FXCM Fined $2 Million for Slippage Issues – Clients Will

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The NFA decided to fine US forex broker FXCM for slippage malpractices. The NFA and FXCM reached a deal in which affected clients will be compensated within 30 days, and that FXCM will pay the NFA $2 million as compensation.

According to the complaint, FXCM did not ensure efficient execution to all customers, did not treat everybody equally when making price adjustments and did not investigate suspicious activity in all customers’ accounts.

Michael Greenberg reports about this, and states “Apparently Non Dealing Desk doesn’t mean you get the best execution”.

FXCM has already begun announcing clients about their expected compensation. These price improvement credit will be deposited by the end of the month.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

3 Comments

  1. norm brunsell on

    thank god for watchdog groups…no matter where you turn someone is going to try to get away with whatever they can…stiffen the fines and if it happens again-shut them down

  2. Great but is $2M just a slap on the wrist compared to the profit they made? Cheaters like this should be made examples. Maybe some jail time for the CEO…

  3. I wonder if FXCM UK are using similar dishonest practises?

    The US does seem more strict in investigating complaints from clients.

    I think they would get away with it in the UK.