The Boston Business Journal ran another article on the shenanigans going on over at Tradex Swiss Ag:
Immigrants trapped in forex mess - Boston Business Journal:
Like most Swiss firms Tradex Swiss AG is not regulated and customers have been burned as a result. Please note the following Swiss firms
ARE NOT REGULATED and should be avoided lest you end up like the poor sods at Tradex Swiss AG:
ACM
Dukascopy
WestCapFX
MIG
GFX Group (Forex.CH)
Crown Forex
Immigrants trapped in forex mess
by Jackie Noblett Journal staff
Z. Song was amazed by the size of her friend's new house.
The Westford resident asked her friend, who never had a full-time job, how she and her husband were able to buy their new home in Acton. The friend said her husband invested money with Tradex Swiss AG, a Boston money manager that specialized in foreign exchange trading. Song recalls being told she should trade, too.
"They would never lose money, always make big money," Song said in an interview.
Little did Song know that her friend's husband, David Qi, was getting paid, according to his lawyer, to refer friends to the unregistered forex trading company. Song also maintains she had no idea that, just three months after her initial investment, her money would be locked up in a legal battle involving Tradex and its regulators. Tradex is now being investigated by governments on both sides of the Atlantic for trading currency without being properly registered, and over $4 million in investment accounts hangs in the balance.
The rest of the article requires a subscription but essentially contains tales of misery and woe from traders whose funds are frozen in the shuttered swiss brokerage. Of interest in this sordid tale are the actions of Tradex salesmen who were STILL soliciting customers to trade even as Tradex was going under!
Quote:
In the midst of the investigation, email communications provided to the Boston Business Journal by former Tradex investors show that company continued to solicit business from customers.
A July 25 e-mail from a Tradex broker said that the operation had opened an account at Sovereign Bank for future trading. "In the future, please wire your fund to this account," the e-mail states.
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So basically Tradex was encouraging traders to purchase tickets on the Titanic right after it had struck an iceberg. Talk about a complete lack of ethics.
This is a very important point to remember. Small forex brokers that are in financial trouble rarely let customers know they are in trouble ahead of time. Indeed, as Tradex shows, they will go so far as to cover up that trouble to their own customers and encourage them to keep sending in money even when all is lost.
This is why traders should never invest money with a poorly capitalized/unregulated firm. These firms can unwind rapidly and by the time the average trader finds out it is way too late to do anything about it.