Five months after the SNB debacle RVD Markets went bankrupt | Forex Factory

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Five months after the SNB debacle RVD Markets went bankrupt

  • #1
  • First Post: Jun 21, 2015 2:01pm Jun 21, 2015 2:01pm
And you thought it is safe now!? Who's next?

The RVD Markets LTD company announces the initialization procedure of bankruptcy.
:: everything is awesome ::
  • #2
  • Jun 21, 2015 2:10pm Jun 21, 2015 2:10pm
Quoting Black Fox
And you thought it is safe now!? Who's next? The RVD Markets LTD company announces the initialization procedure of bankruptcy.
I suggest many will ,but i can not write names as it will harm them .
i still have my money stuck with fxsalt but it is small not so much .
all have a nice day
focus while relaxed to see better
  • #3
  • Jun 21, 2015 6:46pm Jun 21, 2015 6:46pm
Quoting Black Fox
And you thought it is safe now!? Who's next? The RVD Markets LTD company announces the initialization procedure of bankruptcy.
So client funds weren't segregated then ?

When using a broker make sure that client funds are 100% fully segregated.

Brokers who allow client funds to be used as part of credit to a prime broker or broker aren't fully segregated.

To ensure this ask the broker this important question

Who is your prime broker?

If they don't have one then chances are that your funds aren't fully segregated.
  • #4
  • Jun 21, 2015 8:42pm Jun 21, 2015 8:42pm
RVD Markets LTD was a regulated broker, so who should I trust in that case?! I had a small deposit with Alpari UK I thought that its bankrupt was an exception.
  • #5
  • Jun 21, 2015 9:37pm Jun 21, 2015 9:37pm
Quoting Dunno67
RVD Markets LTD was a regulated broker, so who should I trust in that case?! I had a small deposit with Alpari UK I thought that its bankrupt was an exception.
"Regulated broker' means nothing
Regulators have different allowances and are all not the same.
Do your home work
  • #6
  • Edited Jun 22, 2015 12:13am Jun 21, 2015 10:06pm | Edited Jun 22, 2015 12:13am
Looks like this broker is from Russia. Not to discriminate in any way, but was this broker ever regulated in the first place? And what's the rule for client funds segregation and disbursement in the event of insolvency under Russian regulations?

From their announcement on their website:

It will be defined sequences of payments to clients after completion of procedure of bankruptcy, unblocking holds of funds in payment systems and banks and realization of liabilities of the company in the form of the software

Looks like the client funds will only be paid after satisfying the holding of payments to banks and liabilities of the company. So in other words, the client funds weren't segregated at all in the first place if they could be used to pay off liabilities of the company.

So if I were a former client of this broker, I would consider my money gone at this point and would start hiring lawyers and/or "professional collectors" if I REALLY want to get my money back. LOL
Make your losses in demo. Earn your profits live.
  • #7
  • Jun 21, 2015 10:41pm Jun 21, 2015 10:41pm
Did they use google translate for this? Legitimate russian bizniz-men..

BTW it seems there hasnt even been a bankrputcy admin appointed yet. When Alpari declared bankruptcy, KPMG took over the website pretty much immediately.
  • #8
  • Edited 3:10am Jun 22, 2015 12:13am | Edited 3:10am
Quoting shrike
Did they use google translate for this? Legitimate russian bizniz-men.. BTW it seems there hasnt even been a bankrputcy admin appointed yet. When Alpari declared bankruptcy, KPMG took over the website pretty much immediately.
It looks like it is Google Translate and this is another concerning fact. If the company can't even afford a professional translator for a public announcement then how much assurance is there about anything else.
Make your losses in demo. Earn your profits live.
  • #9
  • Jun 22, 2015 2:52am Jun 22, 2015 2:52am
Tried half an hour to connect to platform , only to realize later that broker is gone.
Fortunately it was only small research account for testing my system. Broker had one of the best trading conditions and had very good execution speed. Only thing lacking was Regulation and that was their undoing as no private investor came to their help as they couldn't establish their credibility. And being Russia based didn't help them either.

And yes money is as good as gone if you are client of the broker outside Russia .
  • #10
  • Jun 22, 2015 3:13am Jun 22, 2015 3:13am
Quoting ronaleo10
Tried half an hour to connect to platform , only to realize later that broker is gone. Fortunately it was only small research account for testing my system. Broker had one of the best trading conditions and had very good execution speed. Only thing lacking was Regulation and that was their undoing as no private investor came to their help as they couldn't establish their credibility. And being Russia based didn't help them either. And yes money is as good as gone if you are client of the broker outside Russia .
Well at the end, according to their statement, their banks were freezing their bank accounts. And no private investors would dare to invest with a company that's got its bank accounts frozen.

