JoseLeon

I received this email, do you think that it´s true?:

Hi there Jose

NFA has been coming down pretty hard on the forex industry lately. They have shut down 4 brokers so far this month, due to fraud and/or lack of funding, and they are just warming up.

As far as I know, and I may be wrong, but the names of the brokers that were shut down in June are the following:
FX Option Inc.
Spot FX Clearing Corporation
Trend Commodities Limited
United Global Markets
You can search them on google to find the website address. Again, if I am wrong about any of these firms, I apologize.

I've been receiving information from some reliable sources, but it's not confirmed yet, but it seems like NFA will shut down any broker that has less than $5 million in funds. I am not sure of the exact time frame, but it seems like in the next month or two. That's not the real problem. The real problem is that I believe some of these bucketshops are not well managed, and when the time comes that they have to go out of business and give all the money back to their clients, they may not have enough. Or even if they do, it's entirely possible that some of their CEOs may run away with the funds offshore. So I suggest that you check on your broker's financial capability by going to this link.

http://www.cftc.gov/files/tm/fcm/tmfcmdata0704.pdf

Don't get me wrong, I do believe that some serious firms that currently don't have enough funds could get enough funds to meet the requirements, but I do think that your safety of funds in some smaller firms could be under risk.

The rumor on the street that NFA will raise capital requirement to 9 million by end of this year, but it's still a rumor. If that happens, I am sure we'll have most small forex brokers go out of business, and we'll probably only have 15 or 20 left, which I think is a good thing.

Anyway, check your broker through the link above, and if you feel you could be at risk, perhaps consider taking your money, before it's too late, and the avalanche starts.

I think this is a very important heads up, and I want to make sure that my subscribers like you are taken cared of before everyone else, so don't post this on any forums, until your own funds are secure...

Thanks

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opie999

Can you divulge your source, Jose? It all sounds entirely plausible.

"...and we'll probably only have 15 or 20 left, which I think is a good thing."

I disagree with this statement. Any government action that restricts the free flow of internal trade and capital is never a good thing, period. Just take a look at the despicable actions taken by the DOJ against e-gold.

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JoseLeon

Of course,
I joined Forex Bastards Reviews Home long time ago and I receive emails daily about forex signals from Secret Forex Society , they also have a section in that website about forex + scams. I received that email from him this june 27th.

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archsage

Hi Jose,

I have also received another mail from a reliable source informing me of the same situation.

The last few weeks has seen the NFA foreclosing on a lot of forex
dealers who are undercapitalized. The following firms have been
shut down as a result:

1) United Global Markets, LLC
Today the CEO just sent an email out to clients saying they were
going out of business because they could not meet their capital
requirements.

2) Trend Commodities Limited
On June 19 the NFA shuttered Trend Commodities due to fraud and for
failing to meet their capital requirements.

3) Spot FX Clearing Corp
On June 14 the NFA shuttered SpotFX due to fraud and for failing to
meet their capital requirements.

4) FX Option1 Inc.
On June 7 the NFA shuttered FX Option1 due to fraud and for failing
to have adequate security deposits for customers.

5) Spencer Financial LLC
On May 17 the NFA shuttered Spencer Financial due to fraud and for
failing to meet their capital requirements.

6) Alpha Forex
On May 14 the NFA shuttered Alpha due to fraud and for failing to
meet their capital requirements.

Do you have money with the following? their current capital - IF
SO GET OUT NOW
One World Capital $1,105,000
Open E Cry LLC $1,062,810
Velocity4X $1,587,000
Direct Forex LLC $1,523,000
Easy Forex US Ltd $5,011,644 - they are above the 5 mio threshold but only just and with a name like that - get out.
3D Forx LLC $ 2,525,372
E FX Optioons LLC $1,709,752
FiniFX $1,464,000
Forex Club $3,304,000
Forex International Investments Inc $1,464,620
Forward Forex $1,793,767
FXCM LLC $759,689
GFS Futures & Forex $3,074,000
Nations Investments $1,699,000
Royal Forex Trading $1,102,000
SNC Investments $1,565,000
Tradition Securities $781,869
I Trade FX -$3,039,000 Note these guys are already
bankrupt --- negative capital.!!!!!
Money Garden Corp $3,399,844


To get on the NFA new info list go to:
www.nfa.futures.org/news/subscribe.asp.

phildunn

Tnx for updates. Look likes NFA is taking serious action now after a lot of new fx brokers pop-up recently..

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kibitzer

Wow. Is FXCM really in there? It's supposed to be the biggest broker (perhaps that's just hype?) so I'm perplexed that it has less than $1 M in capital. FXDD, if I'm not mistaken, belongs to the Tradition group and it also appears to be undercapitalized.

At least, Oanda ain't included.

Optional

thanks for heads up about fxdd and tradition group Kibitzer

I thought same when I saw fxcm on list btw... not that they are biggest but thought they were big.

Jude

Probably the presence that FXCM established on their forex web resources online, making them look big.

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kibitzer

I went to the NFA website and saw that FXCM actually has three different entities under them, with FXCM LLC being just one of them. So perhaps, this issue just pertains to the latter and not the whole of FXCM?

Also, though I know FXDD belongs to the Tradition group, I'm wondering if Tradition Securities (the one on the list) may be just one of the affiliates of the mother company.

I guess some more confirmation is necessary at this point, therefore.

archsage

Yeah, I was surprised to see FXCM LLC on the list as well. According to the FXCM website, the FXCM Group consists of FXCM Holdings LLC, FXCM LLC, Forex Trading LLC, Forex Capital Markets LLC, Forex Capital Markets LTD, FXCM Asia LTD, and FXCM Canada LTD. So, I guess FXCM LLC is just one of their entity.

As a group, FXCM claims they have over $120 million in capital. Company Profile - FXCM, Currency Trading, Leader in Online Currency Trading, Forex

As for FXDD, I believe it belongs to Tradency Inc. If you search the NFA site, you will find that FX Auto comes under them as well.