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Attachments: Proposed NFA Capital Requirement
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Proposed NFA Capital Requirement

  • #381
  • Sep 17, 2007 5:02pm Sep 17, 2007 5:02pm
ForexSavior ~

I'm not sure you realize this or not, but those reports are for July since the CFTC requires that FCMs most report within 17 business days after the end of the month. This means that even if some of these brokers have known for a while now about the net cap, they still have plenty of time to meet the new requirements. (AUG, SEPT, OCT, NOV,DEC) - Wow that’s actually 5 months….assuming Jan 1st, 08 is the date which is highly unlikely. So let’s not jump to conclusions please.

I’m surprised it took you so long to even get this post up, did you happen to be at a tradeshow this weekend?
  • #382
  • Sep 17, 2007 5:05pm Sep 17, 2007 5:05pm
Quoting jleblang
ForexSavior ~

I’m surprised it took you so long to even get this post up, did you happen to be at a tradeshow this weekend?
Sorry for the delay in posting this Justin. The NFL season has just started and it is taking away from my posting time the last two weeks.
  • #383
  • Sep 17, 2007 5:07pm Sep 17, 2007 5:07pm
Quoting forexsavior
Sorry for the delay in posting this Justin. The NFL season has just started and it is taking away from my posting time the last two weeks.
LOL - if thats true I understand that. I almost missed a flight home last night, because I couldn't miss the last minutes of the Boston / Yankees game.
  • #384
  • Sep 18, 2007 11:56am Sep 18, 2007 11:56am
The Mainstream Media is starting to pick up on the Tradex Swiss AG debacle that I have been covering the last few weeks. Let this be a warning to anyone trading with an unregulated Swiss Firm what can potentially happen to you.

The Following Swiss Forex Brokers are unregulated just like Tradex Swiss AG
WestCapFX
ACM
MIG
DukasCopy
GFX Group (Forex.CH)
Crown Forex

Currency Trading Firm at Center of Controversy
http://www.msnbc.msn.com/id/20829464/

A Swiss-owned currency trading shop that was operating out of downtown Boston had its assets frozen by investigators from its home country and also is being investigated by Massachusetts authorities, according to court documents and multiple sources.

Tradex Group LLC was managing at least $5 million for its clients, some of whom have gone to court in a bid to prevent any transfer of funds out of a Bank of America account based in a Boston branch.

Tradex faces problems on both sides of the Atlantic.

While the scope of the Massachusetts investigation is unclear, it is clear from public documents that the operation was running without having registered with the state, according to a spokesman for Secretary of State William F. Galvin.

While failing to register as a securities business, Tradex did file articles of incorporation with the state in 2004. Also in the U.S., the National Futures Association, whose members trade futures including foreign currency, banned Tradex from taking part in trading on behalf of American clients in January.
The NFA alleged in a complaint posted on the group's Web site that Tradex erred by soliciting investments for its Swiss parent company, which was not registered to do business on behalf of U.S. clients.

Additionally, the Swiss Federal Banking Commission, which froze Tradex's assets in July, attributed the action to "licensing issues," according to people close to the situation. Representatives of the association declined to comment for this story.

But court filings by other parties indicate that Tradex's parent and a sister company were not properly registered in Europe.

Officials at Tradex's parent have been quick to distance themselves from the matter. In an e-mail to the Boston Business Journal, Tradex Swiss AG CEO Nicolaas Jansen van Rensburg said the Boston group's problems rest solely on the shoulders of its local employees.

"I wish to point out that Tradex Group LLC is not our company. Tradex Swiss AG was a shareholder in the company," wrote van Rensburg. "Tradex Swiss AG was NOT involved in the running of the business."

Meanwhile, the legal fight over the status of the frozen $5 million is underway.

The former manager of the Boston office, Craig Karlis of Hopkinton, and three investors filed suit last month trying to block any transfer of the money. Karlis said he's owed unspecified back wages.

"Craig Karlis and the other employees took it upon themselves to hire an attorney in an attempt to ensure that their clients' money is protected throughout the Swiss investigation," said Liam Floyd, the attorney representing Karlis and investor George Popescu.

Joshua Cook, attorney for Wei Zheng and Pei Zhen Xin, the other investors involved in the suit, said his clients deposited $200,000 into the account after it was frozen by the Swiss investigators.
He added that he has received inquiries from about another 100 concerned investors.

Cook said his clients sued out of fear that their money will be used to satisfy other creditors' claims.

Cook alleged that many currency traders "fail to adequately disclose the risks" associated with their businesses, but he did not link the broad statement to his clients' case.

