FXCM, as a registered Futures Commission Merchant, is required by the Commodity Futures Trading Commission / National Futures Association (NFA) to meet strict financial and daily reporting requirements. FXCM meets and exceeds all regulatory requirements.
All client funds are deposited with triple-A rated financial institutions. FXCM currently holds client funds at various banks, including Citibank and Fleet Bank. FXCM maintains customer funds at banking institutions for the sole purpose of the clients' trading activity, and may never utilize such funds for operating expenses or other investment purposes. Funds are withdrawn from these FDIC insured bank accounts ONLY as a direct result of clients' trading related activities or clients' request for withdrawal.
In the unlikely event of bankruptcy, all client funds are legally protected and held in escrow by triple A rated financial institutions. This is superior to other client protections such as Fidelity Bond Form 14, which does not provide protection to clients against bankruptcy as a result of poor management or trading decisions.
