It hasn’t been for the last 4-5 years (that I know of).
With apologies for the “I told you so” tone, which is pretty hard avoid, given that I’ve now been saying this here for [I]years[/I] without anyone ever taking any notice, you just needed to look at their [B]regulatory record[/B].
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 [I]horrible[/I] company, IMO. I wish him nothing but well.
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.
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.
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.
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.
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.
FXCM has signed a non-binding letter of intent with GAIN Capital Holdings, Inc. (“GAIN”) under which GAIN would purchase FXCM’s US customer accounts. The transaction is subject to regulatory approval and a definitive agreement. FXCM and GAIN are working to determine the timing for the account transfer and expect to provide further information in that regard in the coming days.
We will for the interim period continue to service its U.S. customers and to provide top quality trade execution pending the customer-account sale and business withdrawal. FXCM will also be working diligently to be sure that an account transition to GAIN’s retail brand, FOREX.com, will be orderly, expeditious and seamless.
We want to express our most sincere thanks to all our US customers who have been with us over the years and wish you all the best following this transition.
Lets hope so that this matter comes to resolution, i am not sure why there is always issues with US traders and the online brokers. I have seen many online brokers does not accept the traders from US either.
I have open trades with fxcm, and I am a US customer. Is my account safe? Should I close these trades (at a loss) and withdrawal immediately? I am very concerned. I found this out thanks to message boards. I’ve gotten emails this week from fxcm with nothing said to indicate that any problem exists or assure me my funds are safe.
I’d definitely make a call to FXCM client services and ask the question directly, since it involves open trades. At least, that’s the approach I would take as step one, of many.
If you would like to withdraw your funds and close your US account, then you can do so whenever you like provided your trades are all closed. That said, please note that while part of our settlement with the NFA and CFTC was to close our US subsidiary, 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.
If you would like to keep your trades open, then please review this post where I discuss how FXCM has signed a non-binding letter of intent with GAIN Capital Holdings, Inc. (“GAIN”) under which GAIN would purchase FXCM’s US customer accounts allowing you to keep your trades open: 301 Moved Permanently
I currently have an account. I recently read the US business is being sold to GAIN Capital due to NFA violations and they may have been permanently banned from US:(
While I can’t comment on the NFA/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. 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.
(If you live outside the US, please note FXCM would not have suffered more than $200 million 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. 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.)
To clarify what you have heard about our US business, for US traders wanting to continue trading uninterrupted, FXCM and GAIN have entered into a definitive agreement for GAIN to acquire the client base of FXCM’s US operations. The transaction is subject to regulatory approval. FXCM and GAIN are working to determine the timing for the account transfer and expect to provide further information in that regard in the coming days.
We will for the interim period continue to service our US customers and to provide top quality trade execution pending the customer-account sale and business withdrawal. FXCM will also be working diligently to be sure that an account transition to GAIN’s retail brand, FOREX.com, will be orderly, expeditious and seamless.
On behalf of all my colleagues at FXCM, I want to express our most sincere thanks to all our US customers who have been with us over the years and wish you all the best following this transition.
