Last fall, we noted that [B]City Credit Capital (UK)[/B] was sued in a CFTC “sweep” (along with 10 other offshore brokers) for operating “illegally” as an unregistered RFED. We added a note to the listing for City Credit Capital in our Offshore Broker List, citing the CFTC Press Release detailing the “sweep”, and we added a caution to “exercise extreme due diligence”.
The case against City Credit Capital has been settled (in the CFTC’s favor, of course), with a Federal District Court issuing a $140,000 judgement against them. Presumably, this now settles the CFTC’s vendetta against this particular broker.
We will review City Credit Capital again, to determine whether they will remain in Group 1 of our List.
Here’s a copy-and-paste from the small print at the bottom of the latest Press Release:
[B]“The CFTC appreciates the assistance of the United Kingdom Financial Services Authority (FSA).”[/B]
(I [B]bolded[/B] that sentence for emphasis.)
I wonder when the FSA (and the other legitimate foreign regulatory agencies) are going to man-up, and tell the CFTC:
[B]You are not the World Forex Police, so piss off.[/B]
And, lest we forget, [B]there is no law restricting the right of an individual forex trader to establish a client relationship with any broker, anywhere in the world.[/B] The CFTC would be delighted if you could be fooled into thinking otherwise, but their own statement implies your right to deal with the offshore broker of your choice:
"CFTC customer protection information for retail forex customers
"The CFTC strongly urges the public to check whether a company is registered before investing funds. [B]If a company is not registered, an investor should be wary of providing funds to that company.[/B] A company’s registration status can be found on the National Futures Association’s website at http://www.nfa.futures.org/basicnet."
Fair enough, CFTC. You have cautioned us to be “wary”, and we appreciate your motherly concern. Now, before you overstep your bounds, butt out. Leave us alone. And leave the offshore brokers alone.