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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: Alberto | Tanggal 2021-09-16
It is fine with me if FXCM does not return to the country anymore. I don't want this broker to trick us again. The broker was a good one. I never thought that they were lying to us and has been trading against us while making us believe that they are giving us amazing services.
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Author dari fxcm_starts_operating_in_europe: Ringga | Tanggal 2021-11-04
And to think that they are even trying to operate in another region, it makes you wonder if they ever felt guilty about what they did to their former clients. They did not even try to settle anything. They just disappeared with our money.
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Author: Ylva | Tanggal 2021-09-02
FXCM used to be an excellent Forex broker. I don't understand why they had to lie to their clients and run off with all our funds. Now, they are operating in Europe as if nothing happened. I hope the people there won't be deceived by this terrible company.
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Author: Ziuqup | Tanggal 2021-08-24
This company should never see light again! I still can't understand how they are able to operate in Europe when they have a terrible history. It is also disappointing how people carelessly invested on this broker.
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Author dari fxcm_starts_operating_in_europe: Damien | Tanggal 2021-10-27
FXCM used to have a good reputation. I also cannot blame the other investors as they may not be fully informed of what has happened with the broker. I have a friend from Europe and he told me that he did not know about the past of the broker until I told him.
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Author: Mickailee | Tanggal 2021-08-20
How can I move past my experience at FXCM when I am fully aware that the company is operating once again in a different region? I can't believe that the people behind this broker were not even punished. And that they still had the liberty to start anew like nothing happened.
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Author: Waleed | Tanggal 2021-08-09
After two years of trading with FXCM, all I got was betrayal. Now I understand why they kept convincing me not to withdraw my profits. They kept telling me that it would help me if I had larger funds in my account. And as gullible as I was, I believed them and followed their advice. Now, they stopped their operations and never returned my money.
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Author dari fxcm_starts_operating_in_europe: Hava | Tanggal 2021-09-06
It is more frustrating when you have worked with them for a long time already. You can't help but think that all the time you spent with them was wasted time. FXCM betrayed us all. I never thought that they were trading against us and that they would disappear on us.
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Author: Rajan | Tanggal 2021-08-04
Because of what FXCM did to us, I am now very afraid of getting back into the trading industry. I am worried that the next broker that I would choose, regardless of their good reputation would only end up doing what FXCM did. I felt deeply betrayed for I trusted them completely.
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Author: Leli | Tanggal 2021-07-27
I trusted FXCM for several years. This broker has been the only company I worked with because they were giving favorable trading conditions. I never expected that they were lying to us all this time. No wonder they only processed withdrawals of small amounts.
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Author: Regino | Tanggal 2021-07-14
I never thought that FXCM, which I trusted for a few years, had been lying to me all those times. I had an account manager whom I trusted so much and as it turned out, he has been manipulating me to invest more funds until they execute their plan on trading against us and making us lose everything.
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Author: Ariyoso | Tanggal 2021-07-05
It has been a while since my trading activities at FXCM has ended. This broker tricked me for two years. I was even able to withdraw $100 once which I guess was insignificant compared with the amount I invested in them. That is probably why they let the transaction pass through. Because of that, they earned my full trust. I was shocked when they suddenly stopped providing services and when I heard about trading against their clients.
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Author dari fxcm_starts_operating_in_europe: Maya | Tanggal 2021-07-21
That's right. They allow small withdrawals just to earn the full trust of their clients. Of course, when we see that we are getting the fruits of our hardwork, we become more motivated. And they also did that to prove that they will release our money. But in reality, they were playing for a bigger plan. And they have collected a much larger sum of money from all the clients they deceived.
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Author: Crandon | Tanggal 2021-06-28
I traded at FXCM for two years and I did not even suspect that they have been lying to us all those times. I wish I made a withdrawal right away so that I could have atleast taken any amount before they decided not to release any money at all.
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