$7 Million Penalty FXCM Defrauding of Retail Forex Customers | Forex Factory

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$7 Million Penalty FXCM Defrauding of Retail Forex Customers

  • #1
  • First Post: Edited 4:35am Feb 19, 2017 4:21am | Edited 4:35am
http://www.cftc.gov/PressRoom/PressReleases/pr7528-17


RELEASE: pr7528-17

  1. February 6, 2017
    CFTC Orders Forex Capital Markets, LLC (FXCM), Its Parent Company, FXCM Holdings, LLC and FXCM’s Founding Partners, Dror Niv and William Ahdout, to Pay a $7 Million Penalty for FXCM’s Defrauding of Retail Forex Customers
    FXCM, Niv, and Ahdout are Prohibited from Registering with the CFTC, Acting in Exempt Capacities or Acting as Principals, Agents, Officers or Employees of Registrants
    CFTC’s Order also holds FXCM, Niv, and FXCM Holdings responsible for FXCM’s False Statements to the National Futures Association

  • #2
  • Edited 4:36am Feb 19, 2017 4:22am | Edited 4:36am
FXCM to Sell U.S. Accounts Following Regulatory Settlements
CFTC and National Futures Association ban three of FXCM executives; FXCM hit with $7 million in fines
By
MARIA ARMENTAL
Feb. 6, 2017 9:46 p.m. ET
Currencies broker FXCM Inc. intends to pull out from the U.S. following two related regulatory settlements that included industry bans against three executives.



https://www.wsj.com/articles/fxcm-to...nts-1486435561
  • #3
  • Edited 4:36am Feb 19, 2017 4:22am | Edited 4:36am
FXCM,


I knew you were dirty. I said it a long time ago..
  • #4
  • Edited 4:36am Feb 19, 2017 4:23am | Edited 4:36am
Goodbye FXCM! Finally caught you in the act!
  • #5
  • Feb 19, 2017 4:29am Feb 19, 2017 4:29am
http://financefeeds.com/unfortunatel...ts-begin-fxcm/


Unfortunately we were right: Class action law suits begin against FXCM
Just half a day after FXCMs ban from the US market for trading against its customers, sending confidence tumbling, the class action law suits begin, instigated by New York investor rights lawyer Rosen Law Firm on behalf of shareholders
  • #6
  • Feb 19, 2017 4:31am Feb 19, 2017 4:31am
FXCM is never seems to be clear of trouble, though you got to give it credit for lasting this long. And its not as bad as some of other brokers.
Why is it that forex has a bad reputation with so called brokers? I wonder about my own brokers at times .... Best thing to protect oneself is not to rely on one single broker and never leave too much in your account than you absolutely need to.
  • #7
  • Feb 19, 2017 4:36am Feb 19, 2017 4:36am
Great news, thanks for posting. Another pawn shop operation getting shut down, nice!
  • #8
  • Feb 19, 2017 4:58am Feb 19, 2017 4:58am
I was paid compensation a few years ago from FXCM UK, relating to them manipulating prices 10 years ago. I knew all along they were crooks - I am just amazed it took the US authorities so long to figure the same.
Nobody can be told what The Matrix is. You'll have to see it yourself.
  • #9
  • Feb 19, 2017 5:28am Feb 19, 2017 5:28am
somehow I feel bad for this. Since Fxcm is a big market maker, I can only assume other brokers are worse. Where do we traders should go?
  • #10
  • Last Post: Feb 19, 2017 5:51am Feb 19, 2017 5:51am
Quote
Contrary to these representations, the Order finds, FXCM had an undisclosed interest in the market maker that consistently “won” the largest share of FXCM’s trading volume – and thus was taking positions opposite FXCM’s retail customers. FXCM, the Order finds, formulated a plan in 2009 to create an algorithmic trading system, using an FXCM computer program that could make markets to FXCM’s customers, and thereby either replace or compete with the independent market makers on FXCM’s “No Dealing Desk” platform. Although FXCM eventually spun off the algorithmic trading system as a new company, in actuality the company remained closely aligned with FXCM, according to the Order. This market maker received special trading privileges, benefitted from a no-interest loan provided by FXCM, worked out of FXCM’s offices, and used FXCM employees to conduct its business, the Order further finds.

Faark this is dirty!
It's ok tho, Jason Rogers will come to the rescue.
My comments are not to be taken as trading advice, not a financial advisor
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