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FXCM and CEO Drew Niv banned from US market by CFTC

  • #121
  • Feb 8, 2017 11:28am Feb 8, 2017 11:28am
Quoting Mr Breakout
{quote} 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?
One could try to get a custodial account. That helps.
  • #122
  • Feb 8, 2017 11:40am Feb 8, 2017 11:40am
Quoting Mr Breakout
{quote} 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?
I believe you misunderstood me. Start a company in Ireland or UK, pick a broker there. I'm not talking about unregulated bucketshops on some islands with dodgy business practice. I showed you/the other reader an opportunity how you can use the good regulated brokers in the UK, Ireland or for example Switzerland while still living in the US. It's legal, there is nothing dodgy about it. All that is a bit more work to get right is the tax.
  • #123
  • Feb 8, 2017 11:58am Feb 8, 2017 11:58am
Quoting blade813
{quote} I thought everything was going Gain .. US customers cant use Forex.com can they ?
Forex.com is trademark of Gain Capital and it's regulated by CFTC and is member of NFA. https://www.forex.com/en-us
  • #124
  • Feb 8, 2017 1:43pm Feb 8, 2017 1:43pm
Quoting JensG
Start a company in Ireland or UK...
Sure, if you have at least an extra $100K or more just lying around, you can probably open a little fish and chips restaurant near the beach.
The problem is that 90% of US retail Forex traders do not even have 10% of that money to invest overseas.

So your suggestion could work but it is impractical for most FX traders.
  • #125
  • Feb 8, 2017 1:54pm Feb 8, 2017 1:54pm
Quoting Mr Breakout
{quote} Sure, if you have at least an extra $100K or more just lying around, you can probably open a little fish and chips restaurant near the beach. The problem is that 90% of US retail Forex traders do not even have 10% of that money to invest overseas. So your suggestion could work but it is impractical for most FX traders.
You don't have to BUY a company. You just start a new one. You don't even need a real office there. All in all, you pay less than a 1000 bucks. There are plenty of UK company formation services, they even forward the mail for you and managing your company from the US is not a problem.

But in all honesty, I believe I'm wasting my time here.
  • #126
  • Feb 8, 2017 1:55pm Feb 8, 2017 1:55pm
Quoting nonlinear
{quote} One could try to get a custodial account. That helps.
Not a bad idea.

Do you know any off-shore FX broker that offers that kind of payment plan?
  • #127
  • Feb 8, 2017 2:07pm Feb 8, 2017 2:07pm
I've heard that some brokers will work with you to setup a custodial account if one satisfies certain minimum account size requirements. This type of thing is often not advertised and is broker specific...
  • #128
  • Feb 9, 2017 5:10am Feb 9, 2017 5:10am
It looks like people are already preparing to sue FXCM on behalf of unhappy shareholders. A US law firm announced in a statement that it has launched an investigation on potential claims against forex brokerage FXCM Inc. concerning possible violations of the federal securities laws. Apparently they are looking to form a collective lawsuit against the broker.
  • #129
  • Feb 9, 2017 5:20am Feb 9, 2017 5:20am
The US FX market has the potential to change dramatically in short order if Trump can repeal the major provisions of Dodd Frank. http://http://financefeeds.com/massive-retail-fx-revival-america-way-donald-trumps-transition-team-begins-abolishing-dodd-frank-act/ His recent order on this is very vague, most purposefully, so who knows what will happen. It is just silly that major fx brokers, LP's, bridges, VPNs, etc conduct all this business in NYC, but cannot offer services to US clients. I do wonder if the FXCM action was timed at addressing a long-standing issue with Niv before the changes occur under the new administration. Anyway, I am sending some of my funds to Oanda.

