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Originally Posted by Piponacci
I'm afraid I don't understand. What is the risk/danger of choosing COESFX as a broker? Is it the possibility that harsh US regulations and their accompanying fines could force them out of business? How can one look into this further?
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Regulations? I don´t think so, personally I believe it was tricky move.
First, COES was in trouble with CFTC, read
here. and the news spread all over the brokers community. I can imagine a lot of broker closing the accounts.
A complicated name in relation with some fraud activities is destructive for any company. So, what we doing if we are the owners? we "move" the company under other name: Spot FX Clearing Corp Member National Futures Association (NFA ID# 0358427) and CFTC Registered.
Fact 1: by 05/31/2006 Spot FX Clearing Corp had a net capital of u$s 267.076. And COESFX 962.851.
Fact 2: 07/31/2006 Spot FX Clearing Corp have a net capital of u$s 1.053.524 (guau) and COES was deleted from the list.
Spot had a capital increase of 253% in 2 months
So, mmm, we sum? = (267.076 + 962.851= 1.229.927) - 1.053.524 = 176.403
What is number ordered to be payed by the CFTC = 246.601
I can imagine some off the record agreement between he company and the clients. In fact, in almost 98% of the time the client never recover 100% of the capital.
So, we have a diff of only 70.198.