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Proposed NFA Capital Requirement
- Thread starter forexsavior
- Start date
Quote from jjf:
What Fx Broker(s) would you suggest makes the cut these days.
Start with the below brokers.
Forex Club $22,409,000
PFG $26,005,000
CMS Forex $29,255,000
Interbank FX $39,945,000
FX Solutions $43,785,000
GFT Forex $76,055,000
FXCM $98,456,000
Gain Capital $107,390,000
Oanda $169,501,000
Quote from operator:
Start with the below brokers.
Forex Club $22,409,000
PFG $26,005,000
CMS Forex $29,255,000
Interbank FX $39,945,000
FX Solutions $43,785,000
GFT Forex $76,055,000
FXCM $98,456,000
Gain Capital $107,390,000
Oanda $169,501,000
Thanks op.
I know Oanda is a Canadian LLC but do you know if it's trading is governed by Canadian law or is the trading arm splintered off to el caribe.
FXCM seem to offer a reasonable package.
Will they accept trades on or around news flashes.
Any thoughts on non US Fx Brokers.
jjf
Saw this is DIGG today. FXDD solid at over $44 million while other firms struggle. Good to see that they are above the minimums.
Yet their status is still "pending" as an FCM - since April 2008.
Seems like they are still having some problems.
Seems like they are still having some problems.
Police Raid ACM
Disturbing news out of, where else; Switzerland, that the police have raided the offices of Swiss forex broker ACM for possible fraud. Youâll remember ACM fled the U.S. after they failed to come up with enough capital to stay in business. They are trying to get a banking license in Switzerland but to date only have an application pending with Swiss authorities. That application just got a lot more complicated.
Francesc at FX Street has been linking to several articles in the Swiss Press which details the investigation:
http://blogs.fxstreet.com/francesc/...d-acm-geneva-office-in-fraud-probe-on-friday/
The main article appeared in Swisster:
http://www.swisster.ch/en/news/business/police-raid-geneva-forex-firm-in-fraud-probe_116-1451105
28 police officers?! Sounds like the raid that took place at the end of the movie Boiler Room where a swarm of agents falls upon Vin Diesel and company.
ACM has countered that this mysterious Mexican plaintiff is just making it all up:
http://blogs.fxstreet.com/francesc/...ing-victim-to-former-client-malicious-intent/
Another newspaper article that Francesc links to then goes on to explain that the Mexican plaintiff was tipped off by an ex-ACM employee about some bad pricing or something from the summer of 2008. ACM insists this rogue employee gave the Mexicans false statements which the plaintiff then used to blackmail ACM?
http://blogs.fxstreet.com/francesc/...on-of-fraud-to-be-falsified-according-to-acm/
What a mess. Not sure who to believe here. But I canât imagine that 28 police officers would storm a business, seize computers and files, and interrogate management- all on the hearsay of one disgruntled foreigner.
Stay tuned, we may have another Crown Forex on our hands.
Iâve said it before, Iâll say it again, do not trade with a Swiss broker UNLESS they have a banking license!
Disturbing news out of, where else; Switzerland, that the police have raided the offices of Swiss forex broker ACM for possible fraud. Youâll remember ACM fled the U.S. after they failed to come up with enough capital to stay in business. They are trying to get a banking license in Switzerland but to date only have an application pending with Swiss authorities. That application just got a lot more complicated.
Francesc at FX Street has been linking to several articles in the Swiss Press which details the investigation:
http://blogs.fxstreet.com/francesc/...d-acm-geneva-office-in-fraud-probe-on-friday/
The main article appeared in Swisster:
http://www.swisster.ch/en/news/business/police-raid-geneva-forex-firm-in-fraud-probe_116-1451105
A squad of 28 police officers raided the downtown Geneva offices of currency trading company ACM and seized documents, a computer and other evidence in a suspected financial fraud case. Swisster discovers the unprecedented affair, being directed by an inspector and detective for the cantonal forceâs financial fraud brigade, may take weeks to unravel and has involved the questioning of top officials from the company, who are refusing to comment.
28 police officers?! Sounds like the raid that took place at the end of the movie Boiler Room where a swarm of agents falls upon Vin Diesel and company.
In addition, senior officials were questioned by police, although Pulh said no-one has been arrested. A company employee told Swisster that a trader and four of the companyâs senior management, including Nicholas Bang, deputy general manager and one of ACMâs founders, were contacted at their homes early Thursday and taken in for questioning.
âWe are being told that it has to do with a client from two years ago based in Mexico who had lost a lot of money from the company,â the informant said. âThe client was looking for documents to see if there was any misappropriation.â
ACM has countered that this mysterious Mexican plaintiff is just making it all up:
http://blogs.fxstreet.com/francesc/...ing-victim-to-former-client-malicious-intent/
On Thursday the 2nd of April, on the basis of counterfeit documents produced by a former client, the authorities in Geneva visited ACMâs offices.
Collaborating in a transparent and active way, ACM delivered all information required.
All elements prove ACMâs good faith and it remains clear that the company has fallen victim to a former client bent on malicious intent.
In return, ACM has lodged a complaint against this former client with accusations of blackmail, defamation and forgery of documents.
