FYI: Forex dealers on NFAs "ceased operations" list

"It seems to me you are stepping out of bounds with this posting". Yeah, your correct Fxstarship, why should we want to know about these businesses closing down. It is none of our business, right? They only hold accounts of some of our traders on this forum. They have no right to know what is going on.

Fxstarship... if I know that you have $50,000 in a brokerage firm and I have just read that the firm is closing their doors, then I am in error if I tell you about it?

Been trading the forex long?

http://www.nfa.futures.org/news/newsRel.asp?ArticleID=2054 , its not mentioned which 4 firms , anyone knows the full list of ceased operation firms ?
Im a customer of royal trader , n had no problems whatsoever , they are very professional in most ways.
just to back beachgal , I dont think any royal trader customer would ever say they are a bad company

a transcript of my chat with royal trader support

Thank you for utilizing our Live Chat Service. Please wait for a RFXT representative to respond.

You are now chatting with 'FX Support'

FX Support: Welcome to IKON GM-Royal Division's live chat service. How may I help you today?

{Personal Info Removed} Maheswara: hello

FX Support: Hello {Personal Info Removed}

{Personal Info Removed} Maheswara: I ve read a news regarding NFA regulations

FX Support: Yes

{Personal Info Removed} Maheswara: And your company is mentioned to cease their operation

{Personal Info Removed} Maheswara: i want to clarify the news ...

FX Support: can you give me the link for that news

{Personal Info Removed} Maheswara: yes

{Personal Info Removed} Maheswara: http://www.forexfactory.com/news.php?do=news&id=65255p#post1804444

FX Support: for your knowledge we are still in busness and we raised more than 9 million USD in net capital

{Personal Info Removed} Maheswara: ah

{Personal Info Removed} Maheswara: would that be listed in the nfa list

FX Support: yes

{Personal Info Removed} Maheswara: i would suggest you contact the news provider to clarify that

FX Support: It was an old news and just a personal thinking , not real

{Personal Info Removed} Maheswara: allright then

{Personal Info Removed} Maheswara: thank you for your time

FX Support: we will contact the forum to clarify

{Personal Info Removed} Maheswara: allright

{Personal Info Removed} Maheswara: see you

FX Support: thank you

FX Support: for contacting us

FX Support: Thank you for visiting IKON GM-Royal Division. Please contact us at anytime. We are available 24 hours a day 7 days a week for your support.

hey beach girl, take it easy, you seem a little upset. it's not personal. as for rfxt, if you read their settlement agreement with the nfa, you will see that the former owner of royal, i won't mention his name, was/is prohibited from running any more forex companies (i'm paraphrasing). they got in trouble for two things: not overseeing their ib's properly, and misleading advertising from their freedom-fx days. so technically, they could have stayed in business as royal if they met the net cap requirement, but it just made more sense for them to merge with ikon. as for their number of clients when before they merged, they had about two hundred.

How many of the Firms on the list above are 'no longer in business' because they have merged, and not actually 'gone out of Business'? The Desk at OptionsXpress are operating, and swapping XpressTrade customers Forex orders. A word of caution is to be applauded, but many will read this and think 'My Broker is out of Business', and that may not actually be the case.


The Headline may be a little misleading. Just a thought.

I'm surprised that there are so many comments about this. Yesterday, the NFA released an investor newsletter http://www.nfa.futures.org/investor/newsletter.asp
No one has mislead anyone here. rfxt has ceased operations and are no longer licensed by the NFA and the above conversation points out that the new organisation is called IKON GM-Royal - not rfxt - and they trade using a different license. rfxt clients have been transferred to the new organisation. It's just an organisational restructure in order to meet the new legislative requirements of the NFA. ROYAL FOREX TRADING LLC - NFA ID: 0370971 withdrew its membership in November. Other small Forex Dealer Members and their clients may not have been so fortunate.

That's why it's best to go with the firms with the most "excess net capital". You can find this on: http://www.cftc.gov/marketreports/financialdataforfcms/index.htm

Click on the NFA's most recent report in November and you can see how much your firm has. Any decent firm should have over $ 20 million...however, the requirement is $ 5 million. There are firms with $50 to $150+ million. So this should be no great feat that the NFA is asking of them. Don't go wit the little guys. They try to allure with bells and whistles because they don't have "real assets".

...and no I don't work for a forex market maker. There was a day when I did though....and that's why I have that view point.

Yes, I agree and 200 clients is nothing. For instance, FXCM has minimally 100,000 clients. So use big firms....FXCM, Oanda, GFT, Forex.com, etc. It's your money, so why not keep it as safe as possible. It would be like someone knowingly putting money in a bank in the U.S. that didn't have FDIC insurance...why put the money there when you can be with an FDIC insured bank....Well, your best "insurance" in forex is for your firm to have as much "padding" as possible and to be regulated in the U.S., U.K., Canada, Hong Kong, etc....in some of these reputable places that are known for stiff regulation and protection of client assets.

PFXGlobal,
Whatever you do, DO NOT post a list of traders who have changed companies or brokers who have retired or people who have gotten divorced. It is none of your D@#% business!!! LMAO
Who cares what the core CPI is when we can rant over a closure or merger...
You guys picked the hyper-sensitivity scab. Keep it up!!!!!!!

