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I was fleeced by my broker and I have proof!

  • #141
  • Apr 13, 2016 6:23am Apr 13, 2016 6:23am
hey i had the same issue on the roll over fee. Opened a trade last March 30 USD/JPY (short) for a 5K lot and my fee was around $8.19. Emailed FXCM and this was their response.

"FXCM - Joseph: Thank youApril 1 marks the beginning of a new fiscal year in Japan, and JPY borrowing is extremely strained as borrowers look to roll over outstanding debts. This isn’t at all unprecedented, but it should be noted that this year is the worst we’ve seen in the past four.
It was therefore expensive to roll over any JPY-long positions (or sell USD/JPY). This is exacerbated by the fact that it was also a Wednesday and rolls are 3x normal.I will also email you a screen shot of the USDJPY spot versus Next spread seen on Bloomberg’s forward points to see that this is by no means limited to FXCM’s dealing rates."

Am checking Bloomberg now.
  • #142
  • Apr 13, 2016 7:42am Apr 13, 2016 7:42am
Why on earth does anyone still use FXCM? The company failed its clients before the CHF event in January 2015, and has been a slave to the bailout terms ever since. Yet people still deposit money there...unbelievable! If you are experiencing difficulties in your trading because of FXCM, and you are fully aware of their history and problems, then it's your fault, not theirs.
  • #143
  • Apr 13, 2016 8:12am Apr 13, 2016 8:12am
Its more like the clients failed FXCM to pay what they owe at the CHF incident.
  • #144
  • Apr 13, 2016 8:30am Apr 13, 2016 8:30am
No, it's more like FXCM failed to anticipate both the CHF decision, and the impact of the decision on their clients and their business. Other brokers were "prepared" and out ahead of the Swiss decision. Several brokers failed, and FXCM nearly failed.
  • #145
  • Apr 13, 2016 8:43am Apr 13, 2016 8:43am
Quoting GEfx
Why on earth does anyone still use FXCM? The company failed its clients before the CHF event in January 2015, and has been a slave to the bailout terms ever since. Yet people still deposit money there...unbelievable! If you are experiencing difficulties in your trading because of FXCM, and you are fully aware of their history and problems, then it's your fault, not theirs.
Best comment yet!

If you did not do your research and just jumped in because the name is well known or you where sucked in by their advertising then its your fault!

Even on FX peace army they only have 2.5 stars and a whole list of horror stories. And regardless if FXCM are doing anything wrong or not, The fact that people believe they are should tell you something.
  • #146
  • Apr 13, 2016 3:28pm Apr 13, 2016 3:28pm
Quoting mrhigurashi
... The fact that people believe they are should tell you something.
Yea that they will believe what they want - reality be damned.
  • #147
  • Apr 13, 2016 3:29pm Apr 13, 2016 3:29pm
Jason has been an absolute gentleman and for that he gets chit on.
  • #148
  • Edited 7:33pm Apr 13, 2016 6:41pm | Edited 7:33pm
Quoting mrhigurashi
Even on FX peace army they only have 2.5 stars and a whole list of horror stories. And regardless if FXCM are doing anything wrong or not, The fact that people believe they are should tell you something.
Quoting SunTrader
{quote} Yea that they will believe what they want - reality be damned.
When reading such online reviews, it's worth keeping in mind that the vast majority of FXCM clients are pleased with our service and execution. Otherwise, we wouldn't continue to grow as we have. After all, we did 10% more volume in 2015 than we did in 2014.

Also worth considering is the fact that we've been in business since 1999 making us one of the oldest firms in what is still a relatively young industry. If less than 1% of our clients or past or present express a grievance about something, it may seem like a large number of traders compared to other brokers, because we are bigger. However, it's not as large relatively speaking when you consider the percentages.

That's not to say that we don't take such client feedback seriously. One of my goals on forums such as this one is to answer questions about FXCM and address any potential concerns. However, if you see my other posts, you will find that I don't simply promote our firm. I actively contribute to discussions to provide service and education to traders.

This also highlights how FXCM dedicates a greater amount of resources to educating new traders than many other brokers. That means more novice traders begin their forex journey with us. The flip side of this is that when they misunderstand something about how the market works or how to use the software, they sometimes blame us.

Note: I'm not saying that's what happened in the case of the OP, and I still encourage him to file a trade inquiry, so we can help him determine what happened.
  • #149
  • Edited 7:03pm Apr 13, 2016 6:42pm | Edited 7:03pm
Quoting GEfx
No, it's more like FXCM failed to anticipate both the CHF decision, and the impact of the decision on their clients and their business. Other brokers were "prepared" and out ahead of the Swiss decision. Several brokers failed, and FXCM nearly failed.
Hi GEfx,

It's important to understand why FXCM and other STP brokers had much bigger exposure to the SNB flash crash last year than dealing desk brokers (AKA market makers). 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.

