Karin Bertschi and her Team are earning huge amounts in the adult sex industry together with international investors. xratx.net or www.xrate-scenes.com/dvds and a new XrateToy shop are generating
1.0%-2.8% daily for 14-28 days!
The way I think of it (Pardon my 'USA' bias here) is that it's kind of a 'better business bureau' for forex firms.
Just my opinion,
Jeff
Thats not a good comparison. The BBB is well known to be corrupted by ignoring the bad business practices of any company that pays them to look the other way. Who's to say NFA is any different? It is afterall another privately run club.
The regulation by NFA hardly does much. Just makes sure the broker has enough money to cover the clients accounts. ... A bit extra for business etc. Prevent money laundering. Does not stop brokers from dirty tactics, etc....
As I have said before. Swiss regulation is far better. Its best to get into a swiss or UK regulated broker. The UK regulations are very tough...
I stand by my comment of going offshore rather than NFA. I have traded with 3 NFA regulated brokers, and are 3 were total and utter trash. 1 Has since been spanked in the face by the NFA (2 yrs too late if you ask me)...
BTW forex4noobs, your sarcasum gets you no where buddy.
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You are totally misinterpreting what I am saying, I am saying if you do go with a U.S. broker it is best that the broker is NFA registered, if only for the disclosure of capital NFA regulation is a must in a U.S. broker. I am not saying to not go off-shore I am saying that if you stay on-shore stick with an NFA broker. Sure they might screw traders over just like unregistered brokers would but at least with a registered broker I know their financial standing...
Anyway, it's 1:30 am, I am going to use some of that witty banter and sarcasm to get laid.
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While this report details balances as of only October 31, it is the last piece of independent data the public can use before the bell tolls in a few weeks. And don't think these firms don't know that. Furthermore, in light of the FXLQ scandal, the numbers you see here are more likely to be overestimates of how much capital these firms have so be sure to factor that into the equation.
At this point in time any firm that still isn't reporting capital of over $5 million should be avoided by the trading public at all costs. The risk is too large and as One World Capital has shown it just isn't worth it. The following 10 firms should be avoided at this point in time as they are at high risk for going out of business. If you have money with them, take it out, NOW.
1) SNC Investments: $1,152,000
They are well below the $5 million capital requirement. It is highly unlikely they will make the new requirement at this point. I advise customers to leave this firm and look for greener pastures.
2) Wall Street Derivatives: $1,228,000
This firm is based out of New Zealand and I'm not even sure they have any U.S. customers as their U.S. website is out of service.
3) Advanced Markets: $1,322,000
Amifx is already teetering on the brink as they are the subject of a business conduct committee case before the NFA in which they are cited for a whole host of financial violations including not meeting the old capital requirement. This firm does not have much of a future.
4) Hamilton Williams (VelocityFX): $1,345,000
This firm is a train wreck. They just got fined $90,000 by the NFA for not meeting the old capital requirement. Then they lost their liquidity provider when FXLQ got shut down. Now they can't accept any customers from their unregistered introducing brokers. This firm is literally on life support. Do yourself a favor and stay the hell aware from them before the regulators pull the plug on them once and for all.
5) Solid Gold Financial: $2,040,000
Solid Gold's future is now in serious doubt. Like many of the other firms on this list they have been charged by the NFA with failing to meet their existing capital requirement. When you can't meet the old requirement it stands to reason you won't be able to meet the new one either. Solid Gold is anything but a solid investment at this point.
6) Bacera Corporation: $2,300,000
Like a turd that won't flush Bacera Corporation just refuses to go down the drain. The Savior wrote Bacera off over the summer as sources knowledgeable about them stated they were going to close up shop. But no, they are still hustling the folks in LA for fresh deposits. In September Bacera settled a complaint with the NFA after it was discovered they were undercapitalized to the tune of $1.2 million. NFA reported Bacera only has about 200 customers as it is. But to those 200, do yourself a favor and get yourself another broker because sooner or later the pipes are gonna get cleaned and these guys are going to get flushed once and for all.
