Another Swiss Broker Implodes
Regulation can’t come soon enough to Switzerland . Yet another Swiss Forex Broker is going through its death throes right now. After posting my Swiss Dealer Dead Pool a reader told me that one of the firms on my list, Aleccoh FX (naturally it was one of the firms that never responded to my email) was in dire straits and spitting up blood on a gurney over in Switzerland.
It took me a while but I eventually dug up a thread over at Forex TSD that details the whole sordid story. I will condense everything below but if you want the ugly blow by blow of how this firm has gone rigamortis click here:
first 200 pips on me , the rest , we will share - Page 175 - Forex Trading
Aleccoh FX is one of the many unheard of firms that use Meta Trader. Sadly, the Meta Trader community has to play Russian roulette whenever a trader picks a forex broker since most Meta Trader Brokers are merely different sized turds in the MT4 toilet bowl. Sooner or later a stable and regulated firm will offer MT4 but until then MT4 traders will have to keep pulling that trigger hoping they don’t get their heads blown off. Sadly for the traders at Aleccoh FX the chamber was full when they pulled the trigger.
So who are these guys? Well it appears this firm got started back in the spring of 2007. Someone calling themselves “Aleccoh” appeared on the popular MT4 bulletin board Forex TSD claiming that if you sent him a couple hundred bucks he’d make you 200 pips free of charge. Things just took off from there as people poured on to the thread and starting sending him money left and right.
But then things came to a crash in January of this year. Mr. Aleccoh suddenly disappeared from the board. Nobody at Aleccoh answered customer calls anymore. Rumors abounded about another firm taking over Aleccoh that goes by the creepy name of “Spacevision.” Then Aleccoh appeared again in late Feb to state he had retained legal counsel to fight Spacevision (or the Swiss Gov’t? It’s hard to tell this Aleccoh is so shady) and that he was under some kind of gag order and couldn’t reveal anymore information. Then it became public that the Swiss Government had taken over Spacevision and that Monica Favre (no relation to Brett) of the SFBC was heading up the investigation of the whole sordid affair. In short, Aleccoh had become another Tradex Swiss AG.
What this case shows is that the Swiss retail forex market is in complete chaos right now. All my warnings about doing business with Swiss brokers are coming true. The Government is rumored to be conducting over a dozen investigations of forex dealers in Switzerland . In short, sending money to Switzerland has never been so dangerous. More to come tomorrow…