FXCM – Update to US users
On August 25, 2015, we published a post titled “how to tell a forex broker from a market maker”.
In that post, we went to reasonable lengths to describe how Darwinex, an FCA Regulated “Matched Principal Broker”, trades WITH its customers, and never takes any positions against clients – a regulatory stipulation as well as a core company value we uphold and comply with to this day, and will forever continue to.
Over time, we’ve sought alliances with strategic, highly credible partners to spread the Darwinex message and grow our trader community.
Unfortunately, one of those partners whom we negotiated to serve as Introducing Broker to (for US Traders Only who could list DARWINS on the Darwin Exchange in return), was (keyword “was”) FXCM – regarded as an established, credible broker in the USA up until February 06, 2017 when they were banned by the CFTC for taking positions against their clients.
Needless to say – our relationship with FXCM is terminated effective immediately, and had we known that their “No Dealing Desk” model was anything but, that they were going to great lengths to trade against their clients (as cited by the CFTC lawsuit), such a deal would never have come into existence to begin with.
In our usual spirit of openness, we thought it important to share this immediately with our clients.
We remain keenly aware of interest by US users for us to overcome the restrictions to pricing trader IP in the US. We will do our very best to find alternative arrangements going forward, and would be grateful if you could share – out of the dwindling list of CFTC authorised broker-dealers – would be your preferred execution venue to list your DARWIN for non US investors.