[airjiro]

Scholar still no word on atcbrokers.com ?

[forexscholar]

Originally Posted by airjiro

Scholar still no word on atcbrokers.com ?

I'll have something aobut them next week

[forexscholar]

Originally Posted by forexscholar

I'll have something aobut them next week

ATC is a registered Introducing Broker with the NFA. It appears they introduce clients to GFT Forex. On the surface they appear to be a legit broker.

[forexscholar]

With all these bogus claims from small time brokers claiming they are regulated because they hold a “certificate” they managed to pull out of a cereal box it is hard to know what to believe these days when a firm states they are “licensed.”

And perhaps no firm straddles the line between licensed and unregulated more than a firm by the name of GCI Financial. A reader asked me to provide some background on GCI recently and after doing a quick Internet search I found myself once again swimming in the deepest, darkest, murkiest depths of the Forex Ocean in search of that most dangerous dorsal finned predator of all- the offshore FX boiler-room.

GCI appears to have been started back in the 1990’s and used to be a U.S. based company with its CEO, Mitch Vasquez, living in Wilton, CT. It didn’t take too many clicks of the mouse to discover that GCI had been busted by the CFTC under the headline “CFTC CRACKS DOWN ON FOREIGN CURRENCY SCAMS NATIONWIDE.”
http://www.cftc.gov/opa/enf02/opa4611-02.htm

The complaint itself charged GCI for violating the Commodity Exchange Act. In short, the CFTC was taking GCI to court because they had not registered with the NFA (Hello FXDD! This could someday happen to you!)
http://www.cftc.gov/files/enf/02orders/enfgci-order.pdf

Also cited in this lawsuit was Vazquez. In 2002, Vazquez and GCI settled the suit and as part of the settlement Vazquez paid a $100,000 fine and agreed to

“for a period of three years, not to act in any capacity or affiliate in any way with any individual or entity which involves the solicitation, acceptance of orders, transmissions of orders, execution, advice related to, pooling of funds, or recommendation for or of futures contracts, options on futures contracts, or options on foreign currency either (i) for or on behalf of any U.S. citizen or U.S. resident, regardless of where cleared or conducted; or (ii) that are cleared or conducted in the U.S., whether on or off-exchange, regardless of the citizenship or residency of the parties.

Sounds pretty clear to me. Basically, Vazquez and GCI were expected to close their doors and get out of the FX business.

But apparently GCI didn’t see it that way. Instead, they submerged beneath the water and headed to Belize. Well at least their “State of the Art” dealing room fled to Belize. But Vazquez doesn’t appear to have gone anywhere as a FEC filing showed he contributed $2000 to George Bush’s Presidential Campaign in 2004 where he listed an address in New Canaan, CT.
http://fundrace.huffingtonpost.com/n...fname=MITCHELL

Meanwhile in Switzerland (cue up Jaws music)…

According to the gossip on the bulletin boards Vazquez had apparently branched out into the notorious Swiss Market. Rumor has it that GCI and GFX (Forex.CH) are the same firm. This was news to me. But several people have stated that Vazquez is also a director at GFX and also points out that the websites of GCI and GFX are remarkably similar and also housed on the same servers?
http://www.elitetrader.com/vb/showth...threadid=76386
http://www.forexfactory.com/showthread.php?t=7884
http://www.forexpeacearmy.com/public...e=0&perpage=10

Also, it appears that GFX has recently gotten into some trouble with the Swiss Government according to one trader who cited this (translation welcome if anyone speaks Francais):
http://rc.geneve.ch/rc/consultation/...-660-1425005-9

As for GCI, it claims registration in Belize and you can actually verify they are in fact licensed by the regulatory authorities there:
http://www.ifsc.gov.bz/licensed_provider.html#f

Strangely, GCI doesn’t provide this link on their website which would allow traders to verify this independently which I just did as the Savior is nothing if not fair and balanced.

