FXCM Company

　　

FXCM Company: A Comprehensive Overview

　　

1. Company Overview

　　

Founding Date and Background

　　FXCM, or Forex Capital Markets, was founded in 1999 by Drew Niv, David Sakhai, Eduard Yusupov, and William Ahdout. The company emerged as one of the pioneering developers of electronic trading platforms for the foreign exchange market, quickly establishing itself as a significant player in the industry.

　　

Parent Company/Ownership Structure

　　FXCM operates as a subsidiary of Jefferies Financial Group Inc., which acquired the company after its restructuring post-bankruptcy in 2018. This acquisition followed a tumultuous period for FXCM, including regulatory challenges and a significant loss of client accounts in the U.S. market.

　　

Headquarters Location

　　The company's headquarters is located in London, United Kingdom. This strategic location within a major financial hub allows FXCM to serve a global clientele effectively.

　　

Global Business Scope

　　FXCM has expanded its operations internationally, with offices in various countries, including Australia, Germany, Greece, Hong Kong, South Africa, and the United States. While it previously catered to U.S. clients, FXCM no longer accepts U.S. accounts after being banned from the U.S. market in 2017.

　　

Main Regulatory Bodies

　　FXCM is regulated by several top-tier financial authorities, including:

• Financial Conduct Authority (FCA) in the UK
• Australian Securities and Investments Commission (ASIC)
• Cyprus Securities and Exchange Commission (CySEC)
• Financial Sector Conduct Authority (FSCA) in South Africa

　　These regulatory bodies ensure that FXCM adheres to strict financial and ethical standards, providing clients with a degree of security and trust.

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2. Company History and Development

　　

Key Milestones

• 1999: FXCM was founded in New York City.
• 2003: The company opened its London office, becoming regulated by the UK Financial Services Authority.
• 2010: FXCM acquired the UK-based ODL Group, solidifying its position as the largest retail forex broker globally.
• 2017: Regulatory issues led to the sale of its U.S. client accounts and a rebranding to Global Brokerage, Inc.
• 2018: FXCM restructured under Jefferies Financial Group and rebranded itself as FXCM: A Jefferies Company.

　　

Business Expansion Journey

　　Initially focused on the U.S. market, FXCM expanded its reach internationally, establishing offices in multiple countries. The company has continually adapted its services to cater to a diverse global clientele, enhancing its trading platforms and educational offerings.

　　

Customer Base Growth

　　FXCM has grown its customer base significantly over the years, boasting over 200,000 clients at its peak. Following the exit from the U.S. market, the focus has shifted to retaining and expanding its international clientele.

　　

Platform Development History

　　FXCM has developed several proprietary trading platforms, including the FXCM Trading Station and integration with third-party platforms like MetaTrader 4 (MT4) and TradingView. These platforms are designed to cater to traders of all skill levels, offering advanced charting tools and algorithmic trading options.

　　

Important Awards or Recognitions Received

　　FXCM has received numerous awards for its services, including:

• Best Forex Trading Platform - Europe (Global Forex Awards)
• Best Customer Support (FX Empire)
• Broker of the Year (Ultimate Fintech Awards)

　　These accolades highlight FXCM's commitment to providing quality trading services and customer support.

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3. Trading Services Offered

　　

Forex Trading Options

　　FXCM offers a diverse range of forex trading options, providing access to over 43 currency pairs. This includes major, minor, and exotic pairs, catering to various trading strategies.

　　

Stock Trading Options

　　While FXCM previously offered direct stock trading, it has since shifted its focus to CFDs (Contracts for Difference) for stock trading, allowing clients to speculate on price movements without owning the underlying assets.

　　

CFD Trading Products

　　FXCM provides a wide array of CFD trading products, including:

• Indices (e.g., S&P 500, FTSE 100)
• Commodities (e.g., gold, crude oil)
• Cryptocurrencies (e.g., Bitcoin, Ethereum) - available only to professional clients

　　

Other Financial Instruments

　　In addition to forex and CFDs, FXCM also offers trading in commodities, indices, and cryptocurrencies, making it a versatile broker for various asset classes.

　　

Special Services or Unique Advantages

　　FXCM is recognized for its advanced trading tools and educational resources. The company provides:

• Algorithmic trading solutions
• A robust educational platform with webinars and tutorials
• Detailed execution reports to enhance transparency

　　These features contribute to a comprehensive trading experience for both novice and experienced traders.

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4. Regulatory and Legal Background

　　

Detailed Regulatory Information

　　FXCM is regulated by several prominent authorities, ensuring compliance with industry standards. The key regulatory bodies include:

• FCA (UK)
• ASIC (Australia)
• CySEC (Cyprus)
• FSCA (South Africa)

　　

Legal Entity Structure by Region

　　FXCM operates through various legal entities depending on the region:

• FXCM Ltd. (UK)
• FXCM Australia Pty Ltd. (Australia)
• FXCM Securities Ltd. (Cyprus)

　　

Client Fund Protection Measures

　　To protect client funds, FXCM implements several measures, including:

• Segregated accounts to keep client funds separate from the company's operational funds.
• Negative balance protection to prevent clients from losing more than their deposited amount.

　　

Countries/Regions Served

　　FXCM serves clients globally, with a focus on regions outside the U.S. and Canada. However, it does not accept clients from certain jurisdictions, including the U.S., European Union, Hong Kong, and Japan.

　　

Compliance History

　　FXCM has faced regulatory scrutiny in the past, notably in 2017 when it was barred from operating in the U.S. due to fraudulent practices. Since then, the company has worked to enhance its compliance measures and regain trust in the global market.

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5. Competitive Landscape

　　

3-5 Main Competitors

　　FXCM operates in a competitive landscape alongside several notable brokers, including:

• IG Group
• OANDA
• CMC Markets
• Pepperstone

　　

Positioning in the Industry

　　FXCM is positioned as a leading broker in the forex and CFD trading space, known for its advanced trading platforms and educational resources. However, it faces stiff competition from firms that offer lower spreads and more diverse asset classes.

　　

Market Differentiation Factors

　　FXCM differentiates itself through:

• A strong emphasis on algorithmic trading solutions and educational resources.
• A robust suite of trading platforms catering to various trading styles.
• Transparency in trade execution and slippage reporting, which enhances trust among clients.

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　　In conclusion, FXCM remains a prominent player in the online trading industry, offering a comprehensive range of services and a commitment to regulatory compliance. While it has faced challenges in the past, its restructuring under Jefferies Financial Group has positioned it for future growth and stability in the competitive forex market.

　　For more information about FXCM, learn more.