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FXCM gets $7 mln fine from CFTC, sells US business to Gain Capital

mlawson71
Feb 07 2017 at 12:30
1487 posts
In a surprising twist of regulatory fate, FXCM – the largest US retail forex broker – got banned from doing business there and was fined $7 million by the CFTC, all in the fateful afternoon of February 6, 2017. The reason: misleading customers and regulators.
(https://www.forexbrokerz.com/news/FXCM-lies-to-clients-NFA-gets-7-mln-fine-from-CFTC-sells-US-business-to-Gain-Capital)
 According to a statement from FXCM's main competitor – Gain Capital – it is in talks to acquire FXCM's retail clients and transfer them to its retail platform Forex.com by the end of February.
 Additionally, the National Futures Association (NFA) has barred FXCM and its founders and principals Dror Niv, William Ahdout, and Ornit Niv from membership and from acting as a principal of an NFA Member. This, in essence means that FXCM cannot do business in the US any longer.

togr (togr)
Feb 07 2017 at 15:50
4862 posts
mlawson71 posted:
In a surprising twist of regulatory fate, FXCM – the largest US retail forex broker – got banned from doing business there and was fined $7 million by the CFTC, all in the fateful afternoon of February 6, 2017. The reason: misleading customers and regulators.
(https://www.forexbrokerz.com/news/FXCM-lies-to-clients-NFA-gets-7-mln-fine-from-CFTC-sells-US-business-to-Gain-Capital)
 According to a statement from FXCM's main competitor – Gain Capital – it is in talks to acquire FXCM's retail clients and transfer them to its retail platform Forex.com by the end of February.
 Additionally, the National Futures Association (NFA) has barred FXCM and its founders and principals Dror Niv, William Ahdout, and Ornit Niv from membership and from acting as a principal of an NFA Member. This, in essence means that FXCM cannot do business in the US any longer.


While I believe FXCm was cheating their clients I also know Forex.com. I had to left Forex.com as they had serious issues with the trades I would say they were cheating much more.

bestdarngood
Feb 08 2017 at 03:26
174 posts
I have accounts with Oanda, Forex.com, and FXCM. FXCM is the best out of the 3 so it is a shame that this has happened for me since we US Citizens are losing choices in what we can use each year...

If only someone else could take the place of FXCM and offer great pricing and execution in the USA.

See my profile or message me for my latest EA
theHand
Feb 08 2017 at 07:00
365 posts
Trump's actually gone after the Dodd Frank Act, which I think is partly or solely responsible for US forex traders misery. Things like FIFO etc...

So if you're a retail fx trader, things might take a change for the better soon.

johnnapiranha
Feb 08 2017 at 07:42
10 posts
well gee, glad I saw this since I'm a US trader with active trades open with FXCM. Do I have really much other choice in the US, but to go with forex.com? as soon as I close my remaining trades, I'm pulling out my money. any advice?

Cut it while it's hot.
evolutioncapital
Feb 08 2017 at 08:02
8 posts
FXCM was the best...

togr (togr)
Feb 08 2017 at 08:39
4862 posts
evolutioncapital posted:
FXCM was the best...

FXCM was misleading customers and regulators.

benedetto4
Feb 09 2017 at 08:02
3 posts
It is unfortunate as one of the main brokers this disabled by operating against its clients with a high frequency algorithm, deserved sanction, justice late but arrived. 😡

Tbone46
Feb 09 2017 at 08:07
3 posts
Will FXCM UK be effected too by the decistion with FXCM in the US and should i withdraw my money from FXCM UK or not?

TiffanyK (TiffanyK)
Feb 09 2017 at 14:19
427 posts
FXCM UK will most likely be affected too because they all are under FXCM trademark. Maybe not like FCXM in US but still. However this doesn’t mean you have to withdraw everything and quit working with them. Just check if there will be major changes and if they will be in your favor. Then you can easily make a decision yourself 😄

Accept the loss as experience
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