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


jack

Administrator
Staff member
Ha!

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

The U.S. Commodity Futures Trading Commission (CFTC) has just issued an order against Forex Capital Markets, LLC (NASDAQ:FXCM), settling charges with the foreign exchange (FX) brokerage for $7.0 million in a civil monetary penalty for engaging in false and misleading solicitations. As such, the group’s CEO Drew Niv and FXCM will be required to withdraw from CFTC’s regulation, per a regulatory filing.
 

jack

Administrator
Staff member
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.
 

jack

Administrator
Staff member
In particular, the CFTC Order outlined charges against Forex Capital Markets, LLC (FXCM), its parent company, FXCM Holdings, LLC (FXCM Holdings), as well as the two paramount members of the group, Drew Niv, and William Ahdout.
Oh snap, they got Drew.
 

rod178

Well-Known Member
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 ;)
 

jack

Administrator
Staff member
rod178 said:
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 ;)
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.
 

Alpha-Bet

Well-Known Member
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.
 

Computater707

Well-Known Member
Jack said:
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.
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
 

shopster

Well-Known Member
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
 

Attachments

shopster

Well-Known Member
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
 

shopster

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

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

luv it.

s
 

Attachments

Peterma

Well-Known Member
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
 

Alpha-Bet

Well-Known Member
Peterma said:
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
nice find ;) 8)

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

shopster

Well-Known Member
" 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
 

Alpha-Bet

Well-Known Member
shopster said:
" 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
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.
 

Peterma

Well-Known Member
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.
 

rod178

Well-Known Member
Peterma said:
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
I'm shocked, so jason was telling Porkies :eek:
 

shopster

Well-Known Member
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
 

shopster

Well-Known Member
"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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