[Flyn]

For any of you unlucky enough to have funds lodged with CFG (Forefront Investments Corporation), their operations have been suspended by the NFA. Details on the cfgtrader website.

I was only using them via a managed account and have only lost a small amount. Other people I know are less fortunate.

[highway]

Originally Posted by Flyn

For any of you unlucky enough to have funds lodged with CFG (Forefront Investments Corporation), their operations have been suspended by the NFA. Details on the cfgtrader website.

I was only using them via a managed account and have only lost a small amount. Other people I know are less fortunate.

Any links to read more about this case?
Always good to learn how? Why? and What?

[fxmasterjedi]

http://www.nfa.futures.org/basicnet/...d=0334858&rn=N

The link above shows that Forefront Investments Corp, dba Concorde Forex Group - CFG Trader

http://www.nfa.futures.org/basicnet/...34858&type=reg

The link above shows the outline of the case.

http://www.nfa.futures.org/basicnet/...03&contrib=NFA

The link above is the narrative of the decision by the NFA.

[FXCM Rep]

Originally Posted by Flyn

For any of you unlucky enough to have funds lodged with CFG (Forefront Investments Corporation), their operations have been suspended by the NFA. Details on the cfgtrader website.

I was only using them via a managed account and have only lost a small amount. Other people I know are less fortunate.

FXCM Makes Offer to Rescue 3,800 Forex Trading Accounts of CFG Trader:

NFA and CFTC Currently Reviewing Offer

March 26, 2007

· CFG Trader, a Richmond, VA foreign exchange trading company, was forced to liquidate all open trading positions by the NFA on March 21 of this year, because it failed to meet NFA’s capital requirements;
· Forex Capital Markets LLC (FXCM) has agreed to accept the CFG Trader accounts – representing approximately 3,800 individual traders, pending regulatory approval. CFTC and NFA approval are required in order for the agreement reached between CFG Trader and FXCM to be consummated;
· FXCM is prepared to contribute approximately $1 million dollars to make up the difference between the assets of CFG Trader and the funds owed to CFG clients due to under-capitalization, should the CFTC and NFA approve the transaction;
· Under the proposed agreement between CFG Trader and FXCM, no CFG client will lose money due to the under-capitalization of CFG Trader. If the NFA and CFTC do not approve the agreement, there is no certainty that CFG clients will receive 100% of their funds.


These announcements were made by Drew Niv, CEO of Forex Capital Markets, the global currency trading firm.


“After the NFA decided to suspend CFG Trader operations, we received several requests to protect their clients against loss,” said Niv.

“FXCM is prepared to provide one million dollars in order to make the CFG clients whole. If the transfer goes through, all the account holders will have their funds intact,” said Niv.

FXCM Calls For Higher Standards

“Our strong balance sheet, which greatly exceeds NFA requirements, is enabling FXCM to put on the table an offer which may keep the 3,800 CFG traders from losing money. We hope the NFA and CFTC will enable us to protect these clients from substantial losses,” said Niv.


“This incident points to the fact that there are still some companies in the forex industry that are inadequately capitalized. We think it is vitally important that all currency trading clients have full information regarding the financial strength of forex trading firms.”


“We at FXCM have taken the major step of making our balance sheet public,” said Niv. “We challenge other firms in the industry to follow our lead.”

FXCM recently released its financial details: The FXCM Group as of January 31, 2007, held over $120,660,927 In Capital (Assets Minus Liabilities) and $98, 657,018 In Operating Cash (Excludes Client Funds.) For more details on FXCM’s balance sheet, visit http://www.fxcm.com/company-profile.jsp.)

# # # #

FXCM Facts

· Forex Capital Markets LLC is the Largest Forex Dealer Member*
· More than 85,000 live accounts are traded via the FXCM platform
· Over $200 billion in notional volume is traded each month on the FXCM platform


Registered with the CFTC as a Futures Commission Merchant, FXCM (Forex Capital Markets LLC) has received numerous awards from the investment community, including Best Currency Broker from Shares, Best Retail Foreign Exchange Platform from FX Week and Best Foreign Exchange Specialist from Technical Analysis of Stocks & Commodities. In addition to currency trading, FXCM offers educational courses on forex trading, and provides research through DailyFX.com.


*As of September 2006, FXCM held in excess of $215 million in customer funds out of a total of over $770 million held by Forex Dealer Members. While there are approximately 31 active Forex Dealer Members with liabilities to customers of approximately $795 million, FXCM holds approximately 1 out of every 3 dollars of customer funds held by Forex Dealer Members. *Source: http://www.nfa.futures.org/news/newsProposedRule.asp?ArticleID=1704
(FXCM is the FDM referenced in this NFA document as holding in excess of $215 million in customer funds.)

