Keep Your Eye on the Ball Again, this thread focuses on poorly capitalized firms. Why? Because poorly capitalized firms are the source of most of the industry's problems. What are those problems? As I have demonstrated in this thread poorly capitalized forex dealer members have gone out of business in record numbers this year mainly due to fraud and/or insolvency. Poorly capitalized firms do not have large compliance or accounting budgets which is what scares the NFA and is one of the main reasons the NFA wants to weed them out of the industry altogether. And as this latest regulatory action demonstrates poorly capitalized firms are in no position to give their customers good prices when they themselves don't get good prices. Of course a lot of the larger firms have been cited by the NFA. But none of those large firms are getting cited for not meeting their capital requirement. Nor have we heard that they are clearing their trades through IFX as we have just found out with Royal Forex Trading! There's nothing wrong with IFX of course, but the point is why the hell would you trade with RFXT when you can just cut them out and trade with IFX directly and save yourself some money? With each passing day the argument for trading with a poorly capitalized firm is being completely debunked. In fact, it doesn't even need to be debunked anymore since the NFA is going prevent customers from trading with these kinds of firms come December. At this point all I am doing is merely providing the background information as to why the NFA wants to do it. With two months to go the following firms have still not met the $5 million minimum threshold. The next Cap report comes out the first week of November: Hamilton Williams ($1,100,000) IG Financial Markets ($1,014,000) One World Capital ($1,170,000) Wall Street Derivatives ($1,237,000) SNC Investments ($1,247,000) Advanced Markets ($1,269,000) Direct Forex ($1,406,000) Solid Gold Financial ($2,010,000) CMC Markets ($2,806,000) E FX Options ($3,055,000) Forex Club ($3,308,000) GFS Futures & Forex ($3,403,000) MB Trading ($4,452,000) Easy Forex ($4,628,000)
So it is your position that as long as a firm is meeting their capital requirement it is OK that they get cited and fined for ... ⢠C.R.2-36(b)(1) - CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS?? http://www.nfa.futures.org/BasicNet...spx?seqnum=1023 http://www.nfa.futures.org/BasicNet...046&contrib=NFA Your position does not make sense. You say stay away from firms that might go under thus losing all the clients funds at once. But a large firm that takes a clients funds by C.R.2-36(b)(1) - CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS?? is fine in your book? Addressing the issue of under capitalized firms without addressing the issue of well capitalized firms that get cited for C.R.2-36(b)(1) - CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS is disingenuous. Clearly you want folks to "keep and eye on YOUR ball", not THE ball.
Mr. Frank we know you have it in for FXCM. If you want to start up a thread bashing them be my guest. But this thread is about the issue of low capitalization in the industry. It is the firms below $5 million whose futures are in question at the moment. It is the firms below $5 million that have gone out of business at a record rate this year thus prompting the NFA to raise capital requirements in the first place. That is the ball we need to keep our eye on. If you choose not to, then go somewhere else. But this is what this thread is all about.
So you favor and support the lesser of the two evils? The ball you play with has agenda written all over it and the more you play with it the larger the letters become. I have it in for them no more than you obviously support them. I can not support any large, well capitalized firm or not that CHEATS, DEFRAUD, DECEIVE FOREX CUSTOMERS. neither does the NFA. They're just an example. Large, well capitalized firms that CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS are no better than the little fly-by-night firms. Do you disagree with that? It seems you do. I agree with the fact that the fly-by-night firms should be run off. At the same time the large, well capitalized firms that CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS should also be sanctioned. Dealing with one issue and not the other is placing clients to choose the lesser of two evils but that's your position ... which voids your thinly veiled benevolence. Just for the public record - are you supported by, sponsored by, funded by, paid by, directed by, influenced by or otherwise associated or affiliated with any of the large, well capitalized firms? Perhaps your full disclosure would help us better accept your position. I look forward to your glossed over, self serving, irrational and deflective reply. No, really, I am.
Your sad little commentary mr frank speaks for itself. But you keep on hyperventilating if it makes you feel better. I'm sticking to the issue at hand.
I think he is⦠Weâll see on December 21 of 2007 who is in and who is out. As of right now all of them meet capital requirements.
All that will come of this cap increase is less FX retail firms resulting in the ones remaining widening spreads, I think we should all start looking at the NFA as the bad guys, they will shrink the completive playing field and give the remanding FX firms a monopoly and power to do what ever they what to us retail trader.
forexsavior what is your agenda here, are you even a trader or simply a paid bloger from one of the big firms??
I could care less if he is or isn't. He's simply stating information that is good to know. So far I've not seen one comment from him telling me I should go with one company or another. Only attacks from posters with 40, 11 and 48 previous posts - indicating that they represent the interest of those companies not meeting the requirement, and are not exactly true ET posters.