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NFA notice regarding Gain financial
- Thread starter SWScapital
- Start date
Quote from emg:
I know that some of the ZEN FIRE brokerages used gain capital market maker. I will not be surprise if zen fire brokerages took some profit or participate from the "price slippage practices."
Beware Zen Fire Clients.
because Zen Fire Brokers do futures market only, they offer gain capital in the FX market. That means their business model is a scheme. For example:
1) Zen fire data feed does not exist. It is rithmic data feed. Therefore, zen fire brokers are charging higher commission on brand name only. They failed to notify all clients that zen fire is rithmic and DENY to their clients that zen fire is rithmic. They fail to post in their websites that zen fire data is Rithmic. That is misrepresentation and cheat (charging higher commission).
proof:
http://www.rithmic.com/partners.html
Do you see zen fire under technology?
2) because the brand name zen fire data only does futures market, some of the zen fire brokers offer gain capital fx market maker for their FX Dept. This is their SCHEME side in the fx market
Adjusting slippage to screw your clients - not funny. The NFA billing themselves as the "premier independent provider of innovative and efficient regulatory programs - funny.
Take that other futures SROs.
Take that other futures SROs.
Quote from forexlawman:
Adjusting slippage to screw your clients - not funny. The NFA billing themselves as the "premier independent provider of innovative and efficient regulatory programs - funny.
Take that other futures SROs.
now that gain went down, who is next? ZEN FIRE BROKERS?
Remeber, it took almost 20 yrs for the gov arrest madoff. It took 5 yrs for nfa to fined gain. How long will nfa gets Zen Fire brokers? A lot of Madoff and Gain clients loss money in these past yrs.
I (along with our Traders Association) am on this story too.
In a Webinar we did with Rockwell Trading on Wed 10/27, their CEO was complaining about forex trading platforms. He compared trading forex with a computer versus futures trading where buyers and sellers are matched on exchange. He complained about price slippage and more (mentioned below).
On our podcast yesterday, we discussed this CEO's concerns and other problems with American's being forced to repatriate foreign forex trading accounts back to the U.S., as required in the new CFTC forex rules effective on Oct. 18, 2010.
Here's an excerpt from our podcast page (being editing tonight). Sorry, we can't do links to our own site on Elite, but maybe someone else can for us. Thanks.
Oct. 28, 2010 Podcast
Click here for streaming mp3 file (75:00 length).
Subjects: Is forex safe? Year-end planning & tax changes, trader tax, investment management and more. Additional topics per email invitation.
Here are some of the highlights.
* Is forex trading safe in the U.S. even with RFED or FCM duly-registered brokers with the NFA/CFTC? U.S. forex brokers don't have "segregation of asset" money protection rules, whereas futures brokers are subject to those rules. The new CFTC forex rules call for higher minimum net capital requirements for RFED forex brokers versus futures brokers, so that helps cushion the concern about money protection issues. We compare forex trading with currency futures trading in several ways.
For warnings about hidden problems with forex brokers, see Erskine vs. CFTC 06-3896 http://caselaw.findlaw.com/us-6th-circuit/1106725.html . The CEO of Rockwell Trading brought up this court case and discussed his concerns about forex brokers and their platform-markets on our Webinar featuring Rockwell on Oct. 27. The CEO focused in on this quote in the case towards the top. "This forex market, which is central to this case, is not a public market, but is instead a ânegotiated market,â in which-according to the parties-foreign currency prices (the prices used for the trades in this case) are âconstructedâ by the FCMs using âsoftware to process and distill currency prices offered by numerous banks and come up with an indicative market price.â"
As I said on that Webinar, keep in mind that this court case is before the new CFTC forex brokerage rules went into effect on Oct. 18, 2010. The retail forex industry should be run better with the new rules. Later in the call, we circle back on the "segregation of asset" rules and we will try to do more research on it for next week.
Update: We just noticed a troubling NFA news release dated Oct. 28, 2010 "NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC." Read the text of the entire Complaint included in the release.
Here's another similar NFA fine with release dated Oct. 28, 2010 "NFA orders monetary sanction of $320,000 against New York forex firm **** Global Markets." Per the NFA release, "The Complaint alleged that **** engaged in certain price slippage practices on the MetaTrader platform that were favorable to **** and caused disadvantageous trading conditions for certain customers. The Complaint also charged that **** failed to supervise the MetaTrader platform used for their forex business, and failed to supervise the firm's operations." I wonder if "slippage practices" are Rockwell Trading CEO is warning us about?