I really like this interview with Oanda's CEO: http://https://audioboom.com/posts/5...ading-platform
  • #130
  • Feb 9, 2017 7:02am Feb 9, 2017 7:02am
http://www.financemagnates.com/forex...tive-industry/

Was that a direct threat toward Oanda? When will the antitrust law kick in? The regulators played a big part in creating monopoly. Hope the new administration will be quick enough to save the retail industry.
  • #131
  • Feb 9, 2017 7:26am Feb 9, 2017 7:26am
Still remember roughly six years ago, the collective effort of industry stopped NFA/CFTC from lowing leverage all the way down to 10:1. Not sure if there will be anyone around this time to stop Gain from becoming the only casino in town. I think it basically means the end of forex in U.S.. Quite an agenda.
  • #132
  • Feb 9, 2017 2:59pm Feb 9, 2017 2:59pm
Quoting USCGamecocks
{quote} This is what I hate to. I have paid a lot for extra stuff to go on MarketScope. I wonder if there is some way we can still use MS? Like on a Demo account? Maybe Jason can answer that for us. This is very frustrating!
Hi USCGamecocks,

First, thank you for being a client of FXCM US. While part of our settlement with the NFA and CFTC was to close our US subsidiary, there will be no changes for clients outside of the US. That means, you can continue to use the indicators you have on your Marketscope charts.
  • #133
  • Feb 9, 2017 3:17pm Feb 9, 2017 3:17pm
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 ?
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.
Quoting blade813
{quote} I thought everything was going Gain .. US customers cant use Forex.com can they ?
To clarify, Forex.com is GAIN's retail forex service, and they are regulated in the US. So yes, US customers can trade through them.

While you are free to withdraw funds from your FXCM account, and even close it, at any time, for US traders wanting to continue trading uninterrupted, FXCM and GAIN have entered into a definitive agreement for GAIN to acquire the client base of FXCM's US operations. The transaction is subject to regulatory approval. FXCM and GAIN are working to determine the timing for the account transfer and expect to provide further information in that regard in the coming days.

We will for the interim period continue to service our US customers and to provide top quality trade execution pending the customer-account sale and business withdrawal. FXCM will also be working diligently to be sure that an account transition to GAIN's retail brand, FOREX.com, will be orderly, expeditious and seamless.

On behalf of all my colleagues at FXCM, I want to express our most sincere thanks to all our US customers who have been with us over the years and wish you all the best following this transition.
  • #134
  • Feb 9, 2017 3:22pm Feb 9, 2017 3:22pm
Quoting blade813
what will become of this ? will it be business as usual or will my funds be lost ? should I try to withdraw ?
As has been confirmed here by others, you can withdraw your funds at any time by logging into the MyFXCM.com portal: http://www.forexfactory.com/showthre...55#post9541855

While part of our settlement with the NFA and CFTC was to close our US subsidiary, there will be no changes for clients outside of the US. Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity. Specifically, withdrawing from this business will free approximately $52 million in capital.

We will use the proceeds from any sale of the US accounts, as well as the large amount of regulatory capital currently tied up, to reduce the balance of our loan from Leucadia. With the reduction of this loan balance, along with sales of non-core assets that were previously announced, FXCM could be in a position to fully pay off the Leucadia loan before the end of this year.

As a result, FXCM will be in a better position to service our international customers and focus on our profitable subsidiaries. Our full financials can be found here and we will announce our Q4 and full year 2016 financials in the next few weeks.
  • #135
  • Feb 9, 2017 3:43pm Feb 9, 2017 3:43pm
Quoting jason rogers
{quote} as has been confirmed here by others, you can withdraw your funds at any time by logging into the myfxcm.com portal: http://www.forexfactory.com/showthre...55#post9541855 while part of our settlement with the nfa and cftc was to close our us subsidiary, there will be no changes for clients outside of the us. Since fxcm us has not been a contributor to overall profits for the firm over the past few years, fxcm will target significant cost cutting by closing the us entity. Specifically, withdrawing from this business...


