NFA Dead Forex Firms Walking

forex scholar said:
you play with FIRE nghia1973 when you trading with FXDD. They still don't have a license and nobody knows if they can meet the cap requirement.
Click to expand...
:mad:What? When I first got into forex. I brought the PremiereTrade AI software and they said that FXDD is their broker. Never know that they don't even have license. This is bullsh*t. I've lost over 20,000 trying out their software and now I found out that their broker FXDD is not even license......:mad:
Thanks for the info scholar....
 
nghia1973 said:
:mad:What? When I first got into forex. I brought the PremiereTrade AI software and they said that FXDD is their broker. Never know that they don't even have license. This is bullsh*t. I've lost over 20,000 trying out their software and now I found out that their broker FXDD is not even license......:mad:
Thanks for the info scholar....
Click to expand...

If it is any consolation they just applied for a license with the NFA but they have not been granted one yet. This company is really treading dangerous waters.
 
Man in the Mirror

The Forex Man in the Mirror

There has been a lot of pissing and moaning about the new law requiring forex dealers to have $20 million in adjusted net capital to stay in business.

Yet very few of the firms now affected by the law seem to have done much to stop it or modify it. At some point you have got to take responsibility for your own business. Everyone in the industry knew about this law. Yet where were the company press releases? Where was the organized lobbying? As Bob Dole once said "where's the outrage?!"

No. Instead you could hear the crickets chirping in the forex industry. Everyone acted as if nothing was going on. The response from smaller brokers seemed to be "maybe if we're real quiet they'll leave us alone." If Washington only hears the NFA's side of the story well then that is who they are going to believe.

If you want to blame someone for the passage of this law, blame the Forex Dealer in the mirror.

"Forex Dealer In The Mirror"

I'm Gonna Make A Change
For Once In My Life
It's Gonna Feel Real Good
Gonna Make A Difference
Gonna Make It Right . . .

As I, Turn Up The Collar On
My Favourite Winter Coat
This Wind Is Blowin' My Mind
I See These Forex Dealers In The Street
With Not Enough To Capital to Meet
Who Am I, To Be Blind?
Pretending Not To See Their Needs

A Summer's Disregard
An unregulated IB shop
And A One Money Manager’s Soul
They Follow Each Other On
The Wind Ya' Know
'Cause They Got Nowhere To Go
That's Why I Want You To Know

I'm Starting With The Forex Dealer In The Mirror
I'm Asking Him To Change His Ways
And No Message Could Have Been Any Clearer
If You Wanna Make The Forex World
A More Competitive Place
Take A Look At Yourself
And Then Make A Change

(Na Na Na, Na Na Na, Na Na,
Na Nah)

Forex Dealers Been A Victim Of
A Selfish Kind of Love
It's Time That They Realize
That There Are Some with No
Adjusted Net Capital
Not A Nickel To Loan
Could It Be Really Me,
Pretending That They're Not Alone?

A Willow Deeply Scarred,
Some trader's Broken Heart
And A Washed-Out Dream

They Follow The Pattern Of
The Charts, Ya' See
Cause They Got No Place To Be
That's Why I'm Starting With Me!
 
Caveman Forex Challenge

Week one of the Caveman Forex Challenge is in the books. Our friendly neighborhood Neanderthals gave out 12 free trades last Wednesday. It was not one of Caveman’s better weeks according to their own grid which shows them losing -5 pips overall on all their trades. However, due to risk/reward ratios and a slightly different price feed that resulted in the Scholar making money on a trade the Cavemen lost on we made a $348.39 profit overall in our demo account as four trades went in our direction and four trades went in the other direction.

Tonight a new batch of trades will be published. You can find them here if you wish to play along: http://www.cavemanforex.com/Wednesda...orexPicks.html

CFTC Update: I have not heard anything yet about the new forex dealer rules. However, CFTC should be releasing their net capital report this week. Stay Tuned.
 
