Partnership between Barclay and FXCM results in an extra high risk platform. Because the platform belongs to FXCM- Barclay is able to place a total no-liability clause in the contract. The importion portion of the contract is provided below the merger article. Note that it makes it possible to do whatever they want to the platform and your account without being liable for any losses it causes you. This is not acceptable. Even system malfunctions that cause loss isn’t their problem. They are allowed to turn it off when there’s “adverse market conditions” This means they can shut it down whenever you obtain a winning position- because it will adversely affect them. This clause pretty much gives them permission to prevent themselves from suffering any losses at any time. By signing- you agree to allow them to do it.
I copied the agreement information from page 8 of the 25 page account agreement.
Oct 1st, 2012 Barclays Stockbrokers Partners with FXCM. Launches Barclays Margin Fx
NYSE Registered, FXCM announced a new partnership with Barclays Stockbrokers to launch a unique retail forex trading offering called Barclays Margin Fx.
The partnership between the two companies is expected to leverage Barclay’s expertise of over 300 years in banking and FXCM’s online retail forex trading expertise to create a world class online forex trading offering for traders, with existing clients of Barclays being able to benefit from this newly formed partnership.
Drew Niv, the CEO of FXCM commented that they were extremely excited about this partnership and that it would create a product superior to any other offering from the competitors in the UK. Under the partnership, Barclays will be using FXCM’s trading technology in order to create a retail forex trading product
. (in the US this means a simulated trading product)
For the moment, Barclays Margin FX is being offered only to the UK markets and the website can be accessed via barclaysmarginfx.com.
Barclays Margin FX offers no dealing desk execution along with a host of other features including:
- Over 50 currency pairs
- Customizable trading interface
- Professional Charting Tools
- Cutting edge research and analysis
FXCM Inc. is an NYSE listed company and is a global provider of online forex trading and related services to both retail and institutional customers worldwide.
At the heart of its operations is the FXCM’s “No dealing desk” trading which is beneficial for their clients to participate in a large network of forex liquidity providers in order to offer competitive pricing on major currency pairs. FXCM’s technology offers one click trading, and trading from real time charts.
FXCM’s subsidiary, Forex Capital Markets Ltd in the UK additionally offers CFD’s with no requotes as well as forex, metals and stock indices.
10.3 Risks associated with the Trading Platform
(A) We may offer you real-time tradable prices. Due to delayed transmission, the price we offer may change before we receive an order from you. If we offer you automatic order execution we will be entitled to change the price at which your order is executed. We will not, in any circumstances (except where due to our fraud, negligence or wilful default), be liable to you for any difference between the value quoted via the Trading Platform at the time you place the instruction and the value at the time the instruction is executed.(B) Our target spreads for tradable prices are subject to normal market conditions. However, these will be subject to factors that may cause the spreads to widen according to the prevailing conditions across the various market time zones or available liquidity in those markets. You accept and acknowledge that certain time zone based themes exist driven by the relative number of foreign exchange market participants open for business. As a result the spreads will reflect the availability in a specific time zone, at the time.
(C) You acknowledge that where there is extreme volatility in a market or demand for liquidity increases significantly, we cannot be held responsible and shall not be held responsible if prices become unavailable resulting in us being unable to calculate prices in the relevant FX Trade, though we shall use reasonable endeavours to continue to offer a reasonable tradable price.
(D) While we will make reasonable efforts to provide the Services online through the Trading Platform, we may, without prior notice, (except that where possible and where permitted by Market Rules and Regulatory Requirements reasonable notice may be given), on a permanent or temporary basis, withdraw or suspend any Account facility and/or access to the Trading Platform where:
(1) we reasonably consider it necessary, including, but not limited to, where there are technical problems relating to the Trading Platform, adverse market conditions or an emergency situation or for routine maintenance; or
(2) we consider that any activity (or lack or activity), taken or intended to be taken, in relation to the Account may be in violation of any User Guide and/or Market Rules and/or Regulatory Requirements, including but not limited to legislation on money laundering, insider trading or market abuse; or
(3) emergency or exceptional market conditions exist; or
(4) We are unable to calculate prices in the relevant FX Trade due to the unavailability of the relevant market information or technical failure of the Trading Platform; or
(5) where the Platform Operator suspends or otherwise restricts the operation of the Trading Platform, in which circumstances we may take such additional action as we reasonably consider to be appropriate to address any such concerns. Such actions may include, by way of example: (i) the cancellation of any outstanding trades or the deduction of any cash or securities held by us or our delegates on your behalf that we consider to represent the proceeds or profits of any transaction that has been conducted via the Trading Platform in violation of any User Guide and/or Market Rules and/or Regulatory Requirements; and/or (ii) the close out or suspension of any currently open transactions that we have executed on your behalf.
(E) We shall not be liable for any loss resulting from any of the events described in this clause 10.3 or for any action taken by us as set out in this clause 10.3
.(F) We make no warranties, representations, or guarantees, express or implied, as to the merchantability, fitness for any particular purpose or otherwise with respect to the Trading Platform, its content, any documentation or any hardware or software provided in relation to the Trading Platform. Technical difficulties could be encountered in connection with the Trading Platform. These difficulties could involve, among others, failures, delays, malfunction, software erosion or hardware damage, which difficulties could be the result of hardware, software or communication link inadequacies or other causes. Such difficulties could lead to possible economic and/or data loss including, but not limited to, as set out in this clause 10.3.(G) In no event will we be liable for any loss (including loss of profit or revenue whether direct or indirect), cost or damage including, without limitation, consequential, unforeseeable, special or indirect damages or expense which might occur as a result of or arising out of using, accessing, installing, maintaining, modifying, de-activating or attempting to access the Trading Platform or otherwise.
(H) In addition since neither we nor the Platform Operator control signal power, reception or routing via the internet, the configuration of your equipment or reliability of any internet connection, we shall not be liable for any transmission or communication failures, technical errors, distortions or delays when using the Trading Platform or any loss suffered in relation to this.
(I) Various information, news feeds, real time market data may be provided directly from third party providers and displayed on the Trading Platform for information purposes only. We cannot and will not be held liable for the content of such information or losses resulting from you entering a trade based upon such information.
(J) Any exclusion of liability under this clause 10.3 shall not be applicable to the extent that any loss is suffered as a result of our fraud, negligence or wilful default.