Every trade you place can be reviewed again after it has been executed. If FXCC decides the result was an Execution Integrity Event, clause 12A.6 lets it remove your profit, reverse the trade, restrict your withdrawals or close the account. There are eleven separate actions it can take, and it does not have to warn you first.
Why this matters
Clause 12A.3 says this can happen even where your trading was not unlawful, not fraudulent, not prohibited and not caused by you. Money already showing in your balance is not yours until FXCC decides it is.
Exhibit 1Every flagged clause gets its own number so you can point at this one. The number does not change, so a link to it keeps working.CriticalHow much this clause can cost you, in our reading. Critical can take your money or your profit. Warning can delay or limit it. Notice is simply worth knowing before you sign.Rarely seenHow ordinary this wording looks next to the contracts we read. This is our reading of the clause, not a count of other brokers.11The figure this clause puts a number on, taken from the broker's own words.
An Execution Integrity Event may arise whether or not the relevant activity is unlawful, fraudulent, intentional, expressly prohibited, or caused by you.
Firms licensed by the FCA or CySEC must act honestly, fairly and professionally in the best interests of retail clients, and must be able to justify cancelling or repricing a trade already executed. This contract makes FXCC's own reasonable opinion the test, and applies it to conduct that broke no rule.
FXCC is not licensed by these regulators, so this is a comparison of practice, not a finding of any breach.
Our readingOur own comment on the clause, not the broker's words. Anything we quote is marked as a quotation.Most agreements only let a broker cancel a trade for a defined reason such as a manifest pricing error, and they require the client to have done something. Clause 12A.3 drops both limits: it applies whether or not the activity was unlawful and whether or not you caused it. Clause 12A.6(i) then lets FXCC merge accounts it believes are connected to yours and set off balances between them, so another person's loss can reach your money.
- Worse together with Exhibit 6Read these two clauses together. Each one costs more because the other exists.The clause that can remove your profit also lets FXCC restrict your withdrawals while it decides.
- Worse together with Exhibit 5Read these two clauses together. Each one costs more because the other exists.A review can reopen a trade long after the 24 hour window in which you were allowed to question it has closed.