The CFTC and NFA are scrutinizing forex brokers more now after their Oct. 18, 2010 effective date for their RFED-registrations in accordance with their new CFTC rules for forex transactions, sanctioned by Dodd-Frank Fin Reg too. The NFA website has several good new guides including this one Updated "Forex Transactions: A Regulatory Guide.
American forex traders are being forced to trade with no more than 50:1 leverage on the major currencies (20:1 on minors), FIFO (no hedging rule) and without any form of money-protection. The point is that the leverage with currency futures is not far off 50:1 - you can get 30:1 on the CME - hedging may be easier with futures, and futures brokers must segregate assets for some protection. We will compare tax treatment between forex and futures next week. More forex traders may want to consider trading currency futures too.
In a Webinar we did with Rockwell Trading on Wed 10/27, their CEO was complaining about forex trading platforms. He compared trading forex with a computer versus futures trading where buyers and sellers are matched on exchange. He complained about price slippage and more (mentioned below).
On our podcast yesterday, we discussed this CEO's concerns and other problems with American's being forced to repatriate foreign forex trading accounts back to the U.S., as required in the new CFTC forex rules effective on Oct. 18, 2010.
Here's an excerpt from our podcast page (being editing tonight). Sorry, we can't do links to our own site on Elite, but maybe someone else can for us. Thanks.
Oct. 28, 2010 Podcast
Click here for streaming mp3 file (75:00 length).
Subjects: Is forex safe? Year-end planning & tax changes, trader tax, investment management and more. Additional topics per email invitation.
Here are some of the highlights.
* Is forex trading safe in the U.S. even with RFED or FCM duly-registered brokers with the NFA/CFTC? U.S. forex brokers don't have "segregation of asset" money protection rules, whereas futures brokers are subject to those rules. The new CFTC forex rules call for higher minimum net capital requirements for RFED forex brokers versus futures brokers, so that helps cushion the concern about money protection issues. We compare forex trading with currency futures trading in several ways.
For warnings about hidden problems with forex brokers, see Erskine vs. CFTC 06-3896 http://caselaw.findlaw.com/us-6th-circuit/1106725.html . The CEO of Rockwell Trading brought up this court case and discussed his concerns about forex brokers and their platform-markets on our Webinar featuring Rockwell on Oct. 27. The CEO focused in on this quote in the case towards the top. "This forex market, which is central to this case, is not a public market, but is instead a ânegotiated market,â in which-according to the parties-foreign currency prices (the prices used for the trades in this case) are âconstructedâ by the FCMs using âsoftware to process and distill currency prices offered by numerous banks and come up with an indicative market price.â"
As I said on that Webinar, keep in mind that this court case is before the new CFTC forex brokerage rules went into effect on Oct. 18, 2010. The retail forex industry should be run better with the new rules. Later in the call, we circle back on the "segregation of asset" rules and we will try to do more research on it for next week.
Update: We just noticed a troubling NFA news release dated Oct. 28, 2010 "NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC." Read the text of the entire Complaint included in the release.
Here's another similar NFA fine with release dated Oct. 28, 2010 "NFA orders monetary sanction of $320,000 against New York forex firm **** Global Markets." Per the NFA release, "The Complaint alleged that **** engaged in certain price slippage practices on the MetaTrader platform that were favorable to **** and caused disadvantageous trading conditions for certain customers. The Complaint also charged that **** failed to supervise the MetaTrader platform used for their forex business, and failed to supervise the firm's operations." I wonder if "slippage practices" are Rockwell Trading CEO is warning us about?
The CFTC and NFA are scrutinizing forex brokers more now after their Oct. 18, 2010 effective date for their RFED-registrations in accordance with their new CFTC rules for forex transactions, sanctioned by Dodd-Frank Fin Reg too. The NFA website has several good new guides including this one Updated "Forex Transactions: A Regulatory Guide.
American forex traders are being forced to trade with no more than 50:1 leverage on the major currencies (20:1 on minors), FIFO (no hedging rule) and without any form of money-protection. The point is that the leverage with currency futures is not far off 50:1 - you can get 30:1 on the CME - hedging may be easier with futures, and futures brokers must segregate assets for some protection. We will compare tax treatment between forex and futures next week. More forex traders may want to consider trading currency futures too.
No offense.. what can you or anyone really do?
Until the public realizes paying a monetary sanction to the NFA admitting no wrong doing and retaining your license to steal is essentially a payoff and bribe these practices will continue.
The sanctions just cover a small period of time and took 5 years for public disclosure by the NFA. How many client transactions did they pimp the spread on to generate this $459K payoff?
If they juice the spread when liquidating clients $50 / lot this payoff is chump change.
Whats to prevent them from continuing this fraudulent practice?