A Tradex officer said in an affidavit that "the trading agreements make clear (that) commodities investments are highly risky and highly speculative."
According to court filings, the Swiss investigators argued it was necessary to freeze the Bank of America account to ensure that Tradex's assets are not improperly disbursed. The Swiss regulators said they plan to pay employees back wages once the investigation is complete.

Attorney Evan Fray-Witzer, who is representing the Swiss investigators and Tradex Swiss, did not return calls seeking comment.

On Aug. 16, Judge Alan van Gestel of the business litigation session in Suffolk Superior Court ruled that as the proceedings continue, the Swiss authorities can access all but $500,000 of the money in the now-frozen Bank of America account.

Members of secretary Galvin's staff declined to say what the next step for his office will be.

A spokeswoman from the National Futures Association said any allegations of illegal futures trading would be referred to the U.S. Commodity Futures Trading Commission for investigation.

The commission neither confirms nor denies the existence of investigations on specific firms, agency spokesman Dennis Holden said. He did say the agency has been working to warn potential investors about the dangers of foreign currency futures trading, or "forex," in general.
  • #385
  • Sep 19, 2007 8:17am Sep 19, 2007 8:17am
i agree with jleblang.
we should wait and see which firms are serious about business. only 10 days away from oct.
forexsavior, just enjoy your nfl season and don't jump to conclusions.
  • #386
  • Sep 19, 2007 9:01am Sep 19, 2007 9:01am
Quoting hughlong
i agree with jleblang.
we should wait and see which firms are serious about business. only 10 days away from oct.
forexsavior, just enjoy your nfl season and don't jump to conclusions.
Wow, this is precisely the reason why everyday some people in the world get ripped off. Yes, let's wait and see, unless of course you have money in one of these firms. Are you really going to want to "wait and see" if the firm gets shut down and your funds are frozen? I certainly would not have a wait and see attitude about my money. I think financial Darwinism shows its face in these types of examples - "a fool and his money will soon be parted". Maybe you will lose money, maybe you won't. The point is, if I'm gonna lose money trading it will be because I didn't make a good trading decision and not because of some broker.
  • #387
  • Sep 19, 2007 12:06pm Sep 19, 2007 12:06pm
I hate to say I told you so, but, I told you so. Nations LLC has posted on their website that they are officially bankrupt and that “it does not appear likely that there will be sufficient funds to pay all claims of creditors and customers in full.” This is precisely what I have been warning about. When you trade with a poorly capitalized firm you are at much greater risk of losing your money because in the forex industry poorly capitalized firms have a terrible track record (this year alone over a dozen have gone out of business.) This is precisely why the NFA has raised capital requirements to $5 million. And as with One World Capital I put out a warning on Nations well before they started taking customer funds hostage.

Here is what I said on July 19, 2007:
Quote
“The order holds Labell and WWF (Worldwide Forex) jointly and severally liable to pay WWF's customers restitution in the following amounts: WWF $3.1 million and Labell $1.5 million. The order also imposes civil monetary penalties of $126,000 against Labell and $3.1 million against WWF. Finally, the order permanently prohibits defendants from engaging, directly or indirectly, in any commodity-related activity.”
http://www.cftc.gov/opa/enf07/opa5341-07.htm

End of story right? Not in the domestic retail forex industry where the shysters rise from the grave like the flesh eating zombies from 28 days later. Nope, what really makes this story juicy is the fact that refugees from Worldwide apparently migrated over to another firm, a dead forex firm walking, by the name of Nations Investments LLC. ($1,699,000 in net capital).
http://www.nfa.futures.org/BasicNet/...d=0358507&rn=Y

In fact, Nations even has the same address as did Worldwide!

1700 NW 64TH ST. SUITE 100
FT. LAUDERDALE, FL 33309

Anyone want to make odds on how long it will be before Nations gets shuttered? Perhaps the folks over at Intrade can add a dead forex firms expiration date contract to their prediction market. If so, I’m going long on Nations going under. And I ain’t worried about a margin call…

Then on July 24, 2007 the NFA closed Nations:
Quote
So what happened at Nations? Why was the NFA forced to take an "emergency Action" and shut them down? Well, because it was basically one of the industry's worst nightmares come true. An undercapitalized firm suffered massive losses and was forced to cover them with customer funds. Here is what the emergency action states:

"On Saturday, July 21, 2007, Nations sent to NFA, via e-mail, notice that it had fallen under the minimum required adjusted net capital."