Obviously many of our competitors who are on the opposite side of their clients trades did not find the EUR/CHF trade to be helpful to their bottom line, as they lose money when traders profit. We saw many of the dealing desk firms begin to increase overnight rollover cost as well as raise margin requirements to get these trades off their system.

At the time of the SNB announcement over 3,000 FXCM clients held slightly over $1 billion in open positions on EUR/CHF. Those same clients held approximately $80 million of collateral in their accounts. As you know this was the largest move of a major currency since currencies started floating 1971.

The EUR/CHF move was 44 standard deviation moves, while most risk management systems only contemplate 3-6 standard deviations. The move wiped out those clients account equity as well as generated negative equity balances owed to FXCM of over $225 million. We believe that the FXCM system operated properly during this event.

The caveat of our no dealing-desk execution system 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 could not cover their margin call with us we still had to cover the same margin call with our banks. When a client profits in the trade FXCM gives the profits to the customer, however, when the client is not profitable on that trade FXCM Inc. ends up having to pay the liquidity provider. For anyone that still thinks FXCM is running an FX dealing desk despite stating that we provide No Dealing Desk (NDD) forex execution to all our standard accounts, we have now demonstrated that such is not the case.

Incidentally, for those of you trading with dealing desk brokers, have you ever considered what would have happened on January 15th 2015, if the market had moved 44 standard deviations in favor of your trade (and the trades of everyone else in the same position) and against your broker? Would they have had enough money to pay you and everyone else out on such a massive market move? Would they have wanted to even if they could?

On FXCM's NDD model, we don't trade against our clients, so we don't profit from your losses or lose from your profits. Instead we profit from your trading volume. That means we want you to be profitable. Can your broker say the same?

Quoting GEfx
The company failed its clients before the CHF event in January 2015, and has been a slave to the bailout terms ever since. Yet people still deposit money there...unbelievable!
Our CEO Drew Niv provides a good summary of what happened in his interview with Profit & Loss magazine:

"Financially, we lost $300 million and then we got $300 million from Leucadia, so by Monday 19th of January, the company was fine in terms of balance sheet. Yes, because we’re a public venue you can see that our stock is a fraction of what it was, but people need to understand that the size of the pie hasn’t changed, it’s just that the ownership of that pie has.


So the stock implies that the legacy shareholders of FXCM only own a small piece of the firm and Leucadia owns a much bigger piece, although the final determination on that will be made later this year once we’ve divested the assets we’re selling. This is about the economics to the owners of the firm, it has nothing to do with customers."


Quoting GEfx
Why on earth does anyone still use FXCM?
Again, I'll defer to Drew who explained it well in a recent interview with LeapRate:

"FXCM is still one of the leading franchises in the industry and while our investors and shareholders, me being the biggest one, have suffered big losses, the core business remains unaffected.


Our value proposition to the customer remains very strong and we have kept on investing and innovating in the retail business. We are exiting non-core operations but have invested large amounts of money in improving our core service which is apparent to our clients as they have been very resilient.


Specifically many of our best clients have very few quality A book [No Dealing Desk] solutions that can handle their more complicated EA or black box flows. Many of the B book [dealing desk] brokers that weathered the SNB storm quite well being on the other side of customer losses cannot handle these flows [which] they deem toxic."

  • #150
  • Apr 13, 2016 6:58pm Apr 13, 2016 6:58pm
Quoting GEfx
Why on earth does anyone still use FXCM? The company failed its clients before the CHF event in January 2015, and has been a slave to the bailout terms ever since.

I am neither for nor against FXCM...not a client nor do I plan to be one anytime soon reaching to EVER!!

That being said, I have spoke my mind about the ass whooping that FXCM has taken after the Black Swan event.

Now, come on, dude...

They failed their clients?

The fact that they've had to chew off a few limbs to keep their boat afloat should gain them a little kudos. How many gambled and lost on that same deal, both broker and high leveraged trader alike?

And they failed?

It was simply unprecedented and if they were the only ones who took a beating, you could reasonably scold them for that...but they weren't.

You wanna bash brokers for the black swan, bash the ones who claimed to make a profit during that time. The truth is, the brokers that prospered during that period are the ones who never let their client cash hit the open market and simply absorbed account after account.

As for Cubby's situation, completely different.

Personally, I've learned a few things on what to look for with my current brokers because of his posts and in truth have spotted a few things that aren't quite to my liking...thing is, all brokers are in business for profit, not to make the world a better place and in this game, sometimes you've gotta pick the best of the worsts, or at least have an idea of the disadvantages of a high leveraged game.

Great job Cubby...a lot of interesting information posted.
Good job at doing your best to explain/defend/represent your company, Jason.

And, well...keep on keeping on GEfx.

Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #151
  • Apr 13, 2016 7:37pm Apr 13, 2016 7:37pm
Quoting SunTrader
Jason has been an absolute gentleman and for that he gets chit on.
Thanks SunTrader, it's nice to be appreciated.
  • #152
  • Apr 13, 2016 8:00pm Apr 13, 2016 8:00pm
Quoting GEfx
No, it's more like FXCM failed to anticipate both the CHF decision, and the impact of the decision on their clients and their business. Other brokers were "prepared" and out ahead of the Swiss decision. Several brokers failed, and FXCM nearly failed.
Anticipate the SNB decision ?
You are talking about the whole financial markets ..

http://www.bloomberg.com/news/articl...-seen-mounting

Not forgetting the SNB losing $34 Billion
  • #153
  • Apr 13, 2016 9:18pm Apr 13, 2016 9:18pm
Before the SNB announcement, I had trading accounts with 3 brokers, among them was FXCM. Today, I use 2, and FXCM is not one of them. That said, my other brokers anticipated the impact of a SNB decision to un-peg the CHF from the EUR (for example, increased margin requirements on CHF trades). People, job #1 for a broker is to manage/mitigate risk. If your broker fails to anticipate and mitigate risks, they end up going out of business and they take your money with them. For my other brokers, their operations went largely unchanged after the SNB announcement, unlike FXCM, who had to go begging for relief, which involved an injection of funds so they could open the next morning.

The notion that the SNB move was unexpected is entirely incorrect, although the decision to remove the peg all at once was unexpected and stupid. In my trading group, we largely stopped trading CHF pairs in the 4th quarter of 2014 (some of my trading partners were only trading short $CHF, but no one was in that trade for the SNB announcement). The SNB announcement shined a light on broker risk, and FXCM demonstrated that they were not focused on properly managing their business.

So yes, FXCM was stupidly over exposed to CHF risk on the day of the SNB announcement, and they paid for their stupidity by having to sell out the company, it's stockholders, and its clients. According to the news, FXCM has handed over quite a lot of earning to its investor. Every $ to them is a $ they can't invest in IT infrastructure.

But hey, many of their clients are happy with trade execution, their CEO makes a nice press release, and what the hell, if the BOJ or the Brexit takes them down again, maybe they can get someone else to bail them out, again. You guys have nothing to worry about, FXCM's intentions are good, which should be good enough for everyone.
  • #154
  • Apr 13, 2016 9:34pm Apr 13, 2016 9:34pm
Quoting Magix
{quote} I am neither for nor against FXCM...not a client nor do I plan to be one anytime soon reaching to EVER!! That being said, I have spoke my mind about the ass whooping that FXCM has taken after the Black Swan event. Now, come on, dude... They failed their clients? The fact that they've had to chew off a few limbs to keep their boat afloat should gain them a little kudos. How many gambled and lost on that same deal, both broker and high leveraged trader alike? And they failed? It was simply unprecedented and if they were the only ones who took...
Hi Magix, been a while. Hope you are well.
  • #155
  • Apr 14, 2016 12:17am Apr 14, 2016 12:17am
Quoting GEfx
{quote} Hi Magix, been a while. Hope you are well.

All good here, brother.

How's you been keep'n?
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #156
  • Apr 14, 2016 1:09am Apr 14, 2016 1:09am
Can anyone here point out any broker that has not had negative remark/review written by traders? And yet there are so many traders who live on nothing but on forex trading profits. Please don't get me wrong- sometimes a we blow out of proportion each time we have issue with our brokers. If all brokers have had negative remark, why are we still trading? Why are some traders still making a living out of forex trading? Just my take. Am neither in support of FXCM or against it.
Make all mistakes in demo and rain in pips in live account
9jatrader All Time Return: -13.0%
  • #157
  • Apr 14, 2016 1:27am Apr 14, 2016 1:27am
Quoting 9jatrader
Can anyone here point out any broker that has not had negative remark/review written by traders? And yet there are so many traders who live on nothing but on forex trading profits. Please don't get me wrong- sometimes a we blow out of proportion each time we have issue with our brokers. If all brokers have had negative remark, why are we still trading? Why are some traders still making a living out of forex trading? Just my take. Am neither in support of FXCM or against it.
Why do people keep going to the casino knowing that the chances of winning are almost 0?
  • #158
  • Apr 14, 2016 8:13am Apr 14, 2016 8:13am
Something like 90% of traders fail. Naturally because of something someone else did.
  • #159
  • Apr 14, 2016 9:57am Apr 14, 2016 9:57am
Quoting mrhigurashi
{quote} Why do people keep going to the casino knowing that the chances of winning are almost 0?
That's a big question
Make all mistakes in demo and rain in pips in live account
9jatrader All Time Return: -13.0%
  • #160
  • Apr 14, 2016 11:47am Apr 14, 2016 11:47am
Quoting SunTrader
Something like 90% of traders fail. Naturally because of something someone else did.
Of course. Always easier to blame someone else.

"I didn't do my home work because my forex broker widened their spreads"
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