This is pure speculations but to me Looks like ODL may have been playing the same âbogus reserve trickâ as FXLQ and quickly removed what they could not prove,, why else would their cap reserve drop so quickly and drastically? :eek: :eek:
NFA Puts in the Boot on Royal Forex Royal Forex may no longer be an independent company but that doesn't mean it still doesn't have sins to pay for. Today the NFA fined them $75,000 for the kind of standard, run of the mill incompetence that we've all come to expect from the poorly capitalized. Below is a summary of the NFA's Decision: The guys at IKon really have their hands full...
The Final Countdown Queue up the music from Swedish Glam Band "Europe" because this week is when the Dead Pool comes to an end. http://www.youtube.com/watch?v=0ZkllM8znx4 This Friday is the NFA deadline for fx firms to meet the minimum $5 million capital requirement. Two updates to report: GFS Futures & Forex has just made an announcement on their website that they have received a $6 million capital infusion to put them over $10 million thus ensuring a stay of execution from the NFA hangman. Meanwhile, Velocity4x has thrown in the towel and is handing over their clients to Gain Capital. The following firms have still not publically indicated they have met the requirement. Beware these firms until further notice: 1) SNC Investments: $1,152,000 They are well below the $5 million capital requirement. It is highly unlikely they will make the new requirement at this point. I advise customers to leave this firm and look for greener pastures. 2) Wall Street Derivatives: $1,228,000 This firm is based out of New Zealand and I'm not even sure they have any U.S. customers as their U.S. website is out of service. 3) Advanced Markets: $1,322,000 Amifx is already teetering on the brink as they are the subject of a business conduct committee case before the NFA in which they are cited for a whole host of financial violations including not meeting the old capital requirement. This firm does not have much of a future. 4) AlpariFX $2,481,000 Little known European firm. Well under the cap requirement. 5) Solid Gold Financial: $2,040,000 Solid Gold's future is now in serious doubt. Like many of the other firms on this list they have been charged by the NFA with failing to meet their existing capital requirement. When you can't meet the old requirement it stands to reason you won't be able to meet the new one either. Solid Gold is anything but a solid investment at this point. 6) Bacera Corporation: $2,300,000 Like a turd that won't flush Bacera Corporation just refuses to go down the drain. The Savior wrote Bacera off over the summer as sources knowledgeable about them stated they were going to close up shop. But no, they are still hustling the folks in LA for fresh deposits. In September Bacera settled a complaint with the NFA after it was discovered they were undercapitalized to the tune of $1.2 million. NFA reported Bacera only has about 200 customers as it is. But to those 200, do yourself a favor and get yourself another broker because sooner or later the pipes are gonna get cleaned and these guys are going to get flushed once and for all. 7) ODL Securities: $2,566,000 Ravaged by undercapitalization issues. 8) Forex Club: $3,320,000 They still have not hit the minimum $5 million mark. And don't forget since they are a market maker they have other financial requirements to meet as well. They still haven't publically done so. 9) Easy Forex: $3,789,000 Under siege for their sleazy sales tactics, it's hard to imagine the NFA isn't going to drop the hammer on them soon. 10) Money Garden: $5,035,000 While they have crept up over the $5 million mark MG is notorious for their 400:1 "flexi" accounts which will require MG put up a minimum $10 million in capital in addition to other financial requirements for being a market maker. They are not even close to doing this despite their CEO's insistence they could easily get the money last summer. It looks like this veteran of the industry is about to be forcibly retired.
And that is why I trade futures, and not forex. Segregated funds are vastly superior to having your funds as part of a broker's "assets". Also, why aren't your funds distributed across multiple brokers?
Hit the nail on the head here, established futures firms who employ segregated funds business models are far sappier in all aspects than these FX bucket shops commingling funds firms. Iâm pretty sure CFTC will be cleaning house on most if not all these FX bucket shops, leaving the more established sappier future firms A bigger shear of the retail FX markets/. This would be a great Justus for all retail FX traders.
CFTC Raids One World Forex Well the CFTC has officially stepped in to put an end to the shenanigans at One World Capital. I have been reporting on the decline and fall of One World Capital for over six months now so this should be no surprise to anyone following this thread. But it appears that there is a serious shortage of funds at One World which is going to result in heavy losses for customers. This is exactly what I have been warning about for several months now. http://www.cftc.gov/newsroom/enforcementpressreleases/2007/pr5424-07.html $4 million owed to customers? This will not be a very Merry Christmas for the customers now trapped at One World Forex.
Breaking News: FXLQ To Close Its Doors An email is circulating around the net that FXLQ has apparently sent to their customers. The CFTC is about to sue them. FXLQ is in deep, deep, deep trouble: http://www.forexfactory.com/showthread.php?t=59150&page=7
One World Sings the Blues Now that the CFTC has begun their investigation of One World Capital expect some rather unsavory things to come out in the next few months. The Chicago Sun Times just ran this story today on the suit filed against One World: http://www.suntimes.com/business/703937,121907CFTC.article So what happened to the money? Well sources are telling me that yesterday Charles Martin threw a big bash at the Chicago House of Blues that cost a fortune. Who is Charles Martin? Well he is the guy who applied with the NFA to become a principal of One World Capital but was turned down because: http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0273891&case=02REG00017&contrib=NFA I love Martin's response to the NFA's decision to deny his principalship. He, "did not deny the allegations contained therin. However, he stated that he intended to show that his conditioned registration would not pose a risRk to the public." Riiiiiiiiiiiiiight. Why didn't he just claim to have found Jesus? The NFA still rejected Martin in any case. But that didn't stop him from running the show at One World. The NFA says in its own complaint against One World earlier this year that "NFA received information that Martin was in charge of One World's entire operation and was acting as an undisclosed principal of the firm." http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0359973&case=07BCC00017&contrib=NFA Last month One World "Agreed" to never allow Charles Martin to set foot in their office again in a settlement with the NFA. But looks like the damage has already been done. Within weeks of the NFA's decision the firm went bust. And Mr. Martin can be seen hoisting a Cold Frosty One at a downtown Chicago bar, laughing all the way to the bank...
CFTC Raids FXLQ Forex Liquidity is apparently in debt to its customers to the tune of $11.6 million. Here is the official CFTC Press Release: