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FXCM and CEO Drew Niv banned from US market by CFTC

  • #41
  • Feb 6, 2017 8:44pm Feb 6, 2017 8:44pm
FOREX.COM might be using FXCM as there LP, LMAO
  • #42
  • Feb 6, 2017 8:45pm Feb 6, 2017 8:45pm
Quoting PoundTrader
{quote}im afraid that's what the us regulators want and will soon have there way
Nah, don't worry about some US regulations, keep trading your system with discipline and you'll be fine.
  • #43
  • Feb 6, 2017 8:49pm Feb 6, 2017 8:49pm
Quoting Mr Breakout
{quote} Nah, don't worry about some US regulations, keep trading your system with discipline and you'll be fine.
bro i left the U.S. a long time ago, was planing on coming back but i don't know now
  • #44
  • Feb 6, 2017 8:52pm Feb 6, 2017 8:52pm
Gain is not necessarily that horrible of an option -- at least it discloses that it trades against you, which is not an issue I suspect for the vast majority of those here. I've been with MB, ATC, Tradestation (gain), Citi, fxcm, etc and under most lot sizes, all was generally well. But with everything considered, the outstanding debt, debtor rights, and, more important, now what appears to a strong risk of additional civil and criminal litigation for the US entity with multiple parties (the settlement does not address this), I closed my open positions and at least attempted withdraw my fxcm funds. If I get them and want to send them at a later date to Gain, Dorman, or IB, then great, I have an option, but this gain "deal" smells fishy to me. Hopefully, I am just a paranoid trader-- so be it.
  • #45
  • Feb 6, 2017 8:56pm Feb 6, 2017 8:56pm
Quoting nonlinear
Gain is not necessarily that horrible of an option -- at least it discloses that it trades against you, which is not an issue I suspect for the vast majority of those here. I've been with MB, ATC, Tradestation (gain), Citi, fxcm, etc and under most lot sizes, all was generally well. But with everything considered, the outstanding debt, debtor rights, and, more important, now what appears to a strong risk of additional civil and criminal litigation for the US entity with multiple parties (the settlement does not address this), I closed my open positions...
i was with tradestation before they went to gain, i also was with interbankfx before they was brought by tradestation. the quality of forex brokers in the u.s. is horrible
  • #46
  • Feb 6, 2017 9:00pm Feb 6, 2017 9:00pm
i was with MB Trading before they went to gain i was also with citifx pro before they went to FXCM, sad
  • #47
  • Feb 6, 2017 9:01pm Feb 6, 2017 9:01pm
Quoting PoundTrader
{quote}i was with tradestation before they went to gain, i also was with interbankfx before they was brought by tradestation. the quality of forex brokers in the u.s. is horrible
Agreed, it is all about the futures exchanges and their lobbying power. The larger, ahem, qualifying fx traders/entities stick with IB and then go outside US, legally. Another day, PT, another day.
  • #48
  • Feb 6, 2017 9:03pm Feb 6, 2017 9:03pm
Quoting nonlinear
{quote} Agreed, it is all about the futures exchanges and their lobbying power. The larger, ahem, qualifying fx traders/entities stick with IB and then go outside US, legally. Another day, PT, another day.
if i do come back it will be with IB, most traders in the u.s. can't afford the 10k to open account with them so my voice is for those traders
  • #49
  • Feb 6, 2017 9:07pm Feb 6, 2017 9:07pm
Quoting nonlinear
. If I get them and want to send them at a later date to Gain, Dorman, or IB, then great, I have an option, but this gain "deal" smells fishy to me. Hopefully, I am just a paranoid trader-- so be it.
I am not sure but I think only people with assets of $10 MILLION or more will be allowed to open leveraged Forex positions with Interactive Brokers.
  • #50
  • Feb 6, 2017 9:07pm Feb 6, 2017 9:07pm
Quoting PoundTrader
{quote}if i do come back it will be with IB, most traders in the u.s. can't afford the 10k to open account with them so my voice is for those traders
I thought IB left the retail FX space?
Remember, Red. Hope is a good thing, maybe the best of things...
  • #51
  • Feb 6, 2017 9:08pm Feb 6, 2017 9:08pm
Quoting Mr Breakout
{quote} I am not sure but I think only people with assets of $10 MILLION or more will be allowed to open leveraged Forex positions with Interactive Brokers.
Pretty much...
  • #52
  • Feb 6, 2017 9:09pm Feb 6, 2017 9:09pm
Quoting ForexFury
{quote} I thought IB left the retail FX space?
No they did not, it's just that they only accept high net worth individuals now.

