FXCM relocates its foreign clients out of Australia

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FXCM relocates its foreign clients out of Australia

According to a report by Sohu, a Beijing-based news outlet, FXCM is migrating Chinese clients to its Bahamas branch.

The news site said customers received an email from the broker, saying they had until October 19 to apply for a new account with the Bahamas branch. Account transfers will also take place at the beginning of November. Although the Sohu report focuses on Chinese clients, FXCM's Australian subsidiary is likely to move all of its non-Australian clients to other destinations.

This is due to the pressures of the Australian authorities that have increased over the course of the current year. Last April, the Australian Securities and Investments Commission said brokers should stop dealing with non-domestic clients.

Although this applies to all foreign customers, ASIC's decision to release the statement appears to be the result of pressure from the Chinese authorities. Since the regulator issued this order, some brokers actually did what they were asked. Several companies have emailed clients, telling them that they will no longer have access to their Australian entities and that they will be transferred to other entities.

But not everyone did the same thing. For example, IC Markets said in June that it would transfer client accounts to its Seychelles entity. Shortly thereafter, the broker backed down and said clients could continue trading with the Australian section.

ASIC has also instructed brokers to stop providing services to foreign clients by the end of June, but this appears to have not happened, as companies have split over whether or not they should follow the financial regulator's instructions.

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