Have you read about Alpari this week?
With this Libor thing ALL banks world wide are involved.
My concern is not to panic and/or behave irrational - but where to safely put our hard earned money if we take it out of the brokers account.
PFG Best (at making trader money disappear?)
- Thread starter AsstModerator
- Start date
Have you read about Alpari this week?
With this Libor thing ALL banks world wide are involved.
My concern is not to panic and/or behave irrational - but where to safely put our hard earned money if we take it out of the brokers account.
Triantus Shango
Sergeant Major
- Messages
- 1,371
Triantus Shango
Sergeant Major
- Messages
- 1,371
you mention there are good brokers. let me say there are better brokers than the ones you list.
for instance: mbtrading, and WH Selfinvest (based on what i've been told--no direct experience with them yet).
and of course, if you have USD 500K or 1M to play with, then prime brokers such as UBS, Deutsche Bank, CitiFX, and so on.
here is some starting info re prime brokers: https://docs.google.com/viewer?url=...ForexArticle_FX%20Prime%20Brokerage_Oct09.pdf
for instance: mbtrading, and WH Selfinvest (based on what i've been told--no direct experience with them yet).
and of course, if you have USD 500K or 1M to play with, then prime brokers such as UBS, Deutsche Bank, CitiFX, and so on.
here is some starting info re prime brokers: https://docs.google.com/viewer?url=...ForexArticle_FX%20Prime%20Brokerage_Oct09.pdf
BigT1
Sergeant Major
- Messages
- 951
Alpari-US Fined $200,000, and forced to make restitution. Read news release from NFA here:
NFA issues $200,000 fine against New York forex firm Alpari US LLC
This week the CFTC will be holding a public roundtable to address the concerns of traders in response to the bankruptcies of PFG and MF Global. FXCM would like to announce its own proposals ahead of Thursday's meeting and encourages the public to so as well.
Proposals to Bring Full Market Transparency and Accountability to the Futures/Forex Industry
1) Require All FCM’s to Publicly Publish Their Financials Once a Quarter:
Currently, the CFTC publishes monthly “Net Capital” reports that disclose to the public how much money a Futures Commission Merchant has set aside in capital. However, that report provides very little insight into how well the company is doing financially. By requiring FCM’s to publish their audited financials the trading public will know how much risk they are taking with each firm since investors will be able to weigh the liabilities along with the excess capital that a Futures Commission Merchant has.
Furthermore, the published financial statement should include everything (i.e. holding company’s financials) since what happens to other subsidiaries of the company can easily effect the regulated FCM. Each company should be required to provide a link to its financials on its own homepage so that the public can do its proper due diligence.
Too often, those FCM’s that are teetering on the edge of bankruptcy lure customers in by offering unsustainable gimmicks (dirt cheap commissions, account opening bonuses) that temporarily puts off the inevitable. Customers should be aware of the perilous finances of those FCM’s that would offer these kinds of gimmicks before opening an account with such a firm. PFG Best was a classic example of a firm that used such gimmicks as they routinely low balled their competitors with uneconomical discounts that no reputable, legally compliant firm could match.
2) Require all FCM’s to Employ a Top Ten Accounting Firm:
There need to be much higher accounting standards than currently exist in the FCM world. The Platt Group publishes an annual ranking of public accounting firms that could be used by FCM’s. Whether it is top 10 or top 25, the main point is that FCM’s must use a nationally recognized and respected accounting firm that could apply the same tough standards to FCM’s that publicly traded companies must meet.
While no one proposal will guarantee that a future FCM will not fail, these proposals will enhance the public’s due diligence capabilities by bringing greater market transparency and accountability into the world of futures/forex trading.
Traders can show their support for these proposals by leaving comments with the CFTC using the following web page:
http://comments.www.cftc.gov/PublicComments/CommentForm.aspx?id=1250
Charles Delano
Director of Government Affairs
FXCM, LLC
FXCM
Proposals to Bring Full Market Transparency and Accountability to the Futures/Forex Industry
1) Require All FCM’s to Publicly Publish Their Financials Once a Quarter:
Currently, the CFTC publishes monthly “Net Capital” reports that disclose to the public how much money a Futures Commission Merchant has set aside in capital. However, that report provides very little insight into how well the company is doing financially. By requiring FCM’s to publish their audited financials the trading public will know how much risk they are taking with each firm since investors will be able to weigh the liabilities along with the excess capital that a Futures Commission Merchant has.
