Hi everyone)Today my fellow pakistani traders told me about how so called industry leader and highly regulated broker FXCM stole thousands of dollars from him by doing stop loss hunting.Also he told me that there are currently 150 pending cases against fxcm and they were fined before by their regulatory bodies for such dirty practices.I was going to open an account with fxcm but he scared the **** out of me.As we know that our position as traders is relatively quite weak in front of huge multi billion firms/brokers etc.Now i am thinking if a highly regulated firm can do that then who should i trust?We are trading from all over the world and are sitting thousands of miles away,how i can complain about them to their regulatory bodies like FSA or NFA?Is there any costs involved in opening a case against them for example hiring lawyers etc? What will be my hope in case i got scammed by my broker?
Regards
Tahir
Tahir bhai I dont know about legal things but you need to make sure to open an account with a non-dealing desk broker which is not a Market maker. Go for a ECN or STP broker. They will not hunt your stop loss as they want you to win. Also there are free indicators out there by which you can hide your stop loss from the broker and it is impossible for the broker to view it since the SL is initiated within the indicator.
I am aware of two brokers who are trustworthy. worldprofx and lqdmarkets. Hope this helps.
Thanks for the reply kashif bhai)I know about the NDD,ECN or STP etc and currently i am trading with the ECN trader.The point is that FXCM claim that they are NDD but still such a highly regulated NDD is scamming traders.And yea hiding yout stop loss from the broker is a good idea
Hi Tahir,
I’m FXCM’s representative here on BabyPips, and I want to address the concerns you have raised.
We provide clients with No Dealing Desk (NDD) forex execution specifically to eliminate potential conflicts of interests between us and our clients. On the NDD model, FXCM offsets client orders one for one with our liquidity providers, so there is no reason for us to hunt stops. Your stops are also invisible to the liquidity providers who stream prices into the NDD feed, so it’s impossible for them to hunt your stops. In regards to the traders you mentioned who claimed their stops were hunted, please let me know where you read their comments, so I can follow up with those traders.
It’s important to us that our clients have confidence in our platform. That is why whenever a client expresses concerns about our trading execution, I try to follow up with them to determine what happened. Often it turns out that there was a misunderstanding by someone who is new to our platform that can be easily addressed. Here is a recent example on this forum.
Our goal is to provide our clients with the best possible trade execution. If you are a client of FXCM and have a question or concern regarding the execution of a particular trade, you can log a case for review by the Trade Audit Committee. If there was an error in our trade execution that negatively impacted our your trade, we will make the appropriate correction to your account.
If you disagree with the findings of the Trade Audit Committee, you can escalate your trade inquiry one of the government bodies that regulates FXCM worldwide. This is one of the advantages of trading through a regulated broker. FXCM is regulated by government bodies in the US, UK, Australia, Hong Kong and Japan. That means we are subject to a greater level of regulatory oversight than smaller brokers that are not regulated in as many major financial centers around the world.
I encourage you to do your due diligence and research us along with other brokers. Since we are one of the only retail forex brokers that is a publicly-traded company (NYSE ticker: FXCM), details regarding our business and finances are more readily available than for smaller brokers that are privately-held companies. That’s why traders have entrusted FXCM with $1.190 billion in client funds (as of our latest published data).
If you have more questions about FXCM, feel free to ask me in the Broker Aid Station.
Jason
There is reply from their representative so it may clear some confusion but yes I know few people who always hide their stop loss from their brokers just to be on the safe side.
Nice to see some fellow Pakistani bros 
Hello jason) You people will always speak in the favour of your company that,s what you people are get paid for.I didn,t see any of the bad comments online in any forum and started to believe that FXCM is a fraud.I know in many online places people also blame the broker for their own trading mistakes.Those traders are my friends and i know them personally.
This is what Wikipedia says about you people FXCM - Wikipedia, the free encyclopedia
[B]In February and March 2011, a number of class actions lawsuits were filed against FXCM, alleging fraud and racketeering from deceptive and unfair trade practices, and misleading shareholders during the 2010 IPO.[6][7][8][9]
In August 2011, the NFA fined FXCM $2M for slippage malpractices. FXCM reached settlements with the NFA and the CFTC of $2M and $6M respectively, for practices relating to failure to pass along positive slippage to customers on certain order types prior to August 2010. In conjunction with these settlements, FXCM provided clients with restitution for the total amount of positive slippage, approximately $8M[/B]
[B]On October 25, 2011, three debtors, Certified, Inc., Global Bullion Trading Group, Inc., and WJS Funding, Inc., filed an adversary complaint in the United States Bankruptcy Court for the Southern District of Florida against Forex Capital Markets LLC, ODL Securities, Inc., and ODL Securities, Ltd. (“Defendants”). The complaint asserts claims under the Federal Bankruptcy Code to recover allegedly preferential and fraudulent transfers to the Defendants, under the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C §1961 et seq., as well as the common law. The complaint seeks an unspecified amount of compensatory and punitive damages, interests, and costs[/B]
Now tell me why your regulatory bodies fined you and took actions against you many times?Why you have such a poor back ground?
