FXCM Launches Unregulated Subsidiary FXCM Markets
Traders desiring an unregulated broker, but backed by a major financial firm are now in luck with the launch of
Traders desiring an unregulated broker, but backed by a major financial firm are now in luck with the launch of FXCM Markets, an unregulated subsidiary of FXCM. The new entity marks a change for FXCM as its existing subsidiaries such as FXCM UK, Japan, Germany, and Australia are all regulated in their respected regions. Also in contrast to existing businesses, FXCM Markets will be offering products that are unavailable at the regulated entities such as 400:1 leverage and interest bearing accounts. The interest accounts are for deposits above AUD5000.
Although the subsidiary is unregulated, FXCM is marketing to customers that it is part of the greater holding company and therefore provides the same financial stability. In addition, clients will be subjected to the same ‘Know Your Customer’ (KYC) and Anti Money Laundering (AML) polices of the regulated divisions. FXCM Markets is only available to customers from regions where FXCM doesn’t operate a regulated entity. Therefore, traders from the US, Canada, UK, France, Germany, Australia, and Japan are unable to open accounts with FXCM Markets.
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So who would be interested in opening an account with FXCM Markets? Our view is that the launch of the entity is being driven by requests from IB/WL partners that are seeking the benefits that an unregulated off-shore entity can provide their clients. In addition, by marketing the availability of interest bearing accounts, it shows that FXCM Markets is targeting larger size clients. Specifically, with customers from Russia and China being able to open accounts, it opens the door for FXCM Markets to attract business from two large and growing regions.
Along with the brokers return to offering dealing desk accounts, the launch of FXCM Markets shows that FXCM is searching for methods to leverage their name in retail forex as they target new markets.
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Explaining the decision to launch FXCM Markets, Jaclyn Klein Vice President, Corporate Communications at FXCM stated:
FXCM Markets, www.fxcmmarkets.com , was established in part as a solution to bring more competitive products and promotions to our global client base. FXCM’s various entities have specific requirements regarding available product offerings, margin, and order execution logic. Consequently, over time FXCM’s websites have become focused to cater to a specific region. For example www.fxcm.com (FXCM LLC) is an offering that is most applicable to US residents, whereas www.fxcm.co.uk (FXCM LTD) is an offering that is most applicable to UK and Ireland residents. The launch of FXCM Markets allows FXCM to offer a larger group of its clients a more complete suite of products and services.
FXCM Markets provides unique account features that may not be offered at other FXCM entities. Presently FXCM Markets offers 400:1 default leverage for all forex trading accounts unlike other entities where default leverage offerings are 200:1 or 50:1 depending upon the jurisdiction*. FXCM Markets also offers Interest Bearing Accounts for deposits as low as $5,000 AUD which is unique to any entity at FXCM. FXCM Markets has other frequently requested promotions and product offerings on schedule for subsequent quarters that may only be offered to FXCM Markets customers.
FXCM Markets is a separate, unregulated entity from all other FXCM entities yet still a part of FXCM Holdings. By not being a regulated entity, FXCM Markets offers strategic advantages to both the company and account holder. From a brokerage perspective, the current regulatory environment is one of the most expensive and strictest ever with noticeable effects on various brokerages just over the past few years. From a customer’s perspective, trading with an unregulated broker may help a trader avoid being affected by any future regulatory changes that affect an individual trading style or strategy. Customers with FXCM Markets would therein be unaffected by future regulations and be able to rely on FXCM’s financial stability as shown in its publicly accessible financial reports.
It may be part of FXCM’s holding company, but will clients feel the same safety as they do with the regulated group? Let us know what you think in the comments
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a great move if nobody remember REFCOFX
meaning?
meaning?
@FxTrader – He worked with BrokersXpress which was partnered with ParagonFX (an unregulated entity as a counterparty to retail FX trades). He was also referring customers to use also driven strategies from TradeStar, which was created by a convicted felon.
@FxTrader – He worked with BrokersXpress which was partnered with ParagonFX (an unregulated entity as a counterparty to retail FX trades). He was also referring customers to use also driven strategies from TradeStar, which was created by a convicted felon.
the link to bitcoinity will take you to their multiple venue charts. Its my goto place for all the #’s on one site.
the link to bitcoinity will take you to their multiple venue charts. Its my goto place for all the #’s on one site.
a great move if nobody remember REFCOFX
What is the domicile of this new subsidiary? They don’t say on the website..
What is the domicile of this new subsidiary? They don’t say on the website..
Seems a bit retrograde to me.. Especially when there is so much focus on regulation and safety of funds at the moment….
Seems a bit retrograde to me.. Especially when there is so much focus on regulation and safety of funds at the moment….
I have find where “FXCM Markets” is incorporated,
It’s on Bermuda
https://www.avoxdata.com/portal/entities;jsessionid=8D932168F3BAF72CDD6F0C1A1CE366EB/29167899
I have find where “FXCM Markets” is incorporated,
It’s on Bermuda
https://www.avoxdata.com/portal/entities;jsessionid=8D932168F3BAF72CDD6F0C1A1CE366EB/29167899
Very interesting development, indeed!
