What better proof that the bucketeers have come to expect that their customers are endlessly naive and gullible? Imagine a real broker making that proposition to a professional investor? Itâs ludicrous. That the customer opened an account with the bucketeer is proof enough of foolishness (no offense intended to the poster), so why not ask him straight out to trade without the prospect of being paid? The customer hardly ever had that prospect anyway, so whatâs changed?
FXCM is looking to buy out RefcoFX. It is a perfect fit. The share the same platform. Have the same address. Even work on the same floor. Go to dailyfx dot com. Then click on Forum. Then click on Transcript of live Q&A with Drew Niv. They plan on rescuing refcofx clients.
Opening a leveraged position does not entail borrowing from the broker. Opening a FX position is the simultaneous buying and selling of two currencies. You finance the buying of one currency by selling the second.
RefcoFX Associates LLC is operating under Chapter 11 bankruptcy protection at the present time. At this time, the information we have is that there are potential purchasers who are interested in buying the futures division and other entities of the Refco Group. The proceeds will help expedite the repayment of customer funds to RefcoFX Associates LLC. The Refco Group, its management and professional advisors are working diligently to bring about a deal that will restore clients and business activity back to normal. Specifically, they are working on a transaction pursuant to which RefcoFX customers will be absorbed by FXCM or an affiliate. Upon completion of such a transaction all RefcoFX customers would then have access to funds and accounts in the ordinary course of business. We hope to be able to finalize such a transaction shortly, which would then be subject to approval of the United States Bankruptcy Court for the Southern District of New York. At the present time, please understand that the Refco Group has still instructed us to delay payments to ALL Refco customers and there can be no guaranty as to the timing and amount of any such payments. The process we are now involved in on behalf of our customers could potentially last weeks to months, not hours or days. Customer service representatives are still available to assist you with live trading account questions. Please understand that we cannot in any way shape or form offer assurances or comment on current events surrounding the REFCO Group of companies.
Has anyone else besides me submitted a complaint to their State's Attorney Gernal, or any other govermental agency? It seems that those of us that have REFCOFX account should be flooding the State's Attorey Gerneral's office and the U.S. District Attorney's office to make sure that they know that there are a lot of REFCOFX custtomers that are ticked that they can't get their money right now. It seems clear to me that REFCOFX is trying to commit a huge fraud by wrongfully withholding customers funds. After all, I sure no REFCOFX customer thought they were lending money to REFCO when they opened up an account with them. And REFCOFX sales force seems to have always told REFCOFX customers that their money was separated from REFCO"s. money. Therefore, it's separate, then REFCOFX has done one of two things: 1. They are wrongfully withholding customers money, forcing customers to remain their clients by not allowing them to withdrawal. 2. They have lied to their customer is order to commit fraud. Since one of these must be true, I believe that their should be more criminal charges filed against anyone that has ever worked at REFCOFX, for I am sure that they ALL new what they were doing!!!!! File a complaint today with every goverment agency you can think of, and dont' forget to write your congressman about this mess if you are a REFCOFX customer and want your money back!!!!!!
Nothing new. You got that from the RefcoFX live chat a few weeks ago. But I would like add that what you posted does not apply to RefcoFX's Canadian account holders, withdraws are allowed
That's because they're members of the Canadian Investors Protection Fund (see http://www.cipf.ca) and the Independent Dealers Association in Canada which is way better regulated than their American counterparts. It seems to me that we (US citizens) ought to write our congressmen and let them know that the protections are weak in the US and ought to at least be as good as our nothern neighbor. I am going to be opening Canadian accounts for this reason and will let my congressman know that it is because of the allowance of the type of activity that Refco is engaged in and the lack of true investor protection (good regulatory enforcement and good insurance in the event you have a crook like Bennett that will blindside any regulator) here in the USA.
I sent the following letter to my Senators and Congressman via http://letterstocongress.org/l2/ printed service so they get it in two days via Western Union. You can also email your congressman on this service for free so I'd encourage you to do it. If you like my letter by all means use it for yourself. Dear [Senator's name was inserted here], As I am sure you know, Refco, the largest commodities and futures sales organization has just filed bankruptcy. As a client of one of the unregulated operating units that filed bankruptcy named RefcoFX Associates, LLC I am apparently getting screwed. I don't understand why there is not regulation in place to protect someone like me. I didn't invest in the stock of their company. I have a currency-trading (FOREX) brokerage account with them and was using their software and through lots of hard work and study had made some money trading currencies. It appears they may be treating customer accounts as if they were part of their assets with which to pay debts to their creditors...this is wrong. Customer accounts should be held sacrosanct and totally separate from the firmâs operating capital. If they marketed to customers that the customer accounts were separate, which they did, why is it that those accounts now are being used to pay THEIR debts to THEIR creditors? This is clearly wrong. Following this episode (which is going on as I write this and yet to be resolved by the bankruptcy judge -- I really can't believe that there is anything to deliberate on this -- customer account money should be customer account money, PERIOD) I have started investigating where my money is safe and have found that Canadian investors and FOREX traders like myself are completely safe if they use Canadian accounts that are backed by the Canadian Investor Protection Fund (see http://www.cipf.ca) -- they are protected up to 1 Million Canadian if a firm goes bankrupt. As an example the same company RefcoFX that I have been describing has a Canadian division -- they are completely safe and ARE allowing customer withdrawals from their Canadian customer accounts unlike their US counterpart RefcoFX Associates, LLC, which is not allowing customer withdrawals since the bankruptcy filing. This is because that division in Canada has better regulation and insurance to protect investors -- why don't we in the US enjoy the same level of protection? Why aren't FOREX trading dealer/brokers regulated here with the same oversight as a stock brokerage? Why isn't there some form of insurance similar to what the Canadians have to protect investors from unforeseen pitfalls like the crooks in Refco. The one thing that will turn investors, traders and the like away from the US markets in a hurry is not believing their money is safe here; this episode has a lot of people worldwide worried that the US isnât a safe place to put money and for good reason; they may lose a lot of it because of the fraudulent behavior of the top management of the company. Investor/Trader confidence is paramount to the markets â this completely undermines that confidence in the American markets when this type of episode occurs. CUSTOMERS SHOULD NOT LOSE THEIR MONEY BECAUSE OF THIS! LET THE FIRM PAY ITS DEBTS WITH ITS OPERATING CAPITAL, NOT WITH CUSTOMER CASH ACCOUNTS! How many investors have to vote with their feet and go to Canada or some other country to have their money adequately protected before it becomes clear that the regulatory oversight of the FOREX market in the USA is wholly inadequate. Sincerely,