# # # #

Leveraged foreign exchange trading carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

[Moe]

There's only a few forex firms that have withstand the test of time, fxcm, forex.com/gain, gft, oanda, the rest can go under tommorow, not saying these broker's can't go under but i feel more safe with my money with these brokers.

[merlin]

Originally Posted by FXCM Rep

Under the proposed agreement between CFG Trader and FXCM, no CFG client will lose money due to the under-capitalization of CFG Trader. If the NFA and CFTC do not approve the agreement, there is no certainty that CFG clients will receive 100% of their funds.

sounds like you CFG clients better get on the phone with the NFA

jokes aside, its terrible to see something like this go down

never thought i would say this, but im glad the NFA is cracking down. it will be good for the industry.

[Moe]

Originally Posted by merlin

sounds like you CFG clients better get on the phone with the NFA

jokes aside, its terrible to see something like this go down

never thought i would say this, but im glad the NFA is cracking down. it will be good for the industry.

merlin this is good nfa is cracking down if these brokers or under-cap then they don't need to be in business because it will hurt the customers in the long run it just a shame if n.f.a don't approve this deal then the customer's loose there funds, there got to be a better way to protect the customers

[merlin]

any CFG traders in here? would be interesting to know what you are seeing from the "client" side....

[stockwet]

I had an account with them until a couple months ago. A friend of mine was with them until last week. He was one of the first to find out, so, I think he got all of his money out. He was planning on leaving anyway because he could never get filled.

CFG has a history with CoesFX. When CoesFX went down, one of the founders started Forefront Investments. That's how I ended up with CFG. At first, they said CFG was only doing the clearing. However, I was suspicious of the relationship. Sure enough, it looked like they tied in a little more closely than that.

I can't tell you how I found out this next piece of info, but, I can tell you it is HIGHLY credible. The founder of Forefront, the guy who basically ran both CoesFX and Forefront/CFG into the ground, is planning on opening a new firm. BEWARE traders. When I know the name, I'll post here at the site.


FYI: CFG is the firm that is the subject of my original Stop Hunt thread.

[johnedoe]

Somebody ought to take that SOB out and pop a cap in his skull..........FX is tough enough without *#&^@)/ like that rippin people off.................

by the way..... whatis the guys name...the founder?

[armisz]

Snellgrove and his friend Jejnic. they had this firm.

[nvwine]

Could someone briefly explain what a risk statement like this means. I copied this off Spot Trader FX's web site.

In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off exchange transactions. The firm with which you deal may be acting as your counterparty to the transaction. FOREFRONT INVESTMENTS CORP functions as a direct counterparty to Traders in many currency transactions. FOREFRONT INVESTMENTS CORP neither offers the right to offset, nor guarantees a market in which to offset, transactions it effects as counterparty. Therefore, it may be difficult or impossible to liquidate an existing position, to assess its value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off exchange transactions may be less regulated or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarize yourself with applicable rules and attendant risks.

A google search turned up several companies with statements which included Forefront Investments Corp. I don't fully understand the statement and I'm too lazy to do true research. How does CFG's demise effect these other broker's clients? I'm sure Stockwet explained about Spot Trader FX before but it was not in the stop hunting thread.

[BeachBum]

http://www.zoominfo.com/people/Janji...834178967.aspx

Originally Posted by stockwet

I can't tell you how I found out this next piece of info, but, I can tell you it is HIGHLY credible. The founder of Forefront, the guy who basically ran both CoesFX and Forefront/CFG into the ground, is planning on opening a new firm. BEWARE traders. When I know the name, I'll post here at the site.

FYI: CFG is the firm that is the subject of my original Stop Hunt thread.

[tycan]

Hello.........

I am new to the forum and a current investor with CFG. I have been advised, that no clients will lose funds. It is because they are NFA regulated and all deposits were FDIC insured. Right now, the receiver is reviewing whether or not to let FXCM step in and purchase. This is what I am told, so shouldn't it be true? I am not a U.S. citizen, so don't know all laws surrounding currency trades in the U.S. Thanks.

[smjones]

Originally Posted by tycan

Hello.........

I am new to the forum and a current investor with CFG. I have been advised, that no clients will lose funds. It is because they are NFA regulated and all deposits were FDIC insured. Right now, the receiver is reviewing whether or not to let FXCM step in and purchase. This is what I am told, so shouldn't it be true? I am not a U.S. citizen, so don't know all laws surrounding currency trades in the U.S. Thanks.

The bank in which the funds are depositied is FDIC insured, but the funds are not FDIC insured from CFG. The insurance only applies if the bank were to go belly up, not CFG.