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In your earlier post you said FXCM $113,463,000 and now
FXCM $60,472,000??? why?
I think he find the numbers here: Financial Data for FCMs
But to know why the different brokers have this or that numbers from month to month one have to know in detail all financial activity the broker are doing all the time and that sounds like a big question..
Former SNC Investment CEO Peter Son has been hauled into court by federal regulators a year after he disappeared during an NFA investigation into missing funds covered on this thread back in October of 2008:
Son used investor funds to pay the mortgage on his $2.6 million home in Blackhawk, a gated community in Danville, California, his homeowner’s association dues, and his country club dues;
Son used SNCA investor funds to pay his wife a salary of $3,000 per month even though she did no work for SNCA;
Son and Chung Transferred SNCA investor funds to SNCI to help it meet regulatory requirements that it maintain certain levels of capital; and
Son and Chung transferred SNCA investor funds to SNCI’s Korean bank account, to Son’s Korean bank account, and to the Korean bank account of a Korean company under Chung’s control.
After covering these poorly capitalized firms for years I’m not the least bit surprised that SNC illegally used customer funds to meet their capital requirements back when they were still registered with the NFA. That’s why cap requirements had to be raised and thankfully the worst of these brokers are long gone in the U.S.
But let this be a lesson to the trading public to avoid opening an account with any poorly capitalized firm, or a firm that is not regulated and does not disclose their financials.
On July 31 the NFA’s FIFO order comes into effect. As of this moment the MT4 trading platform is not compliant with this rule and there is no guarantee that it will become compliant come the July deadline.
For firms that heavily rely on MT4 this is bad news. FXDD, which uses MT4 but are not regulated and therefore under no obligation to comply with NFA rules at present, are taking advantage of their unregulated status by telling NFA to get bent. As an unregulated firm they can do what they like (then again the whole issue of FXDD being unregulated is a serious red flag in and of itself. After all, the feds could basically raid the firm at anytime and shut them down overnight.)
But IBFX is (unfortunately for them) regulated solely by the NFA and their only trading platform at present is MT4. What is IBFX to do?
IBFX’s CEO seems confident and in “nothing to see here style” stated the following in an email to customers:
As you may know, the National Futures Association (NFA), has implemented new First-in, First-out (FIFO) requirements that will be in effect as of July 31, 2009. We at Interbank FX have been working hard on a solution and are confident that our traders will be able to use our MetaTrader 4 platform with little or no interruption. They will also continue to be able to use their MT4 expert advisors.
The NFA is striving to ensure the highest levels of integrity from all market participants and their intermediaries. We want to assure you that Interbank FX strives to be 100% compliant with the NFA.
We are currently working on some informational and instructional videos regarding the FIFO requirements and our solution, however most of you will be able to continue trading without any impact to your platform or strategies. In our effort to provide the best solution for your trading, you will be fully advised prior to any proposed changes.
We thank you for your continued support and wish you the best of luck with your trading.
Best regards,
Todd Crosland
and the Interbank FX Team
That all sounds reassuring, but what if something isn’t worked out by July 31st?
Meta Quotes is under no obligation to jump through hoops for IBFX and the NFA. And if Meta Quotes chooses not to (or is technically unable to) make any major changes to MT4 then IBFX is in big, big trouble as they will be stuck with a platform that is basically illegal.
Would IBFX close? Would they halt trading? Would the NFA and CFTC step in? Would IBFX be granted an extension by regulators? Can they get a UK license in time? Can they roll out a new trading platform in time?
Finally, how on earth did IBFX allow itself to be put in such a vulnerable position where their entire company is at the mercy of an independent third party based in Russia?
These should be mandatory questions that every current and potential customer of IBFX should be asking.
On July 31 the NFA’s FIFO order comes into effect. As of this moment the MT4 trading platform is not compliant with this rule and there is no guarantee that it will become compliant come the July deadline.
You could consider to get a job on some yellow newspaper or magazine.
I mean on the way the post is written. Only needs some paparazzi photos.
If traders want to buy and sell the same pair, they do need to use up more of their limited margin quota. What problem actually is raised in such hedging activities?
If traders want to buy and sell the same pair, they do need to use up more of their limited margin quota. What problem actually is raised in such hedging activities?
real hedging is for -- real business transaction
when product will be delivered, and we are not sure how will future USD and EURO performed
factory pay the fx market for certainty, the trader pay the fx market with volatility -- if you buy and sell in same level, you lost permium, unless you got the feed and you are the broker yourself (the firm)
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