Problem FastBrokers and FXDD case

[Pharaoh]

I'm glad to hear the money is on the way. Are you sure this is "fully resolved", considering that you spent $500, countless hours of your time, had your private information sent to other FXDD users (your co-defendants), were very likely lied to during negotiations, and were accused of illegal activity in a court room?

Personally, I think I'd hold out for a very public apology and some compensation before declaring the issue to be resolved.

 

[Pharaoh]

UPDATE:

FXDD filed an answer with the NFA. They admit to some allegations, but seem to be sticking to the story that evil hackers forced them to give fake prices and are demanding proof that they did anything wrong.

Looks like they aren't even close to apologizing.

NFA Case Files - scroll down to ready complaint and answers.

They still say that the people that the sued traders earned no real profits and thus cancelling trades and suing the customers was a reasonable course of action.

It appears that FXDD learned NOTHING from this incident. They could still cancel trades and freeze accounts in direct violation of NFA orders. Their lawyers could sue any client that FXDD suspects of using "price injection" software.

Sounds to me like FXDD thinks that any trade they suspect of being manipulated by some magic software is 100% exempt from NFA rules and direct orders from the NFA.

I was beginning to be encouraged by FXDD's actions towards Raimundas, but it looks like he only got paid since he was the only one to fight back. They could do this to other traders at any time, and most people crumble when they are repeatedly threatened by a lawyer.

Under these circumstances, my person recommendation is to not trade with FXDD.

 

[Raimundas]

You may now consider becoming a "Paralegal" and help others who need representation!

It's not my way of life. Honestly, I'm not feeling my self comfortable by doing this ...

 

[BigT1]

NFA hits FXDD with an administrative complaint over AML policies | Forex Magnates
http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=3417

 

[Pharaoh]

Full info on the new NFA complaint. The case file is here:

Case Summary

And the Complaint pdf is here:

http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=3417

Looks like FXDD keeps failing to bother to conduct annual AML training for employees.

 

[fx hunter]

Nice effort pharo

 

[mrf1962]

Couldn't FXDD cancel their own membership with the NFA and then do whatever they please without being under NFA regulations?

What happens to USA brokers who aren't/don't become members of the NFA?

 

[BigT1]

Couldn't FXDD cancel their own membership with the NFA and then do whatever they please without being under NFA regulations?
What happens to USA brokers who aren't/don't become members of the NFA?

Under US Law it is illegal to operate any type of financial business dealing with public funds in banking, insurance, stocks, bonds, options, forex, or derivatives, without registration.
This was required by Congress after the 1929 Stock Market Crash under Securities and Commodities Laws establishing the SEC and the CFTC.
.
Take the lesson world; forex regulation outside a few heavily regulated countries, is at the levels of the stock market prior to 1929.
One day there will be a massive dislocation that will auger in worldwide regulatory coordination unknown today.
.
Anthony Ingrassia, CTA
NFA ID#: 0278164

 

[mrf1962]

Thanks for the info. That's why HYIP (Ponzi Schemes) are illegal. They don't want to register because they don't want to be caught dealing with people's money illegally.

I get it now. Makes sense.

 

[BigT1]

Thanks for the info . . . I get it now. Makes sense.

To avoid disaster in this wild environment it is important you:
1 - Know your Broker (the firm, their Custodian, their Bank, your Transfer Agent)
2 - Know your Regulator (in your country, in the firm's country)
3 - Know your Trader (youself, your EA, your signal system, your trading advisor)
.
AI