Funds being withdrawn from Pepperstone account

[Jason Rogers]

Another example of OTC broker doing whatever they is I heard personally is FXCM manipulating the spreads and rejecting orders to stop a position on a very profitable trader's account, to the tune of causing a $40k+ trade loss that would have never been stopped in a real market because price never went there.

Hi Minwa,

Unfortunately, what you heard about FXCM is incorrect. On the No Dealing Desk (NDD) forex execution we provide to all Standard and Active Trader accounts, we offset each client order one for one with the best prices from competing liquidity providers.

With the NDD model, FXCM doesn't take the market risk on the other side of client trades, so we don't profit from client losses, or lose from client profits. Therefore, we have no reason to manipulate spreads or reject stop orders like you claim.

Instead, FXCM makes money from client trading volume. That means we want profitable traders, because they trade more. We even offer commission discounts to high volume traders.

 

[mjim]

Hi Minwa,

Unfortunately, what you heard about FXCM is incorrect. On the No Dealing Desk (NDD) forex execution we provide to all Standard and Active Trader accounts, we offset each client order one for one with the best prices from competing liquidity providers.

With the NDD model, FXCM doesn't take the market risk on the other side of client trades, so we don't profit from client losses, or lose from client profits. Therefore, we have no reason to manipulate spreads or reject stop orders like you claim.

Instead, FXCM makes money from client trading volume. That means we want profitable traders, because they trade more. We even offer commission discounts to high volume traders.

SO FXCM
with your Index CFD what is the underlying? Index or the Futures?
Index does not trade same hrs as the Futures contract So if it is based on Index where does the "liquidity provider" get the price from? and what is the advantage over trading the underlying futures contract? does your CFD offer bigger leverage? tighter spread ( ES for example is 1 tick on exchange?) lower fees? ES ( contract size 2180x $50 ) one can trade for 1:16+ 0.85 or even lower one way? what is yours ?

 

[minwa]

Hi Minwa,

Unfortunately, what you heard about FXCM is incorrect. On the No Dealing Desk (NDD) forex execution we provide to all Standard and Active Trader accounts, we offset each client order one for one with the best prices from competing liquidity providers.

With the NDD model, FXCM doesn't take the market risk on the other side of client trades, so we don't profit from client losses, or lose from client profits. Therefore, we have no reason to manipulate spreads or reject stop orders like you claim.

Instead, FXCM makes money from client trading volume. That means we want profitable traders, because they trade more. We even offer commission discounts to high volume traders.

Sorry, I heard from someone with integrity who has no reason to lie. You working for them is obliged to defend them, understandable. People can make up their own mind. One should google "FXCM fines" though to get more info.

 

[Ina amran]

It just looks like you were trading a stock market with a short position and got charged a dividend - that is normal because the index paid a dividend to long positions, and therefore charges it to short positions.

What was the scam part of it?

Is the dividend charged or paid on all positions one holds for the day
Or is it only on over night positions???

 

[Macro Polo]

Is the dividend charged or paid on all positions one holds for the day
Or is it only on over night positions???

It should only be when a) that index actually has some companies that are going ex-dividend; and b) if you hold that trade overnight from the day before ex-dividend to the actual day the company/index goes ex-dividend.

It just gets charged during the break between trading from one day to the next, so that means only on positions held over that time.

 

[T0BY]

There is no point if my account has been watched and scammed by them.

What I need is someone here who has long US30 or US500 from May-Aug period to check if they got paid the same amount as what I got charged. Or whether they got paid at all? Here's a short list of money withdrawn from my account. I can provide longer list all the way back to May. All in AUD, 1 contract size as minimum

23110101 2016.08.17 00:00:00 balance US30 Dividend 21621405 -26.52
23058039 2016.08.16 00:00:00 balance US30 Dividend 21621405 -3.21
22945371 2016.08.11 00:00:00 balance US30 Dividend 21565900 -3.38
22905367 2016.08.10 00:00:00 balance US30 Dividend 21621405 -20.89
22741781 2016.08.04 00:00:00 balance US30 Dividend 21621405 -5.14
22689603 2016.08.03 00:00:00 balance US30 Dividend 21565900 -5.04
22032730 2016.07.20 00:00:00 balance US30 Dividend 16225326 -6.11

Although I wasn't long either US30 or US500 during the mentioned period there should be no doubt the swap rate would defiantly not be equal. Negative swap rates are always greater, regardless of instrument, to eliminate any hedge swap arbitrage possibility.
In fact, screenshot of Pepperstone's swap rate on US30 shows it's negative both long and short (and you would have actually been debited more from your account had you been long if these rates are indicative of what the rates were during the period you're referring to).
I believe Pepperstone is a sound broker for forex, but if you're looking to take advantage of price fluctuations over commodities, index or other fungibles there are defiantly better avenues available as others have mentioned.

 

[minwa]

Hi Minwa,

Unfortunately, what you heard about FXCM is incorrect. On the No Dealing Desk (NDD) forex execution we provide to all Standard and Active Trader accounts, we offset each client order one for one with the best prices from competing liquidity providers.