On Monday, July 23, 2007, NFA sent a letter to Nations notifying the firm that as it was unable to demonstrate compliance with the minimum requirements Nations was to cease doing business. That same day, NFA received another notice from Nations representing that the firm had fallen under the required minimum "due to losses in the forex markets." This letter also indicated that Nations was attempting to raise $5 million "to make customers whole." (YIKES! "make customers whole?!" Who on Earth is going to give Nations $5 million?! While nations has been successful at making a fool of their customers they certainly won't be making them whole.)

Nations also provided NFA with a Form 1-FR as of July 20, 2007, which indicates that Nations owes customers trading in on-exchange futures more than $3 million and customers trading Forex more than $5 million. (Wow. What an implosion. They are $8 million in the hole? What the hell were they doing over there going to Vegas and playing craps with customer funds?)

This looks like another messy court case. With financials like this I expect the creditors will be coming out of the woodwork laying claim to what's left of Nations. If they're lucky they might be able to seize a fax machine or two, but as for customer funds, well, looks like some stripper in Vegas got her hands on that money first...

On September 6, 2007 the CFTC then Dropped the Hammer on Nations:
Quote
In July I put out an alert to the FX Community about Dead Pool Member Nations Investments, LLC. Well, shortly there after the NFA went in and closed them down. Now it appears the CFTC has stepped in to collect their pound of flesh. Nations was hauled into court by the scruff of their neck by the Feds and a court receiver has now taken over the defunct firm. Have customers lost money? I'll keep everyone informed.
http://www.cftc.gov/newsroom/enforce...pr5380-07.html

U.S. Commodity Futures Trading Commission Files Action Against Futures Commission Merchant Nations Investments, LLC, for Failure to Maintain the Minimum Amount of Net Capital Required by Federal Law
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint in the U.S. District Court for the Southern District of Florida against Nations Investments, LLC (Nations) of Fort Lauderdale, Florida, a futures commission merchant (FCM) registered with the CFTC.

The complaint alleges violations of the minimum net capital requirements of the Commodity Exchange Act and Commission regulations. More specifically, according to the CFTC complaint, as of July 21, 2007, and perhaps earlier, Nations’ net capitalization was below the adjusted net capital required by the Act and a Commission regulation. As of July 20, 2007, the complaint charges, Nations’ adjusted net capitalization remained below the required adjusted net capital with Nations’ total liabilities equaling $5 million while its assets were less than $2 million.

This week this statement appeared on Nations Website
www.nationsllc.com

Quote
Notice to Customers and Creditors of Nations Investments, LLC

On July 24, 2007, the National Futures Association ('NFA') issued a Member Responsibility Action against Nations Investments, LLC ('Nations' or the 'Company'), which among other things, directed the Company to close all open positions of forex account customers by July 25, 2007 at 5:00 p.m. (EDT). At the same time, the NFA authorized the bulk transfer by the Company of all the accounts of its on-exchange customers to Open E Cry, LLC, another Futures Commission Merchant. Accordingly, this Notice (and the administration of the receivership) is primarily for the benefit of the former Nations forex customers. (Former Nations on-exchange commodities account customers may contact Emily Stephens concerning their account at Open E Cry, LLC, telephone: (800) 920-5808.)

On July 30, 2007, the Commodity Futures Trading Commission ('CFTC') filed a Complaint against Nations in the United States District Court for the Southern District of Florida (the 'Court'). On August 7, 2007, the Court entered an Order pursuant to which the Court appointed Bruce H. Matson as Receiver for the Company and its assets. A copy of the Order can be viewed on this website.

The Receiver currently is attempting to determine the extent of the customer account balances and the other liabilities of the Company. He has taken possession and control of the assets and records of the Company. The Receiver also is attempting to identify what additional assets may be available to make payment to customers and creditors. The goal of this process is to (i) identify accurately all of the unpaid account balances of the Company's customers as of July 25, 2007, (ii) identify all other creditor claims, (iii) identify and collect any and all assets of the Company (including the possibility of asset recovery actions against third parties), (iv) distribute monies recovered pro rata to customers and creditors; and (v) provide the Court with a final accounting of the Receiver's activities. The Receiver is making every effort to seek cost efficient avenues to recover assets for the receivership and complete the claims process. The claims process, however, requires the identification of customers (and other creditors) and a determination of the validity and amount of their claims. This process is likely to take a number of months. If appropriate the Receiver will consider making an interim distribution to customers and other creditors. Customers also should be advised that, at the present time, it does not appear likely that there will be sufficient funds to pay all claims of creditors and customers in full. The CFTC complaint states that there are in excess of $5 million of customer liabilities and less than $2 million of cash assets remaining. Although it is much too early to predict, the recovery for customers may well be less than fifty percent (50%) of account balances as of July 25, 2007.

