FXCM and CEO Drew Niv banned from US market by CFTC | Page 6 | Forex Factory

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FXCM and CEO Drew Niv banned from US market by CFTC

  • #101
  • Feb 7, 2017 9:25pm Feb 7, 2017 9:25pm
Quoting Mr Breakout
{quote} Hi, I believe you can still open an FXCM demo account even if you are currently living in the US, there are no laws against that (at least for now... LOL ): https://www.fxcm.com/forex-trading-demo/

I certainly hope so. I absolutely despise MT4.
The better looser you are the better winner you are
  • #102
  • Feb 7, 2017 9:31pm Feb 7, 2017 9:31pm
Quoting USCGamecocks
{quote} I certainly hope so.
Try it and let us know then.
  • #103
  • Feb 7, 2017 10:56pm Feb 7, 2017 10:56pm
Quoting shrike
{quote} I dont think its worth it when they can regulate you away on a moments notice. Look at IB, they just killed their retail fx business without any good reason at all.
IB didn't kill their retail FX business. It's just in great United States of America that they are no longer allowed to be in retail FX. And you have SEC to thank for that. It was SEC who forced IB to get out of retail FX industry or risk losing SEC license for all the other investment products that they offer brokerage service by coming up with the ban of leveraged fx trading for "unqualified" small traders. Since IB is registered with SEC for the other investment products that they are a broker for which amounts to larger % of their revenue, they had no choice but to let go of their retail FX business even though they are already registered with CFTC for that. Yeah next time if you happen to know somebody who works for SEC, don't forget to thank them for forcing a decent broker out of the retail FX industry and narrowing the choices of good brokers even further for US retail traders who wants to trade FX.

In the rest of the world though, it's business as usual for IB's retail FX division, for now. So for those of you in United States who wants to continue to trade with IB, all you have to do is come on over to Canada. We are receiving hordes and hordes of refugees now from US originally from the seven banned countries illegally landing in Canada now thanks to the Trump travel ban (I understand Trump's desire to protect US against potential terrorism but didn't know that we would be the one ending up getting all the "potential terrorists". LOL) So we DEFINITELY don't mind you Americans who want to come on over just to be able to trade with a better broker. Another choice would be going to Mexico, your other neighbour; IB is offering retail FX there too. Oh but wait, there is a wall...
Make your losses in demo. Earn your profits live.
  • #104
  • Feb 7, 2017 11:14pm Feb 7, 2017 11:14pm
I am just saying, with the current toxic regulatory environment for retail FX in the states its way too risky to invest in this. Now there are only two firms left, the market would be wide open for a newcomer, but apparently those with the means share my view.
  • #105
  • Feb 8, 2017 12:03am Feb 8, 2017 12:03am
Quoting shrike
I am just saying, with the current toxic regulatory environment for retail FX in the states its way too risky to invest in this. Now there are only two firms left, the market would be wide open for a newcomer, but apparently those with the means share my view.
My bad I misunderstood what you said about IB's retail FX business getting killed. I see what you are saying now and I do agree. What they did to FXCM is unscrupulous. I mean FXCM is not the perfect broker; it has issues but it didn't deserve to be put down on trumped up charges.
Make your losses in demo. Earn your profits live.
  • #106
  • Feb 8, 2017 12:26am Feb 8, 2017 12:26am
Quoting Forexia
{quote} Yeah but that's NOT the point. CFTC didn't get FXCM because it was trading against its client; it banned FXCM because it failed to disclose which was bs. I just uploaded that document to show you that they DID disclose clearly that they are market makers, a counter-party to all transactions that take the other side of your trades.
FXCM have several platforms. One of them is this no dealing desk independent liquidity providers ECN straight through blabla bullshit platform where FXCM clearly states that they will not/can not trade against their customers just because of the nature of a non dealing desk independent liquidity provider ECN platform.

CFTC showed that one of FXCMs "independent" liquidity provider, which supplied 25-30% of the total liquidity, actually was an in house computer program designed to trade against their customers. This program had a last look at trades before they were processed to give a clear edge to FXCM.

