Another Fine? FXCM to pay $650,000 CFTC fine over capital shortfall

Why would any of this money go to the customers?

I have no experience with FXCM and from what I've read I'd rather not be involved with them..., however their customers made the losses and blew up their accounts on the Swiss Franc debacle, leaving FXCM with a capital shortfall....

So again, why on earth would any of this fine be going to their failed customers, who knowingly traded over-leveraged....
 
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JackRab said:
Why would any of this money go to the customers?

I have no experience with FXCM and from what I've read I'd rather not be involved with them..., however their customers made the losses and blew up their accounts on the Swiss Franc debacle, leaving FXCM with a capital shortfall....

So again, why on earth would any of this fine be going to their failed customers, who knowingly traded over-leveraged....
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Seriously, no love lost with them either but it makes no sense to demand a fine be disbursed to customers who suffered no harm from the action leading to the fine. Not to mention the fact that fines are never disbursed to customers, it would be called damages if it was.
 
JackRab said:
however their customers made the losses and blew up their accounts on the Swiss Franc debacle, leaving FXCM with a capital shortfall.... So again, why on earth would any of this fine be going to their failed customers, who knowingly traded over-leveraged....
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Agree the clients aren't entitled to anything, but re 'knowingly traded over-leveraged,' ummm, who let them do that?
 
truetype said:
Agree the clients aren't entitled to anything, but re 'knowingly traded over-leveraged,' ummm, who let them do that?
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So what's your point? FXCM should have been more clear that the clients were taking on a lot of risk?

This 'I didn't know I could lose that much' bullshit of people who engage in derivatives/leveraged trading..... Everyone who trades leveraged FX knows how it works. You gamble, you win some you lose some.

Don't do over-leveraged FX trading, don't use full margin on a low value account, don't do harddrugs, don't drink-'n-drive...

You mom gave birth to you and included a brain... use it. And if you don't plan to use it, then don't complain when you get knocked off your feet by people who do use theirs. What are we... a nanny-state?
 
JackRab said:
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What are we... a nanny-state?
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Jack, everyone gets a medal. Even the losers get medals that say they are winners, even though they lost big-time. It would hurt the losers' feelings were it to be otherwise.
 
I traded by Robot at FXCC (as their ECN had no commission) and then moved to FXCM due to my trading strategy (as scalper)

But I moved from FXCM after EURCHF floor crash and they lost 450+ millions. And now their share (NASDAQ) price is $2.80 after last week incident! I think it was a right decision I moved to Hanseatic Broker from them as I am trading mostly cFD.

I wish good luck for FXCM as they were one of the top broker!
 
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