fxcm fraud (managed account)

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saminny

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Hi,

I opened an account with FXCM managed accounts. When I opened the account, they had claimed very high returns for their accounts over the past 2 years and promised low drawdowns on the accounts with their risk management and hedging strategies. However, after I joined the program, I have suffered a drawdown on my account of more than 30-40% in less than 3 weeks. On further investigation, I realized the results they had shown on the site before I had joined the program were hypothetical (or experimental) and did not reflect the true performance on real accounts. After I joined the program, the web page was changed to remove the hypothetical results. Moreover, when I joined the program, the leverage ratio was 6:1 on the accounts. Now due to the drawdowns they have suffered, on some basis, they have decided to lower the leverage to 2:1 on the accounts. This makes it impossible for me to recover my losses as it reduces the profit/loss margin for future gains/losses. On inquiring about the decision to do so, I was told that it was an internal decision as their programs have failed and they have also changed the programs altogether.

This whole thing seems fraudulent to me on two major accounts. Firstly, they posted hypothetical (unreal) results on the accounts to attract investments. Secondly, lowering the leverage internally and changing programs without mutual consent makes it impossible for me to cover my losses and dooms my lost investment entirely.

I would like to know if I could file a case of fraud against them and claim my losses in this case.

I would really appreciate your valuable legal advise on this matter.

Regards,

Sam
 
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Sam - with every investment, there is a risk and you took one and, unfortunately, you ended up in the losing end. I visited their website, and at the bottom of their screen, there is a disclaimer that reads:
Without proper risk management, a high degree of leverage can lead to large losses as well as gains
If you feel strongly about your case, the next best thing you can do is to consult with an attorney so s/he can evaluate your case and suggest what you should do next. Hope this helps
 
Sam - with every investment, there is a risk and you took one and, unfortunately, you ended up in the losing end. I visited their website, and at the bottom of their screen, there is a disclaimer that reads:
If you feel strongly about your case, the next best thing you can do is to consult with an attorney so s/he can evaluate your case and suggest what you should do next. Hope this helps

I agree. I invest in many other areas and aware of risk-return profiles. But the way this investment was managed and advertised seems fraudulent to me.
 
That is called a risk and it is up to investors to do their homework before they take one. How a company manages their business, as long as they are sticking to the accounting principles and to the rules of investment, is up to them. Avoid getting trapped and, if you want to feel better, write a letter to their management expressing your frustrations. They may or may not send you a response. Good luck to you!
 
Nope. That is part of the risk you took. You are SOL. Better luck next time!
 
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