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09-24-2008, 05:41 PM
Hello Dustin,
I'm glad to see you here telling your side of the story. I do have a few questions:
1. If this allocation issue took profits for some client, are there some clients running around overjoyed since they made a LOT more than the were supposed to? If so, shouldn't one or two of them have popped up here at some point? Alternatively, if everyone agreed to correct reallocation, why not send out a note to those who made too much to refund it to a cash pool that would be used to compensate the ones who lost? They might even be able to take a tax deduction on it if this was structured correctly.
2. Offering to trade for no fees until losses are recovered is very generous. On the other hand, wouldn't you think that sending out advertising for some rather expensive services to those who took large losses was perhaps not the wisest marketing move?
3. As far as I can tell, a percentage of the high water mark is the closest there is to an "industry standard" for fees charged by forex account managers. Some charge additional fees per trade, others don't. Some charge an account setup fee, others don't. Some charge a percentage of the account as an annual fee, others don't. If you're making 1/2 of a 90% annual increase in account value, I'd think that the 2% annual maintenance fee would be so small in comparison that you wouldn't bother and instead would use the lack of other fees as an item in a "Why let me trade for you?" FAQ.
4. Shouldn't IBFX incorrectly allocating trade volume among accounts be fully actionable and sufficient grounds for you to launch a complaint against them with the NFA as well as a civil suit? In this thread alone, I see a number of people who would be happy to join in.
5. Did IBFX place the same burden on their other IBs/Account managers or where you singled out? If so, isn't this also grounds for action? If not, what happened to accounts run by other account managers in your position? What did the NFA think of this requirement, be it solely for you or for you and some or all of the other account managers?
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