Refco FX account withdrawl frozen!!!

RefcoFX has filed Chapter 11. Anyway I only have about five hundred $ in my mini account. not a big deal.

 

On 10/10 i faxed a funds withdrawl form to Refcofx. The same day i got an email conformation that my account is closed.
Until now i havent recieved a single cent! That really sux big a**

 

If Refco FX has filed for bankruptcy, then can they touch customer's funds? Does being regulated by the CFTC and NFA mean anything? If it does not, then this will have a lot of repercussions in retail forex.

 

Maybe they have already touched customer's funds. In this case, is it against law or rule?

 

FX futures are regulated by the CFTC. However, spot forex trading has no such oversight. I believe all trading done through refco FX was spot forex.

With spot forex there is no oversight, no required segregation of funds, and no insurance.

 

I understand that there is no governing body in forex. However, these retail forex brokers are regulated by the CFTC in America. It is a grey area. Let's see if it means anything.

 

I have a RefcoFX account that has $700.00 in it and they won't let me withdraw my $700.00. BUT they will lend me 200x that amount to continue trading.

What BS.

 

It's obvious that they let you trade. As most people lose money, Refco will have to pay back less money, because the losers will not have to be paid. And in the mean time they generate commissions.

It's clear now that putting your money with the big names doesn't give you more protection than putting it at a small broker.

 

Nothing grey about it: there is NO regulation.

 

Didn't you hear? your dough is in that vault.