Fxcm pick pockets unsuspecting retail traders accounts

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1

FXCM closed my position with losses (wrongfully took my money out of my account) & refuses to refund my money. At the time of wrongful liquidation by FXCM which resulted in $61.78 losses in my account on 10/2/15 9:01 am i had a open position of 27 lots of USD/CAD 27x200=$540. Before, during & after wrongful liquidation, my available margin funds were more than sufficient & not below $579.77 in my trading account. Please see below the attached daily combined account statement. while i had more then enough funds to hold my position. My account was wrongfully liquidated when i was monitoring my position , everything happened in front of me. I immediately contacted FXCM within a few minutes of the wrongful liquidation for refund of my losses & shortly after I contacted them, fxcm DEALING DESK TRADER Michael Ohneck denied refunding my money .

THERE HASNT BEEN ANY PROOF NOR ANY DOCUMENTATION SHOWN TO SUBSTANTIATE FXCM DENIAL OF WRONGFUL LIQUIDATION - STATEMENT BELOW IS THE ONLY THING I RECEIVED FROM FXCM after this denial by Dealing Desk Trader Michael Ohneck, i escalated the case to compliance department & only thing i received from Compliance Department so far in 23 days was the acknowledgement email nothing else .

Please read below for my complete documentations, proofs & correspondences .

FXCM Audit Complete – Case Number 00381322
from: Michael Ohneck
to: xxxxxxxxxxxxx
date: Fri, Oct 2, 2015 at 12:36 PM
subject: FXCM Audit Complete – Case Number 00381322

Thank you for contacting us. FXCM’s trade audit team has completed the review of your complaint fully and the details of the matter are as follows:Margin Call at: 10/2/15 1:01 PM

( he sends an email to me at 12:36 pm on 10/2/15 about liquidation time of 1:01 pm on 10/2/15 which hadnt even occured yet. The truth is wrongful liquidation happened at 9:01 am not at 1:01 pm See below my account statement for detail transaction history)

Margin Requirement: $540.00
Equity Post Margin Call: $539.90
Balance Post Margin Call: $581.69
Tickets Included in Liquidation: 19311607

(above numbers that DEALING DESK TRADER Michael Ohneck is talking about are belong to NZD/USD position that was opened at 9:19 am AFTER fxcm’s wrongfully liquidated USD/CAD position at 9:01 am on 10/2/15 See below account statement for detail transaction history)

Due to the fact that this margin call executed correctly, no adjustment is warranted in this case.

Michael Ohneck
Trade Services Representative

  • ANYONE WHO READS THIS SITE !
    DON’T BELIEVE A WORD THIS “JASON ROGERS” PERSON IS SAYING,HOW COME HE NEVER SHOWS ANY PROOF FOR HIS DENIALS ???
    INSTEAD OF HIM INSTANTLY DENYING ALL OF THE RETAIL TRADERS STATEMENTS ABOUT EVERY HORRIFIC EXPERIENCES RESULTED WITH SUFFERING HUGE LOSSES (financially, intellectually, emotionally ect.) DUE TO “PUBLICLY TRADED FX BUCKETSHOP” OPERATIONS OF FXCM,
    " JASON ROGERS" MUST PROVE ALL OF HIS DENIALS BACKED BY ACCOUNT STATEMENTS , TRANSFER OF FUNDS TO THE OUTSIDE COUNTER PARTIES(since he claims FXCM doesnt benefit from retail traders loss of funds) ECT.

FXCM COMPLIANCE DEPARTMENT ONLY COMPLYS STRICTLY WITH BUCKETSHOP RULES & REGULATIONS.
" Copper your customers & grow rich" Reminiscence of a Stock Broker Jessi L. Livermore(Edvin Lefevre)

October 12th 2015

The FXCM Compliance Department is in receipt of the complaint you recently submitted.

We understand your disappointment with respect to the matter you have brought to our attention. Please be advised that FXCM takes these matters very seriously. We have initiated an internal investigation of this matter and we will contact you upon conclusion of our audit.

