To offer a total automated forex trading system solution, we knew we needed to have relationships with trusted and well-backed brokerage firms. FXCM was a natural partner for FX OMDS Solutions. As one of our preferred brokers, we hold accounts with FXCM and we are confident in their services to us and to our clients. It's a name you can trust and a brokerage with positive history in forex trading, reputation and financial strength, plus adherence to interational regulation.

This is a leading broker and provider of online foreign exchange options, spread betting, and CFD trading. It is a company whose mission is to inspire traders globally with access to the largest and most liquid market in the world.

Development history

The company was started in the late 1990s by a group of investors who were eager to trade forex, though the market access then was not simply available. Its start and rise in 1999 convinced the group that an online trading experience would allow the people, with the help of computers and internet, to extraordinarily run the currency market 24 hours a day, making automated forex trading possible. As the first year ended, the company was trading at $ 250 million per month. By 2001, the company had become registered with the NFA as a commission merchant of the future. Its core ethical values were honesty, fairness and integrity. This confirmed its place as a reputable broker with stringent capital requirements and regulations.


In 2003, the forex trading community established the DailyFX that provided technical analysis and economic news 24/7. Its team provided the best forex education through educational webinars and on-demand video s and analyses. In 2007 there was the introduction of the No Dealing Desk forex execution. This brought about direct access to market, which was considered the fairest possible approach to trading. In 2008(after the financial crisis) the company’s business model ensured that it was safe, thriving and boasting of zero debt. The client base had increased and had made substantial cash holdings.


The company had moved beyond Forex by 2009 as its clients pushed to unify their investments after learning about the size and the scope of its resources. They had the intention to trade gold, oil and stock indices alongside forex. The company’s international offices began operation despite regulations that prevented CFD trading in the United States. As a financial broker, the setting up of financial transparency was vital and the company went public in 2010. FXCM became enlisted in the New York stock exchange.


In 2012 the company came up with new ways to simplify trading. There was the launch of the FXCM Apps store to help in offering useful apps in trading (like scripts and indicators) to meet the demand for automation. Many of the apps were free to traders at all levels, enabling them to develop new online strategies. In the year 2013 the company moved beyond retail. This came after financial institutions started approaching it for institutional trading solutions for their businesses. There was the need to expand the institutional offering. It developed platforms that were customizable to specific needs of its business clients.


In 2014, the market was ready for change and the company took the No Dealing Desk (NDD) to another level by changing the model of the business to the new spreads-plus-commission model. This brought low commissions and spreads that were super-tight, offering a heightened level of transparency in trades.

Financial strength

FXCM believes in making its financials transparent so as to inform its clients and prospects of its health as a company. The firm also believes that traders ought to understand the financial stability of brokers. Auditing in the company is done by Ernst & Young, one of the top ranked accounting firms worldwide. The current position of the company is as follows;

  • $273 million in operating cash
  • 181,005 FX active accounts
  • $863 million in customer equity
  • $60.5 million as adjusted Q2/15 revenues
  • $5.9 million as adjusted EBITDA from continuing and discontinued operations
  • $117 million as Regulatory capital in surplus


The companies’ regulatory capital remains strong as has been in the past few years and is as follows;

  • $71 million as minimum regulatory capital requirements for its continued operations in Australia, US and UK and discontinued operations.
  • FXCM has $188 million as regulatory capital which is a surplus of $117 million.

Regulation

The companies that form FXCM are regulated under various jurisdictions. FXCM LLC is registered with the Commodity Futures Trading Commission (CFTC) as Futures Commission Merchant (FCM) and Retail Foreign Exchange Dealer (RFED). It’s a member of the National Futures Association (NFA). Being a vocal advocate of increased investor protection and foreign exchange regulation, FXCM LLC takes pride in its registered status as an FCM, which happened after the Commodity Modernization Act of 2000 was passed.

Some of its benefits to clients include:

a) Financial standards and oversight

It is a requirement that FCMs meet strict financial standards that include requirements of capital adequacy. They are required to submit financial reports regularly to regulators. The standards are enforced by NFA which has the authority to fine firms and terminate the status of FCMs for any violations.

b) Transparency of practices in business

The National Future Association keeps all the records of formal proceedings against the Future Commission Merchants. Traders are able to find out if a given firm has had any problems with its clients or the regulators.

c) Dispute resolution framework

The regulatory framework of the U.S is regarded as the best in terms of investor protection. In case of any dispute with the FCM, the NFA or the CFTC can be approached by the investors to get things moving.

Reputation

FXCM has built itself a formidable reputation as the world’s leading broker on forex trading through its services to investors. The company has international offices that help in ensuring that its support to investors is widespread. It is uniquely positioned to ensure the provision of exceptional services to forex traders around the world. It takes financial transparency very seriously by meeting strict financial standards. The outfit is registered with the best regulator bodies in the world. It gives investor protection to all its clients, which has brought recognition in the form of awards. Some of them include:

  • Best Sell-side Analysis Contributor
  • Stocks and Commodities Award
  • Best Forex Brokerage Service
  • Winner, Best Retail Broker execution


Its reputation has been mostly built through;

  • Customer service
  • Overall client satisfaction
  • Online educational materials

FXCM has done so much for its clients and potential investors through its services, always ensuring that they are satisfied. It has also provided educational materials online for them to access any information they need concerning services. Its reach is far and wide, enabling the development of trust and the recognition of the brand as a global force in forex brokerage.