NFA Arbitrators Side with FXCM in Twin Cases, Award them $100

Who said 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 Read this Term brokers always come out on the short end of the stick when dealing with US regulators?

In two cases brought to the NFA for arbitration against FXCM, arbitrators decided in favor of the broker. The claimants, customers Jeff Cummings and Montana Rio LCC, brought allegations against FXCM last year for “Accounting; Fraud; Breach of Contract; Breach of Fiduciary Duty; Violation of the Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Act, 7 U.S.C.§ 1, et seq.; violation of Racketeer Influences and Corrupt Organizations Act, 18 U.S. C. § 1961, et seq.; and Violation of New York Business Law 349(b)”. The claim amounts of the cases were for $500,000 and $150,000 respectively. Against the allegations, FXCM filed counterclaims of $50,000 for attorney fees and costs as they stated that the claimants were “improperly seeking damages to which it is not entitled."

Deciding on the case yesterday, NFA arbitrators dismissed the claims from both Cummings and Montana Rio. Based on the claims being called “frivolous”, arbitrators also decided in favor of FXCM’s counterclaim, awarding the broker $50 from each claimant (Well clear of the $50,000 counterclaim, but indicating that the NFA wasn't impressed with the claims against FXCM).

The claims were part of the NFA’s arbitration resolution program for deciding disputes between customers and NFA members. The decision by the NFA in favor of FXCM is similar to the regulator overturning a court decision against GAIN Capital earlier this year.