If you have any further questions regarding this matter, please feel free to contact FXCM’s Compliance Department at

Kindest Regards,
Alexandra Goldstein

Oct, 7th 2015
Reply By TraderFX
hi,Since, it began on 10/02/15. When will it be completed?All the information you need are in my earlier emails & my account statement, that i forwarded to other employees. Basically its my trading account statement from 10/02/2015. it simply shows everything down to the pennies & time of wrongful liquidation.i hope to receive a factual reply from you.Sincerely,

Oct, 9th 2015
Reply By TraderFX
Hi,it has been 7 since the wrongful liquidation by FXCM & you havent refunded my account. WHAT IS THE HOLD UP ???You should have had your proofs by now in 7 day, showing that wrongful liquidation was my fault.

Oct, 9th 2015
Reply By TraderFX
FXCM HAS BEEN WRONGFULLY HOLDING MY FUNDS FOR 7 DAY & MY MONEY HAS TO BE PUT BACK INTO MY ACCOUNT ASAP!
Oct, 12th 2015
Reply By TraderFX
Hello,It has been 10 days since my Usd/Cad position was wrongfully liquidated at 9:01 am on 10/02/15 with $61.75 while i had sufficient funds to hold my position.I had forwarded FXCM my proof immediately after the wrongful liquidation by FXCM.I will wait until the end of the business day tomorrow 10/13/15 as a courtesy, if i dont hear from FXCM by then , as my next step, i will file complaints with CFTC, FSA, FINRA. I will forward them my proofs, communications with all of the FXCM Employees about this matter & your immediate denial email.
After i file complaint with Regulators, i will also post all of the issue on the various websites for victimized Traders & Where prospect new traders acquire knowledge about the Operational Style of various FX Brokers for them to judge FXCM’s dealings against retail traders, before they deposit any of their hard earned money with FXCM.
i am requesting my funds to be returned to my account where they belong immediately, since FXCM has been holding my funds wrongfully for a long time.

FXCM HAD AMPLE AMOUNT OF TIME SINCE 10/02/15 TO SEND ME THEIR PROOFS SHOWING HARD FACTS & DOCUMENTATION , 10 DAYS HAVE PASSED I HAVENT RECEIVED ANY PROOF CLEARLY SHOWING WHY WAS MY USD/CAD POSITION WAS LIQUIDATED & WHY FXCM IS WITHHOLDING MY FUNDS SINCE 9:01 AM ON 10/02/15. IT ONLY TAKES MINUTES TO PROVE MONEY MATTERS, JUST AS I HAD DONE IMMEDIATELY AFTER THE WRONGFUL LIQUIDATION, I FORWARDED FXCM DETAILS OF MY ACCOUNT STATEMENT CLEARLY HIGHLIGHTED THE TIMES OF LIQUIDATION, AVAILABLE FUNDS ECT.
This is my final attempt resolve the matter directly with FXCM. i had send 4 other emails within last 10 days without a solution.
Sincerely,

THIS IS HOW EXACTLY THE WRONGFUL LIQUIDATION & INSTANT DENIAL OCCURRED BY FXCM

FXCM Audit Complete – Case Number 00381322
fxcm
from: Michael Ohneck
to: xxxxxxxxxxxxx
date: Fri, Oct 2, 2015 at 12:36 PM
subject: FXCM Audit Complete – Case Number 00381322

Thank you for contacting us. FXCM’s trade audit team has completed the review of your complaint fully and the details of the matter are as follows:Margin Call at: 10/2/15 1:01 PM

Margin Requirement: $540.00
Equity Post Margin Call: $539.90
Balance Post Margin Call: $581.69
Tickets Included in Liquidation: 19311607

Margin calls are triggered when your usable margin reaches zero. This occurs when your floating losses reduce your account equity(not balance) to a level that is less than or equal to your margin requirement. During the margin call in question your account balance was $581.69. Your account balance does not reflect floating losses, at the time of your margin call you had floating losses of $41.79. This floating losses reduced your equity to $539.90, which is less than your margin call.

The result of any margin call is subsequent liquidation unless otherwise specified. When a margin call is triggered on the account individual positions will be liquidated until the remaining equity is sufficient to support existing position(s). In deciding what positions will be individually liquidated the largest loosing position will be closed first during liquidation. This process is entirely electronic.

The idea of margin trading is that your margin acts as a good faith deposit to secure the larger notional value of your position. Margin trading allows traders to hold a position much larger than the actual account value. FXCM’s Trading platform has margin management capabilities, which allow for the use of leverage. Of course, trading on margin comes with risk as leverage may work against you as much as it works for you.

