Greetings, To my surprise and after starting a thread yesterday to investigate Pro Signal & FX Universal and their brokers, I received a late call from my bank here in Saudi Arabia; i.e. "Banque Saudi Fransi" telling me that the Central Bank here in KSA has blocked the transfer of funds to FXCM and returned it to my bank account due to the fact that Forex Capital Markets is black listed for fraud issues. I contacted both FXCM & Pro Signal in regard if this matter. So far I did not hear from FXCM but Pro Signal replied instantly saying: "Dear Hassaan, If you do not fund your accounts with FXCM then the account will automatically close. If you have any questions about that you would need to contact FXCM directly. This is the first time that I have heard anything like this. I can only speculate that Forex Capital Markets may be blacklisted for one of two reasons. 1. Refco, which is a minority share holder in FXCM is being prosecuted for fraud. However these developments have no effect on FXCM or its clients. FXCM is an independent company with a strong regulatory record. Although Refco is a minority shareholder, FXCM is managed and controlled by the firm's original founders. Refco has never had access to FXCM's client or firm assets. 2. Because of general fears Saudi Arabia may have about money laundering that can occur through Forex broker dealers. This type of activity has nothing to do with FXCM, only the individuals involved with the fraud. In fact, because FXCM is one of the larger broker dealers in the U.S. they are under much heavier scrutiny then most. I am sure you must have found the process for opening an account quite thorough. This is to prevent fraudulent activity from occurring. FXCM is regulated in 3 jurisdictions, U.S., U.K. and Hong Kong. In the U.S. FXCM is a registered Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA). FCMs are required to meet strict financial standards. On a regular basis, FCMs are required to submit financial reports to regulators. These standards are enforced by the NFA, which has the right to fine firms and/or terminate an FCM's regulatory status for violations. I would like to make couple suggestions; Contact FXCM about the problem and see if there is something they can do to help. Also contact the Central Bank of Saudi Arabia and find out either why FXCM is blacklisted or if they can give the name of another Forex broker dealer that they approve of. I will also forwarded your email to FXCM and will let you know if I hear anything back from them on this matter. Regards, Steve"
I just got this response from FXCM on the matter which is very weak and careless: "Dear Hassaan Abdeen: Thank you for contacting FXCM. Please note that FXCM receives funds everyday from clients all over the world. If you are having difficulties funding your FXCM Trading Account, feel free to contact FXCM 24 hours a day for further information. Additionally, you may visit our website, www.fxcm.com for additional funding information. To make sure you continue to receive our email in your inbox (not sent to bulk or junk folders), please add fxcm.com to your "safe domain", "safe folder", "address book", "friend list" or "white list" of approved email senders. Forex Capital Markets is committed to offering clients excellent execution, easy accessibility, safety of funds, and the most exceptional customer service in the foreign exchange industry. If you have any questions or concerns, please feel free to contact the friendly and professional FXCM staff via e-mail at admin@FXCM.com or at (212) 897-7660. Kindest Regards, Chris Masters Forex Capital Markets 32 Old Slip Financial Square Building - Tenth Floor New York, NY 10005 USA Telephone: (212) 897-7660 Toll free (US & Canada): (888) 503-6739 Fax: (212) 897-7669 Email: admin@fxcm.com"
What would Pro Signal's "Steve" call an average or weak regulatory record? There have been 7 completed enforcement actions against FXCM, in the 4 1/2 years since their NFA membership and CFTC registration: http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0308179&rn=N Remember, NFA is an industry association -- unlike CFTC, which is a US government agency. NFA's enforcement actions against its own members are not all that common. 7 against one forex dealer stands out as a high number.
Marhaba Hassaan, why would you put any significant amount of your money into a Saudi bank to begin with? You're putting yourself at the mercy of the Saudi government. You need an offshore banking solution. A Swiss numbered account or the like.
Ahlan Rearden Metal, For the past three years I moved from my home country Jordan to Riyadh in Saudi Arabia to work. The salaries are deposited in the local banks and you have the full authority to wire it any where in the world. I never faced a problem before. As for the Swiss bank account, I promise to take your advice once I manage to save something aside... but I am not holding my breath ;-) Shokran for the advice anyway. Cheers, Hassaan
I just got this email from Pro Signal: "Dear Hassaan, I spoke with FXCM and apparently it is true, they are having problems with clients being allowed to send funds from KSA. They are working on getting this sorted it but its hard to tell when it might be rectified. From your application it appears that your residency is in Jordan. If you able to send your funds from a bank there it is likely they will go through fine. Please let me know if you have any further questions. Regards, Steve [
FXCM still has hundreds of clients who are able to transfer and withdraw funds normally from Saudi Arabia. Additionally, FXCM maintains relationships with numerous banks in Saudi Arabia. FXCM remains one of the largest currency broker dealers specializing solely in the FX market. As a registered FCM on 3 continents you can be assured that your funds are and will remain safe. There are at the time no reasons given by the Saudi Central Bank (moassasat al nakd) as to why the FXCM name is listed in its reports although FXCM has sought to obtain information. understand these reasons. Withdrawals are processed in record time the refco bankruptcy was not relted to the FXCM performane in any way. FXCM grows a 100% or more per year.In fact FXCM is looking to buy back the RefcoFX accounts in order to allow clients to have their funds back and to preserve the FX industry reputation .
Dear Hassan, Its good to have you back in business again , here is a piece of advice ... dont work with a market maker, move on to an ECN broker that operates NO DEALING OFFICE... (COESfx, MB trading, .... ) by the way, I had a bad experience with FXCM good luck...
FXCMÂ¥: Welcome to FXCM's Live Chat feature. So that I may better serve you, feel free to provide me with your name and email address. How can I help you? you: hello FXCMÂ¥: Hello you: is this a real person? FXCMÂ¥: yes FXCMÂ¥: my name is Matt FXCMÂ¥: how may I help you? you: I will be traveling to Saudi Arabia for the next 4 months you: and I heard that you guys were recently banned over there ? you: is that true you: I have accouts in SA that I would want to fund my account from FXCMÂ¥: no FXCMÂ¥: we are not banned anywhere FXCMÂ¥: however some undemocratic goverments have limits on what you do with your funds, FXCMÂ¥: or where you send them you: is such an issue in Saudi Arabia? FXCMÂ¥: yes FXCMÂ¥: they have very strict limits on where you can send funds FXCMÂ¥: though there are ways around it FXCMÂ¥: will you be sending wires from saudi banks while in saudi arabia? you: yes FXCMÂ¥: ok, then you should send funds to F. C. Markets instead of Forex Capital Markets you: ok thanks. FXCMÂ¥: you're welcome