Gordon Gekko for example.
  • #53
  • Feb 6, 2017 9:11pm Feb 6, 2017 9:11pm
Oh, and I do smell some napalm depositions coming -- the subpoena power of most US courts is quite dramatic. For better or worse, that's the one thing about the US -- when evil rises, the lawyers feed blindly and without control.
  • #54
  • Feb 6, 2017 9:14pm Feb 6, 2017 9:14pm
Quoting Mr Breakout
{quote} No they did not, it's just that they only accept high net worth individuals now. Gordon Gekko for example.
That's a shame. No where near close to having that amount of trading capital. Haha.
Remember, Red. Hope is a good thing, maybe the best of things...
  • #55
  • Feb 6, 2017 9:46pm Feb 6, 2017 9:46pm
Quoting ForexFury
{quote} That's a shame. No where near close to having that amount of trading capital. Haha.
Well, I am $3.99 short of $10 Millions, so for Interactive Brokers I still don't qualify as a retail Forex trader ("Application denied, you are $3.99 short, sorry"), hahahaha
  • #56
  • Feb 6, 2017 10:00pm Feb 6, 2017 10:00pm
Jokes aside, here are some interesting stats about the US retail Forex market.

In 2016....

FXCM controlled 34% of the market,
Gain Capital 26%,
Oanda 25%,
TD Ameritrade Forex 8%
Interactive Brokers 7%.
  • #57
  • Feb 6, 2017 10:17pm Feb 6, 2017 10:17pm
Quoting nonlinear
{quote} That is not what fxcm represented to its clients.
This is their disclosure page on their website: https://www.fxcm.com/legal/disclosure/

On it, there is a Risk Disclosure PDF document which I attached below. Section 12 titled "Off-Exchange transactions" states the following:

Off-exchange transactions In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. The firm with which you deal may be acting as your counterparty to the transaction. Forex Capital Markets, LLC functions as a direct counterparty to Traders in many currency transactions. Forex Capital Markets, LLC neither offers the right to offset, nor guarantees a market in which to offset, transactions it effects as a counterparty.

They stated pretty clearly that they are a market-maker. They hedge yes but they are market maker, a.k.a direct counterparty to traders. And this is standard for ALL CFTC FCM's. If they don't have it, they would've been shut down long time ago by the CFTC/NFA. To come back now to say that they should be banned because of non-disclosure is pretty BS. Trying to dismantle Retail FX industry by going after the biggest broker is more like it.

Gain Capital is the WORST. If I am a FXCM customer and my account is being moved to Gain Capital, I would get out IMMEDIATELY and go to another US broker.
Attached File(s)
File Type: pdf risk_disclosure_fxcm_llc_en.pdf   142 KB | 299 downloads
Make your losses in demo. Earn your profits live.
  • #58
  • Feb 6, 2017 10:27pm Feb 6, 2017 10:27pm
Quoting Mr Breakout
{quote} No they did not, it's just that they only accept high net worth individuals now. Gordon Gekko for example.
Which is a real shame for us little guys. Finally there is a good broker for us and they had to take it away from us. That was SEC's doing btw.
Make your losses in demo. Earn your profits live.
  • #59
  • Feb 6, 2017 10:29pm Feb 6, 2017 10:29pm
Quoting Mr Breakout
{quote} I am not sure but I think only people with assets of $10 MILLION or more will be allowed to open leveraged Forex positions with Interactive Brokers.
Or don't use leverage. Their min. trade size is like $25K USD on IDEALPRO. If you are able to come up with that all in cash, you can still trade with them. See that's the irony of it. If you have $10 million sitting around in your coffer, WHY would you need leverage to trade FX when its standard lot is only 100K? You can trade 10 standard lots easily all on cash. And yet when you are an average trader like us who needs leverage, they require you to have $10 million in assets to qualify. Leverage is created so people who don't have much cash can also trade on the same level playing field as the big guys who's got cash. If you've got cash, why would you need leverage?

This is clearly another rule that is created just for the purpose of barring us average traders from controlling our own investment, getting access to the same investment market as the big players so all we can do is putting our money in mutual funds for those big institutions to play with.
Make your losses in demo. Earn your profits live.
  • #60
  • Edited 10:54pm Feb 6, 2017 10:42pm | Edited 10:54pm
Quoting Forexia
This is clearly another rule that is created just for the purpose of barring us average traders from controlling our own investment
That was exactly what Hitler said, take a look

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