Proposed NFA Capital Requirement - page 12

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It's a very long story.....he...he...he

 
The lesson? Avoid unregulated Swiss Brokers. The following Swiss brokers, like Tradex Swiss Ag, are not regulated:

WestCapFX

ACM

MIG

DukasCopy

GFX Group (Forex.CH)

Crown Forex

Forget the fancy sales pitches. Forget the Acronyms of the anti-money laundering organizations they belong to. Forget the spreads or the rolls or the foreign currency bank accounts they have. Ask them a simple question: Are you regulated and if you are please provide me with your registration number and a link where I can go and independently verify that you are indeed regulated. Absent that stay far, far away from Swiss Forex Broker Dealers. It just isn't worth the risk.

forexsavior

Switzerland is a beautiful country with very nice people, I bet that most Switzerland forex scams are not done by Swiss people.

Now you have a big and respectable broker in your list, Dukascopy.

I trade an account there (not mine) and I know of hedge funds with many millions trading there, this broker is not a casino broker, but an ECN broker, it mean that they don't take the other side. in the statements you can also see who is the clearing of your transaction or the network where your transaction was cleared.

Are you suggesting that they can raise operations and leave with customers funds ?

What about their partnership with UBS bank and bank guarantee funding ?

They can take also all customers funds deposited at UBS as bank guarantee and leave ?

UBS is probably the BIGGEST bank in the world and you should know it, I don't think that bank guarantee funds are at any risk, and most people who trade at Dukas fund their account with this option and if you check Dukas conditions you will know that with they minimal lot size is almost impossible to trade an account smaller than 1 million there without overleverage your trades.

Please explain.

 
project1972:
forexsavior

Switzerland is a beautiful country with very nice people, I bet that most Switzerland forex scams are not done by Swiss people.

Now you have a big and respectable broker in your list, Dukascopy.

I trade an account there (not mine) and I know of hedge funds with many millions trading there, this broker is not a casino broker, but an ECN broker, it mean that they don't take the other side. in the statements you can also see who is the clearing of your transaction or the network where your transaction was cleared.

Are you suggesting that they can raise operations and leave with customers funds ?

What about their partnership with UBS bank and bank guarantee funding ?

They can take also all customers funds deposited at UBS as bank guarantee and leave ?

UBS is probably the BIGGEST bank in the world and you should know it, I don't think that bank guarantee funds are at any risk, and most people who trade at Dukas fund their account with this option and if you check Dukas conditions you will know that with they minimal lot size is almost impossible to trade an account smaller than 1 million there without overleverage your trades.

Please explain.

Switzerland is a beautiful country with one of the highest living standards in the world. But the retail forex market in Switzerland is unregulated. DukasCopy is unregulated. That means Dukascopy can co-mingle customer and company funds if it so chooses without any regulators saying otherwise. That means there is no one watching over them to make sure they are keeping their books straight or not fraudulently soliciting clients. That means if Dukascopy goes under, like Tradex Swiss AG, you have no one to turn to. The fact they have an account with UBS is irrelevent for the average retail fx trader. Maybe someone with $100 million can get a bank guarantee. But the average Joe trading a couple grand certainly can't.

 
 
 

Forexsavior,

Thank you for your professionally written articles. One of your earlier posts inspired me to withdraw my funds from one of the firms listed in Forex Dealer Dead Pool. I made it in due time since that broker has already serious difficulties with redemption of customers funds. You probably saved me money so I am thankful for your posts!

Living outside the US I do not know the US law sufficiently and obviously have some difficulties also with following and interpreting the changes. So, I would like to ask you some questions:

  • Is NFA registration a requirement for Introducing Brokers?
  • If an IB settled in the US works for a Swiss Broker which country's law shall be applied? (Let's presume that a European customer signs a brokerage agreement with a Swiss broker but the fund has to be wired to a US bank.)
  • If a Swiss Broker has been registered in Switzerland and employs US IBs to collect international customers, US citizens included, should the Swiss Broker be registered with the NFA?

Thanks again for your high standard work.

Regards,

Chrisstoff

 
chrisstoff:
Forexsavior,
  • Is NFA registration a requirement for Introducing Brokers?
  • If an IB settled in the US works for a Swiss Broker which country's law shall be applied? (Let's presume that a European customer signs a brokerage agreement with a Swiss broker but the fund has to be wired to a US bank.)
  • If a Swiss Broker has been registered in Switzerland and employs US IBs to collect international customers, US citizens included, should the Swiss Broker be registered with the NFA?

Thanks again for your high standard work.

Regards,

Chrisstoff

Thanks Chisstoff. In answer to your questions:

1) NFA Registration is not required of introducing forex brokers. In fact, the introducing broker registration requirements are very murky and the CFTC is looking to get this settled once and for all with the Commodities Modernization Act in Congress. Therefore I can't really answer your other two questions at this time since the law if very unsettled.

 
 

Article clears some things up

This article outlines the details and helps you understand if your broker is affected:

Profiting with Forex (PFX) - Watch Forex Professionals Currency Trade

 
forexfenom:
This article outlines the details and helps you understand if your broker is affected: Profiting with Forex (PFX) - Watch Forex Professionals Currency Trade

good post fenom

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