The Court directed the Receiver to file a report sixty (60) days from entry of the Order, the first to be filed by October 8, 2007. At that time, the Receiver will provide access to that report on this website. Finally, customers and creditors should refer back to this website from time to time for any updates.
Specific inquiries should be directed to the Receiver, Bruce H. Matson at LeClair Ryan at (804) 343-4090 or to Katherine M. Mueller at (804) 916-7117.

Real people have lost real money, not because they took trading losses but because they invested their money in a firm that was poorly capitalized. Don’t make the same mistake they did. Don’t trade with a poorly capitalized firm.
  • #388
  • Sep 19, 2007 5:35pm Sep 19, 2007 5:35pm
BEWARE of this broker one world forex. they did not grant my withdrawal request and would not give me back my money, not even my capital. they delete account without notice. until now i'm waiting to see what the NFA will do. it's been several months. i could be using my money for something a lot more productive like business. Now I have to either hire a lawyer or go through arbitration to get MY money back. It's my money in the first place, but now I have to PRAY the judge or arbitrators understand and see the truth behind this fraudulent company and probably wait months or even years.
  • #389
  • Sep 21, 2007 10:42am Sep 21, 2007 10:42am
The National Futures Association appears to be chucking a couple final spears into the bloated carcasses of two former dead pool brokers (Trend Commodities Limited Partnership and the Bacera Corporation.)

Trend Commodities has been permanently shut down and banned from NFA membership (http://www.nfa.futures.org/basicnet/...33&contrib=NFA) while the Bacera Corporation was fined $50,000.

Of interest in the Bacera case was this statement, "The Committee found that Bacera failed to maintain required adjusted net capital, failed to give required notice of being below its minimum net capital requirement, and failed to take required capital charges and maintain accurate records." (http://www.nfa.futures.org/news/news...ArticleID=1960)

Again, it's all about capitalization. Firms that have adequate capital don't run into these kinds of problems. Firms that are poorly capitalized continually run into these kinds of problems and often times go out of business, in some cases taking customers down to the bottom of the ocean with them. It's that simple.
  • #390
  • Sep 21, 2007 11:45am Sep 21, 2007 11:45am
please remember to check the NFA ID number, I got this link to the NFA from elite trader. See if your brokers' history and if he has been penalized by the regulators

http://www.nfa.futures.org/basicnet/

http://forexfactory.com/images/misc/progress.gif

  • #391
  • Sep 21, 2007 8:27pm Sep 21, 2007 8:27pm
The shocking thing to me about this is not the fact that some of these little guys are going bankrupt, to me it is the fact that they ever had customers in the first place. It's scary because people usually get suckered by these one-trick ponies on price or some other over-inflated "perk", only to have their account frozen.

Stick with the big boys folks or you're going to get burned!

-fxp
  • #392
  • Sep 25, 2007 1:03pm Sep 25, 2007 1:03pm
Closure for RefcoFX
At last the customers of RefcoFX are getting their money back. Reports coming in over the wires indicate that customers are getting back roughly 40 cents on the dollar of their original investment. While that's still a very heavy loss to take at least the customers are getting something after two years of watching creditors loot their accounts. Phil Bennett and the rest of the board at Refco should know that there are some rather toasty seats in hell waiting for them upon their arrival.

The end of the RefcoFX nightmare brings with it a clear lesson to always trade with a regulated firm. If a firm isn't licensed, then stay away from it. Far, far away from it. And also be sure the firm you are trading with is well capitalized. The case of Nations, which was an undercapitalized broker on the dead pool is further evidence of that. And sadly enough, now Nations begins the journey that RefcoFX just ended.
  • #393
  • Sep 26, 2007 11:14am Sep 26, 2007 11:14am
Swiss Fraud Alert
Well, Tradex Swiss AG isn't the only Swiss Broker out there swindling customers of their money. The CFTC just busted another Swiss firm by the name of INH-Interholding SA and its principal Joerg Heierle. The Story is below. As a reminder the following Swiss firms ARE NOT REGULATED and should be avoided:

Unregulated Swiss Brokers
WestCapFX
ACM
MIG
DukasCopy
GFX Group (Forex.CH)
Crown Forex

Florida Federal Court Issues Order Freezing Assets of Miami Beach Resident Joerg Heierle and Swiss Corporation INH-Interholding SA

CFTC Charges Heierle and INH with Fraudulent Solicitation of at Least $4.4 Million to Trade Commodity Futures and Options and Concealment of Trading Losses

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that a federal court in Miami entered an order freezing assets under the control of, and prohibiting the destruction of documents by, defendants Joerg Heierle, of Miami Beach, Florida, and INH-Interholding SA (INH), of Switzerland and Miami Beach, Florida.

