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

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.

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.

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.

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.

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?

FXCM was the best...

evolutioncapital posted:
FXCM was the best...

FXCM was misleading customers and regulators.

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. 😡

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?

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 😄

More details are emerging about the deal between FXCM and Gain Capital. (https://www.forexbrokerz.com/news/Gain-Capital-to-pay-up-to-500-for-each-FXCM-client-conditions-apply) According to the latest filing of FXCM with the US Securities and Exchange Commission (SEC), Gain Capital will pay up to $500 for each FXCM client. There, however, are a number of conditions that will apply depending on how many trades these clients have made in the last weeks.

togr posted:
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.

But have Forex.com said they are NDD or they were stating they are market makers at that time you traded with them? I think they are one of the largest market makers without pretending to be something else. But since you have experience with them, you can judge better 😄 I am glad that FXCM got what they deserved in the end.

US law firm has launched an investigation on potential claims against forex brokerage FXCM Inc. concerning possible violations of the federal securities laws, the company announced in a statement. (https://smnweekly.com/2017/02/08/us-law-firm-investigating-fxcm-seeks-to-form-collective-lawsuit-on-shareholders-behalf/)

For what it seems, the law firm is seeking to form a collective lawsuit on behalf of disgruntled shareholders.

I suppose it was a matter of time?

Yes, in fact this is a serious hit for all their US shareholders and these guys will certainly try to get something back from the lost business. Thanks for the article! I see you post useful links quite often! 😄

mlawson71 posted:
US law firm has launched an investigation on potential claims against forex brokerage FXCM Inc. concerning possible violations of the federal securities laws, the company announced in a statement. (https://smnweekly.com/2017/02/08/us-law-firm-investigating-fxcm-seeks-to-form-collective-lawsuit-on-shareholders-behalf/)

For what it seems, the law firm is seeking to form a collective lawsuit on behalf of disgruntled shareholders.

I suppose it was a matter of time?

It was about time they took a spoonful of their own medicine. It went from being one of the best and most solid to being the heap of scammers. They probably got big as a result of scams made over the years.

FXCM announced it is changing its name to Global Brokerage Inc. Respectively, the ticker also changes – to GLBR.The changes come into effect today, February 27, 2015.
(https://www.forexbrokerz.com/news/FXCM-changes-name-to-Global%20Brokerage)
The company also announced the resignations of William Ahdout as a Director on the Company's Board of Directors and Drew Niv, as Director and Chairman of the Board and Chief Executive Officer.

Why the name change?

mlawson71 posted:
FXCM announced it is changing its name to Global Brokerage Inc. Respectively, the ticker also changes – to GLBR.The changes come into effect today, February 27, 2015.
(https://www.forexbrokerz.com/news/FXCM-changes-name-to-Global%20Brokerage)
The company also announced the resignations of William Ahdout as a Director on the Company's Board of Directors and Drew Niv, as Director and Chairman of the Board and Chief Executive Officer.

Why the name change?

'FXCM still has its regulated forex businesses in the UK and across the major EU markets Germany, Italy and France, Australia, Israel and South Africa, as well as in Hong Kong, New Zealand, Japan. The broker offers forex, CFDs, and spread betting services.'

FXCM name now has a bad smell to it worldwide. Needs to change name.