Correct me if I'm wrong, but I thought FXCM had offered futures trading to retail customers via futures accounts managed by a South African who subsequently had some trouble with CFTC. Apparently, he was advertising a superb success record even as his customers' accounts at FXCM were losing. Let me know if that squares with the record. I'll gladly stand corrected if wrong.
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brokers in financial trouble
- Thread starter watchdaride
- Start date
Correct me if I'm wrong, but I thought FXCM had offered futures trading to retail customers via futures accounts managed by a South African who subsequently had some trouble with CFTC. Apparently, he was advertising a superb success record even as his customers' accounts at FXCM were losing. Let me know if that squares with the record. I'll gladly stand corrected if wrong.
Quote from Chood:
Correct me if I'm wrong, but I thought FXCM had offered futures trading to retail customers via futures accounts managed by a South African who subsequently had some trouble with CFTC. Apparently, he was advertising a superb success record even as his customers' accounts at FXCM were losing. Let me know if that squares with the record. I'll gladly stand corrected if wrong.
FXCM has never offered futures trading in any capacity whether it be trading with FXCM or via a third party account manager.
David Waring
Managing Director
FX Business Development
Forex Capital Markets LLC
32 Old Slip, 10th Floor
New York, NY 10005
Tel (212) 897-7660
Fax (212) 897-7669
Email: dwaring@fxcm.com
Quote from FXCM Rep 1:
FXCM has never offered futures trading in any capacity whether it be trading with FXCM or via a third party account manager.
David Waring
Managing Director
FX Business Development
Forex Capital Markets LLC
32 Old Slip, 10th Floor
New York, NY 10005
Tel (212) 897-7660
Fax (212) 897-7669
Email: dwaring@fxcm.com
Check this url:
www.cftc.gov/files/enf/05orders/enfjamesdewetcompliant.pdf
which is a CFTC enforcement action. The enforcement action is a complaint filed in U.S. federal court. It refers to an entity "located in New York" by the name of FXCM, also referred to in the complaint as Forex Capital Markets, Inc. ("FXCM"). The parentheses and quote marks are the CFTC's, not mine. Is that FXCM different from your FXCM, and different from the other FXCM mentioned this thread (the one potentially to offer futures in the future)?
The CFTC complaint goes on to describe how the defendant, a South African named de Wet, grossly mispresentated his success managing hundreds of futures accounts at FXCM. CFTC alleges in the complaint that at least 200 hundred customers "opened forex futures trading accounts" at FXCM.
As a previous poster mentioned I aswell applaud the NFA & CFTC for their efforts of stepping up capital requirements & monitoring of forex dealers.
As there is a new forex broker opening shop just about every week, these outfits should be closely monitored and closed down immediately on any sign of trouble to keep the integrity of this new industry.
Forex should be just as secure as the securities & futures industry and its up to the end-user like us & government officals (at all levels) to push for this. This market is here to stay and should be regulated tightly to maintain stability and integrity for all participants.
Scenerio's such as Refco forex clients waiting over a year to only receive 20% of of their funds back should be a learning lesson for the industry and should never be repeated!
Fair game for all!
As there is a new forex broker opening shop just about every week, these outfits should be closely monitored and closed down immediately on any sign of trouble to keep the integrity of this new industry.
Forex should be just as secure as the securities & futures industry and its up to the end-user like us & government officals (at all levels) to push for this. This market is here to stay and should be regulated tightly to maintain stability and integrity for all participants.
Scenerio's such as Refco forex clients waiting over a year to only receive 20% of of their funds back should be a learning lesson for the industry and should never be repeated!
Fair game for all!
Quote from jonnysharp:
As a previous poster mentioned I aswell applaud the NFA & CFTC for their efforts of stepping up capital requirements & monitoring of forex dealers.
As there is a new forex broker opening shop just about every week, these outfits should be closely monitored and closed down immediately on any sign of trouble to keep the integrity of this new industry.
Forex should be just as secure as the securities & futures industry and its up to the end-user like us & government officals (at all levels) to push for this. This market is here to stay and should be regulated tightly to maintain stability and integrity for all participants.
