brokers in financial trouble

Discussion in 'Forex Brokers' started by watchdaride, Jun 27, 2007.

  1. got this eamil from a fx news website. Not sure how valid it is just passing on the info.

    The last few weeks has seen the NFA foreclosing on a lot of forex dealers who are undercapitalized. The following firms have been shut down as a result:

    1) United Global Markets, LLC
    Today the CEO just sent an email out to clients saying they were going out of business because they could not meet their capital requirements.

    2) Trend Commodities Limited
    On June 19 the NFA shuttered Trend Commodities due to fraud and for failing to meet their capital requirements.

    3) Spot FX Clearing Corp
    On June 14 the NFA shuttered SpotFX due to fraud and for failing to meet their capital requirements.

    4) FX Option1 Inc.
    On June 7 the NFA shuttered FX Option1 due to fraud and for failing to have adequate security deposits for customers.

    5) Spencer Financial LLC
    On May 17 the NFA shuttered Spencer Financial due to fraud and for failing to meet their capital requirements.

    6) Alpha Forex
    On May 14 the NFA shuttered Alpha due to fraud and for failing to meet their capital requirements.

    Do you have money with the following? their current capital - IF SO GET OUT NOW
    One World Capital $1,105,000
    Open E Cry LLC $1,062,810
    Velocity4X $1,587,000
    Direct Forex LLC $1,523,000
    Easy Forex US Ltd $5,011,644 - they are above the 5 mio threshold but only just and with a name like that - get out.
    3D Forx LLC $ 2,525,372
    E FX Optioons LLC $1,709,752
    FiniFX $1,464,000
    Forex Club $3,304,000
    Forex International Investments Inc $1,464,620
    Forward Forex $1,793,767
    FXCM LLC $759,689
    GFS Futures & Forex $3,074,000
    Nations Investments $1,699,000
    Royal Forex Trading $1,102,000
    SNC Investments $1,565,000
    Tradition Securities $781,869
    I Trade FX -$3,039,000 Note these guys are already bankrupt --- negative capital.!!!!!
    MB Futures $3,080,000
    Money Garden Corp $3,399,844


    t passing on the info that may help others.
  2. Digs



    USA brokers.....
    GFT Forex
    Astor Capital Management

    Swiss Brokers.....
  3. I use open Ecry and just transfered some cash (nonrelated to this ) to IB should I do the rest as well then?
  4. naru2286


    Transact futures is small, and I don't even see them NFA listed unless it is under another name.

    Dukas and other swiss won't be listed on a US regulatory agency for the obvious reasons.........
  5. does anyone have alink to the NFA document/page that lists net capital required/held by registered FCM's?
  6. jtnet


    oEcry and transact are bad then?
  7. Lorenzo


    What a bullshit!!

    Open e cry and TransAct are not Forex brokers, future brokers only

    Your money is in a segregate account
    Even if they fail your money is 100% safe
    They can't touch one buck!

    and why TransAct has been discussed here?

  8. nkhoi

    nkhoi Moderator

  9. forex162


    Yes he did, but they're on the same list.

    You're seeing a lot of small brokers get tossed by the NFA because they fail to meet capital requirements. Why exactly? The NFA recently tightened its requirements for individual firms' net capital. Read here for a brief overview of why:

    On balance I think this really increases the value of a "regulated by the NFA" label for each forex broker that maintains its status and only increases confidence in the relatively new retail forex industry.

  10. One thing that I would like to clarify on this list is that FXCM LLC is an FCM registered by FXCM to potentially offer futures trading down the line. There are no clients under this FCM.

    The FCM where client's open a forex trading account, as you can see from our trading agreement and the bank account where funds are wired, is Forex Capital Markets LLC.

    As you can see from the FCM financial data page located on the CFTC's website at the link below, Forex Capital Markets LLC has over $50 Million in capital and is one of the best capitalized Forex Dealer Members.

    Financial Data Link:

    Please feel free to contact me with any questions at or if there are things which you feel are relevant to the community on this subject to post them here for my reply.

    David Waring
    Managing Director
    FX Business Development
    Forex Capital Markets LLC
    32 Old Slip, 10th Floor
    New York, NY 10005
    Tel (212) 897-7660
    Fax (212) 897-7669
    #10     Jun 28, 2007