I think NFA should regulate FCMs by monitoring their business activities to prevent bad things from happening to Forex clients, such as trading against clients than do Stop hunting and spiking price. I also think if clients's funds are segregated from FCM's funds is much better than just shutting down smaller firms.
We need more FCMs competing for our benefits instead of letting few larger firms to control the market.
Forexscholar, can you explain why most of your healthy Forex firms have their financial ups and downs so dramatically in the past few months?
I agree with you there and just becaucse a firm has a lot of capital doesn't make them less shady. There are quite a few so called large firms but I wouldn't touch them with a 12 foot pole because of how they operate.
__________________ Managed forex accounts, pm for details
It's been close to two months since I started reporting on Dead Forex Firms Walking. Since my first post much has changed and the list is in need of an update. So here it is, Introducing:
Advanced Markets ($1,021,000)
American National Trading Corp ($1,985,000)
Bacera Corporation (Shutdown!)
Cal Finanical Corporation (Shutdown!)
Direct Forex ($1,406,000)
E FX Options ($2,631,000)
Forex Club ($2,873,000)
FiniFX ($1,314,000)
Forward Forex (Shutdown!)
FX Option1 Inc (Shutdown!)
GFS Futures & Forex ($2,223,000)
Hamilton Williams ($1,202,000)
***I TRADE FX REMOVED FROM THIS LISTING AT POSTER'S REQUEST ***edited by awty***
MB Trading ($3,952,000)
Money Garden ($3,627,000)
Nations Investments (Shutdown!)
One World Capital ($1,502,000)
Performance Capital International ($483,000)
Royal Forex Trading ($1,088,000)
SNC Investments ($1,510,000)
Solid Gold Financial ($2,039,000)
Spencer Financial (Shutdown!)
Trend Commodities (Shutdown!)
United Global Markets (Shutdown!)
Worldwide Clearing (Shutdown!)
Wall Street Derivatives ($936,000)
Unregulated Firms (Buyer Beware)
FXDD (?) ***NOTE - FXDD is NOT regulated by the NFA ***edited by awty***
GCI (?)
Cletus' Fishing & Forex (?)
So there you have it. A total of NINE licensed forex dealer members have recently been closed by the NFA. Anyone still doubt this new $5 million cap requirement rule will be passed soon? I didn't think so. Certainly more closures await the dead forex firms walking in the days ahead. Hopefully you won't have money in one of them when they go under. In any case, I'll be here to report all the gory details.
It has come to my attention that this post “Forward Forex Follies Part III” (http://www.talkgold.com/forum/showpo...3&postcount=28) contains a number of inaccuracies and errors which I’m no longer able to edit/delete. As such I am issuing a full retraction of this post and request the moderators delete this post in fairness to the firm in question, Trend Commodities Limited. I strive to try and be as accurate as possible when doing these posts and feel this post in particular does not meet such a standard. Apologies. Forex Scholar.
---
***edited by awty***
The post has been removed per your request. If anyone has ANY problems with that, feel free to let me know.
Jeff
As of August 2, 2007, this is where we stand in regards to the NFA proposal to raise capital requirements to $5 million:
FX Week states, "Following redrafting to include industry feedback, the proposals will be presented to the NFA board in August and then to the CFTC, and are not expected to be effective until the end of the year, the NFA explained." http://www.fxweek.com/public/showPa....Fpage%3D459830
So if the proposal passes all the firms in the forex dealer dead pool, which from all appearances are currently meeting their capital requirement, will have several months to meet the new one. The big question is should this pass which will meet it and which ones won't? And for those that cannot meet the new requirement what will happen to the firms, and more importantly the customers of these firms? You could have a situation where one of the proprietors of these firms runs off with customer funds in the last hours. You could also see a situation where the NFA goes in to close a firm only to discover they have no money left and the firm then gets forced into bankruptcy.
Now, the likelihood of this happening to firms with $3 or $4 million in capital is a lot less than with firms with only $1.5 million in capital. But the whole point of this thread is to point these dangers out to the trading public and then let them draw their own conclusions.
