FXCM - Fined 7 Million, and forced to quit operations in the US!

Discussion in 'Brokers' started by jack, Feb 6, 2017.

  1. jack

    jack Administrator Staff Member

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    Ha!

    http://www.financemagnates.com/forex/brokers/breaking-cftc-levies-7m-fine-fxcm-forced-quit-us-market/

     
  2. jack

    jack Administrator Staff Member

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    This is huge...

    On one hand, I'm glad the CFTC actually has teeth... on the other, they appear to want to kill retail forex in the US.
     
  3. jack

    jack Administrator Staff Member

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    Oh snap, they got Drew.
     
  4. rod178

    rod178 Well-Known Member

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    The US now left with Oanda and Gain Capital, neither of which would be my choice

    As for Drew, maybe he will set up shop north of the boarder ;)
     
  5. jack

    jack Administrator Staff Member

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    We already have fxcm here.. at least the brand that is.

    Even TDA / thinkorswim outsourced to gain.. so really.. just gain and oanda left in the states. Nuts.
     
  6. Alpha-Bet

    Alpha-Bet Well-Known Member

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    Hahahaha.... Who would have thought it!

    ----------------
    http://www.financemagnates.com/forex/brokers/breaking-fxcm-sell-us-accounts-gain-capital/

    No way they can service their debt.

    My heart goes out to Drew Niv.
     
  7. Computater707

    Computater707 Well-Known Member

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    It will be interesting to see how much if any a Dodd- Frank Roll back would affect US retail FX. When D-F forced US FX clients to repatriate their accounts, Gain got mine so I assume they got them all. It feels as thought they had a vested interest in Dodd Frank
     
  8. shopster

    shopster Well-Known Member

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    scum bag drew and his motley crew were always lower than a snake's belly.

    the fed's finally toss his fat ass to the curb.

    luv it.

    s
     

    Attached Files:

  9. shopster

    shopster Well-Known Member

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    The primary finding against FXCM was that they falsely advertised that they used a No Dealing Desk (NDD) order execution model, when in fact it was using what amounted to a Dealing Desk (DD) model.

    FXCM was routing its customer's trades to Effex Capital -- a company it controlled and supported. Effex Capital was a spin off from FXCM to keep an algorithmic trading system within a separate company. FXCM maintained a very close relationship with Effex Capital. Effex Capital conducted its business with the use of FXCM employees, and they worked in the same office as FXCM operations. Further, Effex Capital benefited from interest free loans from FXCM, and received special trading permissions.

    Up to 70% of Effex Capital's profits were funneled back to FXCM as rebates.

    These rebates amounted to $77 million between 2010 and 2014.

    Since Effex Capital was a market maker for FXCM, this $77 million made by FXCM was money lost by FXCM clients.

    FXCM had concealed this relationship with Effex Capital from 2009 until at least 2014


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

    s
     
  10. shopster

    shopster Well-Known Member

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    https://www.elitetrader.com/et/threads/fxcm-booted-out-on-the-street.306614/

    https://www.tradingview.com/x/HuyhAIkF/

    luv it.

    s
     

    Attached Files:

  11. jack

    jack Administrator Staff Member

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    Shots fired...

    [​IMG]
     
  12. Peterma

    Peterma Well-Known Member

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    It's an old story, see here back awhile, go to the bottom of the page:

    http://www.forexfactory.com/showthread.php?t=8960&page=156
     
  13. Alpha-Bet

    Alpha-Bet Well-Known Member

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    if you got it, or in this case if you haven't, flaunt it!
     
  14. Alpha-Bet

    Alpha-Bet Well-Known Member

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    nice find ;) 8)

    really, who here would've had an acct with these clowns....?
     
  15. shopster

    shopster Well-Known Member

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    " I personally lost approximately $200 million, however it is not healthy to show a lot of emotion, especially when you are in business.” – Drew Niv, CEO, FXCM

    “I said to myself, this loss I can personally take. In 5 years I will recover it and it will still be more than most people will have anyway."

    For all of these reasons, including his unfaltering stability and calm composure, we herald Drew Niv as FX industry professional of the year.


    http://financefeeds.com/fx-industry-figure-2016-drew-niv-ceo-fxcm/

    lollllllllllll


    s
     
  16. Alpha-Bet

    Alpha-Bet Well-Known Member

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    It just doesn't get any better does it!?

    To take just a little bit of wisdom from Drew Niv, Financial Feeds FX Industry Professional of the year 2016...

    “If you look at FXCM today, it is effectively the same company as prior to January 15 2015....


    It could be argued that this is a huge part of the problem!

    They can't take away your Financial Feeds FX industry professional of the year award.
     
  17. Peterma

    Peterma Well-Known Member

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    An instinct for opportunity.....so say Effex in their nice web brochure, worth a wee glance.

    Back to that guinness that Rod was talking about.
     
  18. rod178

    rod178 Well-Known Member

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    I'm shocked, so jason was telling Porkies :eek:
     
  19. shopster

    shopster Well-Known Member

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    Rosen Law Firm Files Securities Class Action Lawsuit Against FXCM Inc.

    http://www.businesswire.com/news/home/20170207006586/en/EQUITY-ALERT-Rosen-Law-Firm-Files-Securities

    gotta luv the jews. the best blood hounds in the biz.


    s
     
  20. shopster

    shopster Well-Known Member

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    "Hold Timer" is the key here. Traders that use FXCM's "Trading Station" platform know the various messages when you go to buy, such as 'please wait' and 'order processing' and so on. What's happening during that time, they are waiting for a number of things to happen; the market to move in their favor (and in this case, they'll fill your order at the worst possible price, like the moment you clicked) - or another customer to place the opposite order, where they could capture a huge spread, or for them to receive a huge discounted order on the wholesale market, and fill your order at a slipped price (but extremely profitable for FXCM). It's true - this is a money making machine! But, like the Casinos, it was FXCM getting rich, not the customer.

    http://www.zerohedge.com/news/2017-02-06/alert-largest-us-forex-broker-fxcm-shut-down-and-permanently-banned-nfa

    s
     

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