FXCM fined for for failing to treat its customers fairly | Currency Futures


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FXCM fined for for failing to treat its customers fairly

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Melbourne
 
Trading Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: Forex
 
Posts: 104 since Apr 2012
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Peter View Post
It is good to see that after the NFA ruling, FXCM over the following years took actions to better its behavior.

However I still do find FXCM ....to say it politely..... ‘ethically challenged’.

After the NFA 2011 ruling FXCM only reimbursed their American clients. To the best of my knowledge FXCM did not refund their international customers with accounts in the US. Of course FXCM did not have to as per strict interpretation that the NFA ruling only applied tot their American customers.
However clearly the international clients in the US would have been affected by earlier FXCM pratices exactly the same as their US clients.
Not extending the compensatory action to non US customers who were not protected by the NFA regulator is IMHO ‘ethically’ highly questionalble.

Furthermore it is quite obvious that the business practices for which FXCM was fined in the US in 2011, had also been practiced at other FXCM branches. FXCM apparently deemed it appropriate to wait 3 year for another ruling (now in the UK) to be ordered to compensate the UK clients. BTW...Is it all UK clients or only clients with a UK residency?


FXCM knew they were wrong and had been caught in 2011.
The ethical correct way would have been to apologize and take the pro-active steps in other geographies and compensate all customers. However FXCM apparently decided to wait until the next jurisdiction caught up and had to be forced to reimburse their clients covered by the next ruling.

I think that FXCM certainly has not taken the moral high ground over the last 4 years. One can only hope that this has changed over the past months.

So hereby a specific question to FXCM:
Will now all of your clients be reimbursed for actions/issues related to the NFA and FSA ruling?
By ‘all’ I mean independent of where they live and independent at which FXCM branch they had their account?



BTW a disclaimer:
Even while I question their business ethics, for specific reasons I am looking at maybe using FXCM as broker.

Thanks for this post and drawing it to my attention Peter. I am also considering opening up an account with FXCM, so I'll be interested to see FXCM's response to your question.

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