It does seem poorly planned--most people are wiped out after one or two trades. People need to taste success for a while to get hooked. Give them more money or lower leverage--or both. In the end, most of this money will still be lost, costing fxcm nothing, but if it takes a couple weeks and the trader gets a couple wins in, they are more likely to start pouring their own money in after the free money's gone. And since that is the goal anyway, why wouldn't fxcm set it up to give people a chance?