Hi Ssss, Thanks for those suggestions. I will pass them onto the organizers to consider and will let you know when I have any updates. Jason
Reuters has just published an exhaustive two part special report on the fraud perpetrated by Russ Wassendorf. Wassendorf spent tens of millions of dollars on luxury items and in failed business ventures with money stolen from client accounts. Part One: http://in.reuters.com/article/2012/09/24/us-wasendorf-life-one-idINBRE88N0EJ20120924 Part Two: http://in.reuters.com/article/2012/09/25/us-wasendorf-life-two-idINBRE88O0HF20120925 One of the most distressing aspects of the fraud is that Wassendorf was nearly caught last year in a routine audit but managed to head off the NFA with a last second fax that allowed him to keep the fraud going for another year. The episode highlights the need for greater auditing and accounting standards, not to mention the need for more financial disclosures for brokers so as to prevent lone wolf CEO's like Wassendorf from hiding the true state of their firm's finances.
The CFTC has released a transcript from the public roundtable that was held in August. http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/transcript080912.pdf While retail forex is absent from the discussion the issues pertaining to FCMâs is of importance to retail forex customers since FCMâs like PFG routinely offer retail forex as part of their suite of products. One of the arguments against additional financial disclosures for FCMâs is that these disclosures may weaken the fragile, financial health of less profitable FCMâs. Warren Davis of Sutherland, Asbill & Brennan made the following point in response: "In the case of a FCM, the money that the customer gives the FCM is not for the use of the FCM. It's solely to protect the customer, so it seems to me that the run on the bank analogy is not altogether appropriate here. But what is appropriate is to ensure that customer money is, in fact, used for the only purpose for which it's given which is to secure the customer's obligations to the FCM and the clearinghouse. And therefore, if information is released which causes a customer to move its account from one FCM to another, that shouldn't be viewed as a bad thing. That's sort of the way the futures world is supposed to work." Unfortunately, that is not currently the way the futures world works. Because FCMâs are able to keep their financials hidden from the public there is no way of truly knowing if the firm traders are doing business with is healthy or unhealthy. The net result is that traders are left to play a guessing game about whether their funds are safe or not. CFTC has yet to announce when they will unveil their reform proposals.
The PFG bankruptcy proceedings are turning into a tragedy for PFG's retail forex customers who may now be forced to stand by and watch their funds be used to reimburse customers who traded on-exchange futures with PFG. In response, a group of traders have started a website to try and rally support amongst PFG's forex customers: http://www.pfgforexmetalslegalaccount.com/index.html The Traders who have setup "Forex Metals Account LLC" have also sent out an email to PFG's forex customers updating them on the bankruptcy proceedings: http://www.elitetrader.com/vb/showthread.php?s=&threadid=245769&perpage=6&pagenumber=24 FXCM has been lobbying Congress since 2005 to include retail forex in any bankrupcy prodeeding but we have not had much success due to the hesitancy of Washington to re-open the bankruptcy code on behalf of retail forex customers. In the meantime, the PFG bankruptcy should give retail forex traders pause in regards to opening a retail forex account with a Futures Commission Merchant instead of a Retail Forex Exchange Dealer due to the disparity in treatment the two class of customers are getting in this bankruptcy. We are also still encouraging traders to contact CFTC at secretary@cftc.gov to urge greater protections for retail forex traders.
colonial dr Registered: Aug 2012 Posts: 141 10-02-12 07:03 PM Jason- if FXCM offers no ECN, why would anyone want to trade with you? ####################### Multiple broker's offer ECN ,but only FXCM offer real money contest with small start capital 500 $ and price money 25 000 $ for first place Price money are not taxed in Germany Law ( they are equal win in lotto in EU ,which is not taxed ) Profit on start capital taxed Most of winner make in range 10 000 $ from 500 $ in one month .9500 $ are taxed .Price money 25 000 $ are not taxed http://www.youtube.com/watch?v=k9E77zQHfZ0
Hi Colonial Dr, If you had asked me that question in the past, I would have cited FXCM's strengths such as customer support, trading platforms, education, resources, but unfortunately we've had too many reminders over the past year that the one of the most important considerations when choosing a broker is safety of funds: return of capital, rather than return on capital. As one of the few publicly traded brokers in this industry (NYSE:FXCM) and regulated on 4 continents, FXCM provides our clients (over 200,000 live tradable accounts as of our latest published financials and growing) with the confidence that a privately held broker cannot, and safety of funds is especially important after the failure of brokers like PFG and WorldSpreads. Also, in regards to your question about ECN, FXCM offers two types of forex execution, No Dealing Desk execution and Dealing Desk execution. The execution you choose impacts your trading experience and spreads. You can click here for details. Jason
FXCM provides our clients (over 200,000 live tradable accounts as of our latest published financials and growing) --------- ? How many over 500 $ ? Eligible for King of the micro contest automatic entry each month ?
Hi Ssss, As I mentioned in this post, July was the last month that we held the King of the Micro contest. I'll post an update in this thread should a new contest begin. Jason
Also, with your earnings and horrible reviews here on ET (see the "Brokers" link at the green bar on the top of the page) how do you keep up on earnings?