Is FXCM going out of business?
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  1. #1
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    Default Is FXCM going out of business?

    I tried to open an account yesterday at fxcm but I was stuck in the midst of the application. The guy on live chat told me they're not accepting new applications, why is that? Are you going out of business? If it's temporary, when will this be over?

  2. #2
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    I'd sit back right now and see what happens in the coming weeks - however, it's not looking fruitful for FXCM at this moment in time - you just need to look at their share price which is down around 45% from Monday close (NASDAQ: FXCM)

    Regardless of them holding onto non US operations, the damage is done from a client point of view. This is, unfortunately, not the first time they have been caught out not putting their client interests first.

    This is a shame, as credit needs to go to Jason who has always been a reliable source of help from FXCM, here at BP.
    Last edited by RISKonFX; 02-07-2017 at 11:12 AM.

  3. #3
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    Quote Originally Posted by Jezzode View Post
    it's not looking fruitful for FXCM at this moment in time

    It hasn't been for the last 4-5 years (that I know of).


    Quote Originally Posted by Jezzode View Post
    you just need to look at their share price which is down around 50%

    With apologies for the "I told you so" tone, which is pretty hard avoid, given that I've now been saying this here for years without anyone ever taking any notice, you just needed to look at their regulatory record.


    Quote Originally Posted by Jezzode View Post
    credit needs to go to Jason who has always been a reliable source of help from FXCM, here at BP.

    Indeed he has - and a nice guy with his job to do, who has always done it well and professionally, from what I've seen. He just has the misfortune to have been working for a truly horrible company, IMO. I wish him nothing but well.

  4. #4
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    Thanks for the reply. I was hoping Jason would answer the question. Their share price has plummeted since the SNB announcement in 2015 with no recovery in sight.

  5. #5
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    To be fair, and going off track now.

    After the SNB decision (15th January 2015), FXCM shares did fall about 95% from a high of $20.00 to under $1.00. However, they did also recover to almost $17.00 on 31st December 2015 - a fair recovery.

    The gradual decline since then has been for other various factors - but after yesterday there is no need to list these and rub salt into the wound.

  6. #6
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    Quote Originally Posted by Jezzode View Post
    After the SNB decision (15th January 2015), FXCM shares did fall about 95% from a high of $20.00 to under $1.00. However, they did also recover to almost $17.00 on 31st December 2015 - a fair recovery.
    Wrong. The stock price never recovered. The price you are seeing is due to a 1-10 reverse split, which would mean it fell from a high of $200 and recovered to $17.


    On a side note, how long will FXCM continue to operate for their current US customers? Will I be able to use Marketscope with GAIN capital? What happens to my myfxbook stats? I'm really thinking of closing shop here. Imo, I don't see a recovery and any funds with FXCM is at high risk.

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    Quote Originally Posted by kashix View Post
    Wrong. The stock price never recovered. The price you are seeing is due to a 1-10 reverse split, which would mean it fell from a high of $200 and recovered to $17.
    Thanks, Kashix - interesting to know, and even more so slightly embarrassing

  8. #8
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    Jason Rogers is offline Verified Broker Support and Analyst for FXCM FX-Men Honorary Member
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    Quote Originally Posted by ShelleyB View Post
    I tried to open an account yesterday at fxcm but I was stuck in the midst of the application. The guy on live chat told me they're not accepting new applications, why is that? Are you going out of business? If it's temporary, when will this be over?
    Welcome to the forum, Shelley

    If you live in the US, then please note FXCM US is no longer accepting new accounts. Part of our settlement with the NFA and CFTC was to close our US subsidiary, but there will be no changes for clients outside of the US.

    Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity. Specifically, withdrawing from this business will free approximately $52 million in capital. We will use the proceeds from any sale of the US accounts, as well as the large amount of regulatory capital currently tied up, to reduce the balance of our loan from Leucadia. With the reduction of this loan balance, along with sales of non-core assets that were previously announced, FXCM could be in a position to fully pay off the Leucadia loan before the end of this year.

    With this exit, FXCM will be in a better position to service our international customers and focus on our profitable subsidiaries. Our full financials can be found here and we will announce our Q4 and Full year 2016 financials in the next few weeks.
    Last edited by Jason Rogers; 02-07-2017 at 02:24 PM. Reason: added financial info
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  9. #9
    Jason Rogers's Avatar
    Jason Rogers is offline Verified Broker Support and Analyst for FXCM FX-Men Honorary Member
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    Quote Originally Posted by Jezzode View Post
    I'd sit back right now and see what happens in the coming weeks - however, it's not looking fruitful for FXCM at this moment in time - you just need to look at their share price which is down around 45% from Monday close (NASDAQ: FXCM)

    Regardless of them holding onto non US operations, the damage is done from a client point of view. This is, unfortunately, not the first time they have been caught out not putting their client interests first.
    Hi Jezzode,

    While I cannot speak about the NFA or CFTC complaint specifically due to the nature of our settlement, I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims. Effex Capital is no longer pricing FXCM's NDD forex price feed. Note FXCM would not have suffered more than $200 millon dollars in losses during the SNB flash crash had it been taking the other side of client trades – unlike so many of the DD firms in the industry.

    I can also discuss with you FXCM's execution practices outside of the US. FXCM uses 16 liquidity providers to create a best bid best offer price stream for clients. LPs selected to price retail clients are forced to adhere to an extremely high standard of execution beyond just price – including consistently low rejection rates, low latency, minimum quote sizes and high fill ratios even during market events.

    We have made our execution study public in the UK which can be viewed here and is a transparent comparison of FXCM's actual execution vs top tier futures brokers and the interbank market.
    Last edited by Jason Rogers; 02-07-2017 at 02:07 PM. Reason: added execution study info
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  10. #10
    Jason Rogers's Avatar
    Jason Rogers is offline Verified Broker Support and Analyst for FXCM FX-Men Honorary Member
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    Quote Originally Posted by Jezzode View Post
    This is a shame, as credit needs to go to Jason who has always been a reliable source of help from FXCM, here at BP.
    Quote Originally Posted by lexys View Post
    Indeed he has - and a nice guy with his job to do, who has always done it well and professionally, from what I've seen.
    Thank you both. I appreciate your well wishes.
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