MoneyTec Forums: Abysmal, lowlife snakeoil standards

I really find it amazing that they let TeamForex do that without ever having to put up proof in the form of an audited track record like every single CTA is forced by law to put up.

Does anyone have a legal opinion on that, why he can just surf boards to solicit funds without proof of trading success, while CTA's need to put up audits of their track records?

One reason I found out why he always staunchly defended FXCM/REFCOFX, when there really isn't all that much to defend, is the kickback scheme they have on offer:


"FXCM Customer Agreement/ Referral Disclosure/ #8

Client understands and acknowledges FXCM may comensate Reffering Agent for introducing Client to FXCM and that such compensation may be on a per- trade basis. Such compensation may incur a mark-up, above and beyond the ordinary spread generally provided by FXCM. Further the Client has the right to be informed of the precise nature of such compersation."
http://www.moneytec.com/forums/_sho.../_threadid-5864



Seems to me a lot of these questionable firms like TeamForex have a business relationship with this particular market maker FXCM charged with a major fraud investigation by the CFTC:


New York (Feb 16) – Forex Capital Markets, LLC (FXCM), the New York-based foreign currency dealer, has been charged in a major fraud investigation being prosecuted by the U.S. Commodity Futures Trading Commission. A CFTC complaint filed in the United States District Court for the Southern District of Florida yesterday names FXCM, its client Gibraltar Monetary Corporation, Inc., and four Gibraltar employees – Thomas J. Clancy, Charles I. Fremer, Jayson S. Kline, and Edward T. Johnson – as participants in fraudulent currency options trading solicitations. Mr. Kline, the President of Gibraltar, had previously been prosecuted by the CFTC for similar illegal activities in 1993.



FXCM opened at least 267 client accounts through Gibraltar, taking in $3,022,998.29 in client funds. FXCM paid $879,379 in commissions to Gibraltar, even though most of the customers’ funds were lost trading or paid to Gibraltar and FXCM in compensation and fees. FXCM is charged with failure to adequately supervise Gibraltar’s fraudulent activities and reportedly “was aware that Gibraltar’s customers were not receiving regular monthly account statements.” Furthermore, the CFTC’s complaint states “FXCM knew or should have known about Kline’s disciplinary history because such information was readily available from the NFA of which FXCM is a member.” The CFTC also notes that “Gibraltar’s customers were unable to gain access to their account information because FXCM’s website was not functioning properly.”



The Commission entered orders of preliminary and permanent injunction enjoining FXCM, Gibraltar, and the four Gibraltar employees and entered a statutory restraining order against the defendants. FXCM and Gibraltar were also ordered to disgorge all benefits received from the fraudulent activities “and to make restitution by making whole each and every customer” whose funds were used in their fraudulent activities. Moreover, the CFTC entered an order requiring FXCM and the defendants to pay civil monetary penalties that could potentially total millions of dollars. The CFTC’s motion for a preliminary injunction is scheduled for February 24, 2004 in West Palm Beach, Florida.



FXCM, a registered futures commission merchant, did not immediately return calls with requests for comment, nor did Refco Group Ltd LLC, a part owner of FXCM and partner in the FXCM/RefcoFX online trading system. The latest financial information provided by FXCM to the CFTC dated December 31, 2003 shows excess net capital of only $17,658,899. Analysts and industry participants are predicting this fraud will have a sizeable impact on FXCM’s client base, especially if more than $3 million in clients’ funds were involved in the fraudulent activities.



For more information, the CFTC’s complaint and order can be found at http://www.cftc.gov/opa/enf04/opa4892-04.htm.

http://www.forex-markets.com/NewswireFXCM.htm

 

I would definitely agree with Tiger about moneytec poor standard and morality. I have posted a article about this company call Forexfinancialcapitals(relate to Forex Millenium whose owner ran away with all money from their client) showing clear proof of fraudulant. The next thing I know they delete my proof and move my post to a location where I myself couldn't locate in their forum.
My whole intention is to warn others not to fall in their traps. This company offer 500:1 leverage, along with 3 pips spread on all major. It is a very sweet, but poisonous offer because I have found in their html source code to carry the signature of Forex Millenium company.
Money Tec purposely delete my proof and seem to inform ForexfinancialCapitals to change their source code because the next time I came back to their site, they take away that source code that indicate the relationship with Forex millenium. This is the location of my original post that I just recently locate.

http://www.moneytec.com/forums/_showthread/_threadid-8037/showthread.php?s=&postid=44952#post44952

 

I agree with you guys about moneytec.
I have had sevelral posts removed due to the fact that I have supplied information that obviously the brokers don't want people to see. Another thing is that I advice you guys to really look into what brokers to use. I have heard many horrible stories about FXCM. By the way Refco is an FXCM white label, just to let you know. You should take a look at some of the Bank platforms out there Saxo, Synthesis Bank and ACM. Three brokers that I like.

 

Unbelievable, that kind of crap at MoneyTec, a truely shitty disservice to every real trader out there.

 

bkcurrency,

I believe the your information concerning Refco and FXCM is incorrect. Refco bought somewhere in the neighborhood of 30% of FXCM. Refco then went into the forex business using the infrastructure of FXCM.

What did FXCM get? A big infusion of cash.

 

Which for all practical purposes still means they are the same, doesn't it.

They even share the same address:

Forex Capital Markets
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005 USA

RefcoFX New York
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005

http://elitetrader.com/vb/showthread.php?s=&threadid=22414&perpage=6&pagenumber=2

 

Nice to know.
P.S. We can't see your thread.

 

tiger0,

Refco bought a percentage of FXCM, they are not a white label.

 

To me it doesn't matter who is owning what here. The point is that they are running the same platform and very likely doing business the same way.

 

I agree. A place for losers - and greedy system-sellers (like Soul-Trader). It seems that the bad boys rules there.