Due to the fact that this margin call executed correctly, no adjustment is warranted in this case.

Per FXCM’s complaint procedure, if you are dissatisfied with the explanation above, you have the option to escalate this matter to our Trade Audit Appeals Board. You may issue your complaint in writing to

Once again, we are sorry for the inconvenience caused and hope you will find that the points above offer a fair resolution.
Best regards,
Michael Ohneck

Combined Account Statement
Statement Period: from Oct 1, 2015 5:00:00 PM through Oct 2, 2015 10:08:52 AM
User Name: XXXXXXX
Forex Capital Markets LLC
55 Water St. FL 50 New York, NY 10041 United States
Trade account #: XXXXX Created at: Jul 25, 2014 11:07:58 AM Status: Active Base currency: USD

OUTSTANDING ORDERS
Order # Expire Date Type Ticket Symbol Volume Date B/S Price Peg Offset Market Price Created By
No data found for the statement period

OPEN/FLOATING POSITIONS
Ticket # Symbol Volume Date Sold Bought Floating P/L Comm Dividends Rollover Net P/L Condition Created By
19315122 NZD/USD 30,000 10/2/15 9:29 AM 0.64140 -45.00 -1.80 0.00 0.00 -46.80 Mkt 77027927
10/2/15 10:08 AM 0.64290
19316453 NZD/USD 5,000 10/2/15 10:01 AM 0.64192 -4.90 -0.30 0.00 0.00 -5.20 Mkt 77027927
10/2/15 10:08 AM 0.64290
Total: -49.90 -2.10 0.00 0.00 -52.00 THIS IS WHAT THEY ARE LYING ABOUT(this NZD/USD possition is their proof for USD/CAD position?!?!) THAT BELONGS TO NZD/USD POSITION THAT OPENEND AT 9:29 AM AFTER THE WRONGFULL LIQUIDATION OF USD/CAD THAT WAS WRONGFULLY LIQUIDATED BY FXCM AT 9:01 AM ON 10/2/15 please read the denial from DEALING DESK TRADER Michael Ohneck
Posted at statement period of time: -2.10 0.00 0.00

ACCOUNT ACTIVITY
Time Posted Code Description Account # Ticket # Amount Balance
10/1/15 5:17 PM Rollover Rollover Fee 77027927 19287099 -0.44 655.35
10/1/15 6:21 PM Comm Trading Commission 77027927 19287099 -0.06 655.29
10/1/15 6:21 PM Comm Partial closing 19287099 77027927 19287099 1.26 656.55
10/1/15 6:21 PM Rollover Partial closing 19287099 77027927 19287099 0.42 656.97
10/1/15 6:21 PM Comm Partial closing 19301314 77027927 19301314 -1.26 655.71
10/1/15 6:21 PM Rollover Partial closing 19301314 77027927 19301314 -0.42 655.29
10/1/15 6:21 PM PnL Profit/Loss of Trade 77027927 19287099 -2.14 653.15
10/1/15 6:48 PM Comm Trading Commission 77027927 19301314 -1.26 651.89
10/1/15 6:48 PM PnL Profit/Loss of Trade 77027927 19301314 -44.68 607.21
10/1/15 6:48 PM Comm Trading Commission 77027927 19301514 -1.80 605.41
10/1/15 7:28 PM Comm Trading Commission 77027927 19301514 -1.80 603.61
10/1/15 7:28 PM PnL Profit/Loss of Trade 77027927 19301514 12.00 615.61
10/1/15 7:29 PM Comm Trading Commission 77027927 19301748 -1.80 613.81
10/2/15 3:13 AM Comm Trading Commission 77027927 19306249 -0.60 613.21
10/2/15 5:39 AM Comm Trading Commission 77027927 19301748 -1.80 611.41
10/2/15 5:39 AM PnL Profit/Loss of Trade 77027927 19301748 25.80 637.21
10/2/15 5:39 AM Comm Trading Commission 77027927 19306249 -0.60 636.61
10/2/15 5:39 AM PnL Profit/Loss of Trade 77027927 19306249 10.50 647.11
10/2/15 5:40 AM Comm Trading Commission 77027927 19307683 -1.80 645.31
10/2/15 6:07 AM Comm Trading Commission 77027927 19307683 -0.30 645.01
10/2/15 6:07 AM Comm Partial closing 19307683 77027927 19307683 1.50 646.51
10/2/15 6:07 AM Comm Partial closing 19307949 77027927 19307949 -1.50 645.01
10/2/15 6:07 AM PnL Profit/Loss of Trade 77027927 19307683 1.25 646.26
10/2/15 8:35 AM Comm Trading Commission 77027927 19310958 -0.12 646.14
10/2/15 8:39 AM Comm Trading Commission 77027927 19307949 -0.06 646.08
10/2/15 8:39 AM Comm Partial closing 19307949 77027927 19307949 1.44 647.52
10/2/15 8:39 AM Comm Partial closing 19311607 77027927 19311607 -1.44 646.08
10/2/15 8:39 AM PnL Profit/Loss of Trade 77027927 19307949 -4.02 642.06
10/2/15 8:55 AM Comm Trading Commission 77027927 19312978 -0.06 642.00
10/2/15 9:01 AM Comm Trading Commission 77027927 19311607 -1.44 640.56
10/2/15 9:01 AM PnL Profit/Loss of Trade 77027927 19311607 -58.87 581.69
10/2/15 9:19 AM Comm Trading Commission 77027927 19314692 -1.80 579.89
10/2/15 9:20 AM Comm Trading Commission 77027927 19310958 -0.12 579.77
10/2/15 9:20 AM PnL Profit/Loss of Trade 77027927 19310958 4.96 584.73
10/2/15 9:20 AM Comm Trading Commission 77027927 19312978 -0.06 584.6
10/2/15 9:20 AM PnL Profit/Loss of Trade 77027927 19312978 2.07 586.74
10/2/15 9:20 AM Comm Trading Commission 77027927 19314692 -1.80 584.94
10/2/15 9:20 AM PnL Profit/Loss of Trade 77027927 19314692 6.90 591.84
10/2/15 9:29 AM Comm Trading Commission 77027927 19315122 -1.80 590.04
10/2/15 10:01 AM Comm Trading Commission 77027927 19316453 -0.30 589.74
Total: -66.05
ACCOUNT SUMMARY
Beginning Balance 655.79
Comm Trading Commission -19.38
Rollover Rollover Fee -0.44
PnL Profit/Loss of Trade -46.23
Depos Deposit 0.00
Withd Withdrawal 0.00
Option Options Payout 0.00
Comm Options Commission 0.00
AdminFee Administrative Fee 0.00
MngFee Management Fee 0.00
PerfFee Performance Fee 0.00
Void Deposit Rollback 0.00
ASPComm ASP Commission 0.00
MargInterest Interest on Usable Margin 0.00
Ending Balance 589.74
Floating P/L -49.90
Equity 539.84
Necessary Margin 490.00
Usable Margin 49.84
Necessary Margin (Maintenance) 490.00
Usable Margin (Maintenance) 49.84

2

You have a dispute with FXCM regarding a margin call which, apparently, caught you by surprise.

FXCM’s margin call policy is clear. I can tell you that, for sure, because one of my accounts is with FXCM, and I have taken the time to study the terms and conditions of my FXCM account. You should do the same.

FXCM — like every other reputable broker — has procedures in place for customers to resolve disputes, and to appeal dispute resolutions they disagree with. You know this, because you have utilized FXCM’s appeal process. But, you don’t like the outcome. And now you have come to this forum to libel FXCM in an attempt to (1) extort a more favorable resolution to your dispute, or (2) just take a swipe at FXCM for revenge.

But, this forum is not the proper place to adjudicate a dispute with a broker.

The title of your thread is a gross overstatement of your complaint. You have no basis for your accusation that FXCM “pickpockets unsuspecting retail traders…” You haven’t even acquainted yourself with FXCM’s margin call policy — so, you’re in no position to pass judgement on the way FXCM does business.

You put yourself at risk of a margin call. FXCM didn’t do that to you. Take responsibility for your own mistake. Stop blaming the rules for your failure to know the rules and follow them.

I suppose if this were traffic court, you would be telling the judge, “I was only exceeding the speed limit for a couple of minutes, so it’s not fair that I got this speeding ticket!”

3

i will let financially suffering traders decide for them selves !
it is obvious who you work for

4

and you are STRONGLY SUPPORTING FXCM & OTHER FX BUCKETSHOP OPERATIONS AGAINST UNSUSPECTING FX RETAIL TRADERS ?!?!? It says a lot about you!

5

Just like all of the other unfairly losing traders who post their experiences here & at many other sites about forex scams are all wrong when they show WITH PROOF what they experience with fat cats like FXCM(at the Unsuspecting Retail FX Traders Expense) & the rest of the FX Bucket Shop. They & i are all wrong & “REPUTABLE FXCM & OTHER FX BUCKET SHOPS” ARE ALWAYS RIGHT!?

Your post is just lame as FXCM employees smooth & speed talk, ARE YOU SURE YOU DONT WORK FOR FXCM???

6

JUST GOOGLE FXCM SCAMS & YOU WILL READ HOW " REPUTABLE FXCM & OTHER PUBLICLY TRADING FX BUCKET SHOPS ARE" THERE ARE HUNDREDS & THOUSANDS OF UNSUSPECTING FX RETAIL TRADER VICTIMS!!!
& YOU ARE CLAIMING ALL OF THESE HUNDREDS OF THOUSANDS OF COMPLAINTS FROM MANY FOREX COMPLAINT SITES GOING BACK OVER A DECADE & LOSSES BACKED BY THEIR ACCOUNT STATEMENT ARE ALL WRONG?!?!
Are you on some kind of mind altering medication?

7

Last thing, Please dont degrade Clint Eastwood name :frowning:

8

You have no idea who I work for.

Clearly, what’s “obvious” to you is merely the product of your twisted imagination.

9

Clint , Shame on you !
"“FXCM — like every other reputable broker — has procedures in place for customers to resolve disputes, and to appeal dispute resolutions they disagree with.”" Shame on you again, They were fined $2,000,000 in 2011 for WRONGFUL LIQUIDATION & ITS BUSINESS USUAL FOR THEM, A GENERAL FXCM & OTHER FX BUCKET SHOP PRACTICES!

FACTS SPEAK FOR THEMSELVES

NFA ID Respondent Action Types
0308179 FOREX CAPITAL MARKETS LLC • GENERAL CONDUCT
0308183 NIV, DROR • GENERAL CONDUCT
NFA ID Respondent Penalty/Event Event Date
0308179 FOREX CAPITAL MARKETS LLC • FINE $2000000 08/12/2011
• ENHANCED PROCEDURES REQUIRED 08/12/2011
• OTHER–SEE NARRATIVE 08/12/2011
Case Summary NFA 11BCC00016 - FXCM will not engage in price slippage or margin liquidation practices

Case Summary
FOREX CAPITAL MARKETS LLC NFA 11BCC00016 NFA ID: 0308179
Respondent/Effective Date Summary
NFA ID Respondent Effective Date
0308179 FOREX CAPITAL MARKETS LLC 08/26/2011
0308183 NIV, DROR 08/26/2011

Rule Summary

NFA ID Respondent Rule Type
0308179 FOREX CAPITAL MARKETS LLC • C.R.2-36© - FOREX DEALER MEMBERS OBSERVE HIGH STDS OF COMMERCIAL HONOR
• C.R.2-36(e) - FOREX DEALER MEMBERS SUPERVISION OF EMPLOYEES
• C.R.2-43(a) - FOREX PRICE ADJUSTMENTS
• C.R.2-9© - ANTI-MONEY LAUNDERING PROGRAM
0308183 NIV, DROR • C.R.2-36(e) - FOREX DEALER MEMBERS SUPERVISION OF EMPLOYEES

Committee Summary

NFA ID Respondent Committee
0308179 FOREX CAPITAL MARKETS LLC • BUSINESS CONDUCT COMMITTEE
0308183 NIV, DROR • BUSINESS CONDUCT COMMITTEE

Action Summary

NFA ID Respondent Action Types
0308179 FOREX CAPITAL MARKETS LLC • GENERAL CONDUCT
0308183 NIV, DROR • GENERAL CONDUCT

Penalty/Event Summary

NFA ID Respondent Penalty/Event Event Date
0308179 FOREX CAPITAL MARKETS LLC • FINE $2000000 08/12/2011
• ENHANCED PROCEDURES REQUIRED 08/12/2011
• OTHER–SEE NARRATIVE 08/12/2011

Narrative Summary

Narrative for 0308179 - FOREX CAPITAL MARKETS LLC
COMPLAINT:

On August 12, 2011, NFA issued a Complaint charging FXCM with retaining gains derived from positive price slippage; failing to adopt or carry out adequate procedures to ensure the efficient execution of all customer orders; failing to treat all customers equally when giving price adjustments; and failing to adequately investigate suspicious activity in all customers’ accounts. The Complaint charged FXCM and Niv with failing to supervise.

DECISION:

On August 12, 2011, pursuant to a settlement offer submitted by FXCM and Niv, FXCM was ordered, within 30 days of the effective date of the Decision, to make a good faith effort to credit the accounts of its customers the amount of positive slippage which its customers experienced on their trades from and after June 18, 2008. FXCM shall provide verification to NFA of these credits. In addition, FXCM was ordered to pay $2,000,000 to NFA as a monetary sanction. In the future, FXCM will not engage in price slippage or margin liquidation practices; and, in the future, when FXCM voluntarily gives a customer a price adjustment, it shall also determine whether or not it is appropriate to make the same price adjustment for other similarly situated customers.

Finally, within 30 days of the effective date of the Decision, FXCM was ordered to adopt and implement adequate procedures - or enhance existing procedures - to ensure the efficient execution of customer orders and to ensure compliance with NFA’s AML requirements.

Narrative for 0308183 - NIV, DROR
See narrative for Forex Capital Markets LLC.

Case Documents Summary

NFA ID Respondent Document Type
0308179 FOREX CAPITAL MARKETS LLC COMPLAINT
0308179 FOREX CAPITAL MARKETS LLC DECISION
0308183 NIV, DROR COMPLAINT
0308183 NIV, DROR DECISION

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 NFA ID	Respondent	Penalty/Event	Event Date

0308179 FOREX CAPITAL MARKETS LLC • FINE $2000000 08/12/2011
• ENHANCED PROCEDURES REQUIRED 08/12/2011
• OTHER–SEE NARRATIVE 08/12/2011

Narrative for 0308179 - FOREX CAPITAL MARKETS LLC

COMPLAINT:

On August 12, 2011, NFA issued a Complaint charging FXCM with retaining gains derived from positive price slippage; failing to adopt or carry out adequate procedures to ensure the efficient execution of all customer orders; failing to treat all customers equally when giving price adjustments; and failing to adequately investigate suspicious activity in all customers’ accounts. The Complaint charged FXCM and Niv with failing to supervise.

DECISION:

On August 12, 2011, pursuant to a settlement offer submitted by FXCM and Niv, FXCM was ordered, within 30 days of the effective date of the Decision, to make a good faith effort to credit the accounts of its customers the amount of positive slippage which its customers experienced on their trades from and after June 18, 2008. FXCM shall provide verification to NFA of these credits. In addition, FXCM was ordered to pay $2,000,000 to NFA as a monetary sanction. In the future, FXCM will not engage in price slippage or margin liquidation practices; and, in the future, when FXCM voluntarily gives a customer a price adjustment, it shall also determine whether or not it is appropriate to make the same price adjustment for other similarly situated customers.

Finally, within 30 days of the effective date of the Decision, FXCM was ordered to adopt and implement adequate procedures - or enhance existing procedures - to ensure the efficient execution of customer orders and to ensure compliance with NFA’s AML requirements.

10

IMAGINATION???
LOOKS LIKE I HAVE BEEN IMAGINING MY ACCOUNT STATEMENT WITH LOSSES CAUSED BY FXCM & OTHER FX BUCKET SHOPS.
ALSO I HAVE BEEN IMAGINING THAT FXCM & OTHER BUCKET SHOPS WERE FINED $2,000,000(FXCM & other Publicly Traded Bucket Shops were fined different amount) ALL FOR WRONGFUL LIQUIDATIONS & OTHER BUCKET SHOP PRACTICES IN 2011 ect.

PLEASE STOP WASTING MINE & OTHER UNSUSPECTING RETAIL TRADERS TIME WITH YOUR NONE-SENSE!

11

As everyone clearly see from the facts

"“Clearly, what’s “obvious” to you is merely the product of your twisted imagination.”"
ITS THE “TWISTED” DAILY OPERATIONS AGAINST THE RETAIL TRADERS OF FXCM & THE REST OF THE PUBLICLY TRADED FX BROKER aka PUBLICLY TRADED FX BUCKET SHOPS.

