F for Forex, F for Finland – a discussion with FinFX
The world of Forex has been finding its place in every part of the globe, each country can boast at
The world of Forex has been finding its place in every part of the globe, each country can boast at least one Forex trader and now brokers are propping up from all over. FinFX an FX broker based in Finland seems to be pushing the right buttons as they have been successfully positioning themselves as an alternative for FX and in particular EA trading.
Forexmagnates’ team discussed the firm, its history and what their secret ingredient is with CEO Jani Hjerppe.
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Please provide a background to the firm.
I founded FinFX in 2010, I have been involved in the FX markets since the last seven years as a professional trader. Having worked with wide range of brokers I felt that there was a gap for traders from Finland to understand and enter the FX markets.
I created a business plan, met investors and here we have FinFX.
What is your Business model?
As I have been a trader with both market makers and ECN brokers I felt obliged to offer Forex traders the best conditions in the market, it gives us confidence that from the outset we are provident a clear, transparent and efficient service to our clients.
We have teamed up with a leading software provider that provides a interbank bridge to our MT4, it aggregates liquidity form the largest bank and ECNS and pools them out to our clients.
Is your firm regulated?
The current laws in Finland do not regulate FX as an asset class, however we as a firm are working on standards which include strong KYC, AML procedures and monitoring and most importantly full segregation of client money. The company funds and client funds are kept completely separated.
What are your unique selling points in this competitive market?
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Our entry into the market was to provide a high level of service to clients from Finland however we have received a tremendous response from the global trader community and our core values of fast, timely and efficient customer service is paying off.
Who is your typical client?
We welcome traders who are looking for a professional and transparent service without restrictions and limitations. We have experienced a rise in automated traders from across the globe including Europe, USA, Asia and Japan. Most of the traders use Expert Advisors, we don’t put pressure on the trader in terms of length of trade or strategies like scalping, and all are welcome.
What kind of growth have you experienced and what are the client numbers and volumes?
The growth has been fantastic, from a handful of clients in the first few months we now have around 10,000 clients.
Trading and running a company are two complete different things, how have you found setting up and managing the company?
It has been an uphill struggle and continues to, I have faced many sleepless nights, rejections and dismay however I have been committed to my business objectives and have great plans for FinFX.
This leads me on to my final question, what can we expect from FinFX in the future?
We are developing our service and instrument range to include CFD’s, and other products. Keeping professional skills of our staff up to date. We choose our goal to be the Broker no 1 for all traders in the world.
Jani will be following the post and will be delighted to respond to any comments.
We would like to show our thanks to Jani and his team and wish them success in the future.
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How is it possible to not be regulated as a financial service provider with in the EU? Did Finland not completely implement the MIFID directive? Is it legal to provide financial sercices to EU residents without a mifid passport?
Segregation without regulation means nothing – clients will still be unsecured creditors in the case of a bankruptcy.
How is it possible to not be regulated as a financial service provider with in the EU? Did Finland not completely implement the MIFID directive? Is it legal to provide financial sercices to EU residents without a mifid passport?
Segregation without regulation means nothing – clients will still be unsecured creditors in the case of a bankruptcy.
Dear Andy, Thank you for your question. We understand your concerns about safety issues and we would like to provide you some information. It’s true that Finnish FSA does not regulate Forex as it is not considered as financial instrument in Finland. You can verify this information by contacting Finnish FSA. Despite the fact Forex is not a subject of regulation in Finland, FinFX has to follow number of strict Finnish laws. Your statement “Segregation without regulation means nothing – clients will be still unsecured creditors in case of bankruptcy” is incorrect, and I would like to clarify why. FinFX… Read more »
so is integral 🙂
so is integral 🙂
Dear Andy, Thank you for your question. We understand your concerns about safety issues and we would like to provide you some information. It’s true that Finnish FSA does not regulate Forex as it is not considered as financial instrument in Finland. You can verify this information by contacting Finnish FSA. Despite the fact Forex is not a subject of regulation in Finland, FinFX has to follow number of strict Finnish laws. Your statement “Segregation without regulation means nothing – clients will be still unsecured creditors in case of bankruptcy” is incorrect, and I would like to clarify why. FinFX… Read more »
Hello Mr. Hjerppe,
As there isn’t a real market for CFDs, how will FinFX handle the client’s trade for those products? Will you trade against customers when they open a CFD trade?
