FXCM and CEO Drew Niv banned from US market by CFTC | Forex Factory

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FXCM and CEO Drew Niv banned from US market by CFTC

  • #1
  • First Post: Feb 6, 2017 4:35pm Feb 6, 2017 4:35pm
FXCM and CEO Drew Niv kicked out US market, fined $7 million for defrauding customers


Breaking Forex News In a fairly harsh and historic move, the US Commodity Futures Trading Commission (CFTC) has banned FXCM from its home US market, as well as a permanent registration ban for CEO Drew Niv.

We expect the company to put out a formal statement within about an hour, formally announcing FXCMs full withdrawal from the US market, and possibly other changes.

Oh - and the company and Mr. Niv and co-founder William Ahdout were fined $7 million.

What led to such drastic action by the US regulator?

Get all the details, now at LeapRate.
  • #2
  • Feb 6, 2017 4:46pm Feb 6, 2017 4:46pm
they are ban in the U.S., that's hard for me to believe
  • #3
  • Feb 6, 2017 4:48pm Feb 6, 2017 4:48pm
Oh boy!
  • #4
  • Feb 6, 2017 4:50pm Feb 6, 2017 4:50pm
http://www.marketwatch.com/story/fxc...nts-2017-02-06
  • #5
  • Feb 6, 2017 4:52pm Feb 6, 2017 4:52pm
But FXCM UK, Australia, etc... are still going to continue their operations I believe.
  • #6
  • Feb 6, 2017 4:55pm Feb 6, 2017 4:55pm
Quoting Mr Breakout
But FXCM UK, Australia, etc... are still going to continue their operations I believe.
most likely, but this should be a warning to there clients in such countries
  • #7
  • Feb 6, 2017 4:57pm Feb 6, 2017 4:57pm
the sad part we have no ECN brokers in the U.S., both oanda and forex.com is market makers and tries to rip you off every chance they get
  • #8
  • Feb 6, 2017 5:11pm Feb 6, 2017 5:11pm
So far no comments on the FXCM website (www.fxcm.com).
  • #9
  • Feb 6, 2017 5:23pm Feb 6, 2017 5:23pm
Quoting Mr Breakout
So far no comments on the FXCM website (www.fxcm.com).
and they still taking customers
  • #10
  • Feb 6, 2017 5:25pm Feb 6, 2017 5:25pm
i look for a all out ban on SPOT FOREX worldwide
  • #11
  • Feb 6, 2017 5:26pm Feb 6, 2017 5:26pm
Quoting PoundTrader
{quote}and they still taking customers
European, Asian and Middle East customers perhaps.
  • #12
  • Feb 6, 2017 5:32pm Feb 6, 2017 5:32pm
Quoting PoundTrader
i look for a all out ban on SPOT FOREX worldwide
A total ban?

Well in that case we will all have to return to the (less liquid) currency Futures markets (US or Europe).
  • #13
  • Feb 6, 2017 5:36pm Feb 6, 2017 5:36pm
Quoting Mr Breakout
{quote} Well in that case we will all have to return to the (less liquid) currency Futures markets (US or Europe).
there has been a major assault on spot forex the last 5yrs and things has gotten worst, countries will continue to lower leverage until they ban forex altoghter
  • #14
  • Feb 6, 2017 5:52pm Feb 6, 2017 5:52pm
Quoting PoundTrader
{quote} there has been a major assault on spot forex the last 5yrs and things has gotten worst, countries will continue to lower leverage until they ban forex altoghter
Nah, won't happen, these huge Wall Street corporations and big companies overseas still need to hedge their billion dollars operations in the Forex market.
And we are not even talking about banks and investors moving trillions of dollars, euros, yen and whatever every day across the planet.
No country can stop that.
  • #15
  • Feb 6, 2017 5:55pm Feb 6, 2017 5:55pm
This article has more detail that cataloged the list of violations that led to this ban:

http://www.forexscamalerts.com/fxcm-permanently-banned-usa-fined-7-million

I guess it is good that the US regulators are serious enough to go after these kinds of companies, but bad that it leaves very few US brokers to choose from.
  • #16
  • Edited 6:12pm Feb 6, 2017 6:00pm | Edited 6:12pm
WOW. NDD routing orders to a secretly owned entity, e.g., self dealing.
  • #17
  • Feb 6, 2017 6:20pm Feb 6, 2017 6:20pm
Quoting nonlinear
WOW. NDD routing orders to a secretly owned entity, e.g., self dealing.
No Dealing Desk does not mean anything really, just that there is no physical desk (with real people, tables and chairs).

On the other hand, ANY broker could take the other side of your trades by routing them through an electronic desk (software) and still call it a no dealing desk, legally and technically speaking.

However, just because it is possible to do so does not mean that your broker is necessarily cheating on you, real honest NDD do exist.
  • #18
  • Feb 6, 2017 6:27pm Feb 6, 2017 6:27pm
Quoting Mr Breakout
{quote} No Dealing Desk does not mean anything really, just that there is no physical desk (with real people, tables and chairs). However, ANY broker could take the other side of your trades by routing them through an electronic desk (software) and still call it a no dealing desk, legally and technically speaking.
That is not what fxcm represented to its clients.
  • #19
  • Feb 6, 2017 6:33pm Feb 6, 2017 6:33pm
Quoting nonlinear
{quote} That is not what fxcm represented to its clients.
Well, it's not over yet, FXCM could still appeal.

Personally I never had a single problem with them.

Anyway.
  • #20
  • Feb 6, 2017 6:34pm Feb 6, 2017 6:34pm
I'm just mad because I use FXCM charts on Tradingview, the other options suck. Hopefully they stick around there haha
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