Class Action Lawsuit Against FXCM | Forex Factory

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Class Action Lawsuit Against FXCM

  • #1
  • First Post: Edited 8:13am Feb 10, 2011 7:31am | Edited 8:13am
Class Action Lawsuit Against FXCM. Read Here

The Plaintiff, William H. Sanders, of Muscogee, Oklahoma, brought the action on behalf of himself and all other similarly situated FXCM customers, accusing FXCM of fraud by misrepresenting itself as a trading platform that is free from dealer intervention or manipulation. Instead, Sanders alleges, FXCM uses a number of devices and tricks, including software applications, designed specifically to interfere with customers’ trades.
The Complaint further alleges that FXCM engaged in a pattern of racketeering activity by collaborating with its software developers and programmers to develop a “diabolical” software application that provides FXCM with a myriad of tools and system commands with which to interfere with customers’ trades, including routing trades to “slow” servers and sending false “error” messages when customers attempt to close out profitable trades.

FXCM is unlikely to be the only one imo...(Forex futures anyone?)
  • #2
  • Feb 10, 2011 8:11am Feb 10, 2011 8:11am
Will successful prosecution set a precedent for all other bucket shops? Any thoughts anyone?
  • #3
  • Feb 10, 2011 8:43am Feb 10, 2011 8:43am
Funny how this thread went straight to the brokers thread and this news that was on the homepage of FF was up for best part of only 5 mins.

Why? FXCM does lots of advertising on FF! What ever happened to impartiality!? Traders using FF deserve the right to have access to this news. This is disgraceful behaviour of FF imo.
  • #4
  • Edited 9:33am Feb 10, 2011 9:01am | Edited 9:33am
I have to dissagree with you there trash. Here's my reasoning. I think the discussion area of FF should be an area discussing new ideas and recent news. As the issue with FXCM is hot off the press the issue should be easily available to traders, especially traders who hold funds with fxcm. Make no mistake, FXCM pay Forex Factory large amounts of money for advertising space. FF therefore must feel that any news stories or discussions that put these companies in a bad light will be removed very quickly from the front page. You did not see the news about the FXCM Lawsuit on their right panel of the home page, because they removed it almost as fast as it arrived.

So, should Forex Forums practice impartiality when regarding these issues (and we are talking about a company being sued for fraud and corruption against its customers -that's those people who might use forex factory) in order to provide useful information to traders, or should they cover it up and protect their partners? Shouldn't Forex Forums be run by traders for traders? If they are selective about what news they wish to broadcast, what implications does that have for traders using the site?
  • #5
  • Feb 10, 2011 9:16am Feb 10, 2011 9:16am
It's time to keep this bandwagon rolling and not stop it until all those mutherfucking bucket shop shysters are driven out of business.

This entire business needs proper regulation and lets hope that this is the first step.
He was looking for the card so high and wild hed never need to deal another
  • #6
  • Edited 9:34am Feb 10, 2011 9:23am | Edited 9:34am
Quoting dr_who
It's time to keep this bandwagon rolling and not stop it until all those mutherfucking bucket shop shysters are driven out of business.

This entire business needs proper regulation and lets hope that this is the first step.
Totally agree. Who would have thought that after the refco debacle this sort of thing still goes on. If this isn't a wake-up call to the bucket shop industry and to new and older traders to vote with their money then I don't know what is. Its a matter of basic principles and fairplay for all traders, whether your individual broker is screwing you or not, everyone needs to take a stance on the issue.
  • #7
  • Feb 10, 2011 9:43am Feb 10, 2011 9:43am
Quoting eurotrash
FXCM may be innocent.
LOL. Pigs might fly
He was looking for the card so high and wild hed never need to deal another
  • #8
  • Feb 10, 2011 9:49am Feb 10, 2011 9:49am
Quoting eurotrash
I'm surprised that you're surprised. This is a business after all, not a site being run by traders for traders (maybe it was at the beginning?). Any site with sponsorship will have these sort of conflicts. FXCM and most other dealers probably get a million lawsuits like this, and it's sort of like publicly saying "so and so has been accused of x crime" though he hasn't yet been found guilty - even if that person is cleared there is still a stigma about that person. So I can understand FF not wanting something like that in their news feed, as it...
I am not surprised. Doesn't mean we should all stand there muted and not say a thing on the subject.

