I have started a thread in August called âIs Velocity in Jepardyâ. The purpose of this thread was to analyze the situation in which Velocity put itself be depositing customer funds with now bankrupt Sentinel FCM. Velocity came out well out of this mess. All customer requests for withdrawal were met and Velocity got most of it its fund back with realizing one time loss of about 3 mil. This thread was closed by moderator with a lot of negative feedback deleted. Which was fine with me since it was not very relevant. I wanted to review something on this thread and it is no longer there. THE THREAD WAS DELETED. If you Google âIs Velocity in Jepardyâ some snippets come out, but the thread is gone if you click on any link. My question is: Why was this done? It is immoral to delete a thread were constructive criticism was posted just because some of content reveals mistakes of elitetrader sponsor. Regards, redduke
I noticed that many posts in the thread were deleted....including all of mine. My posts simply discussed some of the risks that Velocity took with their customers money. Evidently you found that to be "irrelevant". LOL! Good question though as to why this was done. My guess is Velocity bitched to the owner, and since they are a paying advertiser, the thread was deleted. Velocity pushed Elite, and Elite folded, illustrating their preference for the buck over truth. OldTrader EDIT: By the way, Velocity "came out well" as you said, thereby proving that it's always better to be lucky than smart.
Hi OldTrader, I did not mean that your posts were irrelevant. I do not remember exactly who posted there, but there were a lot of posts that while deleted did not alter the purpose of the thread. But, I did not like tool that they were deleted. But to delete the whole thread is outrageous. Regards, redduke
I agree completely...to delete the thread is definitely outrageous. But further, I think deleting any post because it may be critical to an advertiser, is equally outrageous. I think what happened here is that Velocity wanted to get rid of the thread since there were posts that were not complimentary. And Elite went along with it since they are an advertiser. Simple as that. To me this puts Velocity and Elite in a very poor light. OldTrader
To expand on your thinking, and because I am a Velocity customer...........I think it is outrageous that the CFTC would allow FCM's to put our segregated accounts at some firm aka Sentinel that has a freaking trading desk. What's to stop comingling of funds again. Those funds should be invested only in government insured instruments or in the bank. Have anyone of you read up on the CFTC protection. I read them close when this occured and it states your funds are segergated, but then it also says if there is damage done to segerated accounts you will get a pro rata distribution. Double talk BS! Yes I did get my money as stated earlier but this is nonsense that this was allowed to happen. At this point I am going to continue to trade through as US based, but I am looking at Canadian IB's for the simple fact the all accounts are protected by the CIPF, not like in the US where futures are excluded for SIPC protection. And yes it seems to cost about $1 RT to trade through the Canadian IB I checked. That was Alt Capital using Dorman Zen Fire trading/clearing. The way it was explained to me if you use a Canadian IB with American clearing firm you are still protected by CIPF.
Totally agree. Customer funds should never be put with another entity where risk of default is higher then in Harris Bank for example. Hopefully Velocity will not do it again. Also, I would be creaful with Canadian broker as far as execution goes. How fast and reliable are they?
At the most I would think we are talking a few milliseconds besides the clearing firm would still be American based. To be clear just because the clearing firm is American based doesn't mean you don't get CIPF protection. As long as the introducing broker is Canadian that is enough as I was told.
As of August 31 according to http://www.cftc.gov/marketreports/financialdataforfcms/index.htm Velocity had $15 Mln in Customers Seg. Req. Account. vs. $23Mln as the end of July and $1.2Mln vs. $2.1Mln Excess Net Capital respectively. Since now we are in October and they are still operative, is this a good sign?!