Furthermore, the published financial statement should include everything (i.e. holding company’s financials) since what happens to other subsidiaries of the company can easily effect the regulated FCM. Each company should be required to provide a link to its financials on its own homepage so that the public can do its proper due diligence.
Too often, those FCM’s that are teetering on the edge of bankruptcy lure customers in by offering unsustainable gimmicks (dirt cheap commissions, account opening bonuses) that temporarily puts off the inevitable. Customers should be aware of the perilous finances of those FCM’s that would offer these kinds of gimmicks before opening an account with such a firm. PFG Best was a classic example of a firm that used such gimmicks as they routinely low balled their competitors with uneconomical discounts that no reputable, legally compliant firm could match.
2) Require all FCM’s to Employ a Top Ten Accounting Firm:
There need to be much higher accounting standards than currently exist in the FCM world. The Platt Group publishes an annual ranking of public accounting firms that could be used by FCM’s. Whether it is top 10 or top 25, the main point is that FCM’s must use a nationally recognized and respected accounting firm that could apply the same tough standards to FCM’s that publicly traded companies must meet.
While no one proposal will guarantee that a future FCM will not fail, these proposals will enhance the public’s due diligence capabilities by bringing greater market transparency and accountability into the world of futures/forex trading.
Traders can show their support for these proposals by leaving comments with the CFTC using the following web page:
http://comments.www.cftc.gov/PublicComments/CommentForm.aspx?id=1250
Charles Delano
Director of Government Affairs
FXCM, LLC
FXCM
Last edited by a moderator:
Alpari
Alpari Representative
- Messages
- 122
Thank you for your post.
As you know, Alpari (US), LLC (“Alpari (US)”) recently entered into a USD200,000 settlement with the National Futures Association (“NFA”) and refunded losses incurred as a result of adjustments made to client accounts. We would like to take this opportunity to point out that the FXOptions platform – which was the subject of the NFA investigation – is not part of the Alpari companies’ core offering and has never been offered by Alpari (UK) Limited (“Alpari (UK)”). Alpari (US) ceased to offer the platform in January 2012.
Please note that this ruling has no impact on Alpari (UK) or its clients for three reasons:
1 Alpari (US) and Alpari (UK) are regulated by the regulatory bodies located in their respective regions. Decisions by a US regulatory body (NFA) on Alpari (US) have no bearing on Alpari (UK). Alpari (UK) is authorised and regulated by the Financial Services Authority (“FSA”) and must comply with the FSA's rules which differ from those of the NFA.
2 Alpari (US) and Alpari (UK) are both independent entities within the global association of Alpari companies. In addition to our core products and platforms, each of the businesses has its own region-specific product portfolio. FXOptions was offered by Alpari (US) only.
3 Alpari (UK) and Alpari (US) each have their own Terms of Business reflecting their region’s regulatory and legal environment. Alpari (UK)’s Terms of Business would allow us to cancel an erroneously executed order and we reserve the right to remove funds from clients’ accounts where we believe such an error has occurred. However, we will only do this as a last resort and where it is evident that our Terms of Business have been breached. Clients can be assured that everything we do is underpinned by our regulatory obligation to treat customers fairly.
A reminder of our Terms of Business
Alpari (UK)’s Terms of Business are in line with FSA requirements and are regularly reviewed to ensure continued compliance with any changes to rules and regulation. When we make changes to our Terms of Business or Client Agreement we communicate them to clients by email and by notifications made in the Company News section of our website.
To ensure that you remain familiar with our trading policies it's always a good idea to review and read the latest version of our Terms of Business, available online:
Trading Platform Legal Documents - Alpari (UK)
Should you have any questions, please email our support team at support@alpari.co.uk or call +44 (0) 207 426 2900. We will be happy to help in any way we can.
Alex
________
Alexander Chadwick
Alpari (UK) Representative
Last Thursday the CFTC held a public hearing to determine what steps should be taken to repair the damage done by the bankruptcies of PFG and MF Global. I’d like to share with everyone some of the highlights of the hearing:
Better Accounting Standards: There was much discussion of auditing standards for both Regulators of FCM’s and the CPA’s who audit FCM’s. There was general agreement these standards need to be raised. FXCM believes FCM’s should be required to use a top accounting firm to avoid the kind of accounting issues that plagued PFG.
