MIFID II FAQs
What is MiFID II?
MiFID II is a package of regulations adopted by the European Union (EU) that aims to strengthen trader protection and improve the functioning of financial markets making them more efficient, resilient and transparent. MiFID II is expected to lead to more harmonised conduct of business, systems and control framework for investment services within Europe. The regulations came into force on January 3rd, 2018.
Does MiFID II apply to all other brokers?
MiFID II applies to all regulated brokers within the European Union. FXCM is regulated by the Financial Conduct Authority (FCA) in the United Kingdom.
How does MiFID II impact FXCM and its clients?
MiFID II is a wide-reaching regulation affecting a number of areas within FXCM’s business. Some of the effects that you currently see include:
- Updated Rate Card: In the interest of consolidating all our costs & charges, we have updated our rate card. We encourage you to read this in its entirety.
- New Alerts: 10% drop in equity: We will notify you via e-mail at the end of any business day where your account equity has decreased by more than 10%. Trading Station users will also be notified via an end of day pop-up message.
- Revamped Combined Account Statement: A refined combined account statement allows you to easily see the markups applied by FXCM on each transaction or conversion rate and the percentage change in account equity. We will e-mail your first refined combined account statement in January 2018 and every quarter thereafter. Just like before, you will be able to generate it, on demand, via MyFXCM by clicking on "Reports" and selecting "Account Statement".
- Updated 'Best Execution' Policy: In order to continue to ensure we achieve the best possible results when executing your orders, we have made some changes to our Execution Policy including:
- Beginning in April 2018, you will be provided with Quality of Execution reports from us on a quarterly basis that include details about how your orders have been handled, and where they were executed.
- You can now view a complete list of the Execution Venues that FXCM utilizes to achieve the best possible results for your orders via the "Execution Policy" on the Business Terms page.
- Updated Managing Conflicts Policy: In order to achieve greater transparency, we have provided an overview of our commission sharing arrangements, and how they may affect clients referred to us by third parties. For more information, please refer to page 2 of our 'Managing Conflicts Policy' which is available within our Business Terms page.
Where can I find more information about MiFID II?
The ESMA website provides additional information regarding the MiFID II requirement.