As a scalper, it is very noticeable and way too risky to try to endure.
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The CFTC nails another foreign broker for hosting U.S. clients,
without being registered and regulated by the CFTC and NFA.
Here in this thread, we are familiar with stories of this sort. But, this one is different from most of the others we have followed over the years. This one involves a big-name British forex dealer, registered with the FCA. This story involves Gain Capital UK Limited.
Here is the CFTCâs version of the story â CFTC Orders UK Company to Pay Over $490,000 for Registration and Supervision Violations | CFTC
As the name implies, Gain Capital UK Limited is part of the international holding company, Gain Capital Holdings Inc, which is also the parent of Gain Capital - Forex .com, one of the two largest forex dealers in the U.S. Gain Capital Holdings Inc is currently in the process of being acquired by INTL FCStone.
Gain Capital UK Limited (Gain UK), the subject of this story, got busted for two violations of CFTC/NFA regulations:
(1) hosting U.S. clients, some (or all) of whom allegedly were solicited by Gain UK to open forex trading accounts, and
(2) failing to supervise one Gain UK employee, who conspired with an un-registered CTA (commodities trading adviser) to set up and run a managed account for Gain UK customers who are U.S. residents. One of those customers lost a substantial amount of money, and apparently blew the whistle on Gain UK.
Participants (as well as silent readers) in this thread will probably react differently to the two charges
(#1 and #2, above) being brought against Gain UK.
⢠The first charge (#1, above) is the same bogus crap weâve been contending with since this thread began â the CFTC erecting a wall around the U.S. and saying that people trapped inside that wall cannot trade with brokers of their choosing, unless those brokers are CFTC approved, regulated and controlled.
So, howâs that working out for you?
There are many hundreds of forex brokers around the world. And you â prisoners inside the CFTCâs wall â get to choose from exactly five. However, if you have only a modest amount of trading capital, your choice is down to just three: Gain, Oanda, and IG.
The CFTC has made itself the defacto World Forex Regulator, pursuing, harrassing and destroying foreign brokers who dare to host U.S. forex-prisoners trapped inside the wall. The annals of this thread contain many instances of foreign brokers being forced to abandon their U.S. clients, and in many cases being driven out of business.
This is what we hate about the CFTC.
We all have, or had, mothers; â we donât need the CFTC attempting to assume the role of âmotherâ in our lives. Thatâs why we say, âF the CFTCâ, and thatâs why we go offshore.
⢠The second charge against Gain UK (#2, above) may be more nuanced to members of the offshore trading community.
The nuance has to do with who (if anyone) was defrauded. If the U.S. customer who lost money through his involvement with the un-registered CTA knew that the CTA was un-registered, and therefore in violation of the CFTCâs worldwide forex regulations â but, he chose to entrust the trading of his account to that CTA anyway â the libertarian in me says that a sovereign individual should be free of âmother governmentâ telling him what he can and canât do with his own money.
Itâs said that a fool and his money are soon separated. The libertarian response to that truism is that a sovereign individual has the right to be a fool with his own money.
On the other hand, if the unauthorized and/or illegal aspect of the CTAâs role in this drama was hidden from, or misrepresented to, the customer â thatâs a clear case of financial fraud. And nobody (that I know of) in this thread would dispute the fact that the CFTC has a legitimate role in prosecuting financial fraud in the commodity and forex markets.
In their reporting on this CFTC action, Finance Magnates claims that Gain UK and the CTA in this story did, in fact, defraud the U.S. customer. However, I donât find that in the CFTC press-release. Here is the Finance Magnates article â https://www.financemagnates.com/forex/brokers/cftc-hits-gain-capital-uk-with-500k-fine-over-onboarding-us-traders/
Where are the boundaries of the CFTCâs jurisdiction?
Evidently, there are none. With their many Memoranda of Understanding with financial regulators in countries around the world, the CFTC can effectively police the world, by tasking their counterpart regulators in those countries with carrying out the CFTCâs police actions.
Sovereign individuals around the world should work in concert to defy the regulatory over-reach of the CFTC, the FCA, the ESMA, and all the other agencies that think they know, better than we do, how we should manage our banking, our investing and our trading.
Thatâs the end of my rant. I needed to get that off my chest. Thanks for reading.
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Itâs been mentioned before, but the fact that I, as a legal, American citizen, can withdraw every single penny of my money and go into Las Vegas and bet every penny on a single spin of a roulette wheel and it is perfectly acceptable, but HOW DARE I learn a lifetime financial skill like currency trading and make a living doing what I love
Itâs all about The People In Charge. The People In Charge are the mega-wealthy. The mega-wealthy became mega-wealthy and maintain their mega-wealth from 99% of society having jobs and being in debt. The mega-wealthy donât want that 99% to become wealthy, because then they wonât be in charge anymore.
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So far in 4 days, up 3.5 % in FTMO challenge. Had to make some slight adjustments to keep within DD rules, so I got stopped out on a couple of trades that are now profitable in my main accounts. Iâm just trading with the end game insight⌠to manage 600K within 16 months.
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arenât you only allowed 1 account managing 3-$100k accounts max ($300k total) with FTMO?
assuming you are adding into the mix your own personal accounts, right?
Side note: saw an IG ad for âTopstep Tradersâ yesterday - an American prop firm - they share 80%-20% of the profits, but most likely using a USA broker? Donât know much about them
Simular concept but CME futures only. When and what products can I trade? â Topstep
EDIT: They have a MT4 FX offering aside from the Futures https://www.topstepfx.com/
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They scale up 25% every 4 months. Just need to be within risk management rules, make 10% over the 4 months and 2 out of the 4 months must be net positive.
