No Bullshit Forex Blog, A Part of No Bullshit Network

Thanks to NN’s members for sharing this piece of information. Seems that NFA is working hard on closing down bucket shops that aren’t specific to their requirements .

From JoseLeon, NN and Noponzi

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

From archsage, NN

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

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