This is Just three out of the many Cases
[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
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]
What I do not understand is why can’t this broker deal fairly with clients. The truth has to be told. If you go to the review sites, you will read a lot of scream reviews from clients crying for help. My point is this, DO NOT OPEN AN ACCOUNT with a broker simply because it claims to be regulated else you will be making posts like this: 301 Moved Permanently.
You’re right. Simply making an accusation doesn’t turn it into fact. The cases you mentioned were all dismissed in 2011.
The NFA action 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.
We take feedback from clients very seriously. That is why whenever a client expresses dissatisfaction on online communities such as you mentioned, I do my best to follow up and address their concerns. Often it turns out that it was simply a misunderstanding by someone who is new to our platform that can be easily addressed. Here is a recent example from this forum.
If there is ever an error on our part, FXCM will work on a solution for the client. Unfortunately, the nature of online ratings on the sites you mentioned is such that it’s sometimes hard to get in touch with people after they have posted. So the rating might not get updated, even after the client’s concerns have been addressed to their satisfaction by our 24-hour customer support.
This is something on which we can both agree. The recent bankruptcies of regulated brokers in the US, Europe and Australia have shown us that regulation is just a starting point, and the financial stability of the broker you choose can have far greater implications than we previously thought. Unfortunately, the vast majority of forex brokers are privately held companies, so it’s hard to know the state of their finances. Are they profitable, or are they barely staying afloat? How can you know whether they are safe place to keep your money?
FXCM is a publicly-traded company (NYSE ticker: FXCM), so information regarding our financial data is readily available. This along with our commitment to client satisfaction are reasons why traders have entrusted us with $1.171 billion in client funds.
You are right. But, how come there was a case in the first place? I heard you guys know how to bribe the regulatory bodies. Lol…
I believe our CEO Drew Niv said it best with this comment he made at the time:
“It is a regrettable fact of public company life that even a temporary stock price decline often leads to class action litigation. FXCM will always defend itself against these types of meritless claims.”
As expected, these cases were dismissed later that same year.
It never ceases to amaze me the stuff that gets made up on anonymous forums… reminds me of one of my favorite quotes:
I heard More about Capital One Forex. All over the net and specially at forex peace army Capital one Forex marked as a Scam Broker.
If you found that out at the FPA site, then it is truly a scam. FPA investigates properly before posting a scam broker. Believe what you see and don’t let anyone lure you into losing your money.