Judgment Day
Today is the day when the $5 million minimum capital requirement rule takes effect. News out of Money Garden is that they are dropping their high leverage accounts in order to comply with the new rule. That means no more 400:1 leverage from MG, or 200:1 for that matter.
The following firms have still not publically indicated they have met the requirement. Beware these firms until further notice:
1) SNC Investments: $1,152,000
They are well below the $5 million capital requirement. It is highly unlikely they will make the new requirement at this point. I advise customers to leave this firm and look for greener pastures.
Update: Just went to their website and there is no reference at all to being able to open an account with them. I suspect they are just going to be an introducing broker from now on.
2) Wall Street Derivatives: $1,228,000
This firm is based out of New Zealand and I'm not even sure they have any U.S. customers as their U.S. website is out of service.
3) Advanced Markets: $1,322,000
Amifx is already teetering on the brink as they are the subject of a business conduct committee case before the NFA in which they are cited for a whole host of financial violations including not meeting the old capital requirement. This firm does not have much of a future.
4) AlpariFX $2,481,000
Little known European firm. Well under the cap requirement.
5) Solid Gold Financial: $2,040,000
Solid Gold's future is now in serious doubt. Like many of the other firms on this list they have been charged by the NFA with failing to meet their existing capital requirement. When you can't meet the old requirement it stands to reason you won't be able to meet the new one either. Solid Gold is anything but a solid investment at this point.
6) Bacera Corporation: $2,300,000
Like a turd that won't flush Bacera Corporation just refuses to go down the drain. The Savior wrote Bacera off over the summer as sources knowledgeable about them stated they were going to close up shop. But no, they are still hustling the folks in LA for fresh deposits. In September Bacera settled a complaint with the NFA after it was discovered they were undercapitalized to the tune of $1.2 million. NFA reported Bacera only has about 200 customers as it is. But to those 200, do yourself a favor and get yourself another broker because sooner or later the pipes are gonna get cleaned and these guys are going to get flushed once and for all.
Update: They published their Holiday Trading Schedule on their website. So they apparently don't plan on closing their doors. Do they have the money? Is the CFTC going to raid the place after the Holidays? We'll soon find out.
7) ODL Securities: $2,566,000
Ravaged by undercapitalization issues.
8) Forex Club: $3,320,000
They still have not hit the minimum $5 million mark. And don't forget since they are a market maker they have other financial requirements to meet as well. They still haven't publically done so.
9) Easy Forex: $3,789,000
Under siege for their sleazy sales tactics, it's hard to imagine the NFA isn't going to drop the hammer on them soon.
So now what? Judging from the NFA's website it doesn't appear they will be moving in for the kill yet. In fact, it may not be until January that we find out who will survive and who will perish. So if you have any money at these at risk firms get it out now. And Merry Christmas everyone!
|
Linear Mode
