FXCM Promote FSA Regulated Entity

As zero hour approaches FXCM are taking a different approach to the NFA ban on hedging. If you go to their website today, and wait for a while the banner will change to promote their new UK based website.

The alternative banner proudly proclaims that FXCM now offer:

MetaTrader 4 – Hedging Capabilities through FSA Regulated Entity.

The FSA refers to the UK based Financial Services Authority, and the "FSA Regulated Entity" is Forex Capital Markets Ltd. The FSA website confirms that this company has been authorised in the UK since 2003.

If you search the US version of the FXCM website for the word "hedging" you will discover that a number of forms are now available to allow FXCM customers to transfer their money to new accounts offshore in the UK. If you are contemplating doing this I suggest you read the relevant terms of business very carefully. Here are a couple of clauses that caught my eye on a quick read through:

17.8 – We shall not be obliged to comply with the FSA rules on best execution.

19.2(a) – Your client money may therefore be held outside the United Kingdom and in such circumstances the legal and regulatory regime applying…. will be different from that of the United Kingdom.