Here's a couple of snipets I stumbled upon whilst looking up the regulatory history of the best capitalised forex firms.
In November 2005, FXCM was fined $110,000 to settle a complaint brought against them by the NFA claiming violation of
Rule C.R.2-36(b)(1) which is defined as "Cheat, defraud, deceive forex customers" . FCM in no way admitted or denied the charge, and made the settlement with the NFA. You can find the details here :
BASIC Case Summary
In January 2006, the NFA did a follow up audit. The follow on audit revealled that FXCM had not abided by the agreement which had the resolved the previous regulatory action. Thus the NFA initiated another complaint against FXCM, which is as yet unresolved (
I believe) for violation of
Rule C.R.2-36(b)(1) which is defined as "Cheat, defraud, deceive forex customers"
The audit also identified potential failings of "FXCM's anti-money laundering program (AML) "as evidenced by the high number of accounts FXCM opened for Nigerian nationals, without identifying those accounts as high risk for potential money laundering." [quote from
http://www.nfa.futures.org/basicnet/...px?seqnum=1023 ]
You can find the details here :
BASIC Case Summary
The particular concern about Forex companies opening accounts for Nigerian nationals is that Nigeria is the origin of a number of internet scams commonly called the "Nigerian 419 Scam" If you dont know what the Nigerian 419 scam check out the the following very entertainment link :
Ebola Monkey Man: Nigerian 419 Scam
I personally wouldnt go near any Forex Dealer Merchant that had been subject to regulatory action, let alone bought to book for violation of
Rule C.R.2-36(b)(1). I've done a check and found the following 3 firms have not been subject of any regulatory action, and are the best capitalised.
GLOBAL FUTURES & FOREX LTD (Forex Trading: Online Currency Trading from Global Forex Trading)
BASIC Details
OANDA ( http://fxtrade.oanda.com/ )
BASIC Details
FX SOLUTIONS LLC (FX Solutions - Simplified Forex Trading with Premier Forex Trading System)
BASIC Details
Code:
COMPANY | Net capital| Required | Excess | Multiple
GFT | 49,664,118 | 6,904,864 | 42,759,254 | 7.19x
OANDA | 49,222,317 | 9,172,410 | 40,049,907 | 5.37
FX Solutions | 17,295,130 | 2,064,386 | 15,230,744 | 8.38
Does anyone else knows of any FDM's with no regulatory problems and are well capitalised ?
disclaimer : I in no way qualified to say that fxcm is Cheating, defrauding, or deceiving forex customers, or that they ever have. However, our regulatory body the NFA have made complaints that they have.