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@Clint - Ever consider writing something up for change.org? You can send your petition out to large list of elected officials, including the president. Whether or not they ever read the email personally or care to take any meaningful action is another matter, but in the small chance that they actually do, it might be worth taking the time. You could likely garner a handful of signatures from this forum and others.
There are many issues in this country that I truly believe that those in power to invoke real change simply are not aware of, and that is especially true if those that would benefit from change are not large corporations and other groups that are more-easily heard. Sometimes, our elected officials just need to be made aware of the fact that there is an issue in the first place. Then we can only hope that they care enough to listen.
This was a big problem when crypto ICOâs were all the rage. Many Americans jumped on them, knowing that they were extremely high-risk, only to cry with threats of reporting to this agency or that when they lost their money. People are all fine when they are winning, even willing to gamble their money with offshore investment opportunities that are shady and outside of the jurisdiction of the US. But as soon as one of those âopportunitiesâ goes sour, they want to go crying to mommy. That involvement of oversight and enforcement groups led to the same, very strict climate that we see with FX, which caused nearly all ICOâs to be unreachable to US investors, including legitimate investment opportunities. The thing is, this thread serves as a testament to the fact that not everyone agrees to having such groups interfere with the who/how/where etc. they choose to invest their own money.
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I fail the free trial at FTMO. here the messge they sent me.
" we are sending you Account Analysis of your account:
Unfortunately, the Trading Objectives of the Free Trial havenât been met in the 14-day period.
Please consider whether itâs the right time to apply for the full Challenge. Disciplined traders are always welcome with us. I would also like to remind you that the fee for the Challenge will be refunded to you with your first withdrawal, as soon as you become the FTMO Trader. If you are still undecided whether you can meet the Trading Objectives of the Challenge, you can always set up a new Free Trial in your Client Area.
Could the reason for failing to meet the Trading Objectives be your psychology? Have you experienced overtrading, moving of stop-loss or refusing to recognize the loss? A rock-solid discipline makes up to 80% of success and thatâs why we joined forces with the performance psychologist Celeste. If you have a will to work on yourself and dedication to succeed, together you can move your trading all the way to the FTMO account. For more information click [here.
We would also like to ask you for a brief feedback. How was your trading? Was the Free Trial beneficial to you? Are you ready for the Challenge? Are you ready to receive funding? Every feedback we obtain gives us a valuable insight into the quality of our services.We are looking forward to a successful cooperation.
The Account Analysis can be found in your Client Area or on this
Best regards"
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What happen? They didnt like your style?
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The SEC, CFTC and NFA are regulation bureaucracies that have failed time and again:
PFG Best (personal experience)
MF Global
Madoff
Etc, etc, etcâŚ
For many years now, Iâve come to believe that the US trading restrictions have nothing to do with protection and instead are the work of lobbyists on behalf of the US exchanges and their surrogates in New York and Chicago. They want you trading with them and they own the system that keeps your money onshore.
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Abso freaking lutely correct
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when you trade for a company you must follow their rules and guide lines it like a 9-5 job always walking on egg shells trying not to break the rules so you donât get fired, when you trading for yourself you make the rules because you understand your system so you might give yourself a little more room to trade a certain way.
EDIT: the rules are simple to follow i just get aggressive with my trading at times and donât want limitation on how i trade
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And donât forget how the regulators were laxed during the DotCom boom, then bust. Then redux in 2008 mortgage banking implosion. Same turds who wrote Dodd Frank legislation, dismissed entirely the notion of a mortgage banking problem despite all the warnings.
european regulators donât have a problem with their citizens going offshore it just american thing
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congrats, keep us posted 
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Hey! Our boy Clint is famous!
Missed a golden opportunity to lay into the CFTC during your interview, tho
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just got a email from https://broker.cex.io/
Became skilled enough in the margin trading and sometimes feel your risk appetite grows?
There is news for you! We introduce more leverage options on CEX.âIO Broker ! Now you can choose between leverages 2x, 5x, 10x, and 100x to meet your trading ambitions:
Prefer a more conservative way to trade? â Choose lower leverage.
Feeling adventurous?â There is 100x leverage .
Remember: make sure you understand the risk of high leverage!
Open new trading accounts with various leverage, isolate your risks and stay in control.
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Iâm having a withdrawal issue with Coinexx. I received their approval email; my previous withdrawal the transaction completed shortly after receiving their approval email. This time however, after receiving their approval, hours passed, and I still had not received my money. I reached out to them; they gave me a transaction hash that I put into etherscanDOTio. The details there showed $0.0 for the value, and the To: address was wrong. When I initiated the withdrawal request, I took a screen shot of the address that I pasted into the Coinexx Portal. Itâs not the same as the To: address which EtherscanDOTio shows for the transaction hash they gave me. As of right now they are telling me they are looking into it.
Iâm happy they are looking into it, but this makes me nervous for doing future transactions with Coinexx. Some of you have experienced similar issues with them. I guess now itâs my turn.
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Coinexx fixed the problem; I received my withdrawal. I received an email from Samantha Shaw explaining to me that it was an error on the blockchain and not because the wrong wallet address was entered by Coinexx. Coinexx is definitely aware of this thread on Babypips. She said the following âWe do apologize for the inconvenience to you and would be grateful if you could post an update on babypips.â I used gusd for the transfer; I wonder if there is a better coin to use that is more reliable for transfers.
[EDIT]
Also, I would like to add that I read the Etherscan report wrong. Samantha explained to me that I need to look at the header âTokens transferredâ in the report for the âToâ address. The âToâ address I referred to above is the contract number. In the report I first looked at, that report was missing the âTokens transferredâ section, and there was an execution error.
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