The reason GCI may be quiet about their regulatory status with Belize officials is because the IFSC does not actually do much aside from collect fees and provide “guidelines” to businesses. In fact, they state on their own website:
http://www.ifsc.gov.bz/about.html

“The Commission relies on self-regulation, meaning that while government sets overall standards, it expects much of the actual work in terms of monitoring and compliance to be done by the industry itself.”

Bwahahaha! As if a forex firm that has been driven out of the United States for being a “scam” is going to properly “self-regulate” itself. This tells you about all you need to know about the quality of Belize regulation.

So what should traders take from all this? Common sense would dictate that traders avoid GCI. Their compliance history is poor and their current regulators in Belize clearly don’t give a damn what they do so long as they pay their bills on time. At the end of the day GCI is just another shark in the water. Here’s hoping someone harpoons them and sends them to the bottom of the ocean from whence they can never be dredged up again.

[forexscholar]

This is going to be a post rife with Texas sized clichés. How can it not be with a company with a name like “eToro” that has a logo with a pair of bull horns jutting out of it?

First of all who are these guys? Well they are one the newest FX brokers in the market who are taking a very novel approach to currency trading. They also have ties to the online gambling rackets as their CTO is David Ring who was a key R&D leader at Israeli-based 888.com (a major online casino and poker operator) according to this feature article that came out last fall:
http://www.techcrunch.com/2007/11/27...de-childs-play

But this Israeli firm’s ties go much deeper than to just an Internet gambling website (and please spare me the term “gaming.”) They also have connections to none other than Shimon Peres, the President of Israel. It appears Shimon Peres’ son, Chimi Peres, is one of eToro’s private investors:
http://www.pitango.com/team_member.asp?ID=25

So how is eToro standing out in the marketplace aside from their exotic resume? Well they have created the first forex video game. You have to see the screen shots to believe them:
http://www.techcrunch.com/wp-content/etoro_match.jpg
http://www.techcrunch.com/wp-content/etoro_marathon.jpg

But aside from the cute cartoon characters inhabiting its software (which led one trader to state eToro should rename itself “eTarded”) the truth is eToro is just shoveling the same old Bull at traders. What makes me say that? Well, when I asked them if they were regulated they gave me the ol’ Texas Two Step. Check out this chat transcript below:

Daniel: Welcome to eToro! How can I help you?
you: I was interested in opening a new account with you and see that you are based in Cyprus. Are you registered with the Cyprus Securities and Exchange Commission?
Daniel: of course
you: oh good. what is you Cyprus sec number?
you: i don't see you firm listed in their database
Daniel: I'm sorry. I can only give you support regarding our platform
Daniel: for more information you can address our website
Daniel: or retailfx's website
you: but your website says nothing about you sec license
you: what is retail fx's website?
Daniel: http://www.retailfx.com/
Daniel: this is our worldwide broker
you: this website says nothing about your license either
you: so do you have a license or not?
Daniel: I'm not sure what you are looking for
Daniel: i can help you regarding our platform
you: Do you have a Cyprus Securities and Exchange license?
Daniel: we do have a license
you: is it a Cyprus SEC license?
you: What kind of license do you have?
Daniel: I'm sorry... I don't know these details. I can only give support regarding our platform
you: ok do you have an email address?
you: who can I speak to about this?
Daniel: support@etoro.com
you: I just want to make sure you are a legitimate company
you: there are a lot of scammers in fx
Daniel: we are totally legit
Daniel: you can check with IFX
you: who?
Daniel: and the NFA
you: nfa?
you: you have an nfa license?
Daniel: IFX..our US broker
Daniel: we are regulated by the NFA
you: eToro has a nfa license?
Daniel: would you please send us an organized email with all of your questions?

eToro is an Israeli company with a Cyprus address and a British Virgin Islands Registration. Now what kind of business arrangement is that? That is about as unaccountable as you can get. When I asked their chat representative if they have a Cyprus SEC license (which they should have if they have an office in Cyprus and are soliciting customers from Cyrpus) the rep says “of course.”

When I point out that eToro is not listed as having a license at the Cyprus SEC website I’m directed to another company that supposedly has a license, retailfx.com, I find they don’t have a license either. At which point the customer service rep breaks down and blabbers about their arrangement with IFX.

Clearly eToro talks the regulatory talk but they don’t walk the regulatory walk.

So what about this link with IFX? Well it turns out that eToro can’t accept U.S. customers. Hmmm. That’s strange. Plenty of offshore forex brokers accept U.S. customers. Why not eToro? Instead, eToro has to rely on IFX who is apparently white labeling eToro’s Sony Playstation, er, forex trading software.

It’s pretty obvious why eToro can’t accept U.S. customers. It’s because they are nothing more than a gambling shop and online casinos outside the U.S. are not allowed to accept U.S. customers. eToro’s lawyers are obviously worried that Uncle Sam will come after them with a vengeance if they start soliciting customers (not to mention the MGM Grand, Powerball, Pat Robertson, Ralph Reed and Mike Huckabee.)

What does that tell you about the kind of dealing desk these guys are running? The firm is a straight up casino- they only make money if you lose money. It is market making on anabolic horse steroids. In short, it is every currency trader’s worst nightmare come true.

By the way I sent eToro an email asking for clarification on their regulation. Of course there was no reply. Lord somebody fence these guys in…

[airjiro]

and this too deltastock.com thanks

[zidit]

Thx

[forexscholar]

Six weeks ago I reported on the danger of trading with FXDD because they were the only forex firm in the United States that had neglected to get a license from the NFA.
http://www.fxstreet.com/forum/showpo...&postcount=127

Well it appears FXDD took my criticism to heart.

FXDD Announces Pending NFA Approval

NEW YORK, NY May 7, 2008 – FXDD, a global leader in online foreign exchange trading, today announced its applications for becoming a National Futures Association (NFA) member and for registration as a Futures Commission Merchant (FCM) with the CFTC are pending approval. Clients may follow FXDD progress through the registration process by logging on to the NFA’s website (National Futures Association - NFA is a regulatory service provider for the derivatives markets) and searching the BASIC system under its NFA ID number 0397435.

“The pending reauthorization legislation for the CFTC will fill the gaps left by previous legislation and narrow the playing field for entities in the Forex space. The value of companies as registered entities and non-registered entities is driven by many factors; registration is certainly one of those factors,” commented James E. Green, FXDD’s chief legal counsel. “FXDD is always interested in increasing its business under the appropriate circumstances by providing professional service and promoting certainty and clarity as to the government and private agencies responsible for regulating Forex dealers.”

All I can say is, it's about time! Count that as another victory for retail forex traders. The Scholar's work goes on...

[airjiro]

We would like to thank you for the loyalty and support you have shown to our company all these years. It was a great honor to have you as one of our valuable and esteemed clients.

The many changes that have taken place recently affected our industry and in particular the provision of online trading services for Forex and CFDs. Due to various events and the increasing demand from investors and regulators, the whole industry is moving under the supervision and regulation by competent financial authorities. Based on the above, and to ensure the best interests of our clients, we have decided the following:

EuroOrient Securities and Financial Services Ltd, owner of FxPro.com, will acquire all operations of North Finance Co Ltd as of June 1st 2008.

Who are EuroOrient and FxPro.com
EuroOrient is a European company, registered in the Republic of Cyprus (certificate 181344) and it is regulated in the European Union by the Cyprus Securities and Exchange Commission (www.cysec.gov.cy) under license 078/07. The trade name "FxPro" and the domain "www.FxPro.com" are owned by EuroOrient. You can verify the information on EuroOrient and FxPro by visiting the websites www.FxPro.com and www.EuroOrient.eu.

FxPro offers competitive dealing spreads starting from 1.8 pips, plus other superior trading conditions to investors who would like to trade in CFDs for Forex, Stocks, Futures, Precious Metals; more than 120 financial instruments in total. FxPro provides investors with the highest standards of professional service and operates a 24/5 multilingual customer support.

