comments: 67  /  Views: 27,066