The order arises out a complaint filed by the CFTC on September 12, 2007, in the United States District Court for the Southern District of Florida, charging defendants with fraudulently soliciting at least $4.4 million in a commodity futures and options pool fraud scheme. The complaint also charges Heierle and INH with concealing trading losses by issuing false statements to pool participants regarding the profitability of their INH investments. The CFTC also names Futures Trading Academy, Inc., of Bay Harbour, Florida, as a relief defendant due to its alleged receipt of pool participants’ funds.

According to the complaint, Heierle disappeared in April 2007, and pool participants have not been able to access their funds since that time.
The CFTC complaint specifically alleges that, since at least October 2001 through April 2007, Heierle and INH solicited pool participants located throughout the United States and abroad to invest in an INH commodity futures and options pool that Heierle would operate and manage on their behalf. In their solicitations, defendants falsely represented that the INH commodity pools were historically profitable and that Heierle was a successful trader. For example, the INH website (www.interholding.net) claimed that the three INH pools realized returns of 12.1 percent, 17.3 percent and 30.2 percent in 2005.

However, as alleged, there are no trading accounts in the name of INH, and the known trading accounts controlled by Heierle sustained losses during that time period totaling $80,000. Moreover, during the relevant time period, the known trading accounts controlled by Heierle allegedly sustained overall net trading losses of approximately $1,000,000.

The complaint also alleges that defendants issued false account statements to pool participants reflecting that defendants were profitably trading on their behalf. For example, for the period between July 2006 and April 2007, despite having sustained net trading losses of approximately $1.2 million, pool participants’ account summaries reflected returns of up to 10 percent.
  • #394
  • Sep 27, 2007 11:48am Sep 27, 2007 11:48am
The President of the National Futures Association, Dan Roth, dropped a 50 megaton bomb on the forex industry yesterday. In testimony before the Congress the NFA CEO requested that the Government increase capital requirements to TWENTY MILLION DOLLARS.

Here is what he is said in his testimony:
http://www.nfa.futures.org/news/news...ArticleID=1968

Quote
The second trait that marks the problem firms in retail forex is that most, though not all, have been thinly capitalized. Congress long ago recognized that acting as a dealer involves greater risk than acting as an agent in futures trading, the way a traditional FCM does. That is why Congress in 1978 imposed a $5 million net worth requirement for firms granting dealer options and why the CFTC created a $2.5 million capital requirement for leverage transaction merchants in 1984. Congress should amend Section 2(c) of the Act to require FCMs acting as counterparties to retail forex transactions to maintain minimum capital of at least $20 million. NFA has raised the capital requirements for forex dealers several times but this congressional action could ensure that firms can meet their obligations to their customers and have a significant financial stake in their business.

Wow. If you thought it would be hard for poorly capitalized firms to raise a couple million dollars just wait until they have to raise $20 million. There is simply no way most of these little firms are going to be able to do that. In fact, medium sized firms are going to be hard pressed to do that.

It is starting to become crystal clear that the only firms that are going to survive the coming NFA purge are the biggest, most well capitalized firms in the business. That is why Oanda went out and got $100 million in funding and Interbank got $30 million. The serious industry players know what's going on. So should the trading public. If ever there were a time to beware investing in poorly capitalized firms now is the time.

After all, if the NFA has no confidence in the stability of "thinly capitalized" firms why should the trading public?
  • #395
  • Sep 27, 2007 6:48pm Sep 27, 2007 6:48pm
don't forget fxsol went out and got $100 million
If I Go Broke Trying Then I Will die happy.
  • #396
  • Sep 27, 2007 7:54pm Sep 27, 2007 7:54pm
fxsol got 100mm but barely any of that ended up on their CFTC numbers. I think the founders pocketed most of that and only put some back into the company,
  • #397
  • Sep 28, 2007 1:03am Sep 28, 2007 1:03am
Quoting flyingduck
I think the founders pocketed most of that and only put some back into the company,
are you close to this situation? and if not, how could you possibly come to such a conclusion?
Relax and be happy.
  • #398
  • Sep 28, 2007 10:05am Sep 28, 2007 10:05am
Only days after the President of the NFA told the Congress he wanted them to raise the minimum capital requirement to $20 million the CFTC signed off on the NFA's current capital requirement increase to $5 million. And they are not waiting around till 2008. Firms need to have the money in the bank by DECEMBER. That's right around the corner.