CFTC Net Capital Report Update

The new net capital numbers are out. These numbers are more important than ever due to the new law requiring all forex dealers have $10 million in adjusted net capital by the end of September and $20 million by May 2009. Here is the link to access the report:
http://www.cftc.gov/stellent/groups/public/@financialdataforfcms/documents/file/fcmdata0408.pdf

The following firms have net capital below $10 million

Advanced Markets $5,041,000
Bacera $5,370,000
MG Financial $5,886,000
CMC $7,089,000
Forex Club $7,562,000
Easy Forex $7,741,000
Hotspot $7,783,000
Friedberg Mercantile $8,053,000
MB Trading $8,381,000
Ikon $9,418,000

In particular you will notice that three firms are far below the upcoming increase to $10 million. Advanced Markets, Bacera and Money Garden. In fact, they are struggling just to meet the current $5 million net capital requirement with Advanced Markets a scant $41,000 above the current law! That kind of capitalization does not inspire much confidence and traders really need to beware doing business with them.

The following firms have net capital below $20 million

GFS Forex $11,376,000
Alpari $11, 766,000
IFX $12,362,000
ODL $12,995,000
CMS Forex $14,085,000
I Trade FX $16,054,000
FX Solutions $17,628,000
PFG $19,369,000

The following firms have net capital above $20 million

Interbank FX $21,367,000
GFT Forex $64,288,000
Gain Capital $66,314,000
FXCM $73,603,000
Rosenthal Collins $76,571,000
Oanda $163,136,000

As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new law.
 
The Gray School of Irish Dance

The receiver for FXLQ released their latest report to the court and it is chock full of eye popping revelations. http://www.robbevans.com/pdf/forexlqreport02.pdf

Revelation Number 1) the Estate is short two million dollars.

Revelation Number 2) the receiver was able to further confirm that FXLQ had used a fake bond to prop up their adjusted net capital.

Revelation Number 3) FXLQ had been violating their adjusted net capital requirement as early as October of 2006.

Revelation Number 4) FXLQ paid over a quarter million dollars out to the Gray School of Irish Dance.

WTF?

Under Tab 30 is a schedule of receipts totaling $251,500 that the Gray School of Irish Dance received from FXLQ, FX ARB, Robert Gray, TMA, and Forexify between April 21, 2006 and December 24, 2007. As the source of all of these funds was FXLQ, it is perplexing why payments to the Gray School of Irish Dance were routed through other entities.
Click to expand...

Talk about getting your priorities screwed up. Here is a company that continually cannot meet its adjusted net capital requirement sending out huge chunks of change to what appears to be a dance school in CT? Gray School of Irish Dance Welcome

Hey I love Riverdance as much as the next Irishman but you’d think you would make sure your books are in order before cutting cheques to the tippy toe jumping set.

The good news for customers is that the receiver is recommending customers being fully reimbursed before other creditors. This apparently includes Interbank FX who is owed a whopping $10 million. Judging from IBFX’s plummeting net capital (almost below $20 million) they sure could use the dough.

Expect the FXLQ saga to last through the summer as the receiver continues to dig through mounds and mounds of paperwork, unexplained expenses and dodgy offshore bank accounts…
 
uk bookies

forex scholar said:
The new net capital numbers are out. These numbers are more important than ever due to the new law requiring all forex dealers have $10 million in adjusted net capital by the end of September and $20 million by May 2009. Here is the link to access the report:
http://www.cftc.gov/stellent/groups/public/@financialdataforfcms/documents/file/fcmdata0408.pdf

The following firms have net capital below $10 million

Advanced Markets $5,041,000
Bacera $5,370,000
MG Financial $5,886,000
CMC $7,089,000
Forex Club $7,562,000
Easy Forex $7,741,000
Hotspot $7,783,000
Friedberg Mercantile $8,053,000
MB Trading $8,381,000
Ikon $9,418,000

In particular you will notice that three firms are far below the upcoming increase to $10 million. Advanced Markets, Bacera and Money Garden. In fact, they are struggling just to meet the current $5 million net capital requirement with Advanced Markets a scant $41,000 above the current law! That kind of capitalization does not inspire much confidence and traders really need to beware doing business with them.

