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NFA Drops $20 Million Bombshell The President of the National Futures Association, Dan Roth, dropped a 50 megaton bomb on the forex industry yesterday. In testimony before the Congress the NFA CEO requested that the Government increase capital requirements to TWENTY MILLION DOLLARS. Here...

It's a good question ssblack. You are correct in saying that u.s. forex dealers are not allowed to segregate funds so it might not have made a difference. But had RefcoFX been a registered forex dealer member my guess is the NFA would not have allowed them to go into bankruptcy. They would...

My friend you are confusing Refco Capital Markets with Refco Futures LLC. Refco Capital Markets was the unregulated offshore entity. They owned RefcoFX. RefcoFX was never registered with the NFA and was completely unregulated. But Refco Futures LLC was regulated by the NFA and a long...

Swiss Fraud Alert Well, Tradex Swiss AG isn't the only Swiss Broker out there swindling customers of their money. The CFTC just busted another Swiss firm by the name of INH-Interholding SA and its principal Joerg Heierle. The Story is below. As a reminder the following Swiss firms ARE NOT...

Closure for RefcoFX At last the customers of RefcoFX are getting their money back. Reports coming in over the wires indicate that customers are getting back roughly 40 cents on the dollar of their original investment. While that's still a very heavy loss to take at least the customers are...

NFA Bounces the Rubble The National Futures Association appears to be chucking a couple final spears into the bloated carcasses of two former dead pool brokers (Trend Commodities Limited Partnership and the Bacera Corporation.) Trend Commodities has been permanently shut down and banned...

Nations LLC Goes Bankrupt I hate to say I told you so, but, I told you so. Nations LLC has posted on their website that they are officially bankrupt and that “it does not appear likely that there will be sufficient funds to pay all claims of creditors and customers in full.” This is...

MSNBC Reports on Tradex The Mainstream Media is starting to pick up on the Tradex Swiss AG debacle that I have been covering the last few weeks. Let this be a warning to anyone trading with an unregulated Swiss Firm what can potentially happen to you. The Following Swiss Forex Brokers...

Forex Dealer Dead Pool (version 4.0) The CFTC has just released the latest Adjusted Net Capital Numbers. http://www.cftc.gov/marketreports/financialdataforfcms/index.htm Now that the NFA has officially raised the minimum capital requirement to $5 million...

NorthFinance Alert While I'm on the subject of unregulated foreign firms I think it important that traders be aware of a firm called NorthFinance, which is not in any way regulated. And judging by the embarrassing grammatical errors prominently displayed on their website I'm guessing this is...

[b]NorthFinance Alert

Beware Swiss Brokers I came across this excellent post about the lack of regulation in Switzerland, as confirmed by Swiss Regulators themselves. Be very wary of doing business with a broker in Switzerland until the market gets regulated over there. Originally Posted by minter I requested...

FX Street Reports - You Decide FX Street has put together a very comprehensive review of the NFA Capital Requirement Proposal providing a number of links to magazine articles, current net capital numbers and other tidbits. Worth a look here...

CFTC Prosecutes Nations In July I put out an alert to the FX Community about Dead Pool Member Nations Investments, LLC. Well, shortly there after the NFA went in and closed them down. Now it appears the CFTC has stepped in to collect their pound of flesh. Nations was hauled into court by...

Currency Brokers in Crisis II Meanwhile, in Switzerland… Tradex Swiss Ag is still at war with itself apparently. The SFBC is fighting with the Tradex office in Boston over who has the right to talk to the customers of Tradex Swiss AG. Meanwhile the customers, who just want their money...

Currency Brokers in Crisis I In the last few weeks I have reported on two poorly capitalized/unregulated forex broker dealers who are currently holding customer funds hostage. Well, both firms appear to be in complete chaos judging from what’s going around on various bulletin boards...

Candyman I have never made a post soliciting customers to trade at any one firm. My advice has always been to conduct your due diligence and simply trade with a well capitalized firm. And there are many to choose from.

There is no way of telling what will happen because this capital increase is unprecedented. However, one thing we have seen so far is that firms are trying to merge. We have had two mergers announced in the last few weeks. Other firms are quietly unwinding even as we speak (FiniFX) and other...

On Tap for the Next Two Weeks With the NFA officially hiking the minimum capital requirement to $5 million (http://www.nfa.futures.org/news/new...?ArticleID=1942) all eyes are now on the CFTC. Look for two things: 1) Some kind of formal statement by either the CFTC or the NFA in which...

What about Refco? This is a common refrain I have been hearing from critics of the NFA Forex Dealer Dead Pool. Refco was massive and they went under in record time which proves that being adequately capitalized doesn't matter right? Wrong. While citing Refco is a good sound byte it in no way...