jason does the australian arm of the business have a secret business
people leave, but this thread will go on for ever
  • #136
  • Feb 9, 2017 7:13pm Feb 9, 2017 7:13pm
Quoting Jason Rogers
{quote} As a result, FXCM will be in a better position to service our international customers and focus on our profitable subsidiaries. Our full financials can be found here and we will announce our Q4 and full year 2016 financials in the next few weeks.
I can't believe the crap you are trying to pull off here. Your company have just been caught with fraud. Your company is banned from the US market by the regulators because of lying to your customers and stealing their money. Now you say you are in a better position to service your international customers? Are you for real Jason Rogers?
  • #137
  • Edited 6:41pm Feb 10, 2017 1:43am | Edited 6:41pm
Quoting nonlinear
The US FX market has the potential to change dramatically in short order if Trump can repeal the major provisions of Dodd Frank. http://http://financefeeds.com/massive-retail-fx-revival-america-way-donald-trumps-transition-team-begins-abolishing-dodd-frank-act/ His recent order on this is very vague, most purposefully, so who knows what will happen. It is just silly that major fx brokers, LP's, bridges,...
Yes I believe so too. Dodd-Frank was just a useless piece of knee-jerk, band-aid solution to the financial crisis of 2008 but all it did was creating a lot of confusion and unnecessary red-tape that chokes off otherwise healthy markets that had nothing to do with the financial crisis and still did not address many of the main causes of the financial crisis. In other words, if tomorrow, if history repeats itself again, Dodd-Frank crap would be TOTALLY powerless to stop another financial crisis from happening.

If only Trump can get rid of the Dodd-Frank crap as fast as how he passed that travel ban!!
Make your losses in demo. Earn your profits live.
  • #138
  • Feb 11, 2017 6:48pm Feb 11, 2017 6:48pm
Quoting Jason Rogers
{quote} Hi USCGamecocks, First, thank you for being a client of FXCM US. While part of our settlement with the NFA and CFTC was to close our US subsidiary, there will be no changes for clients outside of the US. That means, you can continue to use the indicators you have on your Marketscope charts.
Hi Jason (or whatever your real name is). I am also a US client of FXCM. First I want to say this: I think it is appalling the way the CFTC destroyed FXCM's US operation on what amounts to trumped up charges. I am not saying FXCM is faultless (they made some big mistakes), but I don't think FXCM's infractions merit the penalty. It has been clear for a long time that the NFA and CFTC barely tolerate retail FX (and are the wrong entities to be regulating forex; what do futures have to do with spot forex?). Rather than punish the main offenders - the CTFC took this as an opportunity to take down an industry leader and do as much damage to the industry as possible. Maybe the new administration will have something to say about this terrible arrangement.

FXCM delivered great execution (I think better than any competitor), great spreads, great software and free or almost free indicators, and lots of free education. And they fairly reviewed a number of my trades and quite surprisingly refunded me a number of times. I had no complaints about the company. And I have no problem if the company made some money taking the opposite side of a few of my errant trades. It is also clear FXCM was not routinely holding positions opposite its traders (otherwise the SNB event would not have required a rescue loan from Leucadia), unlike a few of its competitors who openly admitted to doing so (and for that very reason did not need loans after the SNB event). The situation is rich with irony. It is possible there would have been a much different outcome if FXCM had been more open about what was going on behind the scenes.

Now, on to what I originally wanted to say. Your response to USCGamecocks was doublespeak. You acknowledged that he is client of FXCM US, but then went on to say "...there will be no changes for clients outside of the US. That means, you can continue to use the indicators you have on your Marketscope charts." His profile also says he is US based. As a US citizen, he will not be able to continue being an FXCM client. You never answered his question!

I am in the same "boat" as USGamecocks. I also have a few really useful indicators (purchased or acquired via a promotion) as well as a few I spent many hours developing, and of course they are all rendered useless without access to FXCM's platform. If I cannot be an FXCM client anymore, I would like to at least be able to use some indicators on an FXCM demo account (for at least a while - nothing like having a big chunk of your trading tools confiscated).

Thanks, and all the best to you, Jason.
  • #139
  • Edited 8:26pm Feb 11, 2017 7:00pm | Edited 8:26pm
Quoting Steve0001
If I cannot be an FXCM client anymore, I would like to at least be able to use some indicators on an FXCM demo account (for at least a while - nothing like having a big chunk of your trading tools confiscated).

The FXCM demo account is here:
https://www.fxcm.com/forex-trading-demo/
  • #140
  • Feb 11, 2017 8:57pm Feb 11, 2017 8:57pm
Quoting Mr Breakout
{quote} The FXCM demo account is here: https://www.fxcm.com/forex-trading-demo/
Thanks! I have a demo account already, but will they let me keep using it?
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