The following firms have net capital below $20 million

GFS Forex $11,376,000
Alpari $11, 766,000
IFX $12,362,000
ODL $12,995,000
CMS Forex $14,085,000
I Trade FX $16,054,000
FX Solutions $17,628,000
PFG $19,369,000

The following firms have net capital above $20 million

Interbank FX $21,367,000
GFT Forex $64,288,000
Gain Capital $66,314,000
FXCM $73,603,000
Rosenthal Collins $76,571,000
Oanda $163,136,000

As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new law.
Click to expand...

Hi,
I have just been reading your very informative and eye opening info about the capitalisation of brokers, can you tell me if these rules only apply to brokers, as opposed to "bookies" and here in the uk.
If so where can we get the info on the capitalisation of the likes of ig index, capital spreads, finspreads.etc, etc.
Finally do you think we should use these big well capitalized US brokers, and do they accept spread bets rather than having to buy lots upon which tax is paid on profits.
Regards

Croman
 
Last edited:
croman said:
Hi,
I have just been reading your very informative and eye opening info about the capitalisation of brokers, can you tell me if these rules only apply to brokers, as opposed to "bookies" and here in the uk.
If so where can we get the info on the capitalisation of the likes of ig index, capital spreads, finspreads.etc, etc.
Finally do you think we should use these big well capitalized US brokers, and do they accept spread bets rather than having to buy lots upon which tax is paid on profits.
Regards

Croman
Click to expand...

This only applies to u.s. based forex dealers. spread bettors are not effected as they are regulated by the fsa in london.
 
Excellent research on this thread! I am trying to find a MetaTrader broker so I can do some semi-auto trading, but I do not want to get scammed. In your experience, who what when where for a newbie like me...
Thanks in advance,
Richard
 
forex scholar said:
If it is any consolation they just applied for a license with the NFA but they have not been granted one yet. This company is really treading dangerous waters.
Click to expand...

This is what premiere trade answer when I asked about licensing for FXDD.


I wanted to respond because the information you posted is not accurate. I removed the firms that you said were insolvent because it may or may not be accurate. First, what you said about FXDD is not correct. there is no license, there is only registering with the NFA which is a self regulating body for the futures industry. What you may not understand is that there was no regulation of the FOREX markets, and no firm was required to be a member of the NFA. FXDD had set up a company at one time to be registered and that is what you saw on that list, but it is many years old and does not reflect FXDD today. Currently FXDD has an application with the NFA pending approval, see below for the information from FXDD's site.

FXDD Announces Pending NFA Approval
NEW YORK, May 8, 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.”

This could be true for others that you listed so it would not be fair to list them..... Thank you and take good care....

--------------------------------------------------------------------------------

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nghia1973 said:
This is what premiere trade answer when I asked about licensing for FXDD.


I wanted to respond because the information you posted is not accurate. I removed the firms that you said were insolvent because it may or may not be accurate. First, what you said about FXDD is not correct. there is no license, there is only registering with the NFA which is a self regulating body for the futures industry. What you may not understand is that there was no regulation of the FOREX markets, and no firm was required to be a member of the NFA. FXDD had set up a company at one time to be registered and that is what you saw on that list, but it is many years old and does not reflect FXDD today. Currently FXDD has an application with the NFA pending approval, see below for the information from FXDD's site.

FXDD Announces Pending NFA Approval
NEW YORK, May 8, 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.”

This could be true for others that you listed so it would not be fair to list them..... Thank you and take good care....

--------------------------------------------------------------------------------

????????????????????????????
Click to expand...

FXDD's application to the NFA to be a Futures Commission Merchant is pending. I'm guessing the NFA has not officially approved FXDD yet because of the new law that was just passed. I continue to maintain that FXDD is treading dangerous waters.
 
Tradeview Throws in the Towel

No Mas! No Mas! Like a bloody and battered Roberto Duran the folks over at Rosenthal Collins are giving up on MT4. This weekend they dropped a bombshell on their clients:
Tradewview not part of RCG?! as of today

Dear Valued Client,

From day one, Tradeview has worked to offer clients optimum trading solutions, by offering the familiar Metatrader 4 platform with sophisticated enhancements to the software. Our dedication has been to provide the latest trading technology by offering clients an unprecedented link to the biggest liquidity pools in the world. In doing so, we cultivated a new kind of FCM - one with a focus on innovation, and a relentless devotion to the best technology.

