1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

ILQ is a fraud, see NFA Complaint

Discussion in 'Scam Alerts' started by johndemoll, Nov 20, 2012.

  1. johndemoll

    johndemoll Recruit

    Joined:
    Nov 20, 2012
    Messages:
    4
    Likes Received:
    0
  2. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,668
    Likes Received:
    2,206
  3. johndemoll

    johndemoll Recruit

    Joined:
    Nov 20, 2012
    Messages:
    4
    Likes Received:
    0
    I see. But I hope the NFA will not be that easy on them, they apparently deceived them pretty obviously.

    Is that kind of case, something you have seen then already, with your suggested ;) outcome?

    The person behind this, James Pieron, is also involved in this case here:
    Will alleged Ponzi schemers call Trevor Cook to testify? - TwinCities.com

    Then it is to await what the outcome is. But isn't the case absolutely clear? That is, you think there could be a way, this was legal? Or is the penalty for even such deception, just so low?
     
  4. johndemoll

    johndemoll Recruit

    Joined:
    Nov 20, 2012
    Messages:
    4
    Likes Received:
    0
    Ah, sorry, I didn't see you linked to another document.

    So, thats it, a little penalty and they can go on. Ok, not understandable for me, but thanks for the informations.
     
  5. BigT1

    BigT1 Sergeant Major

    Joined:
    Jan 21, 2009
    Messages:
    951
    Likes Received:
    22
    Hello Johndemoll,
    Though it may seem inscrutible to the average customer's mind, the NFA's actions always have multiple purposes:
    1 - Their rulings establish precedents for all other firms to heed
    2 - The main purpose of the regulators is to keep all horses entered in the race in their proper lanes; it is not their mandate to ban racing
    3 - The penalties are stiff for non-compliance
    4 - Just as in a personal bankruptcy, once cleared in the first filing, the firm is now under heavy scrutiny and will be jailed for further violations
    This makes it somewhat safer to do business with and FXDD or ILQ, than some brash startup that has never been branded with a hot iron.
    .
    A fine ECN/STP commission broker: ATC Brokers of California USA, clearing through FXCM was itself entangled with ILQ.
    Just hit with a $10,000 fine for improperly engaging with ILQ whereby 1 client lost less than $9.00! Here is a link:
    Case Information
    .
    The burden is always upon the one with the capital to know his broker, know his regulator.
    ATC paid an unfair price for the actions of another; but be assured when you work within the regulated environment you as a client have the odds in your favor.
    .
    Anthony Ingrassia, CTA
    NFA ID#: 0278164
     
  6. johndemoll

    johndemoll Recruit

    Joined:
    Nov 20, 2012
    Messages:
    4
    Likes Received:
    0
    Thank you for the follow-up. So they will have to look in the future, otherwise it will come back to them.

    Well, that is ok if customers can be protected in this way. It is just hard to believe, that they will stop trying to abuse the system.

    johndemoll
     
  7. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,668
    Likes Received:
    2,206
    If they're entangled with some people in a ponzi scheme investigation, this could get interesting.
     
  8. BigT1

    BigT1 Sergeant Major

    Joined:
    Jan 21, 2009
    Messages:
    951
    Likes Received:
    22
    Both ILQ and their unfortunate experimental client ATC Brokers, found that even small deviations can be very costly, especially in this post disaster environment.
    Recognize that as a retail investo your alternative in trading is to go rogue, whereby if you should ever become successful, the likelihood of receiving your claimed proceeds is virtually nill.
    Recognize that some firms are really endeavoring to develop solid businesses in accordance with the rules of law, while under the most stringent jurisdictions in the world.
    Make sure you deal only with these firms, if you want any hope of ultimate success. Why else would they lay claim here, when it is so easy to commit fraud elsewhere??
    .
    AI
     
  9. rstar111

    rstar111 Recruit

    Joined:
    Feb 25, 2013
    Messages:
    1
    Likes Received:
    0
    Sorry, but all these details about the importance of the NFA regulation are completely irrelevant. Fact is that the biggest violations of investor rights and the biggest fraud cases in history have happened under the NFA, and under other large regulators. The regulator is a way to cover ass for large institutions. It was never meant to protect retail investors. By dealing with regulated companies large institutions can, when they lose money, claim that they did their due diligence and cannot be sued for negligence.

    A 10K fine is nothing, when you have managed through an algorithmically manipulated feed to pick the pockets of thousands of clients, even if you got caught due to a complaint about $9. All the other guys simply didn’t know they should complain.

    You want to know whether a broker is fair? - read the contract in detail. If the broker guarantees STP, it is still not enough because STP only means that the broker lets the trades straight though through without intervention. It doesn’t mean that the broker does not outsource its market making, Like FXCM does (that is why they started promising STP in recent years). The contract has to state that it is STP and that there is no party dealing / market making between the trader and all the multiple banks that are providing the broker liquidity (eventually someone has to market make, but it has to be multiple market makers completing for the feed through an aggregation system as this eliminates the ability of any market maker to benefit from skewing prices).

    ECN btw, also does not guarantee you are safe. The contract has to be clear about not market making. The sales person can promise what he is told to promise (half the time they don’t even know what they are talking about and just repeating what they were educated to say). I have read many broker contracts and most of them squeeze in, in vague wording, that they maintain the right to deal against clients. All the big ones do.

    Also, a broker that is truly STP and not dealing, but rather clearing against multiple banks and offering competitive prices to its clients cannot be profitable if it accepts small clients. A real STP broker will earn on about $3 per month for a 2K account, assuming decent retail volume of trades per 1K of deposits. How can one expect then to be offered institutional trading conditions if you open a small retail account? Don’t expect to really get STP for less than a 25K account as it is not worth an STP broker’s time to open such an account.

    Hope this helps you all.
     
: nfa, ilq, ilq.com

Share This Page