12

If I have this right, the situation just before the margin call was an FXCM account worth around $600 with a NZD/USD trade of 30,000 units and a USD/CAD trade of on unknown size. The margin requirement on the 30,000 unit NZD trade would have been $420 ($140 per 10,0003). So if the USD/CAD trade was 9,000 units or so the account would have been right at the margin restriction ($20 per 1,0009=$180). The NZD/USD trade alone was worth around $20,300 USD which means the account was leveraged almost 34 to 1 with that one trade alone. If the USD/CAD trade was 10,000 units, the account was leveraged 50 to 1. In short, a margin call could easily have happened at those levels.

The pip cost on the NZD/USD trade was $3. The range for NZD/USD on 10/2 was around 70 pips. A loss of 17 pips (about a fourth of the day’s range) on that trade would have yielded a loss of $50 (close to what was lost in the margin call). That is some heavy trading when you are risking 50bps per pip and the daily range in one trade is worth 35% of the account. Just 29 days before that NZD/USD moved 300 pips in one minute. And just yesterday it moved 42 pips in one minute. I would say risking 50bps per pip in a market that can move 42 pips or even 300 pips in one minute is just begging for some serious losses. A 42 pip loss would shave 21% off the account and a 300 pip loss would take it negative.

The real question is “What are you going to do in the future to prevent this from happening again?” Don’t say you’ll choose a good dealer because you thought you had one already. Be smart. Do something that will protect you even if your dealer is a lousy scumbag. May the forx be with you.

-Adrian

13

Hi Adrian,

This wrongful liquidation losses is about USD/CAD(27 lots of USD/CAD 27x200=$540 required margin) position that was liquidated by FXCM while there was more than enough required margin at 9:01 am on 10/02/15

10/2/15 9:01 AM Comm Trading Commission 77027927 19311607 -1.44 640.56(available margin)
10/2/15 9:01 AM PnL Profit/Loss of Trade 77027927 19311607 -58.87 581.69 (available margin)

No its Not about NZD/USD position which was opened at 9:29 am 10/2/15 AFTER my USD/CAD position was wrongfully liquidated with losses by FXCM while i had more than enough margin requirement to hold my position.

19315122 NZD/USD 30,000 10/2/15 9:29 AM 0.64140 -45.00 -1.80 0.00 0.00 -46.80 Mkt 77027927
10/2/15 10:08 AM 0.64290
19316453 NZD/USD 5,000 10/2/15 10:01 AM 0.64192 -4.90 -0.30 0.00 0.00 -5.20 Mkt 77027927
10/2/15 10:08 AM 0.64290

also , it was liquidated while the price was rapidly moving in my positions direction which price action turned profitable while my position was wrongfully taken out of the market by FXCMs DEALING DESK, within about 2 hours after FXCM wrongfully liquidated my position i would have made profit if my position, wasnt wrongfully liquidated by FXCM’s DEALING DESK. FXCM turned my soon to be profitable position into a big % loss. All of the price action & charts are online & anyone can check easily to see what FXCM did & does. THIS IS A BUSINESS AS USUAL FOR FXCM & FOREX.COM. A GENERAL DAILY PRACTICE.

NFA ID Respondent Action Types
0308179 FOREX CAPITAL MARKETS LLC • GENERAL CONDUCT
0308183 NIV, DROR • GENERAL CONDUCT
NFA ID Respondent Penalty/Event Event Date
0308179 FOREX CAPITAL MARKETS LLC • FINE $2000000 08/12/2011
• ENHANCED PROCEDURES REQUIRED 08/12/2011
• OTHER–SEE NARRATIVE 08/12/2011
Case Summary NFA 11BCC00016 - FXCM will not engage in price slippage or margin liquidation practices

ONLY WAY TO EVER PREVENT THIS OFF"" EXCHANGE FX BROKERS"" BUCKET SHOP OPERATIONS IS TO NEVER TRADE WITH THEM & ONLY TRADE WITH FX BROKERS WHERE THERE IS NO CONFLICT OF INTEREST SUCH AS TD AMERITRADE (its not a Bucket Shop)

we traders must always document & expose all of these PUBLICLY TRADED FX BUCKET SHOP OPERATIONS FOR EVERYONE ELSE TO SEE.