"It seems to me you are stepping out of bounds with this posting."

Yes, posting a publicly available list from the NFA about bucketshops being shut down, way out of bounds!

/sarcasm

Keep up the good work! Keep on post posting! Who cares if Royal merged? The fact of the matter is that it listed as such by the NFA. If someone has a problem, they should contact the NFA.

I think theres a big misconception that if the Forex broker/firm is big your money is safe. I am sure we have also all heard of big companies/firms going under and mismanaging funds

I thought it was odd to see Royal on this list, as I got a "offer" just yesterday to open a live account. Horrible broker as far as the demo showed me.....but I do know they merged with IKON, who a lot dont like......so give it time.....PFX might be right after all! lol

After considering it, I agree with TheLFBs comment that the headline is misleading. That was never the intention, so I have changed it.

Please note: As stated in the article, I am simply republishing a list sent by the NFA. Where we knew there was a merger, it was indicated. But there is/was no information from the NFA as to that, so it's appreciated when people can provide details.

I'm grateful for this post. When I started trading forex, I opened an account with a broker on this list. i've since moved to a different one, and had only a small balance in the account, but I got no notification that anything was wrong. After reading this I was able to call and get things figured out.

I don't get why people don't like this. Do they work for those dealers or something? If nobody posts this stuff, how will we know?

For the traders above saying that depositing funds with a company that has a lot of money is much safer, I say one thing: REFCO ...30 billion dollar balance sheet! I am a client of Royal as well...I love these guys..very professional...they reorganzied back in September and combined forces with IKON GM whose NetCap is over 9M.

Just a thought about "big" brokers-

A few of the banks like Deutsche, RBS and ABN Amro are white labeling the retailers and making it look like you get some kind of preferential treatment in terms of execution, which is nonsense.

I remember back in summer 2006 when I tried DB after ignoring the obvious signs that they were labeling FXCM. I did that because I spoke to people at DB and asked them about fills. The woman's response-and she was the V.P. in charge of retail trading was that "we haven't missed a fill since the London Train Bombing"!

Probably that's true-for their hedge fund clients. And I don't think DB was trying to BS me-I think they didn't really have retail experience and assumed it would work the same way.

You have to realize something about hedge funds and algo trading. Algo's are a lot more then just a program that puts info together to figure out the overall direction. What an algo does-very, very quickly-is search out where the liquidity is in order to get the orders filled as quickly and as close to the price they are looking for as possible. Trading on that level is a question of finding the liquidity, which can be done because banks compete for their business.

DB was so confused about how retail trading really worked-they insisted at first that under fast market conditions I would either get a fill at my price-or be re-quoted with the option to accept or decline. Now I happen to think that's fair-I can't expect a broker to provide me with a price that they don't have and the option to decline what they are offering is reasonable.

So I tried an order in a fast market and sure enough, the order was held and filled at the worst possible price. No re-quote and no option to decline their price. So I got on the phone with them and they wound up refunding about $1500 back into my account. But then, things changed. After that, they told me that once I entered an order, it was a "market order" that would be filled at whatever price they had. So much for preferential treatment!

wow, I had speculated on Royal going out of business. The shocker was SNC who I saw in Vegas at the trade show in November and XPress Trade

While sharing information is useful, let's please make sure that when you post something of this severe nature, that you get your facts straight. Sharing inaccurate information does not help anyone. For this reason, I have voted against this article.

I will not comment on the list in its entirety because I do NOT have all of the facts. I will, however, comment on Royal Forex Trading (RFXT). They have NOT been forced to close their doors by the NFA. They have merged with IKON, a registered NFA broker on Wall Street.

So let's please not waste people's time with erroneous information.

Thank you.

In response to the above post, I am forwarding a message that I received from IKON-ROYAL:

Royal Forex Trading LLC (RFXT) has always been clear and upfront with all its clients. As we promised back in September, we are in the business for the longevity. RFXT has rearranged its structure and combined forces with IKON GM to become the Royal Division of IKON GM who has been in business for over 8 years and registered with the CFTC and member of the NFA with an impeccable record.

We joined forces with IKON GM on October 6th, 2007 and now operate as one firm with IKON GM and under the same NFA ID.

We have not closed down; neither have we gone out of business. Please visit our website at www.ikon-royal.com. NFA ID: 0327622

Kindest Regards,

Rayan Elannan
Head of Business Division
IKON-ROYAL

99 Wall Street, 11th floor
New York, NY 10005
Direct: 212-482-0734
Toll Free: 888-347-2185
Fax: 212-482-0736

So beachgal, how long have you been working there?

;-)

It seems to me you are stepping out of bounds with this posting.

I agree with shmcc, why would you bother with a firm that has something like 5.1 million?

A firm that has 100 million isn't going to close it's doors anytime soon.

Oh wow...such passionate support for some one we call a "Broke-r"!!!!!!

Thanks PFX for the postings....it keeps everyone on their feet in more ways than one!!!!!!

Keep the postings coming PFX - I thought it was a great post!

Thanks again!

Well I see WHTenn that I'm not the only who sees your value to the FF as useless. Seems that you have been given the ol' heave ho!!

I am customer. I have been a client of RFXT and now IKON for over a year and a half now. Would you like my home address, social security number, and contact numbers where I can be reached?