The member asked for a reliable broker not a well capitalized one. Two completely different things, like a nice person and a rich person.

Dear sjerar, Dr. Elder in his first book was extremely clear: Keep one eye in your trading and two or three in your Broker.

orexsavior: what do you mean with this?

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savior,how about interbankfx and compassfx?

i am going to register with one of them.

Anyone here taking this advice needs to go over to Babypips or Forexfactory and stay there.

I'm sorry man but one day you and others will want to trade professionally and these butcher shops should be last on the list even if you're just starting out.

Scandal at One World Forex

For months I have been detailing on this thread the agonies of Forex Dealer Dead Pool Member One World Capital and how this poorly capitalized firm was destined for the scrap heap. Earlier this year the NFA accused them of failing to meet basic financial requirements and hauled them before their business conduct committee. Later in the year One World's own traders began to howl in protest over the fact they couldn't withdraw their funds. Then their Chicago Sales staff resigned en masse. Then the NFA wacked One World with a huge six figure fine. Then last week I received another report that their New York Sales staff had resigned en masse.

And now the coup de grace. On Monday, December 3, 2007, the house of cards that was One World came crashing down after the NFA forced them to close their doors. This lame three legged horse was finally put down. One World is now grist for the knacker.

So what finally did in this rotting, fly covered firm? The sordid details can be read in the NFA's own Member Responsibility Action. It is quite instructive and as someone who has been warning traders for months to stay away from these guys; prophetic. The autopsy can be read here:
National Futures Association | News Center

Let's go through it bullet point by bullet point. The reason I wish to subject everyone to this painful tooth scraping is that the collapse of One World provides for a perfect illustration of why poorly capitalized firms are so risky to trade with. So open your mouth and prepare for some bleeding gums...

As I have been saying for months, firms that are barely meeting their capital requirement need to be closely scrutinized. One World was just barely hovering over the $1 million minimum capital requirement. In such examples the odds of a firm fudging their numbers dramatically increase .

According to the bulletin boards reports of One World not honoring customer withdrawals had been happening well before November. Not sure why NFA took so long to act on these reports. In any case, the fact that One World isn't honoring these requests as per the NFA is pretty depressing. And it indicates either One World has the most incompetent operations staff on earth, or their finances are a complete shambles.

John Walsh has got some cojones I'll say that much. NFA confronts him about failing to give customers their money back and he just blows them off? If the CEO of a firm is so brazen with regulators how do you think his firm is going to treat its own customers?

But now we get to the really good stuff. One of my main arguments on this thread has been that poorly capitalized firms do not have the proper infrastructure to properly run a forex broker dealer. As such these brokers cut corners and keep the worst books imaginable. This is precisely what happened at One World Forex.

WOW. NFA asks for a simple report on customer liabilities and Walsh can't produce it. Or more likely, WON'T produce it. What is Walsh covering up? My hunch is that his customer liabilities far exceed what he has in cash on hand. That could be the reason he hasn't turned over the requested bank statements NFA has been asking for as well. And what's the deal with Metatrader's "double counting" data? He honestly can't separate demo accounts from live accounts? I don't know much about Metatrader. But either it is the most rinky dink trading platform on the market or John Walsh is once again trying to slip the NFA a micky. In any case let's skip ahead to November 29th where we learn another juicy tidbit.

There goes that rickety old Metatrader software again! How convenient that it "crashes" just when the NFA wants to look at the company's positions and net exposure. And I love how Walsh is now working from home to answer customer calls! He really is the last man standing at that firm. I wonder if Walsh is offering 24 hour support from his bed. I can picture him now, sitting there in his Homer Simpson tighty whities with one hand buried in a bag of doritos and another clinging to a cordless phone as Oliver Stone's "Wall Street" plays in the background...

Walsh: "thank you for calling One World Forex, John Walsh speaking, how can I help you?"
Customer: "ya the platform won't open, I'd like to go long two lots of USD/JPY."
Walsh: "oh i'm sorry, you're breaking up, [insert fake static sound]", click...

(next call)

Walsh: "thank you for calling One World Forex, John Walsh speaking, how can I help you?"
Customer: "I requested a withdrawal 7 weeks ago and I still haven't gotten my money! I want to speak to a manager!"
Walsh: "I'm sorry we have discovered that you were involved in money laundering. As a result we have had to confiscate your money. But don't worry. Jasmine Hotpants in Vegas put that money to good use." click...

And so on. But hey, I'm impressed he can even be bothered to pick up the phone to talk to customers after this "server crash."

The rest of the affidavit from the NFA auditor is full of evasions as Walsh and his cronies dodge and weave and do everything possible to prevent the NFA from finding out exactly how much money One World has in their bank accounts and what their customer liabilities are. It really is an amazing farce and frankly quite comical, but for the fact that many of One World's clients could be in serious financial jeopardy if it turns out that One World is in fact on the verge of bankruptcy.

The farce ends with the NFA's auditor standing outside One World's locked office last Friday morning, trying in vain to contact someone to let them in. But no one was around. Everyone at One World has abandoned ship. Here's hoping the customers will be able to make it to the lifeboats before this wreck settles to the bottom of the ocean. And so to John Walsh I sing you the love theme from Titanic...

"Heeeeeeeeeere, faaaaaaaaar, whereeeeeever you are..."

By your last post seems you´re happy that some people could lose the money in their accounts. Maybe life savings.

Every time a broker goes down some people (clients) suffer and you never posted a "so sorry", just happiness because broker A or broker B goes down.

Another point to discover you're working for a broker and you're not a freelance investigator. I hope your employer never sinks.

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Oh boy that's rich coming from you Linuxser. Please, save your crocodile tears for someone else. No one has done more to help the customers of one world capital than I have. I warned traders about this firm MONTHS AGO. And some one world capital traders have thanked me for tipping them off about this firm back then while you were busy pretending that capitalization was not a real issue. You, like One World Capital, are discredited.

Who are you to say I´m discredited, some kind or judge?.

I´m feeling some anger against me, true?

I do not understand why I´m discredited if 90% of my post are about methods and trading systems.
I have uploaded lot of indicators made by me, uploaded for free off course.
I don't receive any money for what I do here.
I shared my trading knowledge.
I tried to help others to understand what is trading.

And I´m discredited for all that?

Or because I´m saying you´re not another alone trader, you´re a broker employee. A fact that never refused. That´s is why I´m discredited?

Don't forget to drink your pills with water when you awake. A shake with Wishy is a bad combination.

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This will affect several IB's. Link to the case action.
BASIC Case Summary

They cannot accept any new postions/trades/etc...

Copy of email.
Tuesday, December 04, 2007



RE: Account # XXXXX



To our Valued Clients:



The National Futures Association has today issued a Member Responsibility Action against FXLQ. You can find the notice on the NFA’s website: BASIC Details.



Effective immediately, FXLQ is not allowed to take on any new customer positions. Therefore, all of our systems have been set to allow only rollover and liquidations.



We apologize for any inconvenience this has caused, and direct you to our website if you wish to withdraw your funds: www.fxlq.com/docs.



We are working diligently to clear this up as quickly as possible and look forward to renewing a full relationship with our customers.



Sincerely,






Robert Gray

President

Forex Liquidity LLC

Wow, that's serious, where is the money, in a bond at some place at Switzerland where nobody knows ?

They failed to transfer the money back to US ?

They provide fake account numbers to NFA ?

We heard these type of news of smaller brokers, but FXLQ was the best capitalized MT4 broker.

Mmmm, I don't like this type of news.............it remember me about Refco case.

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Ya I don't like it either....I got that email today. Scary times indeed.

Time to brokershop again.

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