DislikedDoes anybody know what is the worse outcome from the CFTC investigation that was announced just recently?Ignored
Probable outcome, cftc will slap a fine, but fxcm will still stay afloat
- #9,403
- Edited 5:26pm Aug 30, 2016 5:14pm | Edited 5:26pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #9,406
- Aug 31, 2016 7:35am Aug 31, 2016 7:35am
- Joined Feb 2012 | Status: Trader | 3,925 Posts
http://www.cftc.gov/PressRoom/PressReleases/pr7431-16
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
- #9,407
- Aug 31, 2016 9:46am Aug 31, 2016 9:46am
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
Does anybody know what is the worse outcome from the CFTC investigation that was announced just recently?
{quote} the worst outcome, assuming you live in the United States, is the brokerage could go belly under, and you would have to wait for the insured funds to be paid back, (assuming you actually do get paid from the FDIC...) if you don't live in the united states, kiss your account goodbye. Probable outcome, cftc will slap a fine, but fxcm will still stay afloat
{quote} What CFTC investigation, the only investigation I see are a few years back that were settled in 2010 and 2013.
{image}Search Engine >> Search Term >> "CFTC FXCM" >> Results >> http://www.cftc.gov/PressRoom/PressReleases/pr7431-16
I'm not authorized to comment beyond citing our official statement. I posted it in this previous discussion which I hope can be helpful for those of you with additional questions: http://www.forexfactory.com/showthre...13#post9093313
- #9,408
- Aug 31, 2016 10:47am Aug 31, 2016 10:47am
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #9,409
- Aug 31, 2016 6:29pm Aug 31, 2016 6:29pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #9,410
- Aug 31, 2016 6:39pm Aug 31, 2016 6:39pm
- Joined May 2016 | Status: Trader | 6,301 Posts
{quote} the worst outcome, assuming you live in the United States, is the brokerage could go belly under, and you would have to wait for the insured funds to be paid back, (assuming you actually do get paid from the FDIC...) if you don't live in the united states, kiss your account goodbye. Probable outcome, cftc will slap a fine, but fxcm will still stay afloat
Insured funds??? roflmaoIronically, these wonderful regulations which require us to deposit 10 times more than the rest of the world because they feel leverage hurts us, do nothing to protect our funds. If a US broker goes belly up, you lose all of your money. Once again, this is why I trade offshore, my money is just as protected as with a US broker (not at all) but I only have 10% of the amount at risk due to the higher leverage. Plus due to the ability to hedge and no FIFO, it is far easier to recover a position.
- #9,411
- Edited 11:53am Sep 1, 2016 11:23am | Edited 11:53am
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
{quote}
You have a point, but you are overstating the safety of trading offshore. The biggest concern when it comes to unregulated/offshore brokers is their lack of accountability and financial transparency.
Should traders do their own due diligence when choosing a broker above and beyond checking whether a broker is regulated? Absolutely, but making sure a broker is answerable to some government authority by being regulated is a bare minimum when it comes to the safety of your funds.
Higher leverage/lower margin requirements offered by unregulated brokers may mean you can deposit less money with them, but what about the money you do deposit? If you have so little trust in these brokers you want to minimize your account balance, why deposit any money with them at all?
And what about traders with higher account balances who statistically don't use as much leverage and place even greater emphasis on the financial transparency of their broker? Accountability to government authority is a key reason why retail forex traders have over half a billion dollars on deposit with US-regulated brokers.
If a broker is unregulated, it means they are unable or unwilling (which is worse?!) to meet even the minimum standards of financial responsibility and transparency set by government regulators. Furthermore, a broker accepting US clients without being regulated in the US is violating government regulations. If an unregulated offshore broker is willing to break one law to get US clients what's to stop them and who's to stop them from breaking other laws to the detriment of these clients?
{quote} the worst outcome, assuming you live in the United States, is the brokerage could go belly under, and you would have to wait for the insured funds to be paid back, (assuming you actually do get paid from the FDIC...) if you don't live in the united states, kiss your account goodbye. Probable outcome, cftc will slap a fine, but fxcm will still stay afloat
While I'm not authorized to comment on the CFTC's action beyond citing FXCM's official statement, I would like to clarify that FDIC insurance applies to bank accounts, not forex accounts in the US. The FDIC exists to protect bank account holders in the event of bank insolvency. Unfortunately, US regulations provide no comparable insurance for forex accounts in the US.
That makes the strong capitalization of FXCM, as confirmed by the latest financial data, all the more important for US traders*. While the minimum regulatory capital requirement for our global operations is $60 million, FXCM has regulatory capital of $167 million, a surplus of $107.2 million. Our clients appreciate this fact which is why the latest figures from the CFTC show traders continue to have more money on deposit with FXCM than any other US-regulated forex broker.
* For forex traders living outside the US, it's worth noting that FXCM UK accounts are insured for up to 50,000 per client by the Financial Services Protection Scheme, and accounts in Canada are insured for up to $1,000,000 per client by the Canadian Investor Protection Fund.
- #9,413
- Sep 1, 2016 12:16pm Sep 1, 2016 12:16pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #9,414
- Sep 1, 2016 12:17pm Sep 1, 2016 12:17pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
Please note there is a holiday in the US on Monday, September 5th for Labor Day. You can see our holiday trading hours for CFD's here: What are the CFD Holiday Hours? Forex trading hours remain unchanged, and you can view the holiday rollover interest (swap) schedule here: Forex Rollover Calendar
For immediate assistance, you can contact our 24-hour live customer support.
To my fellow traders in the US celebrating Labor Day, I hope you have a great weekend!
- #9,416
- Sep 4, 2016 1:28pm Sep 4, 2016 1:28pm
- Joined Dec 2014 | Status: Klugscheißer | 8,318 Posts
Hi Jason could you please explain this :
Which bank on ebs has payed this price ?
-No one bank on the world had bids there
Which bank on ebs has payed this price ?
-No one bank on the world had bids there
Inserted Video
- #9,417
- Sep 4, 2016 3:02pm Sep 4, 2016 3:02pm
- Joined May 2016 | Status: Trader | 6,301 Posts
Hi Jason could you please explain this : {image} {image} Which bank on ebs has payed this price ? -No one bank on the world had bids there https://youtu.be/_RSih-uqKU0
- #9,420
- Edited 9:03am Sep 5, 2016 8:32am | Edited 9:03am
- Joined Feb 2012 | Status: Trader | 3,925 Posts
FXCM data consistent with live data comparison:
Broker 1 
On Line Charts - FreeStockCharts 
Broker 2 
Broker3 
Sierra Chart Multi Broker Data (FXCM Data) 
Broker 1
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**