IKON GM fined for using Virtual Dealer Plugin

#1
First Post: Oct 29, 2010 3:06am Oct 29, 2010 3:06am

PipStar
| Joined Mar 2006 | Status: Trader | 752 Posts

Well, I wrote some time ago that it was the tip of the iceberg when Forex.com/Gain got caught using the Virtual Dealer Plugin. Now it's the turn of IKON GM:

http://www.nfa.futures.org/basicnet/...px?seqnum=2618

http://www.nfa.futures.org/basicnet/...px?seqnum=2620

It may not be over yet, stay tuned to see how many of these brokers get caught by NFA.

#2
Oct 29, 2010 8:07am Oct 29, 2010 8:07am

BurgerKing
Joined Jul 2006 | Status: Trader | 2,924 Posts

Its been years since we uncovered this nasty cheat. Yet many a trader refuses to believe it as a cheat and instead rally behind their beloved (scam) brokers...Hmmm could be hired/paid cool-aid cheerng squads.

Now, NFA has fined IKON and FOREX.COM for using Virtual Dealer Plugin to steal money from traders.

That should be a clear sign that Virtual Dealer Plugin is a cheat.

We, the Anti Virtual Dealer Plugin advocates are vindicated for our efforts in uncovering this plugin. But we believe there are more Cheat Plugins out there; we shall not rest until brokers play nice and honest.

#3
Oct 29, 2010 8:51am Oct 29, 2010 8:51am

BurgerKing
Joined Jul 2006 | Status: Trader | 2,924 Posts

50:1 leverage, I can live with it.
FIFO, I can live with it
No Hedge, I can live with it.
But Virtual Dealer Plugin? HELL NO I WONT TRADE with brokers having this.

Suddenly, I see CFTC/NFA brokers are now more attractive than FSA brokers....

#4
Oct 29, 2010 8:56am Oct 29, 2010 8:56am

PipStar
| Joined Mar 2006 | Status: Trader | 752 Posts

Burgerking

Yes, you first brought this issue to our attention at FF in February 2008 under your thread Virtual Dealer Plugin. It's taken the NFA two and a half years to catch up with the cheating brokers. Don't worry too much about the broker cheering squad here at FF; many are broker agents, others are ignorant newbie traders. I expect more brokers to be caught and fined in the usa. The ones that may get away with it are those brokers outside the usa but I hope overseas regulators also start taking an interest in this.

#5
Oct 29, 2010 9:00am Oct 29, 2010 9:00am

>Apocalypto<
Joined Oct 2007 | Status: follow momentum. | 1,202 Posts

Quoting PipStar

Disliked

Burgerking

Yes, you first brought this issue to our attention at FF in February 2008 under your thread Virtual Dealer Plugin. It's taken the NFA two and a half years to catch up with the cheating brokers.

Ignored

2 and a half years is a long time why do you think it took that long for the NFA to take action?

#6
Oct 29, 2010 9:03am Oct 29, 2010 9:03am

smjones
Joined Mar 2006 | Status: THANK YOU MERLIN,TWEE and FF Team | 4,603 Posts

I agree with Burger on this.

While I still write some programs in MQL, I no longer trade with a MT4 broker (with the exception of a very small account at IBFX). I use either tradestation or AmiBroker, ( mostly TS) at IB. I have never trusted any of these MT4 brokers with any sizable amount.

I do still use IBFX for testing and experimenting. I do not know for sure if they use V. Plug-in, but they claim they do not, but there is no way to know for sure as they all seem to lie in the face of the NFA and CFTC, so better just to not use MT4 for anything serious.

#7
Edited 9:13am Oct 29, 2010 9:11am | Edited 9:13am

smjones
Joined Mar 2006 | Status: THANK YOU MERLIN,TWEE and FF Team | 4,603 Posts

Quoting PipStar

Disliked

Well, I wrote some time ago that it was the tip of the iceberg when Forex.com/Gain got caught using the Virtual Dealer Plugin. Now it's the turn of IKON GM:

http://www.nfa.futures.org/basicnet/...px?seqnum=2618

http://www.nfa.futures.org/basicnet/...px?seqnum=2620

It may not be over yet, stay tuned to see how many of these brokers get caught by NFA.

Ignored

So IKON GM uses this VP for who knows how long, perhaps years and the fine is a paltry 320,000 plus paying back the slippage difference? What a great deal for IKON GM. They do not have to make good on all those trades that did not happen, because of the slippage that would have been profitable for the trader and they do not have to pay back losses to their ripped off customer base. In addition to that $320,00 averaged over a couple of years is a great deal and a great profit generator for IKON GM .

Who says crime does not pay? Here is absolute proof it DOES!!!

#8
Oct 29, 2010 9:38am Oct 29, 2010 9:38am

Slack
| Joined Aug 2009 | Status: Trader | 649 Posts

Quoting smjones

Disliked

I agree with Burger on this.

While I still write some programs in MQL, I no longer trade with a MT4 broker (with the exception of a very small account at IBFX). I use either tradestation or AmiBroker, ( mostly TS)...

Ignored

I dislike MT4 too, but not only for VD. It just isn't intuitive, and feels like it was built by software engineers, not traders.

Call me skeptical, but I have to believe every platform has a similar functionality as VD; only difference is those companies/broker aren't as stupid as Boston as to advertise it... truly one the great idiotic corp maneuvers of the decade.

#9
Nov 2, 2010 11:48am Nov 2, 2010 11:48am

BurgerKing
Joined Jul 2006 | Status: Trader | 2,924 Posts

I forwarded them the link to Ikon customer service asking for their comment last friday.

to date, no reply.

I am sure either:

#1. they are ashame they got caught and dont want to talk about it.
#2. they are calous these things dont bother them one bit
#3. my email didnt reach them... funny other messages gets response, but this is 1st time no response..

either way, ikon is not showing any good face.

#10
Nov 2, 2010 12:32pm Nov 2, 2010 12:32pm

Slack
| Joined Aug 2009 | Status: Trader | 649 Posts

IMHO, this goes way past any discussion with the broker. Anyone caught using this insidious device needs not just a reprimand/fine, but to be put out of business.

#11
Nov 18, 2010 6:29am Nov 18, 2010 6:29am