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FXCM starts operating in Europe

FXCM, the major global broker, was deprived of the CFTC license to provide financial and brokerage services in the United States. The company, supervised by the Financial Conduct Authority (FCA) in the UK, has now focused on a European audience. FXCM UK is headquartered in London with offices in France, Germany, Greece, Italy, Australia, and other countries. The broker is regulated and licensed in every region. The reason for the relocation was the fraud of FXCM against its clients in early 2017.

FXCM lied to traders

As the Commodity Futures Trading Commission (CFTC) found out, the company traded against clients and also hid the fact that the owner of the market maker broadcasting the quotes was its employee, the managing director. Representatives of the broker deliberately reported false information to the US National Futures Association of the United States to obtain registration.

FXCM lied to consumers, claiming that it does not hold any positions and there is no conflict of interest between the broker and its customers. This lasted from September 2009 to 2014.

The parent company of the broker, FXCM Holdings LLC, paid a fine of $7 million to resolve the situation. In addition to revoking registration, the CFTC demanded that FXCM will not apply for a new license.

Before the unpleasant facts became known, FXCM, founded in 1999, was called the largest forex broker in the USA with a market share of 34 percent and the third largest trading volume in the world. The daily turnover of the company reached $12 billion.

After making an agreement with the financial regulator, FXCM was obliged to transfer the accounts of its American clients to its closest competitor, GAIN Capital Holdings, and to sell off part of its assets in the US. During the transition period, the company continued to serve traders, saying that the revoking of a license in the United States would not affect its overseas business and customers around the world. Later, the company's top management significantly changed, and a representative of  American holding company Leucadia was appointed head of the board of the FXCM Group. Leucadia remains the main FXCM's capital holder.

The loss of the right to work in the American market had a wide resonance but was not the only problem of the broker. In particular, traders complained about the difficulty of withdrawing funds.

At the same time, there are traders who still speak positively about the broker.

Forex in the USA: severe limitations

Forex trading in the US is covered by mystery. Some believe that there are ideal conditions across the ocean, others that it is impossible to trade in the country. There are other opinions, but the truth, as always, is somewhere in the middle.

In 2010, the States introduced a law called the Dodd Frank Act which is one of the anti-crisis measures that were designed to reduce overall risks in the financial sector. Thanks to accepted restrictions, many operations for other countries became illegal in the United States. At the same time, it became forbidden for large banks to have hedge funds and invest customer funds in such organizations.

As a result, the majority of brokers not registered in the United States were forced to leave. Of course, this greatly affected forex trading, and the number of companies providing services in this area decreased dramatically.

Donald Trump, the 45th President of the United States, elected in November 2016, promised to change the situation and ease the restrictions.

After the forced exit from the US market, FXCM continues to strengthen its position and increase its presence in Europe, mainly in its eastern part. In addition to London, a large office is planned to be opened in Sofia, Bulgaria.

