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  • #201
  • Feb 15, 2008 7:37am Feb 15, 2008 7:37am
Quoting CurTrader
I totally agree with frank here Spot FX firms are to risky especially after this new law cam to light.

Go with any fully regulated on-exchange futures brokers and you will sleep well at night and never look back.
I am with MB Trading and I LOVE it. The prices are HIGH but man the joy of not having to worry about the broker cheating me is worth it. They even credited me when they had technology failure. You will love them!!
  • #202
  • Feb 15, 2008 9:18am Feb 15, 2008 9:18am
Quoting RxPipDaddy
I am with MB Trading and I LOVE it. The prices are HIGH but man the joy of not having to worry about the broker cheating me is worth it. They even credited me when they had technology failure. You will love them!!

Recently, I have started to hear many complaints about MB trading. Specifically, take profit orders being slipped many pips against the trader. Have you noticed any recent problems with MB?
  • #203
  • Feb 15, 2008 9:38am Feb 15, 2008 9:38am
Quoting FrankTheTank
Any US broker that allows you to trade futures is reputable because they are officially regulated by the government (unlike spot fx).

I personally like infinity brokerage for their customer support. Other good ones are tradestation, mb trading, etc.
I beg to differ with you here. I know from personal experience that some of these firms which are registered futures brokers run some of the most crooked dealing desks in Forex such as IKON Global Markets. Maybe if you are trading the actual currency futures you have nothing to worry about. However I also know a lot of floor traders who tell me stories about the insider trading in the commodity pits and about how they would purposely screw over clients by giving them terrible fills on market orders or claiming that they couldn't fill their limits and stops at the correct price (slippage). In fact the NFA is a members organization started by the members of the futures exchange to prevent direct federal oversight. They voluntarily started NFA to prevent all of their misdeeds from coming to light. It is common practice to sell retail clients out of the money commodity options which the Futures broker knows have less that a 10% chance of becoming profitable for the client. In fact over 90% of all out of the money options expire worthless yet the registered futures brokers still push these on their clients day in and day out.
  • #204
  • Feb 15, 2008 9:42am Feb 15, 2008 9:42am
Quoting RxPipDaddy
Finally A end to this nightmare is in sight!! Thank you for the updates

Don’t be so sure, remember under current laws “Spot FX firms” are not required to pay costumes first, in fact under the current laws “Spot FX firms” are considered off-exchange dealers and are “not covered by the US bankruptcy code” that would otherwise provide protections to the extent as a on-exchange i.e. futures, equities firms and banks, dealer dose .

Read attached screen shoot taken and may be read in it’s in entreaty here http://www.euromoney.com/Article/185...ng-field-.html

In this FXLQ case, I highly doubt customers will be paid first taken into account that some of the creditors are controlled by none other then Mr,Gray himself, and by judging his Prier actions will take full advantage of the laws and pay creditors himself and associates first leaving what’s left for dispersements to costumers, review http://www.robbevans.com/pdf/forexlqreport01.pdf to view the list of FXLQ creditors.

No one likes this but as I’ve and many people explained this is the law as it’s currently stands, and until the laws changed “review http://www.forexfactory.com/showthread.php?t=66052 Spot FX firms such as FXLQ no mater how much they have under cap are of covered under current US bankruptcy code.
Attached Image (click to enlarge)
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  • #205
  • Feb 15, 2008 5:11pm Feb 15, 2008 5:11pm
Quoting forexpro18
It is common practice to sell retail clients out of the money commodity options which the Futures broker knows have less that a 10% chance of becoming profitable for the client. In fact over 90% of all out of the money options expire worthless yet the registered futures brokers still push these on their clients day in and day out.
The fact that 90% of options does not automatically mean they are a bad product. That is like saying it's a bad idea to have health insurance or car insurance, because it's unlikely you will need surgery or be in an accident. Options are traded on a market like all other financial instruments, so traders have the opportunity to find a fair value price.
  • #206
  • Feb 15, 2008 8:19pm Feb 15, 2008 8:19pm
Under receivership and injunction, I don't think the company can move into bankcruptcy without the court's approval. So it is up to the judge to let them go into bankcruptcy or not. Hopefully the judge sees that Robert gray's pyramid of companies are structure to suck money away from FXLQ, i.e. stealing money from depositors/customers with phony services.

We're lucky enough that $25million actually made it back into bank account... so even with $1.8million debt, hopefully, it's like a 10% stop loss for our trading.

But if he decides to fight this, which he can, buy more time to come up with $7-8million to cover liability & FCM minimal requirements, we can take the rest of the year...