7) GFS Futures & Forex: $2,353,000
This firm is in an especially tight fix. They offer 200:1 leverage which means they need to come up with $10 million. And as this number shows they are far, far away from that.
8) Forex Club: $3,320,000
They still have not hit the minimum $5 million mark. And don't forget since they are a market maker they have other financial requirements to meet as well. They still haven't publically done so.
9) Easy Forex: $3,789,000
Under siege for their sleazy sales tactics, it's hard to imagine the NFA isn't going to drop the hammer on them soon.
10) Money Garden: $5,035,000
While they have crept up over the $5 million mark MG is notorious for their 400:1 "flexi" accounts which will require MG put up a minimum $10 million in capital in addition to other financial requirements for being a market maker. They are not even close to doing this despite their CEO's insistence they could easily get the money last summer. It looks like this veteran of the industry is about to be forcibly retired.
And so this is where we stand as of Friday, December 7, 2007. The new $5 million capital requirement kicks in on Friday, December 21, 2007. Two weeks to go. Tick Tock. Tick Tock.
I think we just need to withdraw our money from these firms now just in case they can not meet the new requirements ever I do like to trade with some of these firms on the list.
Well the CFTC has officially stepped in to put an end to the shenanigans at One World Capital. I have been reporting on the decline and fall of One World Capital for over six months now so this should be no surprise to anyone following this thread. But it appears that there is a serious shortage of funds at One World which is going to result in heavy losses for customers. This is exactly what I have been warning about for several months now.
CFTC Sues Forex Dealer One World Capital Group, LLC and Its President John Edward Walsh for Inability to Demonstrate it had Required Capital
Winnetka, Illinois Forex Dealer May Owe Millions to Customers
Washington, DC – The U.S. Commodity Futures Trading
Commission (CFTC) announced today that on December 13, 2007 it sued One World Capital Group, LLC (One World) of Winnetka, Illinois, a registered futures commission merchant (FCM), and its President, John Edward Walsh of Lake Forest, Illinois, charging them with inability to demonstrate compliance with capitalization requirements and with failure to maintain required books and records.
On the same day the case was filed, the CFTC won an asset freeze and other emergency relief that will enable the Commission to freeze the assets of One World and safeguard the interests of its customers.
The complaint alleges that One World has been unable to demonstrate that it has maintained at least $1 million in adjusted net capital, the minimum requirement needed for FCMs that are Foreign Currency Dealer members of the National Futures Association (NFA).
According to the CFTC complaint, since at least November 28, 2007, One World and Walsh failed to demonstrate compliance with the net capital amount as required by the Commodity Exchange Act and CFTC regulations. As of December 10, 2007, the complaint charges, One World failed to demonstrate that it had any net assets. While One World appeared to possess $554,000 of funds held in customer accounts, since at least November 2, 2007, the NFA has been receiving complaints from customers alleging that they are unable to get their funds back from One World. The complaint alleges that the amount claimed outstanding by customers exceeds $4 million. The complaint also alleges that Walsh conceded an inability to identify all of One World’s customer liabilities. Furthermore, the complaint charges One World and Walsh with failing to maintain books and records as required by a CFTC regulation.
$4 million owed to customers? This will not be a very Merry Christmas for the customers now trapped at One World Forex.
Well the CFTC has officially stepped in to put an end to the shenanigans at One World Capital. I have been reporting on the decline and fall of One World Capital for over six months now so this should be no surprise to anyone following this thread. But it appears that there is a serious shortage of funds at One World which is going to result in heavy losses for customers. This is exactly what I have been warning about for several months now.
An email is circulating around the net that FXLQ has apparently sent to their customers. The CFTC is about to sue them. FXLQ is in deep, deep, deep trouble:
We have temporarily suspended operations due to a Commodity Futures Trading Commission lawsuit filed against the company in Federal Court. Please be assured that as soon as we are able, we will return any messages.
There is a hearing in the U.S. District Court scheduled for January 4, 2008 where we hope to resolve all issues the CFTC has with our company.
