FXCM slipage accountability - Good news for us

[Pharaoh]

Judging by the press release, it looks like FXCM UK clients will have to go through the FOS and FSA to get paid back.

I would think FXCM would do the right thing and offer restitution to ALL clients instead of waiting for regulators to step in. Personally, if I got a vote as a UK regulator, I'd go for at least doubling the penalties since it appears that a $2 million fine from the US side just wasn't enough to convey the message regarding the desirability of a level playing field between broker and trader.

 

[WaveRider]

You're welcome, no I'm not, I agree

Waverider, thank-you for posting this in the first place.
It's great to know someone is looking out for us small fry.

You're welcome. I'm really grateful for all the hard work done here. You're as much FPA as I am.

waverider you sure are negative

No, actually I'm kind of a goof ball. The title of this post was "Good news". I think this whole thing is really positive. This was a dirty little trick used by a reputable NDD. The shadiness in this industry needs some light shown on it.

Let's switch places. If I fraudulently took $8mil from FXCM over a 2 year period, do you think they would say "Shame on you WaveRider"? No I'd be in handcuffs sitting through depositions with their lawyers.

FXCM's goal is to have a fair and transparent system
Jason
FXCM

When the regulators are investigating possible fraud from an unfair and opaque system, suddenly it seems prudent to be fair and transparent. If FXCM had said from the beginning that they won't give back positive slippage, it wouldn't bother me at all. It probably wouldn't have bothered the regulators if it had been disclosed. It's not cool to keep the slippage but at least people would know and be able to choose as informed consumers whether to use FXCM or a competitor.

The settlement only impacted FXCM US accounts. No other accounts are eligible for a credit.

-Jason

They are eligible if the company decides to pay them back. They aren't eligible because US regulators couldn't force you to pay back UK clients. What he's saying is the US regulators can only force us to reimburse US clients so UK clients can take a hike.

So FXCM snuck in to the socks drawers of two old men in different counties to steal from their secret stash of money and had been doing it for years. FXCM didn't take a lot, so as not to arouse suspicion. Neither old guy knew they were being stolen from. The cops caught FXCM in one county, and made FXCM give back money to one old man. The other old man, because he lives in a different county, has to on his own realize he was stolen from, come to the precinct and fill out a report to get his money back.

I agree with Pharoah. I would think FXCM would do the right thing and offer restitution to ALL clients instead of waiting for regulators to step in. That's the right thing to do. That's called ethical behaviour. Please FXCM, give people their money back.

 

[Triantus Shango]

FXCM do the right thing? I would laugh were it not for the stench to high heaven making me gag.

 

[seravitae]

I think FPA should modify broker review pages to list clearly, the statistics of brokers. That is, clearly up the top, not only listing a star rating and number of good reviews/bad, but ALSO the number of times litigated (and win/lose).

Whilst one or two bad user reviews is not really an impact on publicity, I think brokers would think twice about taking a risk of fraud if their legal reputation was publicly collated and displayed (on FPA).

 

[Triantus Shango]

I think FPA should modify broker review pages to list clearly, the statistics of brokers. That is, clearly up the top, not only listing a star rating and number of good reviews/bad, but ALSO the number of times litigated (and win/lose).

Whilst one or two bad user reviews is not really an impact on publicity, I think brokers would think twice about taking a risk of fraud if their legal reputation was publicly collated and displayed (on FPA).

couldn't agree more. was thinking about the same thing the other day. it'd be nice to have some stats summary in some sort of boxed/frame interface--1 per broker. all 5 stars in one tab, 4 stars in another, and so on. when you click on the tab/link, a page opens up with 5x5 grid of boxes, and each box aggregates a summary of all relevant eval data for a broker. or something along those lines.