Finally a broker news worth to mention; a trader filed lawsuit against FXCM for cancelling transactions $460.000 in profit. I am very sure that every one of you has heard FXCM and probably some of you even has traded with them. It is one of the most well-known forex brokers in the world. However I have to say that FXCM had very difficult time to keep its head up in recent years.
After going bankrupt because of the SNB’s disastrous and abrupt decision to remove EURCHF floor in early 2015, the company managed to find bail out funds to live through. Well, as if this is not troublesome enough, FXCM was barred from doing business in the US and fined $7 million by Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) early this year.
The reason for that was to misinform clients and public on the company’s order execution model. FXCM long has been advertising that they used a No Dealing Desk model when, in fact NFA’s findings point that FXCM was channeling clients’ trades to a firm owned by FXCM itself.
Okay… so what now? Hang on guys. A trader from Bulgaria sued FXCM for cancelling trades worth up to $460.000 in profit. FXCM claims that the trader engaged in what it defined as ‘abusive trading strategies’ back in 2013. As far as I understand, FXCM asserts that the $460 grand profit from the trades were a result of technological glitches which they call ‘manifest error’.
I am going to follow up this subject and update you on it. Meanwhile we better to learn this ‘abusive trading strategies’ thingy pals.