Firm Permanently Barred for Defrauding Retail Forex Customers

Forex Capital Markets, LLC ("FXCM"), FXCM Holdings, LLC ("FXCM Holdings"), and two founding partners of FXCM were ordered by the CFTC to pay a $7 million civil monetary penalty for defrauding retail foreign exchange customers.

The CFTC Order found that, between September 4, 2009 and at least 2014, FXCM misrepresented its relationship with a related market-maker to retail customers by falsely claiming that FXCM was acting as an agent between them and the market-maker, and that FXCM did not take positions opposite such customers. The CFTC Order states that the firm concealed its relationship with this market-maker and misrepresented that its "No Dealing Desk" platform was without any conflicts of interest. The CFTC Order also found that FXCM, FXCM Holdings and the FXCM CEO made false statements to the NFA regarding FXCM's relationship with the market-maker.

FXCM and its founders agreed to withdraw from CFTC registration and never to register with the CFTC or act in any capacity requiring registration or exemption from registration. In a separate action, an NFA Decision barred FXCM and three of its principals from NFA membership, and from acting as principals of any NFA Member.