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Refco FX Clients will never give up!!!

  1. 17.000 Refcofx retail clients are more and more active these days in an attempt to get their deposits back. They are contacting news outlets, TV programs , members of the congress.....
    Turns out this is not a Refco issue any more, it's rather Refco USA
    issue. Refco clients in some other countries (Canada, India) were able to save their deposits. The only rotten one is Refco America, the largerst independent broker in the richest country in the world.

    Here is a typical letter addressed to the press:

    "I am writing this letter in regards to Refcofx situation. As you are aware, the big creditors (such as Bank of America, Wells Fargo) are attempting to steal the money from us small retail clients at Refcofx. I live in Canada and chose to open my forex account with American branch of Refco 4 years ago, although I had a choice of Refco Canada as well. I thought USA was the safest place to invest the money, you can see how wrong I was. Refco Canada clients haven't lost a penny of their deposits, the same at Refco India, they all got their money back, and Refco USA of all is on the way to ruin 17.000 small retail clients from all over the world, many of them with life savings invested there.
    This kind of outcome is very surprising to me and American Government should do everything in their power to insure that all client deposits are safe and returned to their rightful owners. Refco was your largest independent broker and this outcome is very bad for your country's image. I know, if I don't get my funds back, this would be the last dollar ever invested or in any way sent to the USA".
  2. Also, I was expecting more support from our fellow traders from all over the world and especially here in the States. Insted, poor Refcofx clients were spammed by other brokers (vultures) to switch with them, although there was nothing to switch, the money was frozen from October.

    I know that ET is visited by some of the best and brightest traders and officals in our industry and they could help get the word out about these people's catastrophy.
    Please don't just turn your head the other way and try to forget this. Today it's refco, and tomorrow could be any of your brokers.
    I think we should help each other.
  3. I suspect that it's a lot less than 17,000 retail clients. The number is 17,000 accounts, I had 2 accounts with the same login and username and my guess is that 50% of RefcoFX customers did also. So I think it might be about 11,000 retail clients.
    I'm from Canada, and even though I had to fill out extra paperwork and fax my Canadian passport to RefcoFX, my funds were deposited into a USA RefcoFX account. So my RefcoFX account is frozen, but they will let me trade it and all gains after October 17 might not be honored.

    This could go on as long as the Enron case.
  4. I think this why Jim Rogers is leaving the USA after losing $160m.
  5. Forgive me for not knowing a great deal about this scandal, but is there a process in progres/pending to get the money back to the clients?

    How can they NOT give back the money?

    Thanks, and I wish you all good luck.
  6. The IPO one month before the bankruptcy, I wonder what Bennett was thinking at this time?

    RefcoFX Chairman
    President & CEO Phillip R. Bennett
    rings the opening bell on
    September 9, 2005.
  7. Kastro,
    Yes there was a deal signed by Refcofx and FXCM.
    FXCM wanted to by back 30% of refco's stake in fxcm and to absorb 17.000 accounts with client's balances intact.
    The judge even aproved the auction date.
    FXCM won auction as only bidder.
    After that, the creditors (Bank of America, Wells Fargo and similar trillioners and billioners) objected and forced judge to cancel his previous decision. These creditors want to erase us from the face of the earth and steal our money, because they are stronger, have thousands of lawyers if neccessary and so on.

    I hope you get the picture. But we are trying to fight them and not let them get away with it.
    For now our group is mostly confined to internet message boards, and we haven't been succesful in getting more attention with mainstream media, but we are working on it.
    When all those media outlets start receiving 10.000 e-mails and faxes every day I think they will give us some time on the air.
  8. The answer is pretty sleazy I think.

    Refco FX (retail/small forex) is not the same as Refco Capital Markets (the one which went tits up because of the fraudulent assets due to CEO).

    The big depositors in RCM want their money back. RCM doesn't have enough assets (it is bankrupt).

    What those big guys want to do is to vacuum out all the customer-deposited funds in Refco FX (which had no fraud anywhere as far as people can tell), and put it in the pool to pay *them* back and to screw the actual owners of the money in the RefcoFX accounts, and as well, have the RefcoFX business (though what value is it if it has been known to steal money?)

    FXCM wants to pay for the operational business of RefcoFX and make the account holders whole.
  9. As a RefcoFx account holder I was glad that FXCM stepped up to the plate very fast. But they have been very confident in rescueing our accounts during the last 5 months, I think driving the media away.

    If FXCM doesn't rescue our accounts I can't see the media covering this story because it's not current anymore, plus forex at the retail level isn't taken seriously.
  10. He was thinking, that he is British, out to screw good old rich Uncle George living next door.
  11. What does your attourney say?
  12. That's what a logical person would think. How could they not give the client money back.

    But this is the new America!!!!

    Where SECRET Socialism is King, and those who have money don't deserve to keep it.

    Next, they will be after your house, even though there are not leans on it.

    I think its time to move to Canada where Socialism is upfront, but you still have some property rights.
  13. I dont understand, why you guys are still waiting helplessly when its easy to get your money.

