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NFA fines FXCM $2MM plus orders refunds to customers
If 1 in 100 orders had a fraudulent bias with respect to slippge (1 tick).....
How many orders does FXCM process since 2008?
This is gonna be a kick in the ding ding.....simply because it's going all the way back to 2008 and the books have been closed on that money for years.
I wouldn't be surprised if they go bankruptc.
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
This is very interesting. Forex.com got caught on the same charges just a year ago!
I personally have lost over 100K to forex brokers and I believe a great majority was my fault, but quite a bit was due to 'game playing'.
The forex business is such a criminal activity it amazes me. You will find most forex companies in the US have partners that have very 'un-American' last names and I always wonder if they are somehow started by some Russian Mafia type entity or group. Not to sound un-European, but I just find that an interesting thing when everyone is named "YURI" as I have spent time in Communist countries and to me a forex company is run just like a corrupt communist regime.
It would be great if all FOREX was traded on a collective 'book' or 'exchange'. I would then reenter the market.
I don't believe there is any danger in FXCM going bankrupt. The fine didn't even come out of the coffers, instead the partners all got together and paid the fine out of their own monies from my understanding.
I believe I read that FXCM has $200MM cash on hand.
Above info is coming from @Jason Rogers, an FXCM representative.
I think the real issue at hand is a more fundamental one. I can imagine that all the regulatory items are complex, to put it mildly, but I don't believe that asymmetrical slippage is one of those areas where FXCM didn't know better...
True Mike, but I'm thinking the restitution number will dwarf the fine. Like I said, if FXCM was truly involved in rigging slippage against its customers, that number could be anything from large to staggering, especially when you consider it goes retroactive all the way back to '08.
I mean, even 1% of the revenue over the last 4 years is probably a gawdy number.
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
