FXCM Compliance Officer Response

My post earlier today asked whether your funds at your broker were safe: http://www.forexproject.com/Blog/Investing_and_Trading/Is_your_money_at_your_broker_safe?

I sent the following email excerpt to James Sanders, Compliance Officer at FXCM and the author of the Wall Street Journal article I cited:

I read your article in WSJ regarding the "segregation" rule and how Congress nor the CFTC have done anything to apply this rule to FOREX.  My questions are:

1. What if anything can we as retail traders do to put pressure on them?
2. Does FXCM apply the segregation rule to funds deposited by your clients for trading FOREX?

James was nice enough to respond to my email and here is his response:

1. You can write to your local Congressional representatives and the Chairman of the CFTC.
2. FXCM keeps customer funds separate from firm operating funds as a
   matter of practice but this would not provide the funds with any
   special protection from creditors in the event of a Refco-type collapse.

So even though a firm keeps customer funds separate doesn't mean jack.  The creditors will still be entitled to your funds before you are.

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