Another newspaper article that Francesc links to then goes on to explain that the Mexican plaintiff was tipped off by an ex-ACM employee about some bad pricing or something from the summer of 2008. ACM insists this rogue employee gave the Mexicans false statements which the plaintiff then used to blackmail ACM?
http://blogs.fxstreet.com/francesc/...on-of-fraud-to-be-falsified-according-to-acm/
What a mess. Not sure who to believe here. But I canât imagine that 28 police officers would storm a business, seize computers and files, and interrogate management- all on the hearsay of one disgruntled foreigner.
Stay tuned, we may have another Crown Forex on our hands.
Iâve said it before, Iâll say it again, do not trade with a Swiss broker UNLESS they have a banking license!
February Net Capital Report
The CFTC has just released their latest net capital figures. For the most part it is the same as last monthâs report.
http://www.cftc.gov/marketreports/f...rfcms/index.htm
The following firms have net capital below $20 million
Easy Forex $15,267,000
MB Trading $15,449,000
GFS Forex $16,008,000
Ikkon Royal $16,310,000
I Trade FX $16,811,000
Alpari $19,563,000
Advanced Markets $19,779,000
The following firms have net capital above $20 million
Forex Club $21,536,000
PFG $26,053,000
CMS Forex $29,132,000
Interbank FX $37,816,000
FX Solutions $49,298,000
GFT Forex $84,505,000
FXCM $101,546,000
Gain Capital $105,049,000
Oanda $169,205,000
As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new $20 million capital requirement going into effect in the months ahead.
The CFTC has just released their latest net capital figures. For the most part it is the same as last monthâs report.
http://www.cftc.gov/marketreports/f...rfcms/index.htm
The following firms have net capital below $20 million
Easy Forex $15,267,000
MB Trading $15,449,000
GFS Forex $16,008,000
Ikkon Royal $16,310,000
I Trade FX $16,811,000
Alpari $19,563,000
Advanced Markets $19,779,000
The following firms have net capital above $20 million
Forex Club $21,536,000
PFG $26,053,000
CMS Forex $29,132,000
Interbank FX $37,816,000
FX Solutions $49,298,000
GFT Forex $84,505,000
FXCM $101,546,000
Gain Capital $105,049,000
Oanda $169,205,000
As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new $20 million capital requirement going into effect in the months ahead.
Good News/Bad News for U.S. Traders
The NFA has announced that two new rules have been approved by the CFTC and will take effect in the next two months.
http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2273
Rule Number One is the bad news as it bans the practice of âhedging.â
Rule number two is the good news, as it severely restricts a forex dealer from adjusting prices after an order has been executed.
The second rule is a huge boon to the trading public. No longer will brokers be able to just cancel winning trades from customers because of supposed âprice spikesâ while simultaneously allowing losing trades to get booked on those same spikes.
Over all, this is a net positive for the trading public. While the hedging rule is heavy handed, customers can always open two accounts and just go long and short in each one. But the price adjustment rule more than makes up for that. Kudos to the NFA.
The NFA has announced that two new rules have been approved by the CFTC and will take effect in the next two months.
http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2273
Rule Number One is the bad news as it bans the practice of âhedging.â
New Compliance Rule 2-43(b) requires an FDM to offset positions in a customer account on a first-in, first-out basis, thereby prohibiting a trading practice commonly referred to as "hedging." A customer may, however, direct the FDM to offset same-size transactions even if there are older transactions of a different size. Rule 2-43(b) is effective for any positions established after May 15, 2009. Offsetting positions that were established prior to the effective date do not have to be liquidated, but once either position is closed out after May 15, it may not be reestablished as a hedge.
Rule number two is the good news, as it severely restricts a forex dealer from adjusting prices after an order has been executed.
For orders executed after June 12, 2009, Compliance Rule 2-43(a) will prohibit an FDM from adjusting executed customer orders, with two exceptions. The first exception is where the adjustment is done to settle a customer complaint in favor of the customer. The second exception is where an FDM exclusively operates a "straight-through processing" model and the liquidity provider with which it entered into the automatic offsetting position changes the price of an executed order with the FDM.
Pursuant to the new rule, an FDM that adjusts an executed customer order based on an adjustment by a liquidity provider must provide notice to the affected customer within fifteen minutes of the customer order being executed.
The notice must state that the FDM intends to cancel or adjust the order and must include documentation of the price adjustment from the liquidity provider. The FDM must either cancel or adjust all customer orders executed during the same time period and in the same currency pair or option regardless of whether they were buy or sell orders. All cancellations or adjustments of executed customer orders must be reviewed and approved by a listed principal of the FDM who is also an associated person. Such review must be in writing and include the documentation from the liquidity provider, and the written review and documentation must be provided to NFA at forex@nfa.futures.org. Finally, any FDM that may elect to cancel or adjust executed customer orders based upon liquidity provider price changes must provide customers with written notice of that fact prior to the time they first engage in forex transactions.
The second rule is a huge boon to the trading public. No longer will brokers be able to just cancel winning trades from customers because of supposed âprice spikesâ while simultaneously allowing losing trades to get booked on those same spikes.
Over all, this is a net positive for the trading public. While the hedging rule is heavy handed, customers can always open two accounts and just go long and short in each one. But the price adjustment rule more than makes up for that. Kudos to the NFA.