Legal Action Against FXCM

Many Thanks Mr PB I find this very interesting as you said its a bit of a fix, ... see what drops out, I think it will be a battle of the software and platform developers, I suspect this one will be tied up for donkeys years being a USA based legal battle
 
Big Dog1 said:
Many Thanks Mr PB I find this very interesting as you said its a bit of a fix, ... see what drops out, I think it will be a battle of the software and platform developers, I suspect this one will be tied up for donkeys years being a USA based legal battle
Click to expand...

There's been a few others lately that have been fined and had to compensate clients, Gain Capital/forex.com were one, cant remember the others but they are mentioned on T2W somewhere. I think in previous cases they were all using the Virtual Dealer plugin for MT4 to screw people on the spreads and slippage, seems it was purpose built for that. I see FXCM offer MT4 but I dont see any specifics anywhere about how they were allegedly defrauding people.
 
pboyles I gotta whole lot of respect for you and your cynicism towards rip off companies but this looks like a nut bar to me... even if FXCM are ripping folk off this lawsuit is a joke
 
I think its the same for FXCM is that they don't have a true MT4 platform so they have to bridge to an outsourced one and they get delays rather than the in-house models ... well that's what I have been told hence the filling of orders is a nightmare on a busy day, however this might dig a little deeper than that and if they have made the software skewed in the favour of the broker in general then the fur will fly ....
 
i agree with arabian - "rigged game", "computer tricks", "its easier on demo" all point to a bad loser
 
arabianights said:
pboyles I gotta whole lot of respect for you and your cynicism towards rip off companies but this looks like a nut bar to me... even if FXCM are ripping folk off this lawsuit is a joke
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Quite possibly in this individual case, I just think that its too easy for companies to rip off retail FX traders, several have been caught recently. Things like the MT4 plugin and the bridging systems Boston Technologies were offering are basically built to covertly screw customers.
 
I use to be in IT and to honest with specialist software involved it would be an nightmare to try and make this one stick....
 
one good thing about it though it slowly but surely conditions might improve for hobby punters, cos compared to "proper" brokers in the "proper" markets SBers get away with loads. so its good that people are trying to put a stop to it :)
 
if you trade lighting fast stuff you're inevitably going to miss things anyway cause there isn't a market, no matter what your "live" prices say. But the demo system doesn't know that so it gives you a fill. E.G. Yesterday I traded a figure and the offer I lifted... well it was bid before I had a fill confirmation... I did get the price though.

Today, I lifted an offer on the same figure... now I trade two accounts exactly the same, for reasons not worth going in to, so I had boxes one on top of the other, all I had to do is double click... the first click closes the first order window then the order window below it is in focus... 0.2 seconds I estimate.... first order hit second missed... that's how quick it is... double click and there is a full fill and a no fill... admittedly I'm connecting through internet but a part of it is co-located...
 
can't you set it up so you only have to trade once and the computer allocates your fills to the acounts in the right proportion?
 
DashRiprock said:
can't you set it up so you only have to trade once and the computer allocates your fills to the acounts in the right proportion?
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Yes... but back office are grouchy :LOL:

Occasionally I use it, e.g. when I mic up accounts and end up long in one, short in the other, that kinda thing.

Actually occurs to me more detail should be in my serious thread; where also I could explain about trading front month bor on fixes....
 
Ive looked at MT4 a few times and everytime I think "why do people use this? it's total cr@p!"

really it is an awful piece of software for trading if you ask me.
 
i assumed you were trading fixes cos I cant think of anything else that is a figure thats daily?
 
DashRiprock said:
i assumed you were trading fixes cos I cant think of anything else that is a figure thats daily?
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for bor the only other daily thing would be liquidity report really, and that mostly non event... why do I care that banks are front loading?
 
tar said:
Total year results for 2010 :

360 M $ in revenue

3178 Billion $ trading volume

Fxcm makes 0.011% from the trading volume , for Cable for example this equals to 1.8 pips ...

If Fxcm is really f*** its clients shouldnt Fxcm make more than this ?!!

http://ir.fxcm.com/phoenix.zhtml?c=238885&p=irol-newsArticle&ID=1534848&highlight=
Click to expand...

I don't know if FXCM was using it or not so I won't comment on the lawsuit. A few bad trades doesn't mean you are getting screwed. But IF they were using it you can expect to see an out of court settlement because they will have an awful lot to lose. The Gov't will most likely seek to shut down all US operations if it goes to court.

Peter
 
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