Additional Disclosure Requirements: An extensive discussion on FCM transparency was held and it is clear that FCM’s are going to have to make more disclosures of their books to regulators and to the public. The question is how much is to be disclosed? On the one hand there was testimony from FCM’s like Vision who publish their balance sheet on their website and on the other hand were those who were concerned that too much disclosure could lead to possible “bank runs” by investors. FXCM believes investors should be able to see a company’s audited financial statement once a quarter. Too many investors are forced to fly blind when they choose a Futures Commission Merchant or Forex Dealer. No trader should be subjected to this kind of risk post-PFG.
Insurance: Commissioner Bart Chilton released his proposal for a futures insurance fund on the same day of the hearing. Towards the end of the Roundtable the topic turned to insurance and John Roe of the Commodity Customer Coalition once again made a forceful case for a fully insured fund for the futures industry. As of now, Commissioner Chilton’s proposal does not include retail forex, but there is no reason that it shouldn’t. FXCM supports insurance for the futures/forex industry.
The CFTC will now deliberate into October before announcing their proposals. We encourage everyone to comment using the link below:
http://comments.www.cftc.gov/PublicComments/CommentForm.aspx?id=1250
Better Accounting Standards: There was much discussion of auditing standards for both Regulators of FCM’s and the CPA’s who audit FCM’s. There was general agreement these standards need to be raised. FXCM believes FCM’s should be required to use a top accounting firm to avoid the kind of accounting issues that plagued PFG.
Additional Disclosure Requirements: An extensive discussion on FCM transparency was held and it is clear that FCM’s are going to have to make more disclosures of their books to regulators and to the public. The question is how much is to be disclosed? On the one hand there was testimony from FCM’s like Vision who publish their balance sheet on their website and on the other hand were those who were concerned that too much disclosure could lead to possible “bank runs” by investors. FXCM believes investors should be able to see a company’s audited financial statement once a quarter. Too many investors are forced to fly blind when they choose a Futures Commission Merchant or Forex Dealer. No trader should be subjected to this kind of risk post-PFG.
Insurance: Commissioner Bart Chilton released his proposal for a futures insurance fund on the same day of the hearing. Towards the end of the Roundtable the topic turned to insurance and John Roe of the Commodity Customer Coalition once again made a forceful case for a fully insured fund for the futures industry. As of now, Commissioner Chilton’s proposal does not include retail forex, but there is no reason that it shouldn’t. FXCM supports insurance for the futures/forex industry.
The CFTC will now deliberate into October before announcing their proposals. We encourage everyone to comment using the link below:
http://comments.www.cftc.gov/PublicComments/CommentForm.aspx?id=1250
Last edited by a moderator:
BigT1
Sergeant Major
- Messages
- 951
Hello Mr. Chadwick,
Thank you for your timely and informative post. Many here are grateful for your contribution toward furthering understanding in a complex trading environment.
Prior to this regulatory event, and despite the fact I have had no personal trading experience with any Alpari company, I have noted Alpari is generally held in fairly high regard as a large and responsible spot forex broker-dealer by many others in the forex trading community.
.
Could you (or a responsible representative of Alpari-US) please take the time and effort to properly inform this alert forex trader community as to exactly what were the issues you faced as a company when attempting to offer "Options on Spot Forex", which ultimately led to this NFA action; and do so without prejudice.
.
Specifically: "What were the areas of conflict and offsetting benefits you failed to achieve for your firm, and for your clients; and why?"..
As traders, we note that other firms continue to offer, "Options on Spot Forex," a product we might all benefit from with a deeper understanding of what led to your unfortunate experience.
.
In addition, we would appreciate a proper link to communiate with you directly; instead of a promotional link to your firm's home page underlying your name.
.
