rockit replies to: FXCM Discussion

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I was just reading an article explaining the situation where FXCM was banned from the US for being caught redhanded faking being an ECN So what is the FXCM model now? in the territories it still operates in?

Hi ycomp,

If FXCM were acting as a market maker on NDD forex execution we would not have suffered more than $200 million dollars in losses during the SNB flash crash. On NDD forex execution, every order is offset one-for-one with a liquidity provider. The trader has a position with FXCM and FXCM has an offsetting position with the liquidity provider. When the trader went into a debit balance, that meant FXCM also had a debit balance with the liquidity provider that had to be covered. So what you are implying is at odds with what actually happened.

I would say the number of active accounts and trading volume demonstrates the level of trust our clients have in FXCM. As of March 2018, there were over 110,000 active accounts traded at FXCM and $210 billion in customer trading volume. And as of Q4 2017, FXCM was the second biggest retail FX broker outside of Japan https://www.financemagnates.com/fore…ns-top-5-2017/

Why would traders choose FXCM? You may not have first hand experience, but our spreads, slippage stats, and execution quality speaks for itself https://www.fxcm.com/uk/about-fxcm/e…-transparency/ . *Please remember that losses can exceed deposits when trading FX and CFDs.

As with many businesses, we are not perfect, but we are now under new management and new ownership as a Leucadia company. We will continue to provide the best products and services we have been known for to our existing clients, and work to build back trust that we know will have to be earned over time.

Jason

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