France’s financial market regulator, the Autorité des Marchés Financiers (AMF), has taken punitive action against 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 trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
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 trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term Capital Markets (NYSE:FXCM) over violations of its local regulations.
Since September 2014 the French watchdog has been investigating the issue that for a couple of years (between 2009 and 2011) three money managers who hadn’t been regulated were managing the accounts of FXCM clients in France. The trio introduced 113 clients to the broker and FXCM made about €400,000 in commission from them over the years (€393,447.84 to be exact).
As we reported last week, the AMF held a hearing with the broker on October 16 2015 regarding its investigation. Now we have learned that just ten days after the public meeting, on Monday October 26, the regulator's Enforcement Committee made a decision against the company - the AMF reprimanded FXCM as well as slapped it with a fine of €200,000.
The AMF says that the brokerage has failed to check whether third parties that managed its clients' accounts and executed orders on their behalf had the necessary legal approval to provide portfolio management services for the benefit of others. By doing so, "FXCM did not act honestly, fairly and professionally, serving the best interests of customers" and thereby infringed the provisions of the local Monetary and Financial Code.
The regulator's ruling was also made public on the AMF website in French, adding a reputational cost to FXCM's brand in France on top of the monetary fine. According to the French law regarding such matters, FXCM may appeal the AMF's decision, however no indication was given so far that the company plans to do so.
FXCM provided an official comment on issue, saying “this matter pertains to clients back in 2009-2011, the company has since stopped doing business with these firms. The company has also implemented enhanced internal control mechanisms of checking introducing brokers and partner companies.”
France’s financial market regulator, the Autorité des Marchés Financiers (AMF), has taken punitive action against 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 trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
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 trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term Capital Markets (NYSE:FXCM) over violations of its local regulations.
Since September 2014 the French watchdog has been investigating the issue that for a couple of years (between 2009 and 2011) three money managers who hadn’t been regulated were managing the accounts of FXCM clients in France. The trio introduced 113 clients to the broker and FXCM made about €400,000 in commission from them over the years (€393,447.84 to be exact).
As we reported last week, the AMF held a hearing with the broker on October 16 2015 regarding its investigation. Now we have learned that just ten days after the public meeting, on Monday October 26, the regulator's Enforcement Committee made a decision against the company - the AMF reprimanded FXCM as well as slapped it with a fine of €200,000.
The AMF says that the brokerage has failed to check whether third parties that managed its clients' accounts and executed orders on their behalf had the necessary legal approval to provide portfolio management services for the benefit of others. By doing so, "FXCM did not act honestly, fairly and professionally, serving the best interests of customers" and thereby infringed the provisions of the local Monetary and Financial Code.
The regulator's ruling was also made public on the AMF website in French, adding a reputational cost to FXCM's brand in France on top of the monetary fine. According to the French law regarding such matters, FXCM may appeal the AMF's decision, however no indication was given so far that the company plans to do so.
FXCM provided an official comment on issue, saying “this matter pertains to clients back in 2009-2011, the company has since stopped doing business with these firms. The company has also implemented enhanced internal control mechanisms of checking introducing brokers and partner companies.”