This is an unbelievable scam, it's like a fictitious story from a bad novel. The only difference is that the story is true. And I can not understand why people are trying to put the blame on CFTC. You should thank them digging up dirty crap like this and putting an end to their dirty shady business. Clean up this crap and let companies with moral standards grow instead.
  • #107
  • Feb 8, 2017 1:22am Feb 8, 2017 1:22am
Quoting Momba
{quote} FXCM have several platforms. One of them is this no dealing desk independent liquidity providers ECN straight through blabla bullshit platform where FXCM clearly states that they will not/can not trade against their customers just because of the nature of a non dealing desk independent liquidity provider ECN platform. CFTC showed that one of FXCMs "independent" liquidity provider, which supplied 25-30% of the total liquidity, actually was an in house computer program designed to trade against their customers. This program had a last look...
Whatever they SAID they are a market maker, a counter-party to all transactions by their clients. How much more clear do you want them to make it? Not their problem if you don't choose to read their disclosure document. That document was there for a reason; it's to be READ!!

No I will NOT thank CFTC for wiping out one of the largest forex broker in retail FX industry, reducing the size of the industry and limiting the choices of brokers for US traders even further. I am NOT saying FXCM is faultless and blameless but the way that it's taken down by CFTC is just as unscrupulous as that Virtual Dealer Plug-in by MT4/MT5. The ONLY reason why FXCM is taken down is purely because it's big and CFTC wants to get rid of retail FX in America and it wants to start with the biggest firm. If CFTC wants to take down some brokers for trading against their clients, I can send them a LIST of brokers that are FAR WORSE than FXCM. Gain Capital will be one of them.

Truly best of luck to those of you who are continuing with Gain!
Make your losses in demo. Earn your profits live.
  • #108
  • Feb 8, 2017 4:20am Feb 8, 2017 4:20am
As we continue to assess the aftermath and fallout from FXCM and Drew Niv's ban from the US forex market, we have a report this morning on Forex ECN FastMatch replacing Mr. Niv and his also-banned partner William Ahdout with Leucadia executives on its board.

(To anyone who didn’t yet understand who has really been calling the shots at FXCM since January 2015, this should provide another example).

The key question now is: did FXCM execute trades any differently elsewhere in the world? Will other regulators (FCA, ASIC...) also take action?

Come join the industry discussion in the comments section of all of our coverage, only at LeapRate.
  • #109
  • Feb 8, 2017 9:39am Feb 8, 2017 9:39am
I currently have an FXCM MT4 account and it is functioning as normal and taking trades .. what will become of this ? will it be business as usual or will my funds be lost ? should I try to withdraw ?
  • #110
  • Feb 8, 2017 10:06am Feb 8, 2017 10:06am
Quoting blade813
I currently have an FXCM MT4 account and it is functioning as normal and taking trades .. what will become of this ? will it be business as usual or will my funds be lost ? should I try to withdraw ?

Don't worry about your funds, you can withdraw it now if you don't want to trade with scam broker Forex.com in the future. There will be clients migration from fxcm to forex.com, so if you leave it, your funds will be transferred to forex.com account.
  • #111
  • Feb 8, 2017 10:19am Feb 8, 2017 10:19am
Quoting insomniawawa
{quote} Don't worry about your funds, you can withdraw it now if you don't want to trade with scam broker Forex.com in the future. There will be clients migration from fxcm to forex.com, so if you leave it, your funds will be transferred to forex.com account.
I thought everything was going Gain .. US customers cant use Forex.com can they ?
  • #112
  • Feb 8, 2017 10:21am Feb 8, 2017 10:21am
Quoting Momba
{quote} FXCM have several platforms. One of them is this no dealing desk independent liquidity providers ECN straight through blabla bullshit platform where FXCM clearly states that they will not/can not trade against their customers just because of the nature of a non dealing desk independent liquidity provider ECN platform. CFTC showed that one of FXCMs "independent" liquidity provider, which supplied 25-30% of the total liquidity, actually was an in house computer program designed to trade against their customers. This program had a last look...


Exactly, the US regulators are JUNK.

THEY missed Refco!

THEY missed MF Global

THEY missed PFG

...and now they go after trading educators and FINALLY go after FXCM!

HILARIOUS!!!!!!!!!!

