Forex Capital Markets LLC Ordered to Pay More Than $14.2 Million to Settle CFTC Charg

Triantus Shango

Sergeant Major
Messages
1,372
alternative brokers

where did u go to get a fairer shake?...looking for new broker since leaving fxcm..
Also..for clients of fxcm..did they automatically apply credit..or did you have to contact someone..
I just ckd my acct..and its still at same level..
thanx:eek:oh:
to answer your 1st question, it's hard to say. it's pretty much a trial & error process. start with small amounts, i.e. 10K USD, and brokers such as MBTrading, Dukascopy, PFGBest, FinFx, Pepperstone, seem to behave properly. However, as soon as your account size increases to more than 100K, you may start seeing slow fills, slippage and so on... which might have more to do with the amount of lots you trade per trade and thus lack of liquidity to fill your order, not necessarily due to nefarious broker behavior. size does matter and beyond a certain size, a prime broker is the way to go, not a retail broker.

i don't want to sound like THE authority on this, but this is based on my personal investigations. i might be wrong so anyone who knows more please feel free to correct me here.
 

GhostCat

Recruit
Messages
4
Thanx for the info...i contacted them..they said not eligible

FXCM sent a notice by email (to email on file with account when it was active to "all US clients affected" and has sense credited 4 accounts (they were previously closed accounts) that I had with them. 4 fairly small accounts and the credits were to the tune of $8K.
Thanx for info..they said I am not due refund..I have no idea whether they are telling the truth or not..not gonna linger on it..lesson learned..and closed account...life goes on...

Who did you guys switch to...trading your accounts with?..Im looking for an American broker..I know leverage is limited to 50:1 now..but Im kinda hesitant to getting scammed again..and going offshore seems a little too risky in this risky business....can anyone recommend an honest, smooth running broker..I know it isnt a perfect world..thanx..GhostCat
 

ingvar_e

Recruit
Messages
2
Personal experience with FXCM

I have an account with FXCM UK.
I sent them the following message:

---------------------
Why was I taken out of a short trade on EURCAD 2011-09-20 at 21:06?

My StopLoss was at 1.36140. The high at that bar is 1.36029

That is a difference of 112.

Checking the spread it seems to range between 60 an 70 and you list a typical spread of 44 on your website.

Or if I use the price where it was bought, 1.36144, the spread is 116

-----------------
They said it was correct. I had 2 positions. For good faith they refunded one position. I think I will switch to another broker. I have a live account with Alpari UK. Never experienced something similar with them.
 

Carlo Colombo

Private
Messages
25
Hi thesaint226,

The settlement between FXCM and the CFTC was anticipated and previously disclosed on August 11, 2011, during FXCM’s Second Quarter Earnings Conference Call. At that time, the company established a reserve of $16 million in anticipation of the fines associated with the CFTC ($6 million) and the NFA ($2 million) settlements as well as restitution ($8,261,937) credited to affected clients. To date, the NFA fine has been paid and restitution to affected clients has been credited. The NFA and CFTC fines as well as restitution are all covered under that reserve, resulting in no negative impact to the net income of FXCM Inc.

Our full statement can be found here FXCM US Reaches Settlement with the CFTC for $6 Million

-Jason
I hope now that all FXCM clients close their account with your company.
Could be a "sign" from the market (not the Forex the market, the market of little traders).
:)
 

Scoony

Private, 1st Class
Messages
41
Why Does The Cftc Get The Money - Not The Victims ???

EVERYBODY !!! WHY DOES THE CFTC AND THE NFA TAKE THE MONEY AND WE (THE PEOPLE WHO HAVE BEEN SCREWED BY FXCM SEVERAL TIMES) GET NOTHING !!!

WE NEED TO BE RE-IMBURSED - NOT THE CFTC...and NFA...

CAN ANYBODY EXPLAIN THAT TO ME ???
 

ivanpe

Recruit
Messages
1
BECAUSE IT IS BASICALLY A SELF REGULATED INDUSTRY BY THE BROKERS THEMSELVES. NFA IS MADE UP OF BROKERS TO REGULATE BROKERS.

THEY NEED TO SHOW THAT THERE IS SOME SEMBLANCE OF REGULATION SO THEY ARRANGE FOR EACH OTHER TAKE TURNS TO BE FINED. IN REALITY THEY ARE JUST ROUND TRIPPING THE PAYMENT. MAKES EVERYONE, THE PUBLIC AND BROKERS HAPPY.

INTENTIONALLY LET THROUGH BY GOP TO ENRICH THE RICH AND POWERFUL AND THE DEMOCRATS HAS NO BALLS TO CHANGE IT.





EVERYBODY !!! WHY DOES THE CFTC AND THE NFA TAKE THE MONEY AND WE (THE PEOPLE WHO HAVE BEEN SCREWED BY FXCM SEVERAL TIMES) GET NOTHING !!!

WE NEED TO BE RE-IMBURSED - NOT THE CFTC...and NFA...

CAN ANYBODY EXPLAIN THAT TO ME ???
 

Jason Rogers

FXCM Representative
Messages
510
This is the second time that US clients will be compensated...
Hi Pharaoh,

FXCM US credited all effected accounts during August 2011 in accordance with the NFA's offer of settlement. The restitution amount listed in the CFTC press release is actually the positive slippage credits from the NFA's offer of settlement.

-Jason
 

PistolDave

Corporal
Messages
105
Nuttin new...

Brokers get fined all the time for their incompetence and negligence toward their suckers, err customers.

I started trading commodities back in the early 1980's and one of the first things I realized when I started doing research on brokers is how many of them get fined and penalized for this very offense and many other things. They get a little slap on the wrist by the authorities and then spend a little time on "probation" where they have to monitor themselves but then it's back to business as usual.

The fines seem large to us but when a corporation that deals in hundreds of millions of dollars has to pay a few percent in punishment for their misconduct they aren't taking much of a hit. Kind of like having to pay a speeding ticket to us. More of an inconvenience or a price of doing business, nothing more. It doesn't change their policies at all. Other than maybe giving their sales reps a good ass chewing and maybe firing a few people to make it look good it seems like the same old song and dance to me.

Keep in mind, from a brokerage perspective, there is a constant flow of new traders depositing funds and staying around for a relatively short time during which they lose all their account and either quit or move on, so there is an urgent need to make sure they lose all their account at THIS firm since it will happen somewhere anyway, and the real profit is taking the other side of the newbies trades since if overall they are going to be net losers then the broker will be the net winner if they do nothing but take the opposite side. Combine that with commissions and slippage it starts to become clear how much they stack the deck against you. You already have to be doing exceptionally well just to break even, and even better to actually profit.

* Note that most brokers state in the account opening documents that they "may" take the opposite side of your trades. (So you can't say you weren't warned.)

Wake up and smell the Folger's crystals folks.
 
Top