FXCM Shutdown: You Must Act Before Nov 20!
45sUrgent deadline creates FOMO and prompts immediate action from affected users.
▶ Play ClipAI Summary
The video addresses the forced transition of FXCM users to a new broker due to FXCM's acquisition, with a deadline of November 20th. The creator shares personal experiences of broker closures and emphasizes the importance of having backup brokers and a contingency plan to protect trading capital.
Chapters
[00:02]
FXCM Transition Deadline
FXCM was acquired and is closing its platform, forcing users to transition. Users must close trades, withdraw funds, or prepare before November 20th.
[00:30]
Broker Closure Prevalence
The creator has seen many brokers close over seven years, sometimes without notice and with refusal to pay out funds, highlighting the need for preparedness.
[00:45]
Backup Broker Strategy
The creator tested multiple brokers on demo accounts, funded the best ones, and now maintains multiple backups to avoid being stranded if one closes.
[01:13]
Always Have a Backup Plan
Regardless of location, traders should have backup brokers, similar to carrying a spare tire in a car, to avoid being stuck in a crisis.
[01:40]
Ryzen FX Offer
Ryzen FX offered better account conditions for the creator's audience, presented as an alternative broker worth considering during the transition.
[02:08]
First Broker Horror Story
The creator's first broker secretly added 1.5 pips to market executions, costing significant money, especially for scalpers, leading to research on better brokers.
[03:03]
Test with Small Amounts
Always test a new broker with a small deposit to learn execution costs and suitability before committing larger funds.
[03:17]
Second Broker Closure Story
A broker closed five years ago, locking $15,000 and preventing withdrawal. The creator lost the funds and the plan to buy Bitcoin for his daughter.
[04:13]
Split Capital Across Brokers
Don't keep all trading capital in one broker. Splitting across multiple brokers keeps percentage gains the same but reduces risk of total loss.
[04:42]
Final Advice
For FXCM users, the situation is unfortunate but manageable. Always have a backup plan, like a spare tire, to avoid being caught unprepared.
Mentioned in this Video
Tutorial Checklist
1
00:02
Before November 20th, close trades, withdraw funds, or prepare for the transition from FXCM to the new broker.
2
00:45
Research and test multiple brokers on demo accounts to find ones with good execution and suitability.
3
01:13
Open accounts with at least one backup broker to ensure you can continue trading if your primary broker closes.
4
03:03
Start with a small deposit on a new broker to evaluate execution costs and platform reliability before committing larger funds.
5
04:13
Split your trading capital across multiple brokers to reduce the risk of total loss from a single broker closure.
💡 Key Takeaways
📊
Broker Closures Are Common
Highlights the frequency of broker closures, a critical risk for traders.
00:30
⚖️
Backup Plan Analogy
Uses the spare tire analogy to stress the importance of contingency planning.
01:13
💡
Hidden Execution Costs
Reveals how brokers can hide costs in execution, a key insight for traders.
02:36
🔧
Split Capital to Mitigate Risk
Provides a practical risk management strategy for traders.
04:13Full Transcript
[00:02] FXCM. They've recently been acquired by another company. So, they are closing down their entire platform and forcefully transitioning all of their users to the new broker. There are two reasons why I'm telling you this. One is
[00:15] because there's a deadline. You have to either close your trades, withdraw your money, or get prepared before November 20th. That is the deadline. You must figure out what you're going to do by that date. And reason number two is that
[00:30] I've seen so many brokers close over the last seven years that it's absolutely absurd. I've had it happen to me without any notice and some of them actually refuse to pay out my funds. Because of situations like this, I want you guys to
[00:45] be prepared as well. Me personally, I went on a hunt to find all of the brokers that fit my requirements, that have execution that I like, and I signed up for every single one of them. I traded them all on demo accounts and the
[00:59] ones that I like the most I put my money into. Now I have multiple backup same time. So if one of these brokers closes, I'm not caught in a situation where I can't trade. So my suggestion to you guys, depending on where you live,
[01:13] whether you're in Europe, whether you live in India, Africa, Australia, Japan, or China, always have a backup plan. The reason why we have a spare tire in our car is for situations like this. You don't want to be stuck on the side of
[01:27] the road not knowing what to do. No cell phone signal and a flat tire. You have something in your trunk. You got it in your back pocket. Pull it out and use reached out to every single broker that
[01:40] I am and asked if they could offer anything specific to my audience during this transition. And the one that gave me the best results was actually Ryzen choose any broker that you want. I'm just giving you an alternative. But
[01:55] their offer was that people that watch this YouTube channel will get better account, which is better than every other user on their platform. So, it's something worth considering and taking advantage of. Ryzen FX is going to be
[02:08] what I want to do is tell you a quick story. The first broker that I had screwed me over so hard and I didn't even realize it until 6 months later. When you're new into trading, you start making transactions and then over time
[02:22] you see your losses and your winners, but then you start seeing some inconsistencies. I always have my bid and ask price up on my charts. When you do a market execution trade, it should basically go at the bid and the ask
[02:36] trade in a little bit of draw down because you have to cover the spread. I realized later on this broker was showing me the bid and the ask line. And when I would hit a market execution trade, it would push it 1 and a half
[02:50] pips further. I was getting screwed out of so much money for every single transaction. And because I was scalping, the cost of trading was adding up so quickly. And that's when I started my first foray into deep diving like what
[03:03] brokers are best, what's the best execution for scalpers? Cuz that's what channel. So, always try your account first with a low amount of money so that you can actually learn what it feels like, what their cost of execution is,
[03:17] and if it works for you. Now, the second story, when I was stranded on the side using this broker. I'm not going to mention the name, but it was about 5 years ago. I had about $15,000 in that account, and I was earning about 4 to
[03:32] 4.5% per month. I had finally grown that account into something that was meaningful. And the plan was to withdraw that money, buy a Bitcoin for my daughter, and then have that be her like safety net retirement fund. Monday
[03:46] morning rolls around and the broker's website gives me a 404 error. I was like, "Okay, this is weird." My MT4 terminal showed a red dot on the bottom completely disconnected. I could see my trade history, but that's it. I couldn't
[04:01] execute anything on it. After a day of waiting, I come to find out that the waiting, I come to find out that the broker basically just closed, rugpulled everybody, and refused withdrawals. Everybody that had money in that broker
[04:13] got screwed over. I felt screwed over. But the fact of the matter is, you should always have a contingency plan. Don't put all of your trading capital in one single account on one single broker. Split it up. The percentage gains on the
[04:27] accounts will be the same regardless of if it's on five brokers or one. So, if you guys have never experienced this, I hope you never have to. For the people going through this FXCM fiasco right now, I know it sucks, but you have
[04:42] options. Always have a spare tire in your car. Thank you so much for watching, guys. I really appreciate you. Drop a like on your way out and we will Drop a like on your way out and we will see you in the next