Now that the CFTC has begun their investigation of One World Capital expect some rather unsavory things to come out in the next few months. The Chicago Sun Times just ran this story today on the suit filed against One World:
Federal regulators have obtained a court order freezing the assets of a Winnetka trading firm after customers said it denied them access to their cash.
The Commodity Futures Trading Commission sued the firm, One World Capital Group LLC, and its president, John Edward Walsh, 59, of Lake Forest. The firm specializes in foreign currency markets, allowing customers to conduct trading through specialized software.
The CFTC said that since Nov. 2, customers have reported that redemption requests exceeding $4 million have been denied. The agency, which regulates futures trading, also said One World has been unable to prove it has net capital of at least $1 million, the minimum required of foreign currency traders.
“It is true that some customer redemptions have not been satisfied,” said Kevin Flynn, an attorney representing Walsh. Flynn said his client is committed to working with the CFTC to resolve any complaints.
The firm has about 1,500 customer accounts, he said, adding that he couldn’t comment on its financial state.
The case is the third major complaint to be filed in recent months against Chicago-area trading firms. The CFTC and other agencies are investigating Sentinel Management Group Inc. and Lake Shore Asset Management Ltd. for alleged misappropriation of customer funds.
Walsh could not be reached. Records with the National Futures Association show that he started One World in 2005 after previous employment with several trading firms, including Rosenthal Collins Group LLC and Commerz Futures LLC.
The NFA also said he has been involved in three cases involving customer reparations, but details were unavailable.
Scott Williamson, deputy regional counsel for the CFTC, said the firm dealt mostly in the cash foreign exchange contract and phased out a business in futures contracts. He said Walsh may have improperly commingled customer funds with his own trading, or failed to hedge its risk.
So what happened to the money? Well sources are telling me that yesterday Charles Martin threw a big bash at the Chicago House of Blues that cost a fortune. Who is Charles Martin? Well he is the guy who applied with the NFA to become a principal of One World Capital but was turned down because: http://www.nfa.futures.org/basicnet/...17&contrib=NFA
Quote:
in 1997, in the Circuit Court of Cook County, Illinois, Martin pled guilty to the felony offense of possession of less than 15 grams of cocaine. The Notice of Intent charged that Martin's guilty plea to a felony offense disqualifies him from registration under Section 8a(3)(D) of the Commodity Exchange Act ("Act").
In addition, the Notice of Intent alleged that in 2000, also in Cook County, Illinois, Martin pled guilty to and was found guilty of the misdemeanor offense of theft. The Notice of Intent charged that Martin's guilty plea to and conviction of a misdemeanor offense involving theft disqualifies him from registration under Section 8a(3)(E)(iii) of the Act.
I love Martin's response to the NFA's decision to deny his principalship. He, "did not deny the allegations contained therin. However, he stated that he intended to show that his conditioned registration would not pose a risk to the public."
Riiiiiiiiiiiiiight. Why didn't he just claim to have found Jesus? The NFA still rejected Martin in any case. But that didn't stop him from running the show at One World. The NFA says in its own complaint against One World earlier this year that "NFA received information that Martin was in charge of One World's entire operation and was acting as an undisclosed principal of the firm." http://www.nfa.futures.org/basicnet/...17&contrib=NFA
Last month One World "Agreed" to never allow Charles Martin to set foot in their office again in a settlement with the NFA. But looks like the damage has already been done. Within weeks of the NFA's decision the firm went bust. And Mr. Martin can be seen hoisting a Cold Frosty One at a downtown Chicago bar, laughing all the way to the bank...
The big NFA members can now say goodbye to their competition. A bad thing for all retail forex traders the world over. 2 or 3 big firms with a monopoly will never make things better.
Fair enough with the 5 million limit. You want to know your broker is well established, but 20 million? That should come under the watchful eye of antitrust legislation.
The quick solution is not to use US based brokers any more. You just don't know when some big corporate war is going to get your funds frozen.
Re: Proposed NFA capital requirements
Hybrid Mode