FXCM is the biggest in the business and fully regulated and publicly traded on the NYSE. When you have 100’s of thousands of clients, there’s bound to be some unhappy ones and trade issues. however, it’s hard to conceive they would stop hunt these days. Maybe back in the day when they were private, but not now. Their feeds come right form the interbank pricing, if they were off market they would get arbed to death. I trust FXCM and would recommend them to anyone.
In the future, as soon as you have a trade issue, always do screen shots and record the time and ticket/trade number and take it to the company first. If the company blows you off, you can always go to the regulator. But with a market leader like FXCM the chances they stop hunted you are slim to none imho.
Hi Tahir,
There’s no class action against FXCM, because that case was dismissed in November of 2011. The NFA action you mentioned had to do with positive slippage not being passed on in full when transactions were offset with liquidity providers prior to August 2010. I posted a detailed explanation here.
In August 2010, we enhanced our No Dealing Desk (NDD) forex execution by adding Price Improvements (positive slippage) to limit and limit entry orders. The stats below show that now, positive slippage is just as likely to occur on our platform as negative slippage.
In fact, FXCM provides tips to help our clients maximize price improvements and minimize negative slippage.
That’s because on our No Dealing Desk (NDD) forex execution, we make our money off client trading volume, not client losses. This is one of the reasons over 190,000 retail accounts trade with FXCM as of the most recent published data.
Jason
Hello,
I am facing some problems with my broker InstaForex. I send them several mails but they didn’t reply. Any idea or help from you would be very much helpful for me. I am very much anxious about my investment with InstaForex. Please help me.
Regards,
Khaled
Hello Haled,
Can you tell us what are the problems you have with InstaForex?
“
We provide clients with No Dealing Desk (NDD) forex execution specifically to eliminate potential conflicts of interests between us and our clients. On the NDD model, FXCM offsets client orders one for one with our liquidity providers, so there is no reason for us to hunt stops. Your stops are also invisible to the liquidity providers who stream prices into the NDD feed, so it’s impossible for them to hunt your stops. In regards to the traders you mentioned who claimed their stops were hunted, please let me know where you read their comments, so I can follow up with those traders.”
I call that a total line of crap! FXCM has just found another way to do it! I am new to forex but it rapidly became quite clear to me that FXCM does indeed hunt stops (I only jut found out there was even a term for this!) I was just stopped out of a trade (yet one more time) well over a pip over anything that even shows on even FXCM’s charts… I also saw very early on that if I didn’t post a stop loss I would make money on a trade (even if I kept that stop loss in my head and played by that as a rule). I can’t believe people that do this are not in jail. My other favorite move on a quick trade to gain ten pips, was a magical few second jump of FXCM’s spread to over 10 pips. I was about to take profit on a trade and then was stopped out. Simply put WOW…I just wish I’d left FXCM that moment instead of this morning! (oh one more complaint…I was told over and over how FXCM didn’t charge a commission…my account shows quite a different story!
If I was you I would learn a bit more about how the forex market works before you create an account and start throwing a tantrum against FXCM in a 1.5 year old thread…
If you want to complain about the broker and call them liars etc you need to be specific on how they cheated you (what you posted above is just random noise).
What trade did the spread suddenly widen in and when did it happen?
Was it at 5pm EST when the rollover happens and every brokers spread widens significantly or was it perhaps during a news event?
What forex pair are you referring to here, was it EURUSD that suddenly had 10+ pips or was it USD/NOK?
I am lucky not to have had any bad experiences so far but I had to look into this thread incase I ever find myself in such a situation.
Throwing a tantrum? Seriously lol. I have had an account on baby pips for a few months now…just haven’t posted.
Why is it that I could clearly see this yet didn’t know it was a practice. Yes I’ve educated myself since then and during. There is also still very big difference between their practice account and FXCM’s real time trading. my fade that switched 10 pips for five seconds (as I was told by dxcm that is lasted that long) I honestly don’t recall as it was more than three months ago.
The trade that was sold 1.4 pips over ANY high on FXCM was on nzdusd…
Everyone jumps on publicly traded companies as being heavily regulated, so therefore you are protected. I guess people forget so quickly that doesn’t mean that much. anyone remember Enron, Arthur Anderson, Waste Management, Maddof…
Hello Guys
Please I would like to warn everyone out there about Forex broker called Marketonline . Please stay away from this unregulated and not registered broker they are Scam. I have lost $1500 on their platform I tried to withdraw with no success . The account managers are rude and swear at you when you request your money.
Please don’t invest in this scammers
I also get fraud by fxcm , in arabic department
They work now in bermoda , I think thay become scam the price not rech my srop loss and they get me loss
No body work wuth fxcm in my experiance thay are scam
I have all evidance against them
Please some one tell me how to apply my cimplain to FCA