FXCM Group uses Jefferies Financial Services Inc (“JFSI”) as a prime broker for FX trading. Please be advised, that if we receive such instruction, we will not be able to service your account and must close any open and funded accounts you have. To protect the public from unscrupulous brokers, FINRA’s BrokerCheck allows investors to research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers, in addition to investment advisers and their agents. While the small number of people at the top of the pyramid make money, the vast number of people at the lower stages have been defrauded.

FXCM Group is a holding company of Forex Capital Markets Limited (“FXCM LTD”), FXCM EU LTD (“FXCM EU”), FXCM Australia Pty. Limited (“FXCM AU”), FXCM South Africa Ltd (“FXCM ZA”) and all affiliates of aforementioned firms, or other firms under the FXCM group of companies (collectively “FXCM Group”). Beginning in January 2015, through a series of transactions, Leucadia Investments has become the majority economic owner fxcm canada review of FXCM. Leucadia Investments is part of the merchant banking arm of Jefferies Financial Group. FXCM has benefited from the scale and breadth of the Jefferies family of companies. Firmly committed to FXCM’s success, Leucadia/Jefferies Managing Director, Jimmy Hallac, is the Chairman of FXCM Group, while Rich Handler and Brian Friedman, Jefferies’ CEO and President respectively, both sit on the FXCM Board of Directors.

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The FXCM Group does not own or control any part of Friedberg Direct and is headquartered at 20 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom. The relationship between Friedberg Direct and FXCM was formed with the purpose to allow Canadian residents access to FXCM’s suite of products. Trade your opinion of the world’s largest markets with low spreads and enhanced execution. It is the product of more than a decade of client feedback and cutting-edge technological prowess. No matter one’s experience or sophistication level, Trading Station is often the preferred choice among active traders.

Ponzi Scheme

Given the depth and liquidity of the forex, it is possible to implement almost any viable strategy with maximum efficiency. From short-term intraday approaches to multi-session swing trading plans, profiting from periodic exchange rate fluctuations can become not only possible but probable. The majors and the commodity pairs are the most liquid and most widely traded currency pairs in the forex market. These pairs and their combinations (EUR/JPY, GBP/JPY and EUR/GBP) make up the vast majority of all trading on the forex. Due to the fact they attract the largest volume of buyers and sellers, spreads are typically the tightest.

Cyber attackers and fraudsters seek to harm clients by using fraudulently obtained client information to conduct unauthorized transactions or steal information or assets from clients’ accounts at a financial firm. A trader will be charged a dormancy account administrative fee every calendar year if there is no trading activity in a 12 month period preceding the charge date. Trading Activity for this purpose is defined as the client placing a new Trade or maintaining an open Trade. Our proprietary trading platform provides powerful analytics tools for chart traders and straightforward capabilities for new traders. With Friedberg Direct, you will always know your P&L, freeing up time for active trading.

To enforce its rules, FINRA conducts routine examinations of brokerage firms, as well as investigates investor complaints and suspicious activity. It reviews all broker “advertisements, websites, sales brochures and other communications to make sure brokers present information in a fair and balanced manner.” The Financial Industry Regulatory Authority is a private, not-for-profit agency authorised by the U.S. Congress to protect American investors from fraud and wrong-doing by securities brokers.

Whether your outlook on a currency is bullish or bearish, you have the ability to capitalise upon the idea. Buy low and sell high or sell high and buy low ― the forex does not limit your trading options or your money-making potential. However, there are other currency pairs that allow you to take advantage of macroeconomic events in specific international markets, such as the USD/MXN (US Dollar/Mexican Peso). FXCM uses Jefferies Financial Services Inc as a prime broker for FX trading and as a liquidity provider for FX trading.

Through its Investor Education Foundation, FINRA provides individual investors with tools and resources to help them make sound financial decisions and to protect themselves from financial fraud. For example, investors can use its online Fund Analyzer to compare expenses among different funds. The “Risk Meter” helps investors determine if they might be vulnerable to investment fraud, and the “Scam Meter” helps to assess whether an investment may be “too good to be true.” A Ponzi scheme is a financial fraud in which the perpetrator promises consistent, above-market guaranteed returns on an investment but which in reality simply involves paying early investors out of the payments from new investors. The scam gets its name from Charles Ponzi, who perpetrated such a fraud in the early 1920s in New England, although similar frauds go back longer than that. Most Ponzi schemes are offered by unlicensed individuals or unregistered firms.

fxcm fraud

Please ensure both your name and email address are clearly visible when sending documents to Friedberg Direct. In 2009 Madoff was sentenced to 150 years in prison after pleading guilty to 11 criminal counts, including securities fraud. Other than the original Ponzi scheme, probably the most famous—and surely the largest—such fraud was the one perpetrated in 2008 at the height of the global financial crisis by Bernard L. Madoff Investment Securities LLC. Ponzi schemes generally start to unravel when the promoter fails to deliver statements and payments as promised. At this point, however, it may be too late for an investor to get their money back. Likewise, the seller often tells investors that there is a “secret” behind the investment that they are unable or unwilling to divulge.


