Because of the EUR/CHF-disaster I read the terms of use of FXCM very intensively the last days and there is one aspect that sounds very strange to me, it's No. 30.1 (b) where the client should reimburse losses as a result of the client's use of programmable trading systems. Does that mean that if an FXCM account becomes negative you have to make additional payment because you used e.g. Zorro Trader instead of trading manually?
I happened to see this point because 30.3 is the rule that FXCM uses now to justify the cross-clearing and the headline of the 30s is reimbursement (from client to FXCM).

Wow Sphin.

That is so important to know. Good found!
I would definitely stop trading when this holds true! I won't risk thousand of euros of loss because there is no liquidity in the market and the broker has a little paragraph where he has this little backdoor open.... :-(

I do not think that §30 has a relation to the EUR/CHF situation. It refers to losses caused by a trading system - not to losses caused by the market. The same losses would have occured when the trades had been entered manually.

It makes me more suspicious but I think it will be hard for FXCM to use it against at least retail customers, because they write it only 'well hidden' in their terms and nowhere else. More misleading: take a look at http://www.fxcm.com/products/compare-forex-platforms/ or in German to: http://www.fxcm.com/de/plattformen/plattformen-vergleichen/ - here they advertise which plattforms you can use at FXCM for automated trading. For I can't see a difference between programmable trading systems and automated trading, latest on the pages listed before FXCM had to inform about the 'special risk' of automated trading if they want to insist on it. But you'll never know ...

Did you ask FXCM what they would do if you use their API for automatic trading and under special circumstances your account would be negative?

Regarding the actual situation I won't attract FXCM's attention towards automatic trading. If the dispute is resolved and I'm still talking to FXCM I will surely ask them.

:-) Hope the best for you!!

Hi there.

I agree with jcl. Clause 30 is generally concerned with ensuring FXCM can recover losses from traders, by whatever method (manual or automated) these are made.

As promised, after solving my disputes with FXCM – and I’m still talking to them – I asked them about the strange norm and got their answer. 4 or 5 weeks later but I got it. I try my best to translate it. They won’t prevent their customers from trading with software or EAs but they should not been held liable for any losses caused by third-party-softwares (that are not developed by FXCM) because of errors in programming (bugs) or similar reasons.