FXCM Scandal: The USA Chases The Broker From The Market.

An FXCM (Forex Capital Markets) scandal. FXCM will no longer be able to operate in the United States market.

The scandal is exploding after inquests by the CFTC, the regulatory body for USA markets, which found proof of highly harmful behaviour with regard to their own clients, against whom brokers often bet.

A new scandal is hitting FXCM, a stockbroker specialising in the foreign exchange market. The regulatory body for markets in the USA, the Commodity Futures Trading Commission (CFTC), has demanded its unceremonious exit from the United States market.

The accusation that is weighing upon the famous broker is that of having acted against the interest of its own clients.

The alleged incidents go back to the period between 2009 and 2014, years in which unverified information about the actual relationship with the main market maker was given to clients.

In fact, FXCM bet against its own clients.

FXCM has created a new company through a spin-off achieved through algorithmic trading.

This company, in its role as market maker, has always enjoyed the trading and lending privileges granted by FXCM without interest. As further proof of the link between the two companies, the staff was the same as for FXCM.

The market maker has duly bought up a large part of the trading volumes of FXCM. It was in this predicament that they ended up taking up positions against those of FXCM retail clients.

FXCM has not admitted guilt even though it has not rushed to repudiate the accusations, and has paid up the fine of seven million dollars.

To pay for this the initial consequence was that the company fired 150 employees from its US branch.

Meanwhile, in the USA

FXCM has announced the sale of the accounts of its own American clients to GAIN Capital Holdings, the owner of the brand Forex.com

The exit from the US market has not completely compromised the activity of the group, which will be able to continue providing interim services to its clients and work together with GAIN Capital to guarantee a painless transition.

GAIN Capital will pay 500 dollars for every transferred account that accomplishes at least one new trade in the first 76 days following the closure of the purchase agreement.

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