NFA levies $2,000,000 monetary sanction against FXCM and orders refunds to customers

Before anyone uses the old 'first offence' excuse I've checked and it wasnt.
 
scose-no-doubt said:
All this hostility is misguided. You guys need to take on El Sharky ?
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I have no problem with Mr Sharky, he's spotted an opportunity, he's milking it, and I hope he does well. When the day comes that Mr Sharky starts personally posting to defend FXCM, or any other T2W advertiser, then I'd be happy to call him out and openly critisise him (and he'll ban me the same way he's banned others, but thats cool, its pointless running a forum if you cant abuse what little power that gives you).

My problem is with hypocrites on the T2W staff and moderation teams, who either delete posts warning others of known problems, or worse still, post in defense of T2W advertisers whilst being perfectly aware of the underlying problems such as these. The only reason Sharky's evil empire exists is because these types of hypocrites are happy to turn a blind eye and prostitute their principles for chump change, or the power to delete a few posts and throw their weight about. These are precisely the people who should be named and shamed and called to account.

As a trader, I have absolutely no moral objections to a businesman exploiting a bunch of greedy punters, its the hypocrisy I object too.
 
Black Swan said:
Not so sure, I reckon it's a killer for their reputation, surely that's a bigger hit than even the 2ml which won't be easy to find. This news will hit hard, the class action could be murderous..not good.
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I'm not sure how many will notice, and as pboyles points out, when more get caught, they won't look so bad. There will always be fresh punters, and they'll look for a big name like FXCM, often without checking the history.
 
the hare said:
I have no problem with Mr Sharky, he's spotted an opportunity, he's milking it, and I hope he does well. When the day comes that Mr Sharky starts personally posting to defend FXCM, or any other T2W advertiser, then I'd be happy to call him out and openly critisise him (and he'll ban me the same way he's banned others, but thats cool, its pointless running a forum if you cant abuse what little power that gives you).

My problem is with hypocrites on the T2W staff and moderation teams, who either delete posts warning others of known problems, or worse still, post in defense of T2W advertisers whilst being perfectly aware of the underlying problems such as these. The only reason Sharky's evil empire exists is because these types of hypocrites are happy to turn a blind eye and prostitute their principles for chump change, or the power to delete a few posts and throw their weight about. These are precisely the people who should be named and shamed and called to account.

As a trader, I have absolutely no moral objections to a businesman exploiting a bunch of greedy punters, its the hypocrisy I object too.
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I don't know about all that and whatnot. But I do know that I like teh lulz.

And T2W provides them aplenty. The place wouldn't be the same without the characters you get round here. How about the apparent noob who was just about to give up but then decided to show us what he could do by making 5% every day and doubling his account in a month etc etc?

And the best thing? There are plenty of people round here who are willing to believe this crap, and the vendor whose son had cancer, and all the rest. Supreme lulz not available anywhere else. (y)
 
Pazienza said:
I don't know about all that and whatnot. But I do know that I like teh lulz.

And T2W provides them aplenty. The place wouldn't be the same without the characters you get round here. How about the apparent noob who was just about to give up but then decided to show us what he could do by making 5% every day and doubling his account in a month etc etc?

And the best thing? There are plenty of people round here who are willing to believe this crap, and the vendor whose son had cancer, and all the rest. Supreme lulz not available anywhere else. (y)
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If the hypocrisy is a necessary part of the environment required to create the lulz (which is a unique feature of T2W) then yes its a price worth paying
 
Apparently they estimate that they will have to refund clients $8 million. I thought I'd read 600k somewhere.

http://forexmagnates.com/nfa-fines-...e-malpractices-fxcm-will-credit-clients-back/

"Under the terms of the settlement, FXCM US has agreed, without admitting or denying any of the allegations, to pay a fine of $2 million to the NFA and to provide restitution, which the company estimates to be $8 million, to the affected clients"
 
scose-no-doubt said:
You were forever talking up FXCM a few months ago?

Did they desist your monthly retainer or something?

I bet you blew you whistle now you're greasing up CMCs shaft.
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Eh? Did you drop some acid when you went rubber necking at the riots? You taken a trade this year?
 
Shakone said:
I'm not sure how many will notice, and as pboyles points out, when more get caught, they won't look so bad. There will always be fresh punters, and they'll look for a big name like FXCM, often without checking the history.
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Perhaps, the number of brokers in the USA has shrunk and this could be countered by fxcm as old news..but yeah, let's be straight, they're not and weren't the only one, hopefully this exposure will continually help clean up the industry..
 
pboyles said:
Its inconceivable that others weren't doing the same thing, I suppose when they all get caught it will even things up a bit and FXCM wont look so bad.
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Hi pboyles,

Not all brokers may be offering positive slippage on trades, but FXCM's NDD forex execution does for all order types. We enhanced our execution starting in August 2010 to enable positive slippage on limit and limit entry orders in the second part of the offsetting process and the enhancement was completed in December 2010 to the remaining order types.

