Revision 133382467 of "FXCM" on enwiki

{{Primarysources|date=December 2006}}
{{NPOV}}



{{Infobox_Company |
  company_name   = Forex Capital Markets |
  company_logo   = [[Image:Fxcm logo.gif|FXCM]]|
  company_type   = [[Private company|Private]]|
  company_slogan = |
  foundation     = [[1999]]|
  location       = [[New York City]]|
  key_people     = [[Drew Niv]], CEO|
  num_employees  = Approximately 500|
  revenue        =  $216.9 Million  ([[2005]]) [http://www.inc.com/apps/inc500/viewCompany.jsp?cmpId=2006318]|
  industry       = [[Finance]]|
  products       = [[Foreign exchange market|Foreign Exchange]]|
  homepage       = [http://www.fxcm.com/ www.fxcm.com]

}}

'''Forex Capital Markets''' ('''FXCM''') is the largest [[Forex Dealer Member]]<ref>[http://www.fxcm.com/company-profile.jsp FXCM Website Company Profile]</ref><ref>[http://www.cftc.gov/tm/tmfcm.htm Latest Financial Information from CFTC]</ref> (or [[financial services]] firm specializing in [[retail forex]]), supplying online trading services for retail [[speculator]]s in the [[Foreign exchange market|foreign exchange]] market. The company has 78,000 clients and over 400 institutional customers from more than 80 countries. Approximately 500 employees, based in offices in [[New York City]], [[London]], [[Dallas]], [[San Francisco]], [[Hong Kong]], and [[Tokyo]] provide 24-hour, multi-lingual sales, dealing, administrative, and technical support 7 days a week.

[[Retail forex]] is controversial because the high degree of leverage available in the market leads most retail traders to lose money.{{Fact|date=April 2007}}, and because of the existence of many [[forex scams]]. Quoted in the [[Wall Street Journal]] regarding retail forex, (''Currency Markets Draw Speculation, Fraud'' July 26, 2005) "Even people running the trading shops warn clients against trying to time the market. 'If 15% of [[day traders]] are profitable,' says Drew Niv, chief executive of '''FXCM''', 'I'd be surprised.' " [http://webreprints.djreprints.com/1276711190447.html]

In November 2005, Forex Capital Markets ('''FXCM''') became entrenched in the bankruptcy proceedings of [[Refco]], Inc (OTC:RFXCQ). Refco, a big commodities brokerage that collapsed amid an accounting scandal, has been largely purchased by [[Man Group]]. At the time Refco owned a 35% shake in '''FXCM'''.  '''FXCM''' is currently backing a client led lawsuit against REFCO.

'''FXCM''' is a registered Futures Commission Merchant (FCM) with the [[Commodity Futures Trading Commission]] (CFTC) and is a member of the [[National Futures Association]] (NFA).
Ownership and regulatory information on FXCM are available at its National Futures Association (NFA) listing [http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0308179].

== Services ==

The company supplies most of its services through three primary websites: [http://www.fxcm.com FXCM], the company's flagship site; [http://www.fxcmtr.com FXCM Trading Room], which offers numerous resources for trading the market; and [http://www.dailyfx.com Daily FX], which is a leading source for foreign exchange and economic news, as well as information, advice, and resources pertaining to the global currency market.  For new traders, FXCM also provides a variety of learning resources, through such products as the [http://www.fxpowercourse FX Powercourse] and free [http://liveseminar.fxcm.com live webinars].  The firm's Chief Strategists, Kathy Lien and Boris Schlossberg are well known and frequently quoted by major business news outlets.

== FXCM Business Model ==

Like most market makers, FXCM's revenues come from five main sources:

1) The Spread - The difference between the spread FXCM quotes to clients and the spread FXCM receives from the banks they offset from.  If FXCM is unable to match a buyer and seller internally, FXCM will, after the positions become sufficiently large, offset with larger banks that quote them cheaper spreads.  

2) Internal matching of client trades - If the spread is 3 pips, and FXCM is able to match a buyer and a seller internally, they collect 3 pips.

3) Interest on client deposits (like most online brokers, such as E*TRADE, these are a dependable and large source of income)

4) The firm's own speculative positions in the market.

5) Losses on clients' trades that were never offset.

Not all of the above apply to FXCM's "no-dealing-desk" trading option. In this set-up, trades are routed to other interbank market participants. FXCM then may not derive income from source two through five.  This allows clients direct access to bank liquidity. However, all trades are still cleared through a dealing desk of some type as all banks have dealing desks.

== References ==
<references/>

== External Links ==
*[http://www.fxcm.com FXCM]
*[http://www.dailyfx.com DailyFX]
*[http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0308179 FXCM's NFA 'BASIC' Listing]
*[http://www.nfa.futures.org/basicnet/CaseInfo.aspx?entityid=0308179&type=reg NFA Regulatory Actions]