GAIN Capital Group fined $459.000 | Forex Factory

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GAIN Capital Group fined $459.000

  • #1
  • First Post: Oct 28, 2010 5:31pm Oct 28, 2010 5:31pm
For Immediate Release
October 28, 2010

For more information contact:

Karen Wuertz (312) 781-1335, [email protected]
Larry Dyekman (312) 781-1372, [email protected]

NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC

October 28, Chicago - National Futures Association (NFA) has ordered Gain Capital Group LLC (Gain), a forex dealer member located in Bedminster, New Jersey, to pay a $459,000 fine as a result of an NFA Complaint issued and a settlement offer submitted by Gain and its chief executive officer, Glenn H. Stevens.

NFA's Business Conduct Committee alleged that Gain engaged in abusive margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers. The Committee also alleged that Gain failed to maintain records for certain unfilled orders, failed to adequately review the activities and promotional material of the firm's unregistered solicitors, and failed to supervise the firm's operations.

In addition to the fine amount, Gain must also provide appropriate refunds to its customers as a result of these detrimental margin, liquidation and asymmetrical slippage practices.

Gain and Stevens neither admitted nor denied the charges. The complete text of the Complaint and Decision are available on NFA's website (www.nfa.futures.org).

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.

http://www.nfa.futures.org/news/news...ArticleID=3676

Gentlemen, fight your fight against unethical and illegal Forex practices !

Abusive margin, liquidation and price slippage practices !!!!
________________________________ Errare humanum est
  • #2
  • Oct 28, 2010 5:48pm Oct 28, 2010 5:48pm
Quoting MisterTrader
For Immediate Release
October 28, 2010

For more information contact:

Karen Wuertz (312) 781-1335, [email protected]
Larry Dyekman (312) 781-1372, [email protected]

NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC

October 28, Chicago - National Futures Association (NFA) has ordered Gain Capital Group LLC (Gain), a forex dealer member located in Bedminster, New Jersey, to pay a $459,000 fine as a result...
this is just unbelievable, Gain are really scum...... this is a perfect example of how defunked the Market marker dealing desk broker set up is these days.

it's just another reminder of why you should only trade with a non dealing desk..... you just can't trust them, Gain has set another great example way.

cheers for posting and great to see they have been reprimanded.
  • #3
  • Oct 29, 2010 2:10am Oct 29, 2010 2:10am
What bunck of crooks , too bad FXOpen isn't located in the states because they are even worse
  • #4
  • Oct 29, 2010 2:20am Oct 29, 2010 2:20am
The Market Maker model is dead. ECN is the way to go these days. Gain/forex.com has always seemed sus to me from the beginning so I never opened a live account with them. I guess my intuition was correct eh?
  • #5
  • Oct 29, 2010 2:21am Oct 29, 2010 2:21am
Ikon got banged up too...
  • #6
  • Oct 29, 2010 3:23pm Oct 29, 2010 3:23pm
Quoting oakmonster
The Market Maker model is dead. ECN is the way to go these days. Gain/forex.com has always seemed sus to me from the beginning so I never opened a live account with them. I guess my intuition was correct eh?
ECN is the same thing but presented differently.

Please stop misleading people.
  • #7
  • Oct 29, 2010 5:23pm Oct 29, 2010 5:23pm
Quoting lavatrader
ECN is the same thing but presented differently.

Please stop misleading people.
LOL. True ECN is not the same thing. The problem is that many of these brokers use the term ECN because by definition, they are (Electronic Communications Network). But that's not what a trader wants out of it.
  • #8
  • Edited 6:20pm Oct 29, 2010 5:37pm | Edited 6:20pm
THAT'S IT! a half mill! I'm sure they have stolen more...

Good though, it's about time someone paid. If this doesn't teach people I don't know what will, STAY AWAY FROM a market maker model.
Thier GOAL is to RINSE YOUR ACCOUNT large or small.
At least they have to pay the client capital back as well.

I heard gain bought out CMS FX? and will not be using (offering clients) VT trader. That sucks for CMS custies, VT trader was a pretty great platform
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #9
  • Edited 6:21pm Oct 29, 2010 5:38pm | Edited 6:21pm
A true ECN is NOT the same as a dealing desk market maker. or Gain / FX.com. they are a market maker TAKER!

Quoting lavatrader
ECN is the same thing but presented differently.

Please stop misleading people.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #10
  • Oct 31, 2010 12:44pm Oct 31, 2010 12:44pm
Quoting XTrade
THAT'S IT! a half mill! I'm sure they have stolen more...

Good though, it's about time someone paid. If this doesn't teach people I don't know what will, STAY AWAY FROM a market maker model.
Thier GOAL is to RINSE YOUR ACCOUNT large or small.
At least they have to pay the client capital back as well.

I heard gain bought out CMS FX? and will not be using (offering clients) VT trader. That sucks for CMS custies, VT trader was a pretty great platform
Yep, and their account managers don't even respond to queries about any of the changeover anymore. Coupled with customer service, I wouldn't want too much in there, you'll never find someone competent to talk to so you can get your money.
  • #11
  • Oct 31, 2010 3:50pm Oct 31, 2010 3:50pm
As a CMS refugee at Forex.com, a chill went up and down my spine as I read this thread. Fear for my money. I made a request on Thursday to close my account and withdraw all of the funds.

