The NFA slaps Alpari US for $200,000

jeandl

Recruit
Messages
1
Don't believe in any broker, be careful with them. I have a real account with alpari, the execution is always slow, requote and requote, to open and close a position is always a pain. Other broker? I don't know. Fx trading is much more risky because of this kind of broker problem.
 

Triantus Shango

Sergeant Major
Messages
1,372
indeed. and to think i used to believe alpari was amongst the good few. so far, cross fingers, nothing untowards with my broker, mbtrading. i hope they keep staying above board, because once the dust settles, there's a lot of potential business that could come their way and it'll be a win-win for everybody.

I see some good news indirectly stated.

"Alpari must also provide verification to NFA that these refunds were paid to and received by customers." would seem to indicate that the NFA learned to not trust brokers to follow instructions. Looks like they don't want to take a chance of a case like FXDD's clients not getting paid to happen again.
 

ForexVerified

Private, 1st Class
Messages
582
Correct me if I misread the complaint, but Alpari wasn't actually forced to pay that one client the $220,000 he made from the Options trades, right? Even though there was some confusion about which version of the user agreement was actually signed, Alpari didn't do anything wrong by cancelling those trades. They just failed to report it properly/quickly, failed to keep accurate records of exactly which version of the user agreements were signed, failed to properly record one phone call, and all this implies that the supervisors failed to properly supervise the operations. And of course, they failed to properly test the system (they depended on the liquidity provider instead) which allowed those trades to happen in the first place.

A $200,000 fine might seem like a tiny slap on the wrist but it seems appropriate for the 'crime', no? They weren't doing anything to intentionally rip off clients, there were just a pile of administrative errors and technical errors.

Again I might have misread the complaint so someone can correct me if I'm wrong.

This is one of the reasons why I would never open a brokerage firm. You might be the most honest broker in the world and never do anything to hurt your clients but if you don't dot every 'i' and cross every 't' perfectly, WHAM! These rules exist to protect us (the clients), I just feel bad for the administrators at these brokerages too.

Scott Wang
Forex Verified
 

Pharaoh

Colonel
Messages
19,783
$200,000 may seem like