Respectfully,
Anthony Ingrassia, CTA
NFA ID#: 0278164
Last edited:
Just read a very interesting comment letter to the CFTC by James Gellert of Rapid Ratings:
http://comments.www.cftc.gov/PublicComments/ViewComment.aspx?id=58346&SearchText=
Mr. Gellert makes the following comment about the benefits of FCM’s being required to disclose their audited financials:
Mr. Gellert’s point about the difficulty of forging financial documents using the kind of standards that publicly traded companies use is well taken. Had PFG been forced to use such standards Wasendorf’s scam would have likely been caught long before July of 2012. Furthermore, ratings agencies like Rapid could break down the data in a manner that average investors could more easily understand. Although, we disagree that only ratings agencies be allowed to see such data. We believe any trader who opens an account with a FCM or Forex Dealer should be able to judge for themselves a firm’s financial health.
You can make your feelings known to CFTC by posting comments here:
http://comments.www.cftc.gov/PublicComments/CommentForm.aspx?id=1250
http://comments.www.cftc.gov/PublicComments/ViewComment.aspx?id=58346&SearchText=
Mr. Gellert makes the following comment about the benefits of FCM’s being required to disclose their audited financials:
Mr. Gellert’s point about the difficulty of forging financial documents using the kind of standards that publicly traded companies use is well taken. Had PFG been forced to use such standards Wasendorf’s scam would have likely been caught long before July of 2012. Furthermore, ratings agencies like Rapid could break down the data in a manner that average investors could more easily understand. Although, we disagree that only ratings agencies be allowed to see such data. We believe any trader who opens an account with a FCM or Forex Dealer should be able to judge for themselves a firm’s financial health.
You can make your feelings known to CFTC by posting comments here:
http://comments.www.cftc.gov/PublicComments/CommentForm.aspx?id=1250
Last edited by a moderator:
Post-PFG Reforms Gaining Momentum
Two new developments in the last few days indicate that regulators are trying to get out in front of the safety of funds crisis that has gripped the futures/forex industry. However, these reforms may not extend to the retail forex market.
On Friday the National Futures Association approved a new rule requiring all Futures Commission Merchants to grant real-time, online access to FCM bank accounts. This rule is in response to Russ Wasendorf’s bank statement forgeries which had fooled regulators for 20 years. The language specifically references FCM’s and we are currently checking to see if Retail Foreign Exchange Dealers (RFEDs) will have to comply with the rule as well. FXCM’s position is that RFEDs need to be more transparent, which is why we also support a rule requiring all FCMs/RFEDs to fully disclosure their financials to the trading public.
The second development came last Thursday at a meeting in Chicago, as reported by the WSJ, in which the CME was reportedly “softening” its opposition to an insurance fund for futures traders. Again, however, no mention of extending such protections to retail forex traders was made.
Futures Industry Leaders Discuss Insurance Fund - WSJ.com
While both of these development are positive, the negative aspect to them is that retail forex may very well be over looked. This is why we are strongly encouraging the trading public to contact the CFTC and leave comments about the need to further protect retail forex traders. Traders can leave comments using the link below:
http://comments.www.cftc.gov/PublicComments/CommentForm.aspx?id=1250
Two new developments in the last few days indicate that regulators are trying to get out in front of the safety of funds crisis that has gripped the futures/forex industry. However, these reforms may not extend to the retail forex market.
On Friday the National Futures Association approved a new rule requiring all Futures Commission Merchants to grant real-time, online access to FCM bank accounts. This rule is in response to Russ Wasendorf’s bank statement forgeries which had fooled regulators for 20 years. The language specifically references FCM’s and we are currently checking to see if Retail Foreign Exchange Dealers (RFEDs) will have to comply with the rule as well. FXCM’s position is that RFEDs need to be more transparent, which is why we also support a rule requiring all FCMs/RFEDs to fully disclosure their financials to the trading public.
The second development came last Thursday at a meeting in Chicago, as reported by the WSJ, in which the CME was reportedly “softening” its opposition to an insurance fund for futures traders. Again, however, no mention of extending such protections to retail forex traders was made.
Futures Industry Leaders Discuss Insurance Fund - WSJ.com
While both of these development are positive, the negative aspect to them is that retail forex may very well be over looked. This is why we are strongly encouraging the trading public to contact the CFTC and leave comments about the need to further protect retail forex traders. Traders can leave comments using the link below:
http://comments.www.cftc.gov/PublicComments/CommentForm.aspx?id=1250
Last edited by a moderator:
Similar threads