It has come to my attention that this post “Forward Forex Follies Part III” (http://www.talkgold.com/forum/showpo...3&postcount=28) contains a number of inaccuracies and errors which I’m no longer able to edit/delete. As such I am issuing a full retraction of this post and request the moderators delete this post in fairness to the firm in question, Trend Commodities Limited. I strive to try and be as accurate as possible when doing these posts and feel this post in particular does not meet such a standard. Apologies. Forex Scholar.
I think NFA should regulate FCMs by monitoring their business activities to prevent bad things from happening to Forex clients.
Um.. don't they already do that? It's good to see all these cases out in the open. It just goes to show how many of these so called NFA regulated outfits are nothing more than regulated scams.
The CFTC has just released their latest net capital figures. The big news is that everyone is doing well. Firms are seeing big jumps in net capital as forex brokers appear to be raking in the cash in this volatile market. It doesn’t appear that anyone has had difficulty clearing the $10 million hurdle judging by the fact the NFA has not closed down anyone since Halloween (although AMIFX continues to report way below the $10 million requirement although keep in mind CFTC reports lag a full month behind the current date.) The only other change appears to be that IFX and FX Solutions have formally merged as IFX is no longer listed on the CFTC Report.
The following firms have net capital below $20 million
Hotspot $10,021,000
Ikon $10,424,000
GFS Forex $11,908,000
MB Trading $14,245,000
ODL $15,180,000
I Trade FX $17,258,000
Alpari $17,437,000
The following firms have net capital above $20 million
FX Solutions $21,197,000
CMS Forex $22,018,000
PFG $22,038,000
Interbank FX $37,596,000
GFT Forex $67,073,000
Gain Capital $77,580,000
FXCM $114,299,000
Oanda $168,344,000
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.
Last month the S.S. Saxo Bank forced hundreds of employees to walk the plank in a furious effort to keep their Danish Longship from taking on any more water amidst the financial tsunami that has engulfed CFD brokers around the world. But it is another former shipmate of Saxo that has now taken to his Somalia-like pirate ship to fire pot shots at this listing to port Viking Broker. Ahoy it’s Charles-Henri Sabet! With parrot perched on shoulder and a black eye patch in place Sabet has Saxo in his sights…
According to Euromoney Magazine in an article titled “Charles Henri Sabet Bites Back in Saxo Saga” Sabet says that he was exiled to Davey Jones locker because of a shareholder dispute, not because of an SFBC investigation of alleged insider trading.
“This is really about an argument between shareholders,” says Sabet. “I still own around 5% of Saxo and I was not happy with what I saw as the bank’s domestic focus. I offered to leave, but I wanted Saxo to buy my shares as was agreed when it took over Synthesis,” he adds. Sabet says that Saxo is now focused on becoming a well-known name in Denmark, including giving backing to the small, centrist Liberal Alliance political party.
So how did this investigation come about? Euromoney states:
Quote:
Saxo has declined to comment on whether or not the investigation came about because it informed the regulator of an irregularity, rather than the SFBC acting because it suspected suspicious activity. But a letter from the commission makes it clear it was informed by Saxo of the issue.
So instead of paying Sabet his share of Saxo’s booty the scallywags in Denmark simply ratted him out to regulators? Shiver me timbers that’s a low thing to do to a mate. But Sabet wasn’t the only one sent to the brig.
Quote:
Sabet says he is also particularly upset that his dismissal was followed by a purge of his former employees, including his chauffeur. He believes that he will be fully exonerated when the SFBC reports its findings. In the meantime he is preparing to take legal action to clear his name and to complete the deal that was agreed when he sold Synthesis Bank to Saxo in September 2007; this included the verbal agreement to purchase his remaining shares in the bank.
Yarrrgh matey, Saxo ain’t likely to depart from its treasure anytime soon. This Sabet fellow could be waiting a long time before he sees one gold doubloon from the cash strapped folks in Denmark. I reckon Sabet would have a better chance demanding ransoms from oil tanker owning Saudi princes than from a forex and cfd broker that had been spending money like a drunken sailor on shore leave prior to the financial panic.
Arrgh, Sabet best crack open a bottle of Rum and batten down the hatches cause Saxo will fight him to the last cannon ball over that 5% share. To be continued I’m sure.
Re: NFA Dead Forex Firms Walking
Hybrid Mode