Thank you.
Regards,
Matthew
Hello Mr. Hjerppe,
As there isn’t a real market for CFDs, how will FinFX handle the client’s trade for those products? Will you trade against customers when they open a CFD trade?
Thank you.
Regards,
Matthew
Jani Hjerppe
How do you anticipate on defending your firm’s position on blatantly accepting US customers when it is illegal for US clients to trade with non registered RFED’s.
I would assume half of your client base is US based as a result of unregistered IB’s, at some point the CFTC will be in contact with the “strict Finnish FSA” regulatory body that does not even recognize FX as a financial instrument…
Publishing segration is one thing, having a regulatory body confirm it is another.
Jani Hjerppe
How do you anticipate on defending your firm’s position on blatantly accepting US customers when it is illegal for US clients to trade with non registered RFED’s.
I would assume half of your client base is US based as a result of unregistered IB’s, at some point the CFTC will be in contact with the “strict Finnish FSA” regulatory body that does not even recognize FX as a financial instrument…
Publishing segration is one thing, having a regulatory body confirm it is another.
oh man!!!!!! this guy put too much information about his clients base…this interview might cost him business ….CFTC is about to call u my friend. or band your site for us clients.
lesson: giving interview is not always a good thing.
oh man!!!!!! this guy put too much information about his clients base…this interview might cost him business ….CFTC is about to call u my friend. or band your site for us clients.
lesson: giving interview is not always a good thing.
i don’t think his firm has anything to do with CFTC – it’s Finnish, not American and he didn’t say anything about American clients either
such as? 😉
such as? 😉
i don’t think his firm has anything to do with CFTC – it’s Finnish, not American and he didn’t say anything about American clients either
I can’t tell for sure, however I have seen traders stating on the internet this broker accept us clients. However the owner can reply to this community and clarify. Michael G., the CFTC will file lawsuite regardless the country the broker operates like it has already done with others. As far as the “segregation” debate, I am more concerned about the owners statements above because they show he barely understand the concept of segregation, or he is just ‘playing’ with the term. you keep funds in a separate bank account. And thank you for sharing that with us, however pls… Read more »
I can’t tell for sure, however I have seen traders stating on the internet this broker accept us clients. However the owner can reply to this community and clarify. Michael G., the CFTC will file lawsuite regardless the country the broker operates like it has already done with others. As far as the “segregation” debate, I am more concerned about the owners statements above because they show he barely understand the concept of segregation, or he is just ‘playing’ with the term. you keep funds in a separate bank account. And thank you for sharing that with us, however pls… Read more »
@Michael Greenberg:
“We have experienced a rise in automated traders from across the globe including Europe, USA, Asia and Japan.”
Either illegal, or marketing bullshit boilerplate.
@Michael Greenberg:
“We have experienced a rise in automated traders from across the globe including Europe, USA, Asia and Japan.”
Either illegal, or marketing bullshit boilerplate.
if that’s the case then CFTC will hunt him down just like rest of those firms
if that’s the case then CFTC will hunt him down just like rest of those firms
Its my understanding while the CFTC tries to enforce its rules in an extra-territorial fashion, its only reasonably possible to do so for them if finfx would have a presence in the USA in one way or another (i.e. bank accounts). Traveling to the states might prove risky tho..
Its my understanding while the CFTC tries to enforce its rules in an extra-territorial fashion, its only reasonably possible to do so for them if finfx would have a presence in the USA in one way or another (i.e. bank accounts). Traveling to the states might prove risky tho..
well it’s certainly a small but a very growing segment, no doubt. all the new tables such as ipad or samsung are only going to contribute to the growing market share
well it’s certainly a small but a very growing segment, no doubt. all the new tables such as ipad or samsung are only going to contribute to the growing market share
Guys, get with reality.
This is a finnish company, CFTC have absolutely no jurisdictional rights here at all. Where they file a lawsuit, in USA? What heck good would that do.
CFTC has to get over it, they cant make the rules for every country in the world. USA mentality,think they can impose their laws on other countries.
Non-USA brokers who will accept USA clients will happen over and over again. Pick one of another 300 countries to open the brokerage. End of story.
Guys, get with reality.
This is a finnish company, CFTC have absolutely no jurisdictional rights here at all. Where they file a lawsuit, in USA? What heck good would that do.
