Here is an updated terms of service agreement I just got from FXCM. Title, i.e. ownership in all money you deposit will be transferred to FXCM. Client money will no longer be segregated from FXCM money, and, in the case of an FXCM bankruptcy or insolvency, you will be treated as a general creditor. If your account is inactive for a period of six years, your money will no longer be considered "client money." Sounds like a Refco deal waiting to happen. When will the CFTC really step up to protect futures/forex traders by having customers of member firms treated as depositors rather than as general creditors.
Hi ddaytrader, This is completely false. Retail accounts with FXCM UK are segregated in accordance to FSA client money rules. What you are referencing is the FSA client money rule regarding professional traders in which case the funds are not segregated. The FSA specifies criteria for when a trader will be classified as a professional trader in their own classification guidelines on page 10. -Jason
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FXCM has been in trouble with the NFA before and fined in relation to misleading promotional material plus other matters. http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=1023 http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=432 Good to know.
wow that is just criminal. I had money parked in an FXCM account for light forex trading and because I was certain that all money would be segregated. After hearing about this fraud I'm closing it immediately.
So according to you, IF a trader is NOT a professional trader as classified by the FSA then the trader does not need to worry about FXCM taking his or her money in the event of your bankruptcy...YET! And FXCM only has rules that screw "professional traders" out of their money and making them unwilling creditors in the event of your bankruptcy...SO FAR! And since FXCM can point the finger at the FSA's rules and use those rules to the benefit of FXCM and to the detriment of the trader...WOW...What a warped sense of responsibility!? FXCM...not necessarily the worst bucket shop, but they beat the heck out of whatever company is in second place for that distinction.
professional traders ??? i can not open the fsa page yet. does it mean the more fund we put , the danger our fund would be ? ie: we trade at fxcmpro ???
Hi lsd, FXCM doesn't create the rules nor pick and choose which ones to enforce. As a regulated firm, FXCM UK abides by the regulations set forth by the FSA. Accounts with FXCM UK are segregated in accordance with FSA client money rules. FSA, one of the world's most respected financial regulatory bodies, regulates FXCM UK. Accordingly, in the unlikely event of default, client funds held in segregated accounts are protected, and cannot be used to benefit other creditors. -Jason