With the NDD model, FXCM doesn't take the market risk on the other side of client trades, so we don't profit from client losses, or lose from client profits. Therefore, we have no reason to manipulate spreads or reject stop orders like you claim.

Instead, FXCM makes money from client trading volume. That means we want profitable traders, because they trade more. We even offer commission discounts to high volume traders.

I understand it is Jason Roger's job to lie all over the internet, but truth eventually comes out when you're on the radar of authorities.

http://www.marketwatch.com/story/fx...r-taking-positions-against-clients-2017-02-06

FXCM, under Niv’s and Ahdout’s direction and control, misrepresented to its retail forex customers that when they traded forex on FXCM’s No Dealing Desk platform, FXCM would have no conflict of interest, the Order finds.

Anyone with account with them not scrambling for withdrawing funds deserves to have their money taken. Lol at FXCM stock down 20% after hours trading.

 

[Valued]

I never used FXCM since I thought their advertisments were unfair and misleading (well that's not the only reason, but one of them). They shouldn't be allowed to tell people they can trade CFDs for $50 even if you say that losses can exceed deposits. That's technically true but that's like saying to someone "you can jump off a cliff, but that may cause death". Jumping off a cliff will almost certainly cause death and trading CFDs with just $50 will almost certainly create losses that exceed deposits. It's not "may" it's almost 100%.

 

[ggkfc]

I understand it is Jason Roger's job to lie all over the internet, but truth eventually comes out when you're on the radar of authorities.

http://www.marketwatch.com/story/fx...r-taking-positions-against-clients-2017-02-06

FXCM, under Niv’s and Ahdout’s direction and control, misrepresented to its retail forex customers that when they traded forex on FXCM’s No Dealing Desk platform, FXCM would have no conflict of interest, the Order finds.

Anyone with account with them not scrambling for withdrawing funds deserves to have their money taken. Lol at FXCM stock down 20% after hours trading.

Just a 7million USD fine for "proper" behaviour

 

[T0BY]

Just a 7million USD fine for "proper" behaviour

They're banned from operating in the USA. Now they're in the process of selling all their US clients to Gain who operate B book anyway, but at least they're honest about it. (?)

 

[minwa]

http://ir.fxcm.com/releasedetail.cfm?ReleaseID=1010639

"FXCM will for the interim period continue to service its U.S. customers and to provide top quality trade execution pending the customer-account sale and business withdrawal.

FXCM wants to stress that these settlements have no impact on any customer of FXCM’s global businesses. FXCM and its global subsidiaries will continue to provide excellent execution and competitive pricing to its customers overseas through its award-winning technology, customer service and trading tools."

Right..I am sure all the customers believe the "excellent execution and competitive pricing" part when they are profiting from your opposite trades.

 

[T0BY]

To be honest I assumed all retail forex brokers were to some extent "bucket shops". And the ones that claimed to be stp, ndd, or ecn just passed orders onto a third party price aggregation service, who then operated an A book and B book.

 

[Garpal Gumnut]

Run



Run! :


AWAY from the city

And into the sun,

Out to the country,

Run! Run! Run!


Run in the raindrops!

Run ’neath the trees!

Run little races

Run

With each little breeze!


Run down the hillside,


Run up the lane;

Run through the meadow,

Then run back again!


Run and be merry

All through the day!

Run to the country,

Away! Away

..........With thanks to Mary Daunt.

gg

 

[Jason Rogers]

Hi Everyone,

While I can't comment on the NFA or CFTC complaint specifically due to the nature of our settlement, I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims. I can also say that Effex Capital is no longer pricing FXCM's NDD forex price feed. It's worth noting that FXCM would not have suffered more than $200 millon dollars in losses during the SNB flash crash had it been taking the other side of client trades – unlike so many of the DD firms in the industry.

Part of our settlement with the NFA and CFTC was to close our US subsidiary, but there will be no changes for clients outside of the US.

Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity. Specifically, withdrawing from this business will free approximately $52 million in capital. We will use the proceeds from any sale of the US accounts, as well as the large amount of regulatory capital currently tied up, to reduce the balance of our loan from Leucadia.

With the reduction of this loan balance, along with sales of non-core assets that were previously announced, FXCM could be in a position to fully pay off the Leucadia loan before the end of this year. With this exit, FXCM will be in a better position to service our international customers and focus on our profitable subsidiaries including FXCM Australia.

Our full financials can be found here and we will announce our Q4 and full year 2016 financials in the next few weeks.

I can also discuss with you FXCM's execution practices outside of the US. FXCM uses 16 liquidity providers to create a best bid best offer price stream for clients. LPs selected to price retail clients are forced to adhere to an extremely high standard of execution beyond just price – including consistently low rejection rates, low latency, minimum quote sizes and high fill ratios even during market events.

We have made our execution study public in the UK which can be viewed here and is a transparent comparison of FXCM's actual execution vs top tier futures brokers and the interbank market.