    You can still access your RefcoFX accounts, open an account somewhere else and semi hedge with your refco account.

    Example: Account A buy 10 lots, Refco account sell 5 lots at the same price.

    You have to be able to make profitable trades but if you cant do that you were going to lose it all anyway.

    Waiting to be saved by lawyers is probably the worst option available.

    Save yourselves before you can no longer access your Refco accounts!!!
  14. Why bother selling on the RefcoFX account? Gains after October 17 might not be honored, losses I'm sure will be honored if those accounts are "rescued".
  15. Flawed logic there.

    In order for this to work, you'd have to be able to predict where prices are going. Otherwise you'd end up with more money at refco.

    And if you could trade successfully, it'd be more profitable to just make the trades outright, instead of hedging with refco.
  16. That BHs are there for screwing.:D
  17. Of course you have to be able to predict where prices are going, you have to be able to make profitable trades, if you cant do that you were going to lose all the money in your Refco account anyway.

    Well personally there is a difference in the number of lots that I trade when semi hedged as opposed to just outright trading, for example if I normally would trade 10 lots outright, when semi hedged I would trade 20 as 10 would be hedged against Refco account so I would make the same profit and also effectively transfer Refco account funds to my new account.

    It worked for me but to each his own, good luck with the lawyers.

  18. No...
    Actually the requirement is that you trade 2 accounts in a somewhat illiquid market.

    One where you can be both the bid and ask.
    You just keep hitting your own bid/ask until all funds are transferred from one account to the other.

    I had a Refco futures account.
    Just waited about 6 months...
    And then the good folks at Man Financial sent me a cheque for the full amount.


    :cool: :cool: :cool:
  19. Its certainly possible in certain markets...

    But we are talking about the retail spot forex market, with the built in spread and refco taking the other side of every trade.
  20. Why did people carry on trading with Refco Retail, because their attitude stank. Isn't that a tell tail sign enough?

    Guess it's just human nature to act after the horse has bolted.

    I'm at my 5th broker now. It's tough to find a good one, and it took me a long time.:cool:
  21. I doubt very many people continued to trade with RefcoFX after the bankruptcy, I also read that during the short time frame from the news of RefcoFX's troubles and the freezing of the accounts that close to 1/2 of the funds were withdrawn, I think about 5 days. So RefcoFX clients did act quickly.

    I wasn't one and did make a few trades after the bankruptcy only because I thought I had a Canadian account, when I found out my account was actually a USA one I stopped trading it.
  22. I meant before their bankruptcy. They were not exactly nicy nicy.
  23. Are there anything we can do?
    Are we so helpless when those big creditors are taking our money away?

    As TMcKenna described before:
    ¡_the creditors (Bank of America, Wells Fargo and similar trillioners and billioners) objected and forced judge to cancel his previous decision. These creditors want to erase us from the face of the earth and steal our money, because they are stronger, have thousands of lawyers if neccessary and so on.

    Is ¡®might is right¡¯ rule the only rule in current United States?
    Can we have public media to help us? Can US government or US legal system do anything, or they can only worship to big powers£¿

    What steps can we take now?

  24. Not much we can do. Just wait and see if the GAIN proposal goes through.

    If the GAIN proposal does go through I might submit it to Man Financial Canada http://www.manfinancialfx.ca and see if they would be interested in giving me the same deal.

    I don't think they care or even know about us.
  25. Forgive my lack of knowledge on this subject.

    I would be interested in know this as well, I thought there was some regulatory safe guards in place to protect client deposits.

    Does anyone in the know whether or not client deposits guranteed / protected in anyway by any US government agency or regulatory body?
  26. Thank you for your reply, Lenwhistler. I am also a Canadian. I did not know that Canada also has Forex brokers before I opened the account with Refco in USA. I only got to know that there is a Refco Canada after this bankruptcy mess. Manfinancialfx is the second Canadian Forex broker which I just heard from you.

    In your previous message, you mentioned that you had filled out extra paperwork and faxed your Canadian passport to RefcoFX, does that help? Should I do that as well?

    How do you think of the efforts of 'RefcoFX Customer Coalition'?
    They have a website:
  27. Did anyone else receive a legal letter about a month ago from the bankruptcy stating that they were planning for one more, if not possibly two more, distributions?
  28. Yes, got that letter.
  29. I even got a cheque again last month, out of the blue. Sour money but as I have totally wriitten the whole amount off, every distribution feels like X-mas ;-)
  30. By "got a cheque again last month" do you mean that you have gotten two new distributions this year?
  31. Just one check so far this year. About three or four weeks ago.
  32. Sorry for the confusion guys, only one this year. But was sort of like X-mas as I didn't expect anything anymore.

    The Refco affair was mig biggset loss in trading in my personal accounts in my career.

    Luckily I made it all back and more. Gave me a different perpective on a lot of things as well. As everything in trading a very expensive lesson, but then again, trading and learning to make money out of it will never be really cheap for anybody.

    Hope X-mas comes again for all of us!