Are Your Funds Safe? NFA to Shut down small forex fcms

[halo3plz]

could anyone find fxdd on that report? i think fxdd's parent company is named tradition, but i didnt see that either...

[clickr12]

Originally Posted by forex savior

None of the firms listed in the "dead firms walking" have larger parent companies. These firms are all undercapitalized taking into consideration the coming $5 million capital requirement. That is a fact. Traders need to know the risks of trading with these firms, as most of them don't have much of a future ahead of them. The fact is, if these firms had the money they would have already listed it in their capital reports. But they don't have the money.

For those traders who aren't bothered by this fact so be it. But I think it important they at least know the incredible risks they take in opening an account with any of these firms.

I don't know what to tell you other than you are wrong on 2 of the companies. This can be verified with the NFA. The problem is you are disparaging those companies and their business might be damaged when they've done nothing wrong.

All I ask is that people here verify before accepting a random person on forums (and yes, that includes me as well as forex savior). Don't just take this report at face value, esp since the capitalization thing is a maybe.

[dannybly]

scary stuff for those with accounts at the smaller firms - this will probably be a good thing for the industry though in the long run

[joshdance]

ForexSavior has been posting about this on forexfactory.com too. Same posts. For a BALANCED view of all this, go there and check out what others have to say, instead of a spread of panic which seems to be what is happening here. Yes it's important to know, but all the information should be on the table before decisions are made, and it seems a bit tasteless to 'call out' "good" and "bad" brokers.

[forex savior]

Originally Posted by clickr12

I don't know what to tell you other than you are wrong on 2 of the companies. This can be verified with the NFA.

I am not wrong about any of these companies. Please point out which companies are poorly capitalized? This information is from the CFTC. It's the public record.

[forex savior]

Originally Posted by joshdance

ForexSavior has been posting about this on forexfactory.com too. Same posts. For a BALANCED view of all this, go there and check out what others have to say, instead of a spread of panic which seems to be what is happening here. Yes it's important to know, but all the information should be on the table before decisions are made, and it seems a bit tasteless to 'call out' "good" and "bad" brokers.

I realize that some people are upset that I pointed this out. Better to keep all this secret right so that people don't know what is going on in the industry? For those traders who are concerned about whether or not their firm is financially risky ask yourself this question. In August of 2005 when everything at Refco was fine if you knew the firm was going out of business shortly thereafter and you had an account with them would you have kept your money there anyway and taken a "wait and see attitude?" Of course not. You'd have grabbed your money and ran. That's just plain common sense.

[PipHunterE]

Well this is very concerning, but I see at least one and possibly two omissions in the firms you’ve listed, regarding your assessment. Before I say what that is, I'd like to know how you've arrived at the notion that these firms will be shut down if they don't make the proposed capital requirement. Certainly there would be some kind of date that would be published in order for them to "true-up". This seems very "x-files" to me. Further, even if such a requirement was issued by the NFA, and the CFTC "signs off" would they even have the authority to "shut down" a U.S business without supporting laws and due process? That seems very unlikely. Please fill me in on how you see the actual closing of the many firms listed (which currently have excess capital, but less than 5m) taking place.

Also I do need to ask, do you work for any of the firms you've listed as likely to survive? I know when FXCM was trying to trash a broker I told them I was considering, they were all about their net assets. This sounds like a very similar argument. If not, my apologies in advance, but this seem a little fishy.

[Fat Tony]

I am new to trading. I have read through this thread and I'm amazed at how many firms have already gone out of business. I don't know who I will open my live account with but I can't imagine opening one with a firm with just a million bucks stashed away under the mattress. Boy people will really give their money to just about anyone these days...

[forex savior]

Well, it looks like the forex dead pool is about to claim its first two victims. Read it and weep.

The NFA has issued serious complaints against two small, undercapitalized firms.

The first is Advanced Markets (Amifx). The NFA says in its complaint, “On June 28, 2007, NFA issued a Complaint charging AMI with cheating, defrauding or deceiving another person or attempting to do so and failure to observe high standards of commercial honor and just and equitable principles of trade. The Complaint also charged AMI with failure to maintain required adjusted net capital; failure to take required charges; failure to collect and maintain required security deposits; failure to file accurate weekly reports; and failure to maintain accurate records.”

http://www.nfa.futures.org/basicnet/...px?seqnum=1251

What is even more frightening is that Amifx has only $1,020,000 in capital. Could this be ANOTHER UGMFX?

The second is against Bacera Corporation (whoever they are?) But just like UGMFX Bacera looks like they got no money left. On June 28, 2007, NFA issued a Complaint charging Bacera with failure to give required notice; failure to maintain required adjusted net capital; failure to take required charges; and failure to maintain accurate records. The Complaint also charged Bacera with cheating, defrauding or deceiving another person or attempting to do so and failure to observe high standards of commercial honor and just and equitable principles of trade. Finally, the Complaint charged Bacera, Wong, Hsu and Valdivia with failure to supervise.

It seems like these smaller firms are going under on a weekly basis. I'll keep everyone posted as the dead forex firms walking continue to die off...

[senaka7]

Originally Posted by clickr12

I don't know what to tell you other than you are wrong on 2 of the companies. This can be verified with the NFA. The problem is you are disparaging those companies and their business might be damaged when they've done nothing wrong.

All I ask is that people here verify before accepting a random person on forums (and yes, that includes me as well as forex savior). Don't just take this report at face value, esp since the capitalization thing is a maybe.

WHO you work for clickr12???