Orlando, Fl: A class action lawsuit has been filed against Forex Capital Markets LLC (FXCM), accusing the nation' largest Forex dealer of fraud and racketeering.
The lawsuit was filed in the United States District Court for the Southern District of New York (Manhattan Division) and is brought on behalf of a plaintiff in Oklahoma, as well as other similarly situated FXCM customers.
According to the Forex class action lawsuit, FXCM allegedly cheated thousands of customers out of their money through the use of unfair and deceptive trade practices.
The suit accuses the Forex dealer of misrepresenting itself as a trading platform that is free from dealer intervention or manipulation. The class action lawsuit alleges that FXCM instead utilized a set of devices, such as software applications, designed with the purpose of interfering with customers' trades.
According to the complaint, FXCM allegedly partook in racketeering activity by working with its software developers and programmers to create an application which supplies the Forex dealer with a number of tools and system commands which could interfere with customers' trades.
These devices allegedly allowed the dealer to route trades to slower servers and send false error messages when customers tried to close out profitable trades.
Lastly, the complaint alleges that the dealer lured thousands of customers by promoting a demo account, which was advertised as providing customers with a true market trading experience.