A few things here. First, this deal sucks for refcofx account holders. Had the creditors committee accepted FXCM's offer of $130 million, these people would have gotten all of their funds back. As it is, the only people who will get all their money back are those with less than $150 in their accounts presently. Second, whatever your view on the benefits or drawbacks of this deal, it has yet to be approved by the bankruptcy court, and therefore it may not go through at all. Effectively, Gain has paid for the right to get involved in a huge mess....and they stand to gain very little from it. It stands to reason that of the 10000+ customers with more than $150 in their RefcoFX accounts, a good chunk of them are pissed off and will never trade forex again. Another chunk of them will seek complete protection in the form of CIPF through a firm where the government backs all accounts (the only one I'm aware of is manfinancialfx.ca) if they want to continue trading with less risk of losing their money. Even if a few thousand of them decide to take Gain up on their offer, they will have to place a lot of trades for many months, if not years, to get back to their original account balances. Gain has effectively written all RFXA clients a nice, sweet note that says "you can get a small amount of money from us for the right to earn rebates on your trades with us. Sorry if you had $100,000 or more in your RefcoFX account....here's $150!" Anyone could have done this, but apparently Gain thought it was worth paying millions for it. What they get out of it is perhaps a few more accounts. What they lose is that they're basically giving all of those account holders the right to become IBs of Gain, sort of. These people--just like traditional IBs--get to earn "fat" fees in the form of rebates on trades, thus encouraging them to trade more. The only problem with this is that, with 90% of retail FX traders being unprofitable as it is (according to some estimates), many of these people will inevitably end up being the ones coughing up thousands more dollars to stay in the game in the first place.
People will not participate in the Gain offer for the most part. So Gan's hope is that perhaps they can encourage the small account holders to pony up more. The large ones won't go along. So Gain runs the risk of losing their 2.5 million for naught. You'd be better off to go with an inexpensive broker with a smaller spread and not wait for the judge to rule on Gain's offer if you're inclined to put fresh money into the forex market -- you'd come out ahead. FXCM's offer was superior in every respect, but it was clouded by their interest in "flipping" that 35% stake that Refco owned in FXCM. You can't compare these offers as apples to apples. Our hope is that we can have a balance between the FXCM offer and that of Gain. Thus rewarding the buyer/bidder with a value added proposition on the basis of the customers being able to stay locked in to the successful bidder and committing to some level of trading volume, just not the ridiculous numbers that Gain has in their offer. Robert Moderator http://www.refcofxaccountholders.com
The way I read this: "For customers with larger deposits, GAIN has agreed to reimburse customers up to their full RFXA account balance, payable in 25 percent increments every six months, provided they meet certain trading thresholds." Is that they are offering anyone moving their accounts (full amount) to add $150 to it. Otherwise, what does this statement mean?
If you want the full details of the Gain offer for the RefcoFX Customer List, visit the following site that is for RefcoFX accountholders and you may go to the files area once you join, which is free, and you may download a complete copy of the legal motion (the offer) that in detail describes the offer from Gain. http://www.refcofxaccountholders.com Robert Moderator refcofxaccountholders.com
I'm not so sure about this anyway. They claim they have a lawyer (Duffy), but I read the minutes of the court proceedings and didn't see Duffy's name anywhere. What are they really doing? Sending money to realestateinromania.com isn't comforting. Mike
Come and take a look at our forum and ask that question....it'll take you 5 minutes and it's free to enroll as a member at: www.refcofxaccountholders.com You'll find out for yourself how we're doing and what we're doing. The following is a post that I made that was part of a marketing piece we're using to answer similar doubts from clients of RefcoFX that are the same position we're in; we're soliciting them for help with our legal fund and our cause....there's power in numbers. Yes it is for real. I just was notified that this thread was here. Pardon the marketing piece's tone. We tried a lot of things and that piece that was developed by a direct marketer was the most effective by far. Here are some things you may take a look at...especially the refcocommittee.com website for verification of what we're doing. They finally had to recognize our existence. NEED MORE CONVINCING? After all you've been through... the fraud... the unfair treatment of Forex traders... the fact that U.S. laws failed to protect our hard earned money... we don't blame you for being skeptical. So, here's some straight talk that will put your mind at ease. "How do I know this isn't a scam?" Go to http://www.refcocommittee.com/ Hit "I Accept" at the bottom of the page and you will be admitted to the Refco Official Creditors Committee website⦠Click on the "Links" tab at the top of the page. There you'll find a total of 10 links to information deemed helpful for RefcoFX customers. Link number 10 is to our original FREE site: http://RefcofxAccountholders.com "Where's proof you're paying an attorney?" Go to http://www.refcodocket.com/DocketFiles/2279.pdf Read the Rule 2019 verified statement of Duffy & Amedeo in connection with representation of certain customers of Refco F/X Associates, LLC (collectively, the "Ad Hoc Committee of Refco F/X Customers"). "Ad Hoc Committee of Refco F/X Customers" is legalese for RefcoFX Customer Coalition. "Do I have to join to benefit?" As you'll notice in the filing mentioned above, Duffy & Amedeo are representing "certain customers", not all customers. By the time we realized the FXCM sale was not going through, it was too late to get a class suit going. This is not a class action. You must join the RefcoFX Customer Coalition and pay your membership fee if you want representation. There are no free rides. "What guarantee do I have this will help?" The only guarantee we can give you is this: if you do nothing, you will lose. If you try, you might win. As a trader, you know a $100 investment with the potential to win thousands is hard to beat. "What is the Best Case Scenario?" Best-case scenario: Duffy proves we are secured creditors, under "constructive trust" guidelines, we get all our money back, and case law is established that will protect Forex traders in the future⦠making us all heroes! Worst-case scenario: The court fails to grant us secured creditor status, but Duffy makes sure you make out as well as possible. And for just 100 bucks you get the satisfaction of knowing you tried. "I'll join but I don't want to use PayPal." The PayPal option is intended to save you time and money. But if you prefer to send your contribution directly to Duffy & Amedeo, you'll find complete wire instructions at the PayPal webpage: Join Now http://www.realestateinromania.com/refco
Anyone from the Refcofx account holders group care to take a stab at this? http://www.elitetrader.com/vb/showthread.php?s=&postid=1130136#post1130136 How did Mr Duffy arrive at 240 trades per month? Or was that a typo? I come up with 45 trades per month.