Who is going to police these matters and litigate claims for the next 5 years?
How about one strike and your out for life. Mandatory disgorgement of all gains and appointment of a receiver to liquidate the criminal enterprise?
But of course they have done nothing wrong but agreed to pay the NFA $459K. What for? a commission?
Until the public realizes paying a monetary sanction to the NFA admitting no wrong doing and retaining your license to steal is essentially a payoff and bribe these practices will continue.
The sanctions just cover a small period of time and took 5 years for public disclosure by the NFA. How many client transactions did they pimp the spread on to generate this $459K payoff?
If they juice the spread when liquidating clients $50 / lot this payoff is chump change.
Whats to prevent them from continuing this fraudulent practice?
Who is going to police these matters and litigate claims for the next 5 years?
How about one strike and your out for life. Mandatory disgorgement of all gains and appointment of a receiver to liquidate the criminal enterprise?
But of course they have done nothing wrong but agreed to pay the NFA $459K. What for? a commission?
Quote from Robert A. Green:
I (along with our Traders Association) am on this story too.
In a Webinar we did with Rockwell Trading on Wed 10/27, their CEO was complaining about forex trading platforms. He compared trading forex with a computer versus futures trading where buyers and sellers are matched on exchange. He complained about price slippage and more (mentioned below).
On our podcast yesterday, we discussed this CEO's concerns and other problems with American's being forced to repatriate foreign forex trading accounts back to the U.S., as required in the new CFTC forex rules effective on Oct. 18, 2010.
Here's an excerpt from our podcast page (being editing tonight). Sorry, we can't do links to our own site on Elite, but maybe someone else can for us. Thanks.
Oct. 28, 2010 Podcast
Click here for streaming mp3 file (75:00 length).
Subjects: Is forex safe? Year-end planning & tax changes, trader tax, investment management and more. Additional topics per email invitation.
Here are some of the highlights.
* Is forex trading safe in the U.S. even with RFED or FCM duly-registered brokers with the NFA/CFTC? U.S. forex brokers don't have "segregation of asset" money protection rules, whereas futures brokers are subject to those rules. The new CFTC forex rules call for higher minimum net capital requirements for RFED forex brokers versus futures brokers, so that helps cushion the concern about money protection issues. We compare forex trading with currency futures trading in several ways.
For warnings about hidden problems with forex brokers, see Erskine vs. CFTC 06-3896 http://caselaw.findlaw.com/us-6th-circuit/1106725.html . The CEO of Rockwell Trading brought up this court case and discussed his concerns about forex brokers and their platform-markets on our Webinar featuring Rockwell on Oct. 27. The CEO focused in on this quote in the case towards the top. "This forex market, which is central to this case, is not a public market, but is instead a ânegotiated market,â in which-according to the parties-foreign currency prices (the prices used for the trades in this case) are âconstructedâ by the FCMs using âsoftware to process and distill currency prices offered by numerous banks and come up with an indicative market price.â"
As I said on that Webinar, keep in mind that this court case is before the new CFTC forex brokerage rules went into effect on Oct. 18, 2010. The retail forex industry should be run better with the new rules. Later in the call, we circle back on the "segregation of asset" rules and we will try to do more research on it for next week.
Update: We just noticed a troubling NFA news release dated Oct. 28, 2010 "NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC." Read the text of the entire Complaint included in the release.
Here's another similar NFA fine with release dated Oct. 28, 2010 "NFA orders monetary sanction of $320,000 against New York forex firm **** Global Markets." Per the NFA release, "The Complaint alleged that **** engaged in certain price slippage practices on the MetaTrader platform that were favorable to **** and caused disadvantageous trading conditions for certain customers. The Complaint also charged that **** failed to supervise the MetaTrader platform used for their forex business, and failed to supervise the firm's operations." I wonder if "slippage practices" are Rockwell Trading CEO is warning us about?
The CFTC and NFA are scrutinizing forex brokers more now after their Oct. 18, 2010 effective date for their RFED-registrations in accordance with their new CFTC rules for forex transactions, sanctioned by Dodd-Frank Fin Reg too. The NFA website has several good new guides including this one Updated "Forex Transactions: A Regulatory Guide.
American forex traders are being forced to trade with no more than 50:1 leverage on the major currencies (20:1 on minors), FIFO (no hedging rule) and without any form of money-protection. The point is that the leverage with currency futures is not far off 50:1 - you can get 30:1 on the CME - hedging may be easier with futures, and futures brokers must segregate assets for some protection. We will compare tax treatment between forex and futures next week. More forex traders may want to consider trading currency futures too.