If you want to trade FX then trade offshore!!! Do not use any broker operating from the US!
  • #113
  • Feb 8, 2017 10:23am Feb 8, 2017 10:23am
Solution...


Get MT5 for FREE from AMP and trade futures (for US clients).

Connect your MT5 to FX Choice in Belize and trade FX (for US clients).

Done!
  • #114
  • Feb 8, 2017 10:26am Feb 8, 2017 10:26am
Quoting Markula
{quote} I completely agree. Look at how many brokers are gone that we had : mb trading, tradeking, citifx, mgforex, tradestation, fxdd, and now fxcm. Hopefully we will still have Oanda, Gain capital, and thinkorswim. When the politicians say they're "going after wall st" it just means overregulate the fx industry out of business while leaving everyone else alone, never giving real customer protections at the same time.
When FXDD left the US is when I went offshore! I had excellent relationship with FXDD running my hedged grid systems...and all that went bye bye with Dodd-Frank junk law!

Bottom line---> Dodd-Frank SMART BOMBED the US retail FX industry into oblivion!
  • #115
  • Feb 8, 2017 10:58am Feb 8, 2017 10:58am
Quoting nonlinear
{quote} That is not what fxcm represented to its clients.
I'm not on as much as I used to be (back in my FXAnalytic days) but I haven't seen much of you. Good to see you around again. Now if we could just get Ronald Regan to make an appearance now and again, it would be like old times.
When you hit 50, coffee becomes part of a proper modeling pipeline.
  • #116
  • Feb 8, 2017 11:03am Feb 8, 2017 11:03am
Quoting USCGamecocks
{quote} I certainly hope so. I absolutely despise MT4.
I agree...MT4 is junk.


I can handle MT5 though...that platform is workable for my systems.
  • #117
  • Feb 8, 2017 11:35am Feb 8, 2017 11:35am
Quoting COGnizant
If you want to trade FX then trade offshore!!!
Sure, let's trust some even less regulated FX broker located thousands of miles across the Atlantic and wire him a 100 grand to open a new account.
"Here is my $100K Mister Off-Shore FX broker, I don't know you, you are not regulated but please don't rob me, please please please, ok?"
  • #118
  • Feb 8, 2017 12:21pm Feb 8, 2017 12:21pm
Quoting Mr Breakout
{quote} Sure, let's trust some even less regulated FX broker located thousands of miles across the Atlantic and wire him a 100 grand to open a new account. "Here is my $100K Mister Off-Shore FX broker, I don't know you, you are not regulated but please don't rob me, please please please, ok?"
Indeed, if/when you have 100k (actually I think 20 or 30k could already be enough) to invest into trading it might be a far better idea to just go offshore-company - have a business in Ireland, UK or ... whatever. Choose a local broker in that jurisdiction and have a capable accountant figuring out the necessary things with your tax.
  • #119
  • Feb 8, 2017 12:24pm Feb 8, 2017 12:24pm
Quoting TheFxAnalyst
{quote} I'm not on as much as I used to be (back in my FXAnalytic days) but I haven't seen much of you. Good to see you around again. Now if we could just get Ronald Regan to make an appearance now and again, it would be like old times.
Thanks, I don't post too often, its true trading is best when bored. I'm sure Ronald is busy with his own devices, still one of the best imo. I know he and others had proposed setting up offshore entities, taking a paycheck from the entities, and opening fx accounts with reputable brokers off shore (e.g., lmax and duk), all legal and legit. I am looking at this too. It might be a better route than switching to currency futures for me, primarily because I have so much time and cash invested in mt4. I may give Oanda a try (never thought I would say that) -- I don't really care if my broker or anyone else trades against me, after all that's the game and if you are a good enough trader, they will unlearn that habit. I just don't want to deal with any fraud that I cannot easily see and I also don't want to park a large account in some unregulated country.
  • #120
  • Feb 8, 2017 1:06pm Feb 8, 2017 1:06pm
Quoting JensG
. Choose a local broker in that jurisdiction and have a capable accountant figuring out the necessary things with your tax.
And what could prevent this (so-so/not regulated) off-shore FX broker from emptying your account...."accidentally"?

What would you do then, send him Joe the Butcher to collect your money?
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