@Mark: Thanks for your investigative skills! :=)
Very interesting development, indeed!
@Mark: Thanks for your investigative skills! :=)
What is the name of the FXCM regulated entity in Canada?
What is the name of the FXCM regulated entity in Canada?
Forex Capital Markets Markets? That's almost as good as Abu Dhabi Securities Securities.
Forex Capital Markets Markets? That's almost as good as Abu Dhabi Securities Securities.
very nice, attractive for fund as well potentially
it depends on the structure if they are backed by the underlying securities that compose the ETF. The riskier one’s are ETNs, which are notes offered by the issuer. When Lehman went under, any ETN’s they issued went under as well. Germany was specifically hit hard by this, as they have a large note based CFD like industry.
it depends on the structure if they are backed by the underlying securities that compose the ETF. The riskier one’s are ETNs, which are notes offered by the issuer. When Lehman went under, any ETN’s they issued went under as well. Germany was specifically hit hard by this, as they have a large note based CFD like industry.
very nice, attractive for fund as well potentially
So, clients will be trading under a market maker, which we all know is daylight robbery and if anything happens, there is no regulator to go for protection. This move could risk FXCM looking like a joker broker rather than a serious institution.
So, clients will be trading under a market maker, which we all know is daylight robbery and if anything happens, there is no regulator to go for protection. This move could risk FXCM looking like a joker broker rather than a serious institution.
This is a strong move. They are essentially going after the long tail of the market taking the FXCM brand to compete on equal terms with more “grey area” brokers. I am absolutely positive they will succeed. Simply put, the industry has to consolidate – buying Gain is one way – beating the smaller brokers on equal terms is another.
This is a strong move. They are essentially going after the long tail of the market taking the FXCM brand to compete on equal terms with more “grey area” brokers. I am absolutely positive they will succeed. Simply put, the industry has to consolidate – buying Gain is one way – beating the smaller brokers on equal terms is another.
very intriguing move that’s for sure
very intriguing move that’s for sure
There is just one flaw in their “Terms of Business”:
Governing law for the accounts at “FXCM Markets Limited” is English law and courts in England shall be the jurisdiction.
You must be kidding me, or?
There is just one flaw in their “Terms of Business”:
Governing law for the accounts at “FXCM Markets Limited” is English law and courts in England shall be the jurisdiction.
You must be kidding me, or?
R.Schuhhardt – I agree, interesting wording indeed bearing in mind that the UK’s civil and criminal law courts do not deal with the monitoring of financial sector. That is the regulator and the Bank of England’s job surely…
This may be of interest
http://forexmagnates.com/the-fsa-is-no-more-will-it-be-missed/
R.Schuhhardt – I agree, interesting wording indeed bearing in mind that the UK’s civil and criminal law courts do not deal with the monitoring of financial sector. That is the regulator and the Bank of England’s job surely…
This may be of interest
http://forexmagnates.com/the-fsa-is-no-more-will-it-be-missed/
Interesting move. We need more specifics on things like the lot sizes offered. I’m assuming they will allow smaller minimum lot size orders like IBFX Au, InstaForex
(100 units or 10 units base currency) on the mt4 platform. What is the max leverage? The different deposit options? LibertyReserve / Bitcoin? Will they make the BTC/USD pair tradable instrument?
Please make a followup article.
Interesting move. We need more specifics on things like the lot sizes offered. I’m assuming they will allow smaller minimum lot size orders like IBFX Au, InstaForex
(100 units or 10 units base currency) on the mt4 platform. What is the max leverage? The different deposit options? LibertyReserve / Bitcoin? Will they make the BTC/USD pair tradable instrument?
Please make a followup article.
1:400 on fxcm unregulated. that is cool
1:400 on fxcm unregulated. that is cool
Is it?
Is it?
they sound desperate for business.
they sound desperate for business.
@Andrew: That´s worth investigation/inquiry with FXCM Markets Limited. We want to know why an “unregulated” Bermuda entity applies English law and jurisdiction of England and Wales!
@Andrew: That´s worth investigation/inquiry with FXCM Markets Limited. We want to know why an “unregulated” Bermuda entity applies English law and jurisdiction of England and Wales!
nothing on thegain response and the gft purchase..
nothing on thegain response and the gft purchase..
Gain rejects FXCM offer guess 3 strikes and u r out.. saying FXCM undervalues Gain. Clearly GS doesn’t agree as he sold at pretty much the FXCM offer, now he will dilute the stock offering shares to pay for GFT, hilarious if not slightly criminal.. guess GS spells fiduciary.. fi-douche-eary
not a surprise, every other decision Gain has made witht he exception of opening the doors has put them where they are today.
Gain rejects FXCM offer guess 3 strikes and u r out.. saying FXCM undervalues Gain. Clearly GS doesn’t agree as he sold at pretty much the FXCM offer, now he will dilute the stock offering shares to pay for GFT, hilarious if not slightly criminal.. guess GS spells fiduciary.. fi-douche-eary
not a surprise, every other decision Gain has made witht he exception of opening the doors has put them where they are today.