FXCM launches unregulated FXCM Markets

US margin forex broker FXCM has launched an offshore platform called FXCM Markets (www.fxcmmarkets.com), which targets traders from unregulated markets.

The broker said in a statement on April 25 that its various entities have defined legal limits on features such as margin and order execution logic, to operate in certain markets. Consequently, over time, FXCM's websites have become focused to cater to a specific region, for example www.fxcm.com (FXCM LLC) targets US residents, whereas www.fxcm.co.uk (FXCM LTD) targets UK and Ireland.

"FXCM Markets [however] is a separate, unregulated entity from all other FXCM entities, yet still a part of FXCM Holdings. By not being a regulated entity, FXCM Markets offers strategic advantages to both the company and account holder," the broker said.

This includes 400:1 default leverage for forex trading accounts, unlike other entities, where default leverage offerings are 200:1 or 50:1 depending upon the jurisdiction. FXCM Markets also has interest-bearing accounts for deposits as low as A$5,000, which is unique to any entity at FXCM.

"We encourage clients to open an account with one of FXCM's various regulated entities, but offer FXCM Markets to clients who are interested," the broker said.

The broker stressed that traders from the US, Canada, UK, France, Germany, Australia and Japan, where FXCM operates a regulated entity, are not allowed to open accounts with FXCM Markets. Additionally, it noted that any account opened with an FXCM entity should follow Office of Foreign Assets Control and Anti-Money Laundering rules, and that all account holders are still required to produce ID.