"A million lawsuits", show me the evidence. This is an attack on the companies practices in general, not some disgruntled trader having a dig about losses in his $500 account.
  • #9
  • Feb 10, 2011 10:20am Feb 10, 2011 10:20am
Quoting eurotrash
Just saying. I'm not into this whole "my broker is screwing me over" thing. If they're guilty then so be it, but nothing has been proven yet (regarding this particular lawsuit).
True. Most people complaining about their broker are traders that are losing money due to bad trading. I trade forex futures so I don't give a monkeys. But, I am all for a level playing field where possible and I think that's important in this business. Equally, there are some very good FX brokers so they should not all be tarnished with the same brush. But can these companies do more to make sure the corrupt companies are kept out? Its a difficult business model to monitor very closely I suspect without it becoming too constrained.

There must be some quite compelling evidence for such a case to be made. I do believe innocent until proven guilty. But for a company to even make anyone hint that they are performing against the law is very bad business practice imo and probably deserve all the bad publicity they can get. Even if they are innocent -which I doubt they are. All fun and games.
  • #10
  • Feb 10, 2011 10:24am Feb 10, 2011 10:24am
Fully agree. Happened to me, changed broker. Hate them. Now trading feels better. Good luck to this guy, I'm afraid this will lead nowhere.

Quoting Porkpie
Class Action Lawsuit Against FXCM. Read Here

The Complaint further alleges that FXCM engaged in a pattern of racketeering activity by collaborating with its software developers and programmers to develop a “diabolical” software application that provides FXCM with a myriad of tools and system commands with which...
Hello.
  • #11
  • Feb 10, 2011 10:32am Feb 10, 2011 10:32am
I'm talking about these issues here on FF, for a while and there is always some idiots that come to say that I have no basis for my claims.

I'm not a investigator and I'm not filing any lawsuit against anybody. But being in the business for over 20 years, working for banks you get to know some stuff.

If you look at the little discussion I had with Jason (on the fxcm thread) in the past you will see how evasive he was to my questions. He twisted and turned and danced around without a precise answer, well , it tells me that he was not telling the truth, when you have nothing to hide your answers are quick ,easy, and to the point.

Same thing with Oanda and other few brokers. They always send their employees here to ask you for proof. Well I try to warn people but I'm not gonna wast my time producing facts because I don't use them anyways so at the end of the day it does not matter to me.

What we are seeing now could be the beginning of a trend. Some people that trade their main accounts through brokers are starting to getting really pissed with so much dishonest and are starting ti fight back.

Again... it does not matter to me, but if you are a retail trader and all you do is to come here and complain you are not doing enough. If enough small and medium fishes start to file lawsuits even if on small claims and come here and report it the brokers will start to pee on their pants and something will change.


But if you think that fxcm, oanda or whatever give a sh**T to your whining here on the forums you are wrong. You are mad and they are laughing all the way to the bank....with your money.
  • #12
  • Feb 10, 2011 10:44am Feb 10, 2011 10:44am
http://finance.yahoo.com/q?s=fxcm&ql=1
  • #13
  • Feb 10, 2011 11:19am Feb 10, 2011 11:19am
Does some have a link to the court-filings? I would like to know what exactly was filed. I think its a bad idea unless he lost a significant amount and has a really solid case.

Mr. William H. Sanders of Muscogee, Oklahoma better have some solid proof he can lean on. If he outright loses the case, its going to be a very expensive episode for him.

