Darwinex Cuts Business Ties with FXCM, Urges Users to Recommend New Venue
- Darwinex wants to find alternative arrangements going forward, and even told its users to recommend their preferred IBs.
In an aggressive statement against FXCM, Darwinex, a UK-based social trading broker and asset manager, said that it has terminated all business partnerships with the FX broker after the US regulators found that it was taking positions opposite its retail customers.
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Darwinex, which offers a hybrid of social related copy trading solutions, said that it would stop serving its US clients through operating as an IB for FXCM. However, the company added that it will do its very best to find alternative arrangements going forward, and even told its traders to recommend their preferred Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co venue.
The company said in a statement: “Unfortunately, one of our partners whom we negotiated to serve as Introducing Broker to (for US Traders Only who could list DARWINS on the Darwin Exchange in return), was (keyword “was”) FXCM – regarded as an established, credible broker in the USA up until February 06, 2017 when they were banned by the CFTC for taking positions against their clients.”
It’s worth mentioning that Darwinex in essence offers a similar concept with its trade copying and social trading networks, but this is through its unique approach. Instead of the trades being copied, the company allows traders to use their trading strategy as well as profit from it by attracting investors to invest in their DARWINs (a standardized risk version of their trading strategy). The value of the DARWINs goes up or down and the trader can sell them at any stage to stop following or investing in the trader.
The CFTC today issued an order settling charges against FXCM and its founding managers for engaging in fraudulent activities with respect to telling its retail customers they used a 'No Dealing Desk' order execution model, while in fact FXCM was routing orders through a market maker that was actually supported and controlled by FXCM.
There were several other charges against the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi giant, but the gist was that the retail broker and its officers would be permanently barred from the industry and could no longer operate in the US. FXCM also agreed to pay a $7 million fine.
In an aggressive statement against FXCM, Darwinex, a UK-based social trading broker and asset manager, said that it has terminated all business partnerships with the FX broker after the US regulators found that it was taking positions opposite its retail customers.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
[gptAdvertisement]
Darwinex, which offers a hybrid of social related copy trading solutions, said that it would stop serving its US clients through operating as an IB for FXCM. However, the company added that it will do its very best to find alternative arrangements going forward, and even told its traders to recommend their preferred Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co venue.
The company said in a statement: “Unfortunately, one of our partners whom we negotiated to serve as Introducing Broker to (for US Traders Only who could list DARWINS on the Darwin Exchange in return), was (keyword “was”) FXCM – regarded as an established, credible broker in the USA up until February 06, 2017 when they were banned by the CFTC for taking positions against their clients.”
It’s worth mentioning that Darwinex in essence offers a similar concept with its trade copying and social trading networks, but this is through its unique approach. Instead of the trades being copied, the company allows traders to use their trading strategy as well as profit from it by attracting investors to invest in their DARWINs (a standardized risk version of their trading strategy). The value of the DARWINs goes up or down and the trader can sell them at any stage to stop following or investing in the trader.
The CFTC today issued an order settling charges against FXCM and its founding managers for engaging in fraudulent activities with respect to telling its retail customers they used a 'No Dealing Desk' order execution model, while in fact FXCM was routing orders through a market maker that was actually supported and controlled by FXCM.
There were several other charges against the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi giant, but the gist was that the retail broker and its officers would be permanently barred from the industry and could no longer operate in the US. FXCM also agreed to pay a $7 million fine.