14

So if I have this right, you had a USD/CAD position with a margin requirement of $540 in a $600 account. Then your dealer closed the position while it was in drawdown claiming you were over leveraged. So your response to that was to put on more trades that leveraged the account right back up to levels close to that again? Aren’t you worried FXCM will do it again? Why don’t you just lower your position size to reduce your margin requirement so as to prevent another margin call?

-Adrian

15

Hi Annabasis,

I can’t comment on the specifics of your trade audit, but if you wish to dispute the findings of both the Trade Services Team and the Compliance department, then the emails you received from them include instructions on how you can escalate your case for further review.

That said, it’s worth noting that 9:01 am Eastern Daylight Time corresponds to 1:01 pm Greenwich Mean Time, which is the time zone of our servers. Also, Michael Ohneck is not a “dealing desk trader” as you state. He works in our Trade Services Team to investigate trade inquiries such as yours.

Furthermore, you are trading on FXCM’s No Dealing Desk (NDD) forex execution, where we offset each of your orders one-for-one with the best prices from competing liquidity providers. That means, we don’t profit from your losses or lose from your profits. Instead, we make money from your trading volume. Therefore, we want you to be profitable, so you can trade more.

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I won’t speak for other forex brokers, but when it comes to FXCM, it’s important to keep in mind when reading such comments online that the vast majority of our clients are pleased with our service and execution. Otherwise, we wouldn’t have $1.0 billion in customer equity.

We’ve also been in business since 1999 which makes us one of the oldest firms in what is still a relatively young industry. If less than 1% of our clients or past clients express a grievance about something, while that may seem like a large number of traders, it’s not as large when you consider the percentages. Think of any company you admire and you can find similar negative comments online.

That’s not to say that we don’t take such client feedback seriously. My role on forums such as this is to answer questions about FXCM and address any potential concerns. And if you see my other posts here on BabyPips, you will find that I don’t simply promote FXCM. I actively contribute to discussions to provide service and education to traders: 301 Moved Permanently

This also highlights how FXCM dedicates a greater amount of resources to educating new traders than most other brokers. That means more novice traders begin their forex journey with us. The flip side of this is that when they misunderstand something about how the market works or why margin calls occur, they sometimes blame us. This is a typical example: FXCM how can you

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NFA ID Respondent Action Types
0308179 FOREX CAPITAL MARKETS LLC • GENERAL CONDUCT
0308183 NIV, DROR • GENERAL CONDUCT
NFA ID Respondent Penalty/Event Event Date
0308179 FOREX CAPITAL MARKETS LLC • FINE $2000000 08/12/2011
• ENHANCED PROCEDURES REQUIRED 08/12/2011
• OTHER–SEE NARRATIVE 08/12/2011
Case Summary NFA 11BCC00016 - FXCM will not engage in price slippage or margin liquidation practices

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NAMASTE Adrian,
You are very nice , Thank You! Retail Traders are in good hand with you.
I know for a fact FXCM & Forex.com & rest of the Publicly Traded Fx Bucket Shops do it on a daily basis!
I AM NOT AFRAID ANY MORE BECAUSE I STOPPED TRADING WITH THESE * OFF EXCHANGE(OTC) PUBLICLY TRADED BUCKET SHOPS. I’VE LEARNED MY LESSON NEVER TO TRADE WHERE THERE IS CONFLICT OF INTEREST & ALIGN MY INTEREST WITH MY BROKERS.

IT IS A REGULAR PRACTICE WITH FXCM & FOREX.COM - THEY WILL DO IT AGAIN & AGAIN & AGAIN…

NFA ID Respondent Action Types
0308179 FOREX CAPITAL MARKETS LLC • GENERAL CONDUCT
0308183 NIV, DROR • GENERAL CONDUCT
NFA ID Respondent Penalty/Event Event Date
0308179 FOREX CAPITAL MARKETS LLC • FINE $2000000 08/12/2011
• ENHANCED PROCEDURES REQUIRED 08/12/2011
• OTHER–SEE NARRATIVE 08/12/2011
Case Summary NFA 11BCC00016 - FXCM will not engage in price slippage or margin liquidation practices

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You’re not going to like this, but it looks like you were trading and got hit by a market movement that knocked you over the line. Not your brokers fault.
If you plan continuing trading you might want to give yourself more wiggle room in future

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So where will you trade fx?

-Adrian