Gain (Forex.com) charged with fraud, false reporting or deception (market making)?

Broker Discussion Forex Brokers
#1

In a typically laconic statement CFTC has announced that it established that Forex.com violated Section 4b(a) ofthe Commodity Exchange Act, and that this violation caused $22,231 in damages. 1 Accordingly, Gain Capital Group LLC, d/b/a Forex.com is ordered to pay to David Ni $22,23 i, plus post-judgment interest on that amount at 0.52% compounded annually from the date of this order to the date of payment, plus $50 for the cost of the filing fee.
Why is this important and what is Section 4b(a) you ask? According to the Security Exchange Act (here it�s called 6b not 4b) it�s:

Michael
Forex Magnates

#2

Last week, the CFTC issued a decision in favor of David H. Ni, a client of GAIN Capital Group. GAIN firmly believes it provided Mr. Ni its services in accordance with the customer agreement that he read and agreed to at account opening which fully disclosed the risks associated with trading forex and our standard policies and procedures.

The CFTC decision letter is standard procedure and does not explicitly state any fraud, deception or specific wrongdoing by GAIN Capital. While we respectfully accept the CFTC’s final rendering in the matter, we maintain that no wrongful act or omission was conducted by our firm.

Thanks,
Alicia Brown
Director of Marketing
GAIN Capital

#3

Hi Alicia,

Thank you for the explanation.
What does Section 4b(a) stand for then? Googling that phrase returns the heading of the section which explicitly states: fraud, false reporting or deception.

Thank you,
Michael

#4

Hello Michael,

Do you have a relationship with David H Ni. It seems that the forex market is a very risky market and customer have to read very carefully the agreements. Everyone knows that Forex.com has a deal desk and takes the other side of the trade. I have a mini account with them. I have lost and I have won a little bit :0 It seems a little weird (scam) that David wasn’t aware of this since Forex.com clearly state this and have not denied it. To my opinion David lost money and wanted it back and like the normal US society suing someone always gets them somewhere. I have heard of so many forex traders some are my friends that think forex is a way to make quick money. Is not true. I’m glad you are putting the his name out there so other brokers don’t open accounts for him because it seems that this is a normal thing for some ppl that don’t know how to trade.