By the way I see there was another fine, it relates specifically to FXCM UK. They were fined $140,000 recently.

http://trading-gurus.com/fxcm-uk-fined-140000-by-the-cftc/
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The second point you brought up about the fine mentioned on Trading-Gurus website relates to the repatriation of US resident accounts last year from FXCM UK back to FXCM US.

Last year, there was an 11 day delay in repatriating US residents from FXCM UK back to FXCM US. To refresh everyone's memory, the repatriation was a result of the Dodd-Frank act requiring that brokers accepting US residents to be regulated with the CFTC/NFA (US regulator). The CFTC required the repatriation to be completed by October 18, 2010; however, at the same time, the Financial Services Authority (FSA), FXCM UK’s regulator, required individual consent from each account holder before FXCM UK could initiate a transfer back to FXCM US. In seeking to comply with the FSA requirement and prevent disruption to clients' open positions, FXCM UK missed the CFTC’s deadline for completing the process as it sought to properly notify affected clients and conduct transfers in a timely and orderly fashion.

We regret the brief 11 day non-compliance in repatriating US residents, but the delay meant that the impact on our clients trades was minimized (as opposed to forcefully closing trades and being in non-compliance with UK regulations) and ensured a smooth transition of accounts from FXCM UK to FXCM US.

Our full statement can be found here http://ir.fxcm.com/phoenix.zhtml?c=2...217&highlight= . Please feel free to let me know if you have any questions.

-Jason
 
Jason Rogers said:
Hi pboyles,

Not all brokers may be offering positive slippage on trades, but FXCM's NDD forex execution does for all order types. We enhanced our execution starting in August 2010 to enable positive slippage on limit and limit entry orders in the second part of the offsetting process and the enhancement was completed in December 2010 to the remaining order types.



The second point you brought up about the fine mentioned on Trading-Gurus website relates to the repatriation of US resident accounts last year from FXCM UK back to FXCM US.

Last year, there was an 11 day delay in repatriating US residents from FXCM UK back to FXCM US. To refresh everyone's memory, the repatriation was a result of the Dodd-Frank act requiring that brokers accepting US residents to be regulated with the CFTC/NFA (US regulator). The CFTC required the repatriation to be completed by October 18, 2010; however, at the same time, the Financial Services Authority (FSA), FXCM UK’s regulator, required individual consent from each account holder before FXCM UK could initiate a transfer back to FXCM US. In seeking to comply with the FSA requirement and prevent disruption to clients' open positions, FXCM UK missed the CFTC’s deadline for completing the process as it sought to properly notify affected clients and conduct transfers in a timely and orderly fashion.

We regret the brief 11 day non-compliance in repatriating US residents, but the delay meant that the impact on our clients trades was minimized (as opposed to forcefully closing trades and being in non-compliance with UK regulations) and ensured a smooth transition of accounts from FXCM UK to FXCM US.

Our full statement can be found here http://ir.fxcm.com/phoenix.zhtml?c=2...217&highlight= . Please feel free to let me know if you have any questions.

-Jason
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Can you tell us how many times FXCM have been fined or forced to pay compensation in the past 6 or 7 years? I read a few cases including one where it was concluded that you had 'defrauded' a client. Their words, not mine.
 
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the hare said:
Out of interest, just hypothetically, if FXCM's solicitors apply pressure to T2W to remove this thread, what would your reaction be ? would you just accept that, or would you resign on principal. :LOL:
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Hello hare,

FXCM is fully capable of answering questions and joining the discussion without having to resort to this which is why I posted a response to the discussion :) . We have always taken this view as displayed by our involvement answering questions on Trade2Win and all other forums since 2009. I'm always available FXCM's representative to the forums to answer any questions as best I can.

-Jason
FXCM
 
Jason Rogers said:
Hello hare,

FXCM is fully capable of answering questions and joining the discussion without having to resort to this which is why I posted a response to the discussion :) . We have always taken this view as displayed by our involvement answering questions on Trade2Win and all other forums since 2009. I'm always available FXCM's representative to the forums to answer any questions as best I can.

-Jason
FXCM
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Even if someone posted those videos about your price feed being miles off?
 
pboyles said:
Can you tell us how many times FXCM have been fined or forced to pay compensation in the past 6 or 7 years? I read a few cases including one where it was concluded that you had 'defrauded' a client. Their words, not mine.
Click to expand...

Would you like me to start you off?
 
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