Is Your Broker a Crook? | Forex Factory

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Is Your Broker a Crook?

  • #1
  • First Post: Oct 21, 2007 11:03am Oct 21, 2007 11:03am
I was fishing around for CTA testing info when I came across something interesting on the NFA website. The following is a link to a search page for filed complaints against registered brokers. I typed in Interbank FX and ODL Securities for starters and had an opportunity to read some court documented complaints (and fine amounts). Very, very interesting.

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

Type in your broker and see what pops up... you might be unpleasantly surprised. If you scroll down to the bottom of the results page you can download a PDF version of the original scanned court document.

Later,
MM
  • #2
  • Oct 21, 2007 1:14pm Oct 21, 2007 1:14pm
cool site. Not sure why fxcm is not on there. They are a bunch of crooks
  • #3
  • Oct 21, 2007 1:20pm Oct 21, 2007 1:20pm
Yes, there is much info there. Be sure to consider the severity of the complaint before you judge too harshly. Sometimes a broker will get cited for something one of their introducing brokers has done or failed to do. A lot of complaints are generated by deceptive advertising done by an IB.

But still, this is good info and everyone should visit that site and explore it a little.
  • #4
  • Oct 21, 2007 1:56pm Oct 21, 2007 1:56pm
most broker are crooks, i just hate when you make some profit and they complain about your wirthdrawal or delay it.

when you have a big winning they get angry, like if they were giving you the money for free. when to keep forex in profit anyone knows its pretty hard and scary.

would be nice to create a thread about how dealing with crooks in all aspects starting with psychology and ending with authorities.
just my cent.
  • #5
  • Oct 21, 2007 1:59pm Oct 21, 2007 1:59pm
Quoting 4XWeezal
cool site. Not sure why fxcm is not on there. They are a bunch of crooks

They are listed... here's the link to their regulation violations page

http://www.nfa.futures.org/basicnet/...08179&type=reg
  • #6
  • Oct 21, 2007 4:14pm Oct 21, 2007 4:14pm
Quoting acidguy
most broker are crooks, i just hate when you make some profit and they complain about your wirthdrawal or delay it.

when you have a big winning they get angry, like if they were giving you the money for free. when to keep forex in profit anyone knows its pretty hard and scary.

would be nice to create a thread about how dealing with crooks in all aspects starting with psychology and ending with authorities.
just my cent.
Yep , agree with you. Almost all Dealing desk brokers/Bucketshops are crooks. It is best to do business with an ECN model broker. If the only reason that people open accounts with these suckers is the low initial deposit, then why not consider an ECN broker like EFX Group/MBTrading ??? They allow an intial deposit of only $400 and you are on your way. I just realised the same thing after being scammed by a couple of DD brokers and i will be moving to MB or EFX pretty soon. I always thought and knew that to trade with a ECN broker you need a high initial deposit (50K +), but after having found MBTrading , i think i have a great option.

So , good bye to all sucker Dealing desk brokers.
  • #7
  • Oct 21, 2007 7:39pm Oct 21, 2007 7:39pm
sounds like another mbtrading rep advertising, i have done some research on mb trading and they are not as clean as they look
  • #8
  • Oct 21, 2007 9:08pm Oct 21, 2007 9:08pm
Quoting Razorman
sounds like another mbtrading rep advertising, i have done some research on mb trading and they are not as clean as they look
Really?? MBTrading rep?? lol. Nice play. So if someone expresses their personal opinion, they are advertising for something?? I never asked you to follow me, just tried to add some meaningful conversation to the thread.

Instead of false accusations, why dont you add some meaning to this place and tell us what you know about MBTrading that we dont?
  • #9
  • Oct 23, 2007 7:24am Oct 23, 2007 7:24am
Quoting bravester
Really?? MBTrading rep?? lol. Nice play. So if someone expresses their personal opinion, they are advertising for something?? I never asked you to follow me, just tried to add some meaningful conversation to the thread.

Instead of false accusations, why dont you add some meaning to this place and tell us what you know about MBTrading that we dont?

No dude, you really do sound like a rep.
  • #10
  • Oct 23, 2007 7:28am Oct 23, 2007 7:28am
Quoting mr.marketz
I was fishing around for CTA testing info when I came across something interesting on the NFA website. The following is a link to a search page for filed complaints against registered brokers. I typed in Interbank FX and ODL Securities for starters and had an opportunity to read some court documented complaints (and fine amounts). Very, very interesting.

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

Type in your broker and see what pops up... you might be unpleasantly surprised. If you scroll down to the bottom of the results page you can download a PDF version of the original scanned court document.