CFTC has to get over it, they cant make the rules for every country in the world. USA mentality,think they can impose their laws on other countries.
Non-USA brokers who will accept USA clients will happen over and over again. Pick one of another 300 countries to open the brokerage. End of story.
yep, CFTC tries to enforce American laws over foreign companies which is ridiculous but doesn’t stop them from trying…
yep, you got me there
yep, you got me there
yep, CFTC tries to enforce American laws over foreign companies which is ridiculous but doesn’t stop them from trying…
Hi Michael,
My comment last week about the CFTC and MF Global seems to have vanished. I was idly wondering where it went, and why?
Cheers,
Jim
Hi Michael,
My comment last week about the CFTC and MF Global seems to have vanished. I was idly wondering where it went, and why?
Cheers,
Jim
Dear Mark,
Thank you for your comment.
Please understand world-wide known auditing company PWC is a reliable source to prove FinFX is following its legal obligations. Upon our request, auditors will issue a statement that will confirm our company does not mix corporate assets with the client funds and we are willing to provide this document.
Following the discussion, I would like to remind FinFX is a Finland-based company that has to comply with Finnish legislation only.
some will fade out, some will be guaranteed by one broker as you mentioned and some will either introduce overseas business to overseas firms or will simply start working in other markets such as futures/equities (this is what this is all about…)
some will fade out, some will be guaranteed by one broker as you mentioned and some will either introduce overseas business to overseas firms or will simply start working in other markets such as futures/equities (this is what this is all about…)
Dear Mark,
Thank you for your comment.
Please understand world-wide known auditing company PWC is a reliable source to prove FinFX is following its legal obligations. Upon our request, auditors will issue a statement that will confirm our company does not mix corporate assets with the client funds and we are willing to provide this document.
Following the discussion, I would like to remind FinFX is a Finland-based company that has to comply with Finnish legislation only.
Hello Hjerpe, Michael,
Going by the new Wall Street Reform regulations now imposed on US FX traders, are we to believe that FinFX’s US clients are all $1 million plus ECPs trading on a simple MT4 platform? Personally I find this a little hard to believe.
Hello Hjerpe, Michael,
Going by the new Wall Street Reform regulations now imposed on US FX traders, are we to believe that FinFX’s US clients are all $1 million plus ECPs trading on a simple MT4 platform? Personally I find this a little hard to believe.
oh, ok. didn’t see the connection at first
oh, ok. didn’t see the connection at first
I have reviewed the interview and comments and would like to add some important facts. First, it seems like every broker out there now claims they “segregate client funds”. True segregation does not mean that client funds are placed into a separate bank account. Each trader must have their own individual account within a custodian of funds separate from a firms company funds. The fact that Jani references PWC as “a reliable source” is laughable. Any company can make that claim. Have we already forgotten about JadeFX? Only firms that belong to a regulatory body that requires and monitors segregation… Read more »
I have reviewed the interview and comments and would like to add some important facts. First, it seems like every broker out there now claims they “segregate client funds”. True segregation does not mean that client funds are placed into a separate bank account. Each trader must have their own individual account within a custodian of funds separate from a firms company funds. The fact that Jani references PWC as “a reliable source” is laughable. Any company can make that claim. Have we already forgotten about JadeFX? Only firms that belong to a regulatory body that requires and monitors segregation… Read more »
Greenberg, didnt you recently post how India is cracking down on Forex investments.
The US is not the only regulatory body which restricts is citizens from participating with brokerages who are not members of there regulatory entities.
FSA Japan enforced 50-1 leverage, B.C. Canada, India, Colombia, are a few that come to mind, and yes the US as well.
Why do you say that?
Why do you say that?
Greenberg, didnt you recently post how India is cracking down on Forex investments.
The US is not the only regulatory body which restricts is citizens from participating with brokerages who are not members of there regulatory entities.
FSA Japan enforced 50-1 leverage, B.C. Canada, India, Colombia, are a few that come to mind, and yes the US as well.
Hi Michael,
Oh no they wont! Haven’t you ever watched “Love Actually”?
Re the link you seem to disapprove of, I felt my article added a variety of useful information over and above anything available @ForexMagnates on the topic, not least of which was the British perspective.
Cheers,
Jim
Hi Michael,
Oh no they wont! Haven’t you ever watched “Love Actually”?