For a refenrence: if you file for NFA arbitration and your case gets dismissed, you will have to pay for legal expenses of the other side (and a possible counter-claim). For example see this:

http://www.nfa.futures.org/basicnet/...ase=08ARB00052

A client put in a claim for 30K - and the result was he had to pay a counterclaim of 30K and attourney fees of 26K on top of that. And thats only a NFA arbitration, a full blown court case is more expensive.
  • #14
  • Feb 10, 2011 11:19am Feb 10, 2011 11:19am
Irony of ironies:
Attached Image (click to enlarge)
Click to Enlarge Name: 2-10-2011 9-16-11 AM.png Size: 356 KB
  • #15
  • Feb 10, 2011 11:56am Feb 10, 2011 11:56am
Quoting shrike
Does some have a link to the court-filings? I would like to know what exactly was filed. I think its a bad idea unless he lost a significant amount and has a really solid case.

Mr. William H. Sanders of Muscogee, Oklahoma better have some solid proof he can lean on. If he outright loses the case, its going to be a very expensive episode for him.

For a refenrence: if you file for NFA arbitration and your case gets dismissed, you will have to pay for legal expenses of the other side (and a possible counter-claim). For example see this:

http://www.nfa.futures.org/basicnet/...ase=08ARB00052

A...

Yep ...thats good advice....just give up of your rights because somebody sad so. Thats brokers talk.

Thats not how Americans behave. I was not born here but my kids are and I teach them to respect others rights but to respect their own rights too.

Don't let anybody intimidate you, if no one fight for their own rights the overall self right issue gets weaker and weaker.

If you think a broker screwed you, educate yourself, take advice from a lawyer and go after your rights.

Fight!! Don't just stay in a fetal position being kicked by the fat cats.
  • #16
  • Feb 10, 2011 12:17pm Feb 10, 2011 12:17pm
I dont know how americans behave. Over here you have to carefully weigh litigation-risk vs. the amount in question, or you will pay. Maybe proud americans dont need to do that.
  • #17
  • Feb 10, 2011 12:29pm Feb 10, 2011 12:29pm
Quoting shrike
I dont know how americans behave. Over here you have to carefully weigh litigation-risk vs. the amount in question, or you will pay. Maybe proud americans dont need to do that.
of course because otherwise you risk having your hand cut off or even worse... you lose your head, in the literal way...right? thats how it may work in your country, but here in America we still have some laws.

And by the way I'm not suggesting anybody go and fight the big guys just like that...read my post, I advised people to get educated and consult a professional (lawyer) so they know if they really have a case.
  • #18
  • Feb 10, 2011 12:30pm Feb 10, 2011 12:30pm
You'll see them in full on Forex Magnates next week.

Porkpie: the dude didn't lose $150 but $150,000...

Quoting shrike
Does some have a link to the court-filings? I would like to know what exactly was filed. I think its a bad idea unless he lost a significant amount and has a really solid case.
  • #19
  • Feb 10, 2011 12:33pm Feb 10, 2011 12:33pm
Quoting ForexMagnates
You'll see them in full on Forex Magnates next week.

Porkpie: the dude didn't lose $150 but $150,000...
Yep that was my point to Eurotrash. This is not some small account loss claim, although I also suspect that if a broker was going to screw anyone it would be the accumilation of the little guys with little accounts, many tens of thousands of them.
  • #20
  • Feb 10, 2011 12:36pm Feb 10, 2011 12:36pm
Quoting Platypus
of course because otherwise you risk having your hand cut off or even worse... you lose your head, in the literal way...right? thats how it may work in your country, but here in America we still have some laws.

And by the way I'm not suggesting anybody go and fight the big guys just like that...read my post, I advised people to get educated and consult a professional (lawyer) so they know if they really have a case.
This is his point exactly , there is "law" in america or should be, which mean if u dont have a strong case and u dont have a proof it will turn against u , y u took it personal ? he gave u an example from a case in the US ...
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