With the forex industry rapidly changing before our very eyes I wanted to put together a much more comprehensive list of the industry's financial status. Therefore, I have included every single registered Forex Dealer member and listed their Adjusted Net Capital. Since I first started posting about the NFA proposal over a dozen firms have gone out of business. Two others have merged and several others are staring death in the face. It is astonishing that firms like Hamilton Williams (Velocity FX) can operate only $4,000 above the minimum needed to stay in business. How on earth can such a firm survive a few months from now when they're practically pushing up the daisies already? Here is the direct link for the CFTC capital reports: http://www.cftc.gov/marketreports/financialdataforfcms/

Firms Under $5 Million
All these firms are reporting adjusted net capital below the $5 million mark as of the latest CFTC report. Some should be able to raise the necessary capital. Others clearly will not. Which ones can and can't will be anybody's guess. Already one of these firms, One World Capital, is not allowing customers to withdraw money.

Hamilton Williams ($1,004,000)
IG Financial Markets ($1,010,000)
Advanced Markets ($1,042,000)
One World Capital ($1,078,000)
Direct Forex ($1,117,000)
SNC Investments ($1,130,000)
Wall Street Derivatives ($1,220,000)
I Trade FX LLC ($1,801,000)
Solid Gold Financial ($1,955,000)
CMC Markets ($2,330,000)
MB Trading ($2,393,000)
GFS Futures & Forex ($3,259,000)
E FX Options ($3,342,000)
Forex Club ($3,715,000)
Easy Forex ($4,731,000)

Firms Under $20 Million
These firms all meet the coming minimum adjusted net capital requirement. However, there are other capital requirements that as market makers these firms (HotSpot excepted in some cases) will need to meet in addition to the minimum $5 million. Most firms will likely need $10 million to be in compliance with the NFA's rules. Clearly firms like Money Garden are not in the clear just yet.

Money Garden ($5,162,000)
HotSpot FX ($5,990,000)
IKon ($7,130,000)
ODL Securities ($10,822,000)
CMS Forex ($11,849,000)
IFX Markets ($12,293,000)
PFG Forex ($12,781,000)
FX Solutions ($15,077,000)

Firms Over $20 Million
These are the most well capitalized firms in the industry and two years from now may very well be the only firms left in the industry if Dan Roth and the NFA have their way and increase cap requirements to $20 million.

Interbank FX ($25,178,000)
Gain Capital (29,061,000)
Forex Liquidity ($39,909,000)
FXCM ($50,465,000)
Oanda ($50,837,000)
GFT Forex ($54,662,000)

Firms No Longer in Business
These are the firms that have gone out of business since I began posting on the forum. That's a quarter of the industry in just a few months. And one of those firms, Nations LLC, has gone into bankruptcy and customers can't get their money back, and may never get their money back.

Bacera Corporation
Cal Financial Corporation
FiniFX
Forward Forex
FX Option1 Inc.
Nations Investments
Performance Capital International
Spencer Financial
Tradex Swiss AG
Trend Commodities
United Global Markets
Worldwide Clearing

Firms that Merged
These are the firms that could not make the new capital requirement on their own and decided to merge with larger players as a result.

American National Trading Corp (Merged with PFG)
Royal Forex Trading (Merging with IKON)

Summary
It is a very turbulenet time in the forex industry. My advice is what it has always been, do not trade with a poorly capitalized firm. And if you must, at least wait until after the December 17, 2007, deadline before putting any money on deposit with any firm that is not meeting the current minimum capital requirement.
  • #399
  • Sep 28, 2007 3:20pm Sep 28, 2007 3:20pm
thanks for the update savior. this bares close watching in the months ahead
  • #400
  • Sep 28, 2007 3:28pm Sep 28, 2007 3:28pm
Quoting forexsavior
Only days after the President of the NFA told the Congress he wanted them to raise the minimum capital requirement to $20 million the CFTC signed off on the NFA's current capital requirement increase to $5 million. And they are not waiting around till 2008. Firms need to have the money in the bank by DECEMBER. That's right around the corner.
Hello,
Can you provide us a link to the $5 million requirement judgement. Thanks for keeping us updated with this.
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