Our customers, employees and stakeholders benefit greatly from the Leucadia/Jefferies affiliation. You are not required to supply any of the personal information that we may request; however, failure to do so may result in our being unable to open or maintain your account or to provide services to you. While we make every effort to ensure that all information we hold about you is accurate, complete, and up to date, you can help us considerably in this regard by promptly notifying us if there are any changes to your personal information. Most of the information is contained in account documentation that you submit to obtain our services and statements that you receive from us or access through our Website. We encourage you to review this information and notify us if you believe any information should be corrected or updated.

  • It also administers a dispute resolution forum for investors and brokerage firms and their registered employees.
  • A trader will be charged a dormancy account administrative fee every calendar year if there is no trading activity in a 12 month period preceding the charge date.
  • If you are searching for a target-rich environment for active trading, look no further than the forex.
  • To be successful, the fraud requires a constant flow of money from new investors to pay the earlier investors, who legitimise the scheme by validating that they did indeed earn the promised returns.

The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. Friedberg Direct will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Only clients whose accounts are Live and Tradeable are able to withdraw using the MyFXCM portal. If your account is locked and/or the Withdraw Option is not available in MyFXCM, please request your withdrawal by emailing from the email address on file and provide us with specific instructions to process your withdrawal . To find the value of the spread, multiply the spread and the pip cost (displayed in the Simple Dealing Rates window of Friedberg Direct’s trading platform). Friedberg Direct offers a transparent pricing model, made up of low, competitive commissions and tight spreads. You trade on the direct quotes we receive from our liquidity providers with no hidden markups, and our transparent commissions now start as low as $0.07 per 1K lot.

At the top of your trading platform click on the Report button to view your Combined Account Statement. Many fraudsters—including Bernie Madoff —promise consistent, above-market returns even as virtually all financial markets fluctuate. “Be suspect of an investment https://forexbroker-listing.com/ that continues to generate regular, positive returns regardless of overall market conditions,” the SEC says. Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk.

As it pertains to any business ― active trading or otherwise ― profit is the difference between gains and losses minus operating expenses. The beauty of forex trading is that quantifying profit is straightforward because expenses are limited, and gains and losses are easily accounted for. Unlike in more conventional trading modules such as stocks, forex trading profits are not limited only to buying low and selling high. You are able to make money from being either long or short a specific market, increasing the number of potential trading opportunities exponentially.

Except as described in this privacy policy, we will not use your personal information for any other purpose, unless we describe how such information will be used at the time you disclose it to us or we obtain your permission. FRIEDBERG DIRECT and FXCM Group (“FXCM”) have entered into arrangements under which FXCM makes platforms and systems available to support the Friedberg Direct Trading Station, including for account opening and fund transmission. As a result, client and account information will be maintained in FXCM’s systems and accessible to appropriate FXCM personnel.

Identify The Risks

It also administers a dispute resolution forum for investors and brokerage firms and their registered employees. Most open-outcry and electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure.

fxcm fraud

If the “pump” part of the scheme is successful, the fraudsters then “dump” their shares, leaving investors holding the bag. A “pump and dump” is an illegal scheme used to artificially boost the price of a stock by making false and misleading claims about a company’s business prospects. Then, the shares are sold before the fraud becomes known, at which point the stock price usually plummets and the unsuspecting investors lose their money.


For many traders and investors, a home office equipped with a desktop PC is the preferred way to access the forex/CFD market. For those individuals, hosting Trading Station locally via download is an easy way to get up and running in the market. The international currency trade furnishes participants with an unparalleled collection of opportunities.

It’s not part of the U.S. government but is overseen by the Securities and Exchange Commission, which is part of the government. Madoff is a former chairman of the NASDAQ stock exchange who had worked on Wall Street for nearly 50 years, and he swindled customers out of an estimated US$34 billion to US$50 billion, if not more. Ponzi schemes get their name from Charles Ponzi, who perpetrated a fraud in the early 1920s in New England promising investors a 50% return on their money in 90 days. The scheme initially involved Ponzi buying coupons for U.S. postage stamps more cheaply overseas and then selling them at higher prices back in the U.S., but he eventually turned to paying his earliest investors with the new money coming in.

Whether you are an Friedberg Direct client or you simply have an FXCM demo, you can easily access Trading Station’s platforms.

FXCM is committed to building a better brokerage for our traders, our goal is to provide you with the ultimate trading experience. We are constantly looking to provide innovative technology solutions, quality pricing, and transparent execution that will help our traders navigate and trade the financial markets. FXCM also offers dedicated 24/5 customer support, with global offices in London, New York, Melbourne, and more. FINRA’s market regulation department oversees and regulates over-the-counter trading of securities to ensure they comply with both FINRA rules and federal securities laws. FINRA says the department monitors about “99 percent of the equities market and approximately 50 percent of the options market.” It also provides regulatory services to equities and options markets operated by other self-regulatory organisations. FINRA provides surveillance and other regulatory services for U.S. equities and options markets.