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International cheater or victim of the system?

International cheater or victim of the system?

by Altaf

Drew Niv is a very important figure in the US trading community. Since September 1999, he is the founder and co-founder of FXCM – a company specializing in retail currency trading. He has been a success from the very beginning, with trading volume of $250,000,000 per month by the end of the millennium. Since then, FXCM has become one of the largest retail foreign exchange firms.

Forex Capital Markets, founded in 1999 in New York City, was one of the first developers of online forex trading. In January 2003, FXCM entered into partnership with Refco Group, one of the largest U.S. futures brokers at the time. Refco acquired a 35% stake in FXCM and licensed the FXCM software for use by its clients. The company did well and profitably until 2017.

Afterward, charges were filed against FXCM and its parent company, FXCM Holdings, as well as two high-ranking employees of the company, which included Drew. According to the regulator’s ruling, between Sept. 4, 2009, and 2014. FXCM knowingly issued false and misleading advice to its retail customers in the forex segment, concealing from them its association with a critical market maker.

As a result, the CFTC imposed a $7 million fine on the company and also issued an order prohibiting further illegal actions violating the CFTC regulations and the provisions of the Commodity Exchange Act. In addition, Drew agreed to the requirement to leave the CFTC jurisdiction, forever losing its license to the regulator.

Following allegations of regulatory violations, a lawsuit, and a ban on operations in a U.S. jurisdiction, FXCM reorganized and Drew Niv began exploring new jurisdictions. As we understand Drew Niv is very talented and ambitious man. He didn’t give up his activity, he started to settle in China, UK and Russia. As to China, he organized the company under the name of his former subordinate Raymond Chow, who in turn worked with Drew for 10 years, and as we understand he didn’t leave his boss.  The name of the company Magic Trading suggests that it is also related to trading.

Later on the company Magic Trading was firmly established in China and moved to the Russian market. As far as Russia is concerned, the company’s interaction with investors was quite smooth at first. The company has been successfully developing for a year and a half, progressed rapidly, fulfilled its obligations and opened more than 20 official representative offices. In December of this year, Magic Trading started having problems with the Russian authorities.  In fact, Drew Niv faced a similar situation as his company FXCM in 2017. Only in Russia, the role of the CFTC was performed by Roskomnadzor, the Central Bank and the Prosecutor’s Office.

Who is Drew Niv really, a fraudster of international format, or a talented person who became a victim of circumstances? What will happen next, will he fight for his company or will he go into the shadows and organize a new fund, for example in Africa?

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