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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: Javier | Date 2019-05-15
These people are horrible. I traded with them for about nine months. The first few months went well. I wasn't earning quite a lot but I am still earning and that is what was important. By that time, I have earned around $150. However, in the latter months, I've noticed the frequent glitches and lags in the platform. This resulted to great losses and all of my earnings were gone as well as a portion of my capital. I reported it to the support team multiple times but they never answered. Then I just realized that nothing is left of my account anymore.
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Author: Meeso | Date 2019-05-02
I am very disappointed with FXCM. This broker was the most popular Forex broker in my country. I've been seeing it on advertisements and it is often mentioned on conferences and seminars regarding financial investments. That is also why I made the decision to trade with them. I also know a few people who entrusted their money to FXCM. We believed that this is a reputable one but because of what they did, we feel utterly betrayed. I lost more than $5000 and they seem to not care at all about all the complaints.
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Author: DIDUe | Date 2019-04-16
it is very strange that such a broker worked for many years in the US market. 34% of the market trusted him, and now he was accused of cheating. And where was the regulator before? Why so many years could not detect the deception? Not sure now that the rest can now be trusted.
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Author of fxcm_starts_operating_in_europe: Paul | Date 2019-05-06
Yes, they are scammers, I knew this 2 yers ago when lost almost $800 thanks to their tech error. They dodn't pay to me anymore.
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Author of fxcm_starts_operating_in_europe: Phia | Date 2019-04-24
Right? I thought I was the only one who thought it was strange. It was a reputable broker so it was really hard to believe that they could do something as grave as this. I guess they really planned it all along and was extra careful for their regulator to not sense anything suspicious. They are some great deceivers, aren't they? Shame on them.
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Author of fxcm_starts_operating_in_europe: Moll-y | Date 2019-04-22
You never know where you will lost your money, Unfortunately, many of brokers became scammers Sooner or later
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Author: Agipip | Date 2019-04-15
The people who speak positively about FXCM have not yet seen the true colors of this broker. That is their tactic. They earn their clients' trust by giving what we want (i.e. stable trading platform, fast execution, low trading cost, and approachable customer support). But all those are just facade to a fraudulent, terrible broker. You will see this once you insist on your withdrawal request. At first, they act kind trying to persuade you not to withdraw yet. But if you insist on taking your funds, they close your account immediately.
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Author: Zang | Date 2019-04-11
I didn't know that FXCM had access in my trading account and had been making trading actions until I checked my trading history. I don't check my history because I don't see any purpose on that. But there is just this one time when I had nothing else to do so I checked it out. I saw a few trades that I don't remember at all. I remember every loss that I got and I don't remember those losses. They were also larger than my usual loss. I contacted the customer support and they admitted it although they insisted that they only aim to help me out. Seeing that their trades were all losses, of course I got mad. Then after that, they traded again without my consent and burned all of my fund. I tried to complain but they ignored all my calls and emails.
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Author: Guilia | Date 2019-03-25
It now has become hard for me to trust any investment firm no matter how reputable they claim to be. Forex trading was my first investment venture and it was with FXCM. This broker is undoubtedly popular and has a lot of positive feedback. Honestly, I had a fruitful trading experience with this broker until I decided to take some of my fund. At first, it was a calm persuasion of not touching my funds. They told me to let it grow more before I withdraw. I agreed to that and made more trading activities for 3 months. But the time came when I really had to withdraw from my funds. We still had a few negotiations and in the end, they did not process my request and even suspended my account.
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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 of fxcm_starts_operating_in_europe: william | Date 2019-03-19
I hope that all these limitation will help traderd to avoid from cheating and that FXCM will ot be able to working any where.
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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: Jayita | Date 2019-03-20
If they are now operating in Europe, I hope they don't scam their clients anymore. I agree that it is such a waste that they had to do that to their previous clients. A friend of my dad was a trader there and he was also affected by their fraudulence. I heard how devastated he was and it is very upsetting. FXCM had a really good image in our country that's why we were so surprised that they had issues giving payouts to their clients. It really is both saddening and frustrating.
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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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