Well, the only good thing is that I don't have to declare any profit for 2007... until I get money back.



Quoting KasperFX
Don’t be so sure, remember under current laws “Spot FX firms” are not required to pay costumes first, in fact under the current laws “Spot FX firms” are considered off-exchange dealers and are “not covered by the US bankruptcy code” that would otherwise provide protections to the extent as a on-exchange i.e. futures, equities firms and banks, dealer dose .

Read attached screen shoot taken and may be read in it’s in entreaty here http://www.euromoney.com/Article/185...ng-field-.html

In this FXLQ case, I highly doubt customers will be paid first taken into account that some of the creditors are controlled by none other then Mr,Gray himself, and by judging his Prier actions will take full advantage of the laws and pay creditors himself and associates first leaving what’s left for dispersements to costumers, review http://www.robbevans.com/pdf/forexlqreport01.pdf to view the list of FXLQ creditors.

No one likes this but as I’ve and many people explained this is the law as it’s currently stands, and until the laws changed “review http://www.forexfactory.com/showthread.php?t=66052 Spot FX firms such as FXLQ no mater how much they have under cap are of covered under current US bankruptcy code.
  • #207
  • Feb 18, 2008 6:13pm Feb 18, 2008 6:13pm
Quoting forexedge
I spoke to a lady at the receiver law firm. They are awaiting FXLQ and other associated parties for responses, by February 15th.
Dear Forexedge, it is Feb 19th now, could there be any responses from FXLQ and other parties regarding the matter? thank you in advance.
  • #208
  • Feb 20, 2008 4:25am Feb 20, 2008 4:25am
Any updated news on this?
  • #209
  • Feb 21, 2008 7:06am Feb 21, 2008 7:06am
waiting end of this month before i call receiver again
  • #210
  • Feb 22, 2008 7:05pm Feb 22, 2008 7:05pm
hello,

I just spoke to the receiver once again today to see if there has been any update. FXLQ has submitted responses to the receiver on the Feb 15th date. Receiver is in the process of gathering and reconciling FXLQ submitted discrepancies. The deadline is still March 31st, 2008 for the receiver to submit final report to the court to rule on how to dissolve FXLQ.

Several things are clear from the conversation:
1. FXLQ is not seeking to get back into business, but rather trying to settle the books and trying to settle the fines/penalty with CFTC.

2. Since the company is in receivership, FXLQ cannot declare bankcruptcy at this point. They could have done it before they were caught.

3. Receiver is confident that funds will be distributed after a full audit from the current frozen CASH assets in the bank account of $26million. But "due" process is still required, i.e. Marh 31st report to the court/FXLQ answer to charges, issuance of court order, execution of court order... so 2-3 months for this process is not unreasonable after 3/31/2008...

4. I am sure that retail traders have to split the remaining funds with institutions and creditors... hopefully on an even basis... at worse, it seems possible loss of capital by 10-15% (she didn't commit to any number). But we will know once the full final audit is certified and every party respond to receiver investigation.

I asked her if I should write off this as a loss, and she goes, "oh no, you'll get capital back, just file based what's on your statement..." I asked her "are we getting it all back?", then she paused and said "based on the $26m in bank account it is possible you'll get back significant amount".

So I guess I will file an IRS extension for 3-4 months, and see how much I'm getting back.

I have been looking at currency futures... very attractive... no cross pairs like gbpjpy, or exotic pairs, only dollar based pairs. But the spread is only 1 pip and commission is only 1 pip. No mini trading, only full lot. Platform is a little strange, not integrated like MT4. But partial profit taking can be configured.

Taxes are guaranteed to be 60/40, and we're fully protected under bankcruptcy laws... what's the likelyhood of CME going into bankcruptcy... possible but less likely than spot forex dealer.

Why am I even in the spot forex... I think because an Introducing Broker got me into spot trading a year ago. Wish i went with future forex a year ago.

forexedge
  • #211
  • Feb 22, 2008 11:36pm Feb 22, 2008 11:36pm
If you get back 65% consider yourselves lucky...
  • #212
  • Feb 23, 2008 12:49am Feb 23, 2008 12:49am
Quoting forexedge
4. I am sure that retail traders have to split the remaining funds with institutions and creditors... hopefully on an even basis... at worse, it seems possible loss of capital by 10-15% (she didn't commit to any number).
Thanks for the update. Highly appreciate it.
So,clients don't get prioritized over creditors. From my learning on previously available numbers, the recovery rate could be as low as 50% for us. Can anybody provide some estimation?
  • #213
  • Feb 23, 2008 1:02am Feb 23, 2008 1:02am
Wow that low? I guess it all depends on how much hidden liability will show over the course of next month. Their current shortfall is $1.8million. I would love to have 70% back, it's like hitting a streak of bad stop losses.