By creating our systems with this focus, we gained the ability to make fast changes in the most robust 24 hour market in the world. Every Tradeview client can rest assured that they will have access to the best possible solutions as soon as they become available.

We founded our partnership with Ikon GM based on our need for aggressive technical restructuring. Supporting 24 hour-a-day trading requires intensive support, and most FCMs are forced to outsource their technology needs. By joining Ikon GM, we are able to eliminate 3rd party solutions by utilizing their in-house technology company which specializes in network trading, and utilizing the latest market innovations. For our clients, this means we have direct control over our platform, and the ability to develop and test more advanced solutions in response to ongoing demand.

In addition to maintaining the best trading solutions, Ikon GM has a distinguished regulatory history. Since the firm?s original inception in 1999, Ikon Global Markets has maintained an exceptional record, which is an ethical priority we share.

By combining forces, Tradeview will continue to improve upon the promise we make to our clients: Providing optimum support, execution, and trading solutions that are unrivaled in the industry. If you have any further questions, feel free to contact us at our RCG office or our new office at Ikon Global Markets.

RCG Office: 212-437-1870
Ikon Office: 212-482-8275

Regards,

The Tradeview Team
Click to expand...

Anyone who spends time on the bulletin boards has gotten to know Tradeview Forex as they have spent gobs of money advertising their wares. Yet it appears they were never able to get MT4 to work proficiently and as such are simply walking away for the whole failed experiment. One Tradeview customer on the forex factory thread referenced above states:

Well, considering what it has been like trading with Tradeview's MT4 platform all last week, a change for the better was needed. There have been numerous outtages to put up with and not to mention requotes during normal market conditions, invalid price messages, and not to mention when you enter an order the order does not go through and instead an "order accepted" message pops up and with no confirmed order. The message would sit there forever so one would have to cancel it and try again, but then one would get trade text is busy message. To circumvent around that you would have to close down the platform and re-open it and try all over again. That would cost you seconds and many pips. One night I could not close any orders and had to phone them in to close. The IT department has had their hands full rebooting the server and trying to fix the problems.

Tradeview says there were numerous problems related to hard coding from their 3rd party vendor for the STP technology. Problems that they could not get support for to fix.
Click to expand...

While Tradeview should be commended for knowing when to call it quits I must take issue with this notion that Ikon has a "distinguished regulatory history."

Last fall Ikon merged with Royal Forex Trading, which had a poor regulatory record and was sanctioned by the NFA right before they gave up their FCM license due to the fact they did not have the necessary capital to stay in business.

Second, both of Ikon's principals were former principals of Coes FX. Right after they left Coes FX became the subject of numerous regulatory actions by both the NFA and CFTC resulting in a quarter million dollar fraud settlement and the closure of the firm.
CFTC Settles Foreign Currency Fraud Action Against COES FX Clearing, Inc.

Third, sources have informed me that many of the clients that Ikon will be receiving from Tradeview were formerly the clients of One World Capital. One World was the poster child for undercapitalization and blew up last year just as the $5 million capital requirement was kicking in.

In short, Ikon seems to stick its fingers in an awful lot of cookie jars and it they aren't careful they may get their pudgy little digits stuck in one soon.

Finally, they are $10 million below the $20 million capital requirement set to kick in next spring.

So to those MT4 traders out there who chose Tradeview Forex because they were well capitalized I say buyer beware. Ikon is not Rosenthal Collins. It may be time for you to shop around again...
 
forex scholar said:
FXDD's application to the NFA to be a Futures Commission Merchant is pending. I'm guessing the NFA has not officially approved FXDD yet because of the new law that was just passed. I continue to maintain that FXDD is treading dangerous waters.
Click to expand...

Guess they got approve?
BASIC Details

But what about the capital requirement? Do you have the news on that scholar?
 
nghia1973 said:
Thank you scholar. But do you know about the capital requirement? Where can I find out how much capital FXDD have? And does that meet the requirement.
Click to expand...

FXDD will need $10 million in capital by the end of Sept. Then $15 million by end of January and $20 million by the end of May of 2009.
 
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