The opinion of the review`s author is private and not obligated to reflect the position of the resource. If you have any remarks and suggestions on new articles please contact us via this form.
Author: Roymon | Date 2019-03-04
I will never let myself be fooled by low spreads ever again. I am a scalper so low spreads really attract me. And when I found FXCM, it was so amazing that their spread go as low as 0.2 pips. I tried their demo account first and I've confirmed the tight spread. So I decided to invest $5000 here. Naturally, the spread is really low, just like it was with the demo. In fact, my scalping strategy was very fruitful and I was able to earn 5% on the first month. Months has passed and I was enjoying my whole experience. But come the time for my withdrawal, everything was ruined. They didn't want to process my request and accused me of cheating. When I requested again, they terminated my account. And yeah, all I had was lost money, time, and effort.
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Author: Devi | Date 2019-02-20
FXCM ended my trading journey with them. In September 2017, I received an email about termination of my account. It said that they are terminating the signed Client Trading Agreement and it would be effective immediately. There was no particular reason as to why they did that. After reading the mail, I tried to log in to my trading account but couldn't anymore. I would have let the termination slide as long as they pay me my remaining balance. But the problem is, it's 2019 now yet I still haven't received anything. Honestly, I'm no longer expecting it to arrive because they never contacted me again after sending that mail.
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Author of fxcm_starts_operating_in_europe: FBI | Date 2019-02-27
Sorry for you. They are really scammers. I am glad to expose them, I hope I don’t meet them myself.
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Author: Shelpot | Date 2019-02-12
FXCM seemed like a big and reputable company so I was confident to open an account with them and start my trading journey. But that was the biggest mistake of my life because this broker is nothing but a fraud. They closed my account when I tried to withdraw from my fund. They did that without saying anything and ignored all of my emails. How can their conscience stand this? They even continued their operation in Europe. I hope that the European investors are careful and will not be deceived like us.
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Author of fxcm_starts_operating_in_europe: Moele | Date 2019-03-14
Same here. I also thought that FXCM is reliable because they have been appearing almost everywhere when I was looking for a potential broker. I also believe they have been in business for quite some time now. So it's really regrettable that they had to do something like this. I hope now that they started operating in Europe, they do it cleanly and with no malicious intent. It's very upsetting when a big company takes your hard-earned money and you can't do anything to fight them.
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Author: Reymart | Date 2019-02-08
It was their tight spread that lured me into trading with them. If I had only known that this experience would be this terrible, I would have stayed away from FXCM. But how could I ever know that, right? A fraudulent broker will not tell the world that they are a fraud. I was very unlucky to be one of their victims. Their platform was actually excellent. Trading went smoothly. Now I understood why they kept asking me to refer them to people I know if I'm happy with my experience. They wanted to recruit more traders who will deposit money to them. You will know their true intention once you try to withdraw. The once responsive and friendly support team ignored all my emails regarding my withdrawal. And a few days later, my account was closed.
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Author: Bil | Date 2019-02-08
The United States is the same state and cannot protect its citizens for all 100%. All the tales about the security of financial markets are lies. I myself lose a lot of money. This broker is one more confirmation. Can always deceive.
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Author: Petria | Date 2019-01-28
What FXCM did was such a waste. It could have had a strong competency against other brokers because it definitely has a reliable system. Their platform is stable and the charts are synced to the real market. Even their education section has very helpful materials not just for beginners but for experts as well. However, betraying their clients like this will surely leave a stain on their name. Like me, I won't ever think about dealing with this broker ever again. And I will warn my friends who are interested in trading to be wary of this broker.
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Author of fxcm_starts_operating_in_europe: Nelly | Date 2019-02-07
It's very useful article! I will also share it with my friends-traders. Some of them don't believe me now when I warn them from trading with FXCM. But I knew them when they worked in Russia. Very bad broker
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Author: Matias | Date 2019-01-24
I am just a small Forex trader who aspires to have a few extra earnings by trading. I took finance in college and it helped me in this market. Since I already had a background, I didn't have a problem trading. I easily adapted to the technicalities of the Forex market. However, my mistake was choosing a wrong broker. FXCM had a name in the industry and they seemed very trustworthy so I chose it. It was great at first. But in late 2016, problems came up-- withdrawals, order execution, and customer service. I don't know what happened to this company but they took all their client's funds including mine. I wasn't able to withdraw even a single penny.
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Author: West | Date 2019-01-22
I was wondering what happened to FXCM. This was kind of huge and serious broker, I saw his commercials and trading conditions. But it turns out they are fraudelent! And what did they do when they were expelled from one place - now they went to explore other markets! I hope they will be quickly shut down in Europe.
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Author of fxcm_starts_operating_in_europe: Melody | Date 2019-02-28
That's true. It truly is a waste because even I had this broker on my top list of potential brokers. Thankfully, another broker had an edge over FXCM so I chose that one. But seeing the complaints of many other traders who were victimized by this fraudster is really upsetting. They are thick-faced for having the guts to operate in another country. I should warn my European friends to avoid this broker. There's a high chance they might do the same thing.
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Author: Gilaine | Date 2019-01-18
I had an account at FXCM until 2014. Honestly, I enjoyed my whole trading experience with them. They have a very reliable and attentive support team. The platform is magnificent-- no lags, accurate charts, fast execution. Even their spread is competitive. You would be thinking what else could a client ask for right? I also thought it was perfect. But then there was a phase where I and many other traders continuously lost our deals. The movement always seemed to be going against us. Until we found out that this broker has been holding positions and has been trading against us. Really, nothing can ever be perfect.
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Author: Max | Date 2019-01-14
Oh, the new scheme of deception for me! 1 person - counterpart! Provides itself (under the name of another company) quotes. As a counterparty - he does not take money, which means he is not responsible for them. As a broker, he takes money, but third-party quotes - if not true, the broker is not to blame! Cool! Good that they are fined! So strange for America! 34% of the market was controlled by a scamer !
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