Scenerio's such as Refco forex clients waiting over a year to only receive 20% of of their funds back should be a learning lesson for the industry and should never be repeated!
Fair game for all!
I would much prefer to trade currency futures than forex, until funds at forex dealers are segregated like futures trading is.
Refco futures traders came through much better than all others, as I remember
Quote from rcanfiel:
I would much prefer to trade currency futures than forex, until funds at forex dealers are segregated like futures trading is.
Refco futures traders came through much better than all others, as I remember
I hear you loud and clear and for intra-day trading I too would much prefer futures as I think they are a much more efficient, fair & transparent instruments to trade aswell as the security of funds.
But for those of us that have forex a/c's for the interest earning capability we need the industry to be just as fair & transparent as the futures industry.
I realise that without a central exchange it's more difficult to regulate the operational side of trades and settlements and enforce orderly markets etc......but like future's a/c's funds should be segregated like you say and should be un-touchable in the event of bankruptcy.
This would create a more trusted industry and can grow and prosper as it should do.
Hmmm, what's Felix up to now?
Quote from watchdaride:
got this eamil from a fx news website. Not sure how valid it is just passing on the info.
The last few weeks has seen the NFA foreclosing on a lot of forex dealers who are undercapitalized. The following firms have been shut down as a result:
1) United Global Markets, LLC
Today the CEO just sent an email out to clients saying they were going out of business because they could not meet their capital requirements.
2) Trend Commodities Limited
On June 19 the NFA shuttered Trend Commodities due to fraud and for failing to meet their capital requirements.
3) Spot FX Clearing Corp
On June 14 the NFA shuttered SpotFX due to fraud and for failing to meet their capital requirements.
4) FX Option1 Inc.
On June 7 the NFA shuttered FX Option1 due to fraud and for failing to have adequate security deposits for customers.
5) Spencer Financial LLC
On May 17 the NFA shuttered Spencer Financial due to fraud and for failing to meet their capital requirements.
6) Alpha Forex
On May 14 the NFA shuttered Alpha due to fraud and for failing to meet their capital requirements.
Do you have money with the following? their current capital - IF SO GET OUT NOW
One World Capital $1,105,000
Open E Cry LLC $1,062,810
Velocity4X $1,587,000
Direct Forex LLC $1,523,000
Easy Forex US Ltd $5,011,644 - they are above the 5 mio threshold but only just and with a name like that - get out.
3D Forx LLC $ 2,525,372
E FX Optioons LLC $1,709,752
FiniFX $1,464,000
Forex Club $3,304,000
Forex International Investments Inc $1,464,620
Forward Forex $1,793,767
FXCM LLC $759,689
GFS Futures & Forex $3,074,000
Nations Investments $1,699,000
Royal Forex Trading $1,102,000
SNC Investments $1,565,000
Tradition Securities $781,869
I Trade FX -$3,039,000 Note these guys are already bankrupt --- negative capital.!!!!!
MB Futures $3,080,000
Money Garden Corp $3,399,844
I MAY HAVE LEFT A FEW OFF THE LIST. PLEASE RESPOND IF YOUR BROKER IS NOT ON THE LIST AND I WILL DOUBLE CHECK
t passing on the info that may help others.
Quote from jonnysharp:
I hear you loud and clear and for intra-day trading I too would much prefer futures as I think they are a much more efficient, fair & transparent instruments to trade aswell as the security of funds.
But for those of us that have forex a/c's for the interest earning capability we need the industry to be just as fair & transparent as the futures industry.
I realise that without a central exchange it's more difficult to regulate the operational side of trades and settlements and enforce orderly markets etc......but like future's a/c's funds should be segregated like you say and should be un-touchable in the event of bankruptcy.
This would create a more trusted industry and can grow and prosper as it should do.
It seems Forex funds are (can be?) segregated in UK. At least that is what the FXCM site says. I don't know if that has the same power as segregated futures funds in the US though. I believe there is also a "separate" category that is much weaker for forex, but that was only something I read the other day. If anyone knows in more detail, that would be nice.