FXCM Offers Segregated Forex Accounts Through FXCM LTD
07/25/07 The FXCM Group announced that accounts with Forex Capital Markets, LTD (FXCM UK) are fully segregated in accordance with U.K. financial regulations.
FXCM UK accepts accounts from the United States and over 100 countries.
In the unlikely event of FXCM UK's bankruptcy, clients of FXCM UK would be considered secured creditors and receive priority in bankruptcy proceedings.
The FXCM Group is offering this option through its U.K. affiliate because funds held by US-registered Forex Dealer Members are not segregated. If a Forex Dealer Member becomes insolvent, clients do not automatically receive priority status in bankruptcy proceedings.
Recently, a U.S.-registered forex broker went into receivership due to undercapitalization. For a period of time, clients of the broker were unable to access their funds and faced the possibility of financial losses. This situation may recur because current capital requirements for US-registered forex brokers are minimal.
FXCM is financially strong, with reserves that far exceed regulatory requirements. The FXCM Group has over $120,000,000 in firm capital (assets minus liabilities).*
Drew Niv, Chief Executive Officer of the global currency trading firm, pointed out several features of the FXCM UK segregated account:
Forex regulations in the UK differ from the ones in the United States;
FXCM UK is now accepting accounts from over 100 countries, including the United States;
The Financial Services Authority (FSA), one of the world's most respected financial regulatory bodies, administers these regulations;
Opening an account is quick and easy: Applications may be submitted online.
Drew Niv stated, "FXCM is offering segregated funds through FXCM LTD as an additional value to our clients. While FXCM is one of the largest U.S.-registered Forex Dealer Members, we still want to provide our clients with additional legal protections for those who want their funds segregated."
"Many forex firms are teetering on the brink of bankruptcy; FXCM is strong. We believe that it is vitally important that all currency trading clients have complete and verified information on the financial strength of forex trading firms. That is why FXCM has taken the major step of making our balance sheet public, and challenged other firms in the industry to follow our lead," said Niv.
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