You might still be able to get your money back if you are able to afford to hire an ex-KGB "professional" to show up at their door.
Make your losses in demo. Earn your profits live.
  • #11
  • Jun 22, 2015 1:19pm Jun 22, 2015 1:19pm
I was caught napping

Still question is how many brokers are really really healthy?
What happens if 3 months from now another one bites the dust?
Inserted Video
Let it turn and find your entry.
  • #12
  • Jun 22, 2015 5:42pm Jun 22, 2015 5:42pm
Quoting Intrepidpips
I was caught napping Still question is how many brokers are really really healthy? What happens if 3 months from now another one bites the dust? https://www.youtube.com/watch?v=rY0WxgSXdEE
Well this broker is a special case. It was small and under-capitalized to begin with and God knows what they were doing that would warrant their banks freezing their accounts so it's obvious they won't be able to weather this SNB crisis. I am even surprised that it took them 5 months to go down since the SNB crap.
Make your losses in demo. Earn your profits live.
  • #13
  • Jun 23, 2015 3:12am Jun 23, 2015 3:12am
Something tells me that there will be more to come. We have not unearthed everything just yet...
  • #14
  • Jun 23, 2015 5:23am Jun 23, 2015 5:23am
Quoting FxTyran
Something tells me that there will be more to come. We have not unearthed everything just yet...
so better using public listed forex broker?
  • #15
  • Jun 23, 2015 5:37am Jun 23, 2015 5:37am
Quoting onlyufx
{quote} so better using public listed forex broker?
Not public listed forex broker but REGULATED broker in a country that has relatively more sound, concrete regulations that has defined and specific processes and disciplinary actions if the regulation rules are broken. Nowadays all brokers can claim to be regulated and every single country's got a regulatory body. No offence to any other countries, I would prefer the broker to be regulated and registered with the regulatory body in the following countries: U.S.A, Canada, U.K, and Australia. Any other countries, I would hesitate.
Make your losses in demo. Earn your profits live.
  • #16
  • Jun 23, 2015 5:44am Jun 23, 2015 5:44am
Quoting Forexia
{quote} Not public listed forex broker but REGULATED broker in a country that has relatively more sound, concrete regulations that has defined and specific processes and disciplinary actions if the regulation rules are broken. Nowadays all brokers can claim to be regulated and every single country's got a regulatory body. No offence to any other countries, I would prefer the broker to be regulated and registered with the regulatory body in the following countries: U.S.A, Canada, U.K, and Australia. Any other countries, I would hesitate.
Hello, Mr. Forexia.

What about Switzerland? I was thinking of opening an account with Swissquote because they have insurance of CHF 100,000 per client and are public listed (though they're a well-known MM).

What do you think about them ?

Thank you very much.

Regards,
MrJinks.
  • #17
  • Jun 23, 2015 6:14am Jun 23, 2015 6:14am
A perforated knee-cap costs around $500 in Moscow. So if anyone lost money and wants to get even..
  • #18
  • Edited 7:54am Jun 23, 2015 7:20am | Edited 7:54am
Quoting mrjinks
{quote} Hello, Mr. Forexia. What about Switzerland? I was thinking of opening an account with Swissquote because they have insurance of CHF 100,000 per client and are public listed (though they're a well-known MM). What do you think about them ? Thank you very much. Regards, MrJinks.
I am not too familiar with the financial regulators FINMA in Switzerland. They claim to have the strictest regulations and overseeing procedures but I am not sure. Yes they do have deposit insurance of up to $100K CHF for customers of banks and securities dealers in case of insolvency BUT that's only for "privileged deposits". If it's NOT considered "privileged deposits", you get basically whatever is left from the company. So it REALLY depends on what they consider as "privileged deposits" and the FINMA website really didn't provide any documentations providing a definition of what they consider as "privileged deposits" and also they provide no information on whether they require customer funds to be segregated from the company operation funds. To me segregation of customer funds is very important.

And also they do NOT seem to have a venue where the investor public can launch a complaint against any investor companies that they have invested their money with to report any unethical dealings, only enforcement of any rules and regulations when they are broken. They have Ombudsmen offices for private insurance, banks, health insurance but NO investment dealerships or securities dealers unlike other regulators in the US, UK, Canada or Australia. So if you have been dealt unfairly by Swissquote, would you be able to launch a complaint against Swissquote unless Swissquote is considered a bank or a private insurance company? If not, then would you be able to do anything until FINMA decides to initiate enforcement proceedings against Swissquote when THEY found out about the wrongdoing? What if FINMA NEVER wishes to initiate any enforcement proceedings against Swissquote like in the case with those Swiss banks that were deliberately withholding assets (and even destroying evidence of them) from the Jewish families who fled Nazi Germany? In all of the aforementioned countries, any investors can launch complaints at any time against any securities firm when they feel they have been dealt unethically or unfairly by them. That's also very important to consider and this is another layer of safeguard for us investors that I am not able to find with FINMA.

Maybe I am just not knowledgeable enough about their regulations or operations but to me personally, they are debatable. I would rank them after Australia. I mean if there is REALLY no any brokers that I can sign up with in US, Canada, UK or Australia then at last resort, if I REALLY have to trade, I would consider brokers from Switzerland but not before I exhaust ALL my search efforts for a broker in US, Canada, UK or Australia.
Make your losses in demo. Earn your profits live.
  • #19
  • Last Post: Jun 23, 2015 7:42am Jun 23, 2015 7:42am
Quoting Forexia
{quote} I am not too familiar with the financial regulators FINMA in Switzerland. They claim to have the strictest regulations and overseeing procedures but I am not sure. Yes they do have deposit insurance of up to $100K CHF for customers of banks and securities dealers in case of insolvency BUT that's only for "privileged deposits". If it's NOT considered "privileged deposits", you get basically whatever is left from the company. So it REALLY depends on what they consider as "privileged deposits" and the FINMA website really didn't provide any...
Hello again, Mr. Forexia.

Thank you so much for your kind and superb clarifications. Very much appreciated.

Happy trading to you and to all traders here on FF,
MrJinks.
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