Up
Rating
Forex Broker
0
Broker
0
Ulasan

RatingFX: independent rating of Forex brokers

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: Zainab | Tanggal 2021-12-15
For two years, I actively traded at FXCM. The broker provided favorable trading conditions which is why I stayed with it. However, out of the blue, the broker suspended my account (and as it appeared other investors' accounts as well). Then I never got access back to my account and the next thing I know, the broker apparently lied to us and kept our funds.
0
0
Author: Grace | Tanggal 2021-11-29
At first, the trading experience at FXCM is really amazing. I am even able to scalp because of the smooth platform and tight spreads. However, after a few years, the company was revealed to have been trading against us. I guess it explains why the broker was always discouraging me from withdrawing funds. All along, my belief was that it was to allow me to further magnify my profits.
0
0
Author: Esther | Tanggal 2021-11-23
I traded at FXCM for three years and I never expected that the company would suddenly reveal that they have been lying to us and that they would no longer release our money. I can't believe this horrible broker was allowed to operate in Europe.
0
0
Author: Paula | Tanggal 2021-11-18
FXCM had a good reputation. It was trusted by many investors because they were providing amazing services. It was very surprising when the company suddenly stopped their operations without paying anything to their clients. As it turned out, it was not a trustworthy broker like we thought it was.
0
0
Author: Kataryzna | Tanggal 2021-11-09
I lost $5000 to FXCM. I traded with the company for almost two years and I never thought ill of them. All along, I was thinking that the company is being honest with us that is why I felt so betrayed to find out that the company was trading against their clients. I won't ever understand how they were able to start operating in Europe.
0
0
Author: Sheila | Tanggal 2021-10-22
FXCM used to be a trustworthy broker. I opened an account with them hoping for a profitable trading experience. I was very disappointed when the broker suddenly disappeared without even saying anything. I invested not only money but also time in this venture and it did not even result to anything.
0
0
Author: Laurita | Tanggal 2021-10-12
FXCM should never be trusted again. I do no understand how they were able to build their brand in Europe when they clearly left too many unpaid clients in the US. If I were to see this broker again, I will make sure not to interact with them at all.
0
0
Author: Celreo | Tanggal 2021-10-05
FXCM is one of the reasons investing in the Forex industry is too scary. Even companies who have established huge names in the market can still turn out to be a fraud and can still take all the funds of their clients. This broker should not be allowed to operate in Europe. They will only attract clients to take their money once again.
0
0
Author dari fxcm_starts_operating_in_europe: Viviane | Tanggal 2021-12-07
Exactly. I want to invest in the market now but I am super hesitant because even when the broker appears highly reputable, it can still turn out to be a fraud in the end. Just like with FXCM which turned out to had been lying to its clients for a long time already.
0
0
Author: Maulana | Tanggal 2021-09-27
One of the biggest regrets I have is engaging with FXCM. I was fooled by their appealing trading conditions and the assurance that I will have returns. I did not know that no financial company promises this because there is no certainty in this industry and the brokers are only platforms to make our trades.
0
0
Author: Laurie | Tanggal 2021-09-20
FXCM should never be allowed to operate again. They intentionally lied to their clients for their own gain so how can we be sure that they won't do it again to their new clients? I would definitely not invest in this broker ever again.
0
0
Show more

Tambahkan komentar
Teks:
Brokers Reviews

FOREX BROKER DIREKOMENDASI
FOREX BROKER №1 DI ASIA
30% bonus untuk SETIAP deposit
Leverage 1:1000

Forex charts and quotes





Penawaran Special
Mulai trading tanpa
risiko dan investas
Dengan Bonus Permulaan $1000
Get bonus
55%
from InstaForex
on every deposit
Earn up to
$50000
for inviting friends to get StartUp Bonus from InstaForex
No investments required!