Transfer to FxPro.com by 31th May 2008
To continue trading with the existing terms and conditions after EuroOrient takes over the operations of North Finance on 1st June 2008, you need to follow the 3 simple steps below and accept their Terms and Conditions:

1 2 3
Transfer to FxPro.com → Login into StongBox → Accept Terms → Verify Data

Please follow this link: https://fxpanel.northfinance.com/

By following the above procedure, as of 00:01am (GMT+2) 1st June 2008 you will automatically become a Client EuroOrient Securities and Financial Services Ltd, a European investment firm regulated in EU by the Cyprus Securities and Exchange Commission (www.cysec.gov.cy) under license 078/07.

Until the 31st of May 2008, your account (Cash Balance and Open Positions) will be under the responsibility of North Finance Co Ltd.

All of your OPEN Positions and Positive Cash Balance will be transferred safely to EuroOrient Securities and Financial Services Ltd where you can access your account with the same Login and Password Codes at no extra cost and no hassle.

Attached please find all relevant documents which refer to the services offered by FxPro which are the ones that will govern your relationship as a client of this company. Please do not hesitate to contact us should you require further information or clarification on the above. Please read the important notes that follow. We are always at your disposal to answer your questions.

For assistance with the transfer of your account or for any other questions you might have you can also contact FxPro at NF@FxPro.com or by calling FxPro support team at +357 25 969222.

Closing, we would like to thank you once again for your cooperation and support.

Yours sincerely,

North Finance Co. Ltd
https://fxpanel.northfinance.com/

Important Notes

North Finance Co Ltd will continue to operate as an Introducer referring clients to regulated brokers such as FxPro for execution of trades in Forex and CFDs.
As of 1st June 2008, North Finance Co Ltd will stop executing and providing directly online trading services for Forex and CFDs.
New accounts will not be accepted as of May 7th 2008.
In order to process the transfer of the Trading Platform, the account balances and any open positions to FxPro accurately and safely, new deposits will not be accepted after the 31st of May 2008.
EuroOrient will take all the necessary steps to upgrade the trading platform that you are currently trading on in order to be able to offer to you the same terms and conditions it currently provides to its existing clients through FxPro. The upgrade of the platform, which is crucial for the above to happen, is expected to be completed by the 31st of August 2008. You should be aware that should you choose the present option, you might be treated differently than the existing and new clients of FxPro until August 31st 2008 when the trading platform is expected to be upgraded.
If by the expiration of this notice you do not accept the CFDs Terms and Conditions of EuroOrient to trade through FxPro as mentioned in point A above, we will perceive this as your decision to close your trading account with North Finance Co. Ltd. In such an event our Company will follow the procedures of closing your account and will keep the positive balance of your trading account (after closing all OPEN positions) in our bank account for a period of twelve (12) months. Please note that there will be a monthly account maintenance fee of US $10.
If we do not hear from you after the 12 month period (until 31st of May 2009), North Finance Co. Ltd will try to send the positive balance of your account, after deducting the monthly maintenance fee, by Electronic Wire Transfer to the account of origin (the account from where our Company received your funds initially) at no extra cost from our Company.
If you decide to continue trading with EuroOrient your personal data has to be disclosed to them in order to set up your correct account details.
You can open a new trading account with FxPro within few minutes by filling the online application. All of your funds (positive balances) could be transferred from North Finance FREE of charge (upon approval of your application from FxPro).
You can also choose to close your existing account with us by sending us a notice, as per our agreement, the latest by May 23rd 2008. In such an event our Company will follow the procedures of closing your account and will send the positive balance of your trading account (after closing all OPEN positions) by Electronic Wire Transfer to the account of origin (the account from where our Company received your funds initially) at no extra cost from our Company.
For assistance on opening a trading account with FxPro you may contact their dedicated team at NF@FxPro.com or call FxPro support at +357 25 969 222.

[awty]

*advertising* NOT appreciated.
Just my opinion,
Jeff