» FXCM Now Offers Segregated Forex Accounts Through FXCM LTD

The FXCM Group announced today that accounts with Forex Capital Markets, LTD (FXCM UK) are fully segregated in accordance with UK 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 UK 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 US-registered forex broker went into receivership due to undercapitalization. Clients of the broker were unable for a period of time to access their funds and faced the possibility of financial losses. This situation may recur as current capital requirements for US-registered forex brokers are minimal.

Drew Niv, Chief Executive Officer of the global currency trading firm, stated, “FXCM is offering segregated funds through FXCM LTD as an additional value to our clients. While FXCM is the largest, most financially secure US–registered Forex Dealer Member, we still want to provide our clients with additional legal protections for those that 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.

Read the complete press release : FXCM LTD Segregated Funds

This entry was posted on Wednesday, July 25th, 2007 at 10:43 and is filed under FXCM, Press Release. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.