Brokers busted!

Two major brokers one i think might be the biggest were just fined and told to repay there customers.They used a virtual plugin in MT4 to gain a advantage on slippage the NFTC fined one over 400 grand and the other over 300 grand.I guess the stuff i see on videos about software attached to MT4 by brokers are true!I wont name them because i see there advertisements just above me while i type this.

Where did you get your info from?

Sweet Pip i got it from Nicks site here is one release:

For Immediate Release
October 28, 2010

For more information contact:
Karen Wuertz (312) 781-1335, <[email protected]>
Larry Dyekman (312) 781-1372, <[email protected]>

NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC

October 28, Chicago – National Futures Association (NFA) has ordered Gain Capital Group LLC (Gain), a forex dealer member located in Bedminster, New Jersey, to pay a $459,000 fine as a result of an NFA Complaint issued and a settlement offer submitted by Gain and its chief executive officer, Glenn H. Stevens.

NFA’s Business Conduct Committee alleged that Gain engaged in abusive margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers. The Committee also alleged that Gain failed to maintain records for certain unfilled orders, failed to adequately review the activities and promotional material of the firm’s unregistered solicitors, and failed to supervise the firm’s operations.

Press Release For Ikon:

For Immediate Release

Just saw this:
IKON fined $320,000 for Virtual Dealer | Forex Magnates

This is where it pays to do some good research. There were more than enough warnings about Gain Capital Group LLC (Gain) and several other big players to take them seriously.

In case anyone isn’t aware of the connection, Gain Capital is the company behind

and yes I do see their ad above me as I type :smiley:

I’m not sure why anyone would want to keep an account with them after this. Hats off to the NFA! I guess stronger regulation has its pros and cons…

Lets hope the NFA is not picking and choosing and does their job properly. Enough questionable brokers out there.

I had my suspicions about broker versions of mt4, when I was first learning about forex I downloaded it from a broker, I had a lot of problems with it causeing my computer to freeze up, I uninstalled it then downloaded it direct from metaquotes and had no problems with it since. This tells me there was some undisclosed difference between the broker version and the metaquotes version.

Scary Stuff!
What measures have been taken that these brokers do not continue the same practice again?

Probably more visits from now on to see how they are operating. Doubt if anyone is going to run and open up accounts with them after this news though.

for me it is a little doubtful information

Wow- I would be amazed if everybody doesn’t just leave these 2 and join another. Why would you stay with brokers that have such obvious malpractice? On a side note…is there somewhere you can see all penalties against any broker? more specifically FXCM to be honest.

Yes, there is (for U.S. regulated brokers). Go to — BASIC Search

Then, enter whatever identifying info you have (broker name, registration number, name of CEO/Director/owner, etc.). Just about any scrap of identification will work. The BASIC system will give you all NFA actions involving that broker or individual.

To see [B]all[/B] NFA actions for any year, go to — National Futures Association | News Center

Fill in a couple of boxes, and you’ll get the full monty.

For U.K. brokers, consult the FSA website.

If you are worried about this sort of thing happening, just download mt4 from a reputable broker and drop your broker’s .srv (MT4 server definition) into the other mt4 version’s configuration folder. You can then connect to your broker’s server using the other instance of mt4.

Does anybody know if that plugin worked on the brokers metatrader system platform or the clients metatrader side? I rather believe that plugin is something they used at their servers platform. Anyways, I don’t know that so it would be nice to have more info about it.

If that is the plugin, its a server side issue it seems:

MetaTrader Virtual Dealer Plugin

Plug-in was server-side with the Broker from my reading of the NFA document.

Ah. Never mind, then.