With 70% back, I might have a chance to trade it back over time. I don't mind losing from trading, at least that's part of the game... but to lose capital over broker negligence, it's considered grand theft.

The receiver sounded optimistic because there is actually cash sitting in the U.S. bank account, frozen by court order. The only thing that worries me is hidden liability not uncovered.

Quoting darmasdt
Thanks for the update. Highly appreciate it.
So,clients don't get prioritized over creditors. From my learning on previously available numbers, the recovery rate could be as low as 50% for us. Can anybody provide some estimation?
  • #214
  • Feb 23, 2008 1:34am Feb 23, 2008 1:34am
Speaking as a victim of Refco:

I had a small (defined as under $10,000) account and received 40% after about 2 years.

I am unsure of the payments for larger accounts, although I see reports of 22.5%

http://finance.groups.yahoo.com/grou...s/message/3591
  • #215
  • Mar 21, 2008 12:42am Mar 21, 2008 12:42am
Has anyone received any new news? Almost march 31st... wonder what's next for FXLQ.
  • #216
  • Mar 21, 2008 5:14am Mar 21, 2008 5:14am
I am waiting to hear.... this forum has been my source of information. What was interesting was that on Feb 29, I received an e-mailed statement of account from them with my correct balance. I am hoping (dreaming) that this is what they will return to me.



Quoting forexedge
Has anyone received any new news? Almost march 31st... wonder what's next for FXLQ.
  • #217
  • Mar 21, 2008 6:36am Mar 21, 2008 6:36am
Quoting forexedge
Has anyone received any new news? Almost march 31st... wonder what's next for FXLQ.
Yes, I spoke with an attorney at Robb Evans & Associates on Wednesday of this week. Lillian Lee, who normally is the point person there was out of town. This other attorney said that come March 31st they will recommend to the court dispersement of funds to the customers. I am not sure if those are the exact words he used. I asked what kind of time frame we are looking at to see our money. He said unofficially around May or June. Who really knows though.
  • #218
  • Mar 25, 2008 8:39pm Mar 25, 2008 8:39pm
Like I said in the last post Lillian Lee, the spokes person for this case at Robb Evans & Associates was out of town last week. She just sent me this email saying there could be more delays because of some large claims against FXLQ. The saga continues..... Here is her email:


I am sorry about the delayed response. I was out of the office last week.

Currently there are still two very large claims against this estate. We must get them resolved before we can file motion with the Court about the claims procedure/distributions as funds were commingled and the Court has the freeze order on all of the funds. We hope the disputes can be resolved in April and that we can file the motion within 60-90 days. There is a possible that we may have to bring the disputes to the Court in order to resolve them.

Very truly yours,

Lillian Lee
Deputy to the Receiver
  • #219
  • Mar 25, 2008 9:06pm Mar 25, 2008 9:06pm
Quoting TripTrap
Like I said in the last post Lillian Lee, the spokes person for this case at Robb Evans & Associates was out of town last week. She just sent me this email saying there could be more delays because of some large claims against FXLQ. The saga continues..... Here is her email:


I am sorry about the delayed response. I was out of the office last week.

Currently there are still two very large claims against this estate. We must get them resolved before we can file motion with the Court about the claims procedure/distributions as funds were commingled and the Court has the freeze order on all of the funds. We hope the disputes can be resolved in April and that we can file the motion within 60-90 days. There is a possible that we may have to bring the disputes to the Court in order to resolve them.

Very truly yours,

Lillian Lee
Deputy to the Receiver
commingle of client funds is the main problem with forex brokers
If I Go Broke Trying Then I Will die happy.
  • #220
  • Mar 26, 2008 1:50pm Mar 26, 2008 1:50pm
Yep, got a hold of her too. Looks like 60-90 days answer again... not sure if it's 60-90 days after this IB claim are resolved... Why don't they just all go to court to settle things in one shot.

It's been 5 months already

Quoting TripTrap

I am sorry about the delayed response. I was out of the office last week.

Currently there are still two very large claims against this estate. We must get them resolved before we can file motion with the Court about the claims procedure/distributions as funds were commingled and the Court has the freeze order on all of the funds. We hope the disputes can be resolved in April and that we can file the motion within 60-90 days. There is a possible that we may have to bring the disputes to the Court in order to resolve them.

Very truly yours,

Lillian Lee
Deputy to the Receiver
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