Later,
MM

Once I was so bored, that I looked up every broker, and then came across an article that I can't find anymore. But it said that you won't be able to look up brokers records anymore. That the access to the information will be removed. That sounds shady!!!
  • #11
  • Oct 23, 2007 7:41am Oct 23, 2007 7:41am
Quoting mike999
No dude, you really do sound like a rep.
Ok dude, if it makes you feel any better : MBTrading sucks , dont go with them.

lol, the great lengths people have to go to prove their point.
  • #12
  • Oct 23, 2007 9:42am Oct 23, 2007 9:42am
Quoting Razorman
sounds like another mbtrading rep advertising, i have done some research on mb trading and they are not as clean as they look
Do you care to elaborate on that statement?


guitar player not an ad rep,
Richard
  • #13
  • Oct 23, 2007 9:46am Oct 23, 2007 9:46am
do ECN's use MT4?
  • #14
  • Oct 23, 2007 10:30am Oct 23, 2007 10:30am
So there is not a single decent broker who isn't out to screw me?

Then what is the point of even doing this? Is everyone here just using demo accounts and pretending to make money? I haven't heard of a decent broker yet. I was looking at Oanda, but have heard bad things about them, but on most rankings they recieve the highest 6/10.

Looks like I might have to find another place to invest.
  • #15
  • Oct 23, 2007 10:44am Oct 23, 2007 10:44am
Quoting RSuelzer
So there is not a single decent broker who isn't out to screw me?

Then what is the point of even doing this? Is everyone here just using demo accounts and pretending to make money? I haven't heard of a decent broker yet. I was looking at Oanda, but have heard bad things about them, but on most rankings they recieve the highest 6/10.

Looks like I might have to find another place to invest.
In my opinion ( now dont call me an Oanda rep , this is my opinion only, you dont have to take it) , Oanda is the best dealing desk broker out there. There are several complaints about them, but those are from people who have tried to trade the news spike and other unconventional methods. If you are a regular forex trader , then Oanda is the best that is out there . Again, this is just my opinion.
  • #16
  • Edited 11:07pm Oct 24, 2007 7:48pm | Edited 11:07pm
Quoting Razorman
sounds like another mbtrading rep advertising, i have done some research on mb trading and they are not as clean as they look
Your vague allegation has been hanging out there for three days now. As a trader who uses MBT, I would like to know what it is about them that is less than squeaky clean, but since there are no specifics given it could mean anything from stealing old ladies retirement funds, to eating hamburgers at a PETA rally.

There really is too much of the 'scam' and 'crook' stuff being thrown around. Granted, 'not as clean as they look' is hardly slanderous but not a ringing endorsement either. Really, we need to look at things a little more closely. For example, I thought I would follow one of the NFA links given earlier in this thread just to see what is there. I have heard like everyone about how crooked FXCM is so I looked there. Not an exhaustive search; I don't use them or work for them, so I just looked through one of the cases listed. It looked bad on the surface. I saw words like Injunctive Action, Commodities fraud, and other scary words. Not being an attorney, I decided to read the narrative that accompanied this report, and then I got the story. Some company named Gibralter was an Introducing Broker for FXCM, and was the real culprit in the action, misrepresenting themselves to customers in various ways. They were ordered to pay fines, restitution to their customers, etc. Apparently FXCM's 'crime' was to have accepted and held funds on deposit from Gibralter. Here's what resulted as written on the NFA site:

According to the complaint, approximately $3 million of Gibraltar’s customer funds were deposited and traded at FXCM. The complaint alleged that through an exclusive introducing brokerage business relationship in which Gibraltar acted as FXCM’s agent, FXCM paid Gibraltar over $800,000 in commissions in connection with the customers’ accounts Gibraltar introduced. However, Judge Dimitrouleas found FXCM not liable as a principal for Gibraltar’s misrepresentations, misleading statements, or deceptive omissions.

So, in short, if I understand this correctly, FXCM didn't do anything illegal, at least in this case. The worst thing they did was associate with and conduct business with someone who did. Heck, we had a President of the United States for eight years who did the same thing.

Don't get me wrong. Reading one case doesn't make FXCM or anybody OK. All I'm saying here is, there are enough bad guys out there who really are scams and crooks. Let's do our best to accurately identify them with facts instead of crying wolf whenever our stops get run.


Richard
  • #17
  • Oct 25, 2007 2:21am Oct 25, 2007 2:21am
Quoting bmwboyee
do ECN's use MT4?
usually not, but there is module that exists allowing you to trade on MT4 ( paying option most of the time )
  • #18
  • Oct 25, 2007 2:54pm Oct 25, 2007 2:54pm
http://www.forexbastards.com/public/...broker_reviews

Well, I'd say every broker has ppl who lost money and are mad. Doesn't mean the broker is at fault. But if you post something good about your broker, you usually get called a "broker rep".

That said, I wouldnt touch any of the brokers with less than 3 stars with a large pole.
Disregard all prognostications.
  • #19
  • Oct 26, 2007 8:35pm Oct 26, 2007 8:35pm
yeh , I would never say fxcm is a crook.. I apologize. they just process your orders after their big boys get their coin and show spikes up and down
all over their platform that do not compare to any metatrader platforms
for the same time frame. It would be one thing if it was a 5 pip here and there but ive seen up to 40 ...which means they are packaging their stopped out stuff and giving it to their friends. Good luck to those traders
  • #20
  • Oct 27, 2007 5:23pm Oct 27, 2007 5:23pm
Quoting Richard7
Do you care to elaborate on that statement?
Richard
Of course he doesn't.
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