Here's hoping the money is in my hands next week...but I am feeling uneasy.
  • #12
  • Nov 1, 2010 2:24am Nov 1, 2010 2:24am
Quoting oakmonster
The Market Maker model is dead. ECN is the way to go these days.
Ok, you are with an ECN presumably? Look at your fine print and tell me that there is not a clause somewhere that states your ECN can't trade against you?

You will probably find, like every other so called ECN that there most probably "is" a clause that clearly states that they can trade against you whenever they want to. If I'm wrong, let me know. The point is that every broker/ecn protects themselves in detail by outlining this in their fine print.

We can only hope as traders to sign up with the ones that don't do it as often as others and that's about it.
  • #13
  • Nov 1, 2010 4:55am Nov 1, 2010 4:55am
Quoting klrman
Ok, you are with an ECN presumably? Look at your fine print and tell me that there is not a clause somewhere that states your ECN can't trade against you?
There is not a clause somewhere that states my ECN can trade against me.

However they do admit that their employees, or anyone else trading who may be associated with the company might be the counterparty in a trade. (broker name removed ) This makes sense. They are allowed to trade too.

28. CROSS TRADE CONSENT.
The undersigned hereby acknowledges and agrees that a situation may arise whereby an officer, director, affiliate, associate, employee, bank, bank employee or dealer associated with xxxxxx may be the opposing broker for a trade entered for the undersigned's account.

Only non ECN brokers trade against their clients in order to protect their dealing desk.
  • #14
  • Nov 2, 2010 1:16am Nov 2, 2010 1:16am
I do not understand why anyone has an account with these guys.... they are sooooo massive yet seem to be always in trouble. I feel for the CMS clients that are now with them!
  • #15
  • Nov 3, 2010 3:56am Nov 3, 2010 3:56am
Quoting leowtrader
I do not understand why anyone has an account with these guys.... they are sooooo massive yet seem to be always in trouble. I feel for the CMS clients that are now with them!
I am such a client. CMS should have just returned all our cash, not given it away to some broker we would not have chosen in the first place.

Is that not a criminal offence?

Never-the-less I'll give forex.com a try. I'll just use VT Trader Demo for charts.

MT4 I don't really trust - used in conjunction with brokers, not the software itself.

I don't blamce forex.com in any of this, but CMS I most certainly do and as I wrote before their connectivity was amongst the worse I'd ever seen.
  • #16
  • Nov 3, 2010 6:08am Nov 3, 2010 6:08am
i was with forex.com
their charts were shit so i withdrew my funds and left $2 in the account,took them 2 months to sent me the check,
now i checked on my account with them and the balance was $0.00

biggest cheapcunts stole $2 ,how low can they get
i moved to etoro,lost all my money had a $1.20 left and it was there for 3 months,now i deposited money again in etoro,and evrything was good


advice,dont use forex.com
  • #17
  • Nov 3, 2010 6:40am Nov 3, 2010 6:40am
ECN is a term use loosely; mostly for marketing purposes. There is no centralized exchange for the forex and therefore no "ECN provider" can show you true market depth.

The term market-maker is also being use loosely by a vast majority of traders because a true designated market maker (DMM) is taking on a vast amount of risk by playing the market both ways; they always stand firm with a price to buy and sell when no natural buyer or seller will transact. A true market maker does not know where your trades are, what levels your margin will get cut, etc, etc. (true market makers actually have a STRATEGY!)

To call GAIN or any retail FX firm a market-maker; well that's hilarious. They are more like failed traders. Their only strategy is to pinch customers who are the true risk takers (by arb'ing the discrepancy of multiple feeds by true dealers) But calling themselves market makers makes them look more hip. (it's like the whole corner office thing) They are paying Uncle Sam to be allowed to do this. (ie. finra, nfa, cftc) As obviously these firms are not members of any exchange. (and for good reasons, they would never be able to compete)

They have knowledge of client orders, where someone is going to get margin slammed, and an overall aggregate client position to hedge. If you call this kind of firm a "market maker" then social trading networks, where you "share" trading ideas should also be considered 'market makers' as they have knowledge of your order book, account equity and with simple margin mathematics can figure out where you're getting stopped. (the only difference being that your money is not held with them)


advice: practice, practice, practice, save enough money to trade with a bank.

or

trade futures.
  • #18
  • Nov 3, 2010 8:20am Nov 3, 2010 8:20am
Wow, big news.
No, really, I expected NFA to do something like that, but GAIN...

On the other hand you guys here keep believing in the "True ECN" brand (created by MMs lol). By doing so you make sure cheating brokers will always be profitable.
  • #19
  • Nov 3, 2010 10:55am Nov 3, 2010 10:55am
whats ur advice whos the best broker,,with fixed spreads and cheapest cost,right now im using etoro and they use retailfx,could they scam me?
  • #20
  • Last Post: Nov 3, 2010 5:48pm Nov 3, 2010 5:48pm
This is all disheartening. I always wanted that forex insider feed, and their website has a lot of neat stuff. but everything else I'm not happy with.

I'm finding it's a massive pain to find a broker with decent software and is easy to fund and withdraw. I'd like to find someone that has a chart that works and saves all my lines. Some leverage would be nice too. can't find any. I know VTrader can't be the only usable feed out there. I used MT something many many years ago and even that kept all my studies.
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