Re the link you seem to disapprove of, I felt my article added a variety of useful information over and above anything available @ForexMagnates on the topic, not least of which was the British perspective.
Cheers,
Jim
I do not personally agree with the CFTC rules and regs, but Carsten is correct. The CFTC can come after a non-US firm that is accepting US clients. How? The CFTC files it’s cases in US District Courts and occasionally in Federal courts. The CFTC would file and get a judgement against the non-US firm. At that point, technically, an agency of the US Federal Gov’t has a judgement against the non-US broker. If and when the US Federal Government decides to enforce the judgement, the Feds contact their counterpoints in the country of the foreign broker and ask that… Read more »
I do not personally agree with the CFTC rules and regs, but Carsten is correct. The CFTC can come after a non-US firm that is accepting US clients. How? The CFTC files it’s cases in US District Courts and occasionally in Federal courts. The CFTC would file and get a judgement against the non-US firm. At that point, technically, an agency of the US Federal Gov’t has a judgement against the non-US broker. If and when the US Federal Government decides to enforce the judgement, the Feds contact their counterpoints in the country of the foreign broker and ask that… Read more »
M G
It’s not only CFTC, I read this on your Oct 10th post: “Capital Markets Board of Turkey threatens to sue 32 forex websites”.
I believe they referenced as many firms as they could find offering a forex site that has Turkish as a language option and deemed it as a form of solicitation.
M G
It’s not only CFTC, I read this on your Oct 10th post: “Capital Markets Board of Turkey threatens to sue 32 forex websites”.
I believe they referenced as many firms as they could find offering a forex site that has Turkish as a language option and deemed it as a form of solicitation.
On a seperate issue that has nothing to do specifically with Forex – One of the reasons that the US does keep its vigilance in enforcing its jurisdiction to non-US firms is due to money laundering and tax evasion.
After working with regulated and non regulated companies in the past, it is amazing how ignorant (whether purposely or not) unregulated firms are to potential money laundering red flags.
Nonetheless, it would be nice to see some sort of cross atlantic cooperation between foreign regulators that would allow the European/UK regulated firms to receive US clients and vice versa.
i’m all for severe punishment when the broker is actually found guilty of intentional wrongdoing i.e gain’s case however this one might have really been an unintentional technological glitch.
in any case, i think it’s better find gaitame $5 million then suspend its business for a whole month – that’s a business killer…
i’m all for severe punishment when the broker is actually found guilty of intentional wrongdoing i.e gain’s case however this one might have really been an unintentional technological glitch.
in any case, i think it’s better find gaitame $5 million then suspend its business for a whole month – that’s a business killer…
On a seperate issue that has nothing to do specifically with Forex – One of the reasons that the US does keep its vigilance in enforcing its jurisdiction to non-US firms is due to money laundering and tax evasion.
After working with regulated and non regulated companies in the past, it is amazing how ignorant (whether purposely or not) unregulated firms are to potential money laundering red flags.
Nonetheless, it would be nice to see some sort of cross atlantic cooperation between foreign regulators that would allow the European/UK regulated firms to receive US clients and vice versa.
If you look at all the forex brokers sued by the CFTC for not conforming with their rules with american citizens, you will discover that all those sued brokers have at least one point of presence in the USA. This point of presence can be an office, a telefone number, a hosted server, a registered address, a po box, and more… but there must be one, otherwise CFTC cannot sue the broker. This is a critical point only a few people understand. Please look at the list of sued brokers and do your research, you’ll discover that ALL sued brokers… Read more »
If you look at all the forex brokers sued by the CFTC for not conforming with their rules with american citizens, you will discover that all those sued brokers have at least one point of presence in the USA. This point of presence can be an office, a telefone number, a hosted server, a registered address, a po box, and more… but there must be one, otherwise CFTC cannot sue the broker. This is a critical point only a few people understand. Please look at the list of sued brokers and do your research, you’ll discover that ALL sued brokers… Read more »
Hi, iam from finland, Jani hjerppe can you tell you WinCapita/ponzi
backround??
Hi, iam from finland, Jani hjerppe can you tell you WinCapita/ponzi
backround??
I find this!!!!!!!!!!!! read http://www.forexfactory.com/showthread.php?p=5215494
you got me there! 😉
you got me there! 😉
I find this!!!!!!!!!!!! read http://www.forexfactory.com/showthread.php?p=5215494