FXCM in the News Again...
Well the big US brokerage as everyone knows by now is banned from conducting business in the USA. They were found guilty of trading against most of their clients according to the CFTC. As most of you will recall this is the same firm that was finned 8 million not eight years ago for giving its clients poor liquidity entries and exits which is a nice way of saying they stole a lot from their clients and the LP's.
This firm is one of the older firms dating back to the days of the wild west where everyone was stealing from the little guy and clients were losing an average of 14K per account. ACM, FXCM, Commerce Bank and a host of others all made millions doing this. They call it requoting, slippage and latency. I call it stealing. That is all it was.
Not one of them went to jail and in truth they all should have.
Are the CEO's of FXCM going to jail presently? No of course not. Nothing new here is it. Commit heinous crimes and get off scott free. Seems to be the way of the world now.
I have news for you. They are not the only ones doing this. Almost all brokerages do it. It is called B Book and it is simply too valuable a game to not do it. That is essentially where the brokerage itself is providing the liquidity for the trades being executed by their clients. It is a good system as they know that the majority of the time the retail crowd will lose. Statistics prove this. So it is a no lose system.
All of them say that they are STP processors but it is simply a lie. I suspect the CFTC knows this too about the majority of firms but you know they employ a lot of people these days and the economy is fragile so well, turn a blind eye.
FXCM's downfall came when they stopped caring about their clients and their shareholders became more important. I am not sure they ever cared about their clients and most of it was all smoke and mirrors. I have said for a long time that the financial industry does one thing very well. That is LOOK after itself. With Trumps deregulation of the banks it will allow them to go back to their corrupt practices far worse than they are doing now. Truly a scary thought. The only difference is they won't be charged. Nice. Sure if you are a criminal (which the majority of them are). I will simply say that none of it will change until people get their own pride back. There is one such firm that I trade on that does have true STP. The only one I know. That does not mean it is easy to trade because it is not. It only means that you make it to the commercial liquidity providers. Nothing more.
This firm is one of the older firms dating back to the days of the wild west where everyone was stealing from the little guy and clients were losing an average of 14K per account. ACM, FXCM, Commerce Bank and a host of others all made millions doing this. They call it requoting, slippage and latency. I call it stealing. That is all it was.
Not one of them went to jail and in truth they all should have.
Are the CEO's of FXCM going to jail presently? No of course not. Nothing new here is it. Commit heinous crimes and get off scott free. Seems to be the way of the world now.
I have news for you. They are not the only ones doing this. Almost all brokerages do it. It is called B Book and it is simply too valuable a game to not do it. That is essentially where the brokerage itself is providing the liquidity for the trades being executed by their clients. It is a good system as they know that the majority of the time the retail crowd will lose. Statistics prove this. So it is a no lose system.
All of them say that they are STP processors but it is simply a lie. I suspect the CFTC knows this too about the majority of firms but you know they employ a lot of people these days and the economy is fragile so well, turn a blind eye.
FXCM's downfall came when they stopped caring about their clients and their shareholders became more important. I am not sure they ever cared about their clients and most of it was all smoke and mirrors. I have said for a long time that the financial industry does one thing very well. That is LOOK after itself. With Trumps deregulation of the banks it will allow them to go back to their corrupt practices far worse than they are doing now. Truly a scary thought. The only difference is they won't be charged. Nice. Sure if you are a criminal (which the majority of them are). I will simply say that none of it will change until people get their own pride back. There is one such firm that I trade on that does have true STP. The only one I know. That does not mean it is easy to trade because it is not. It only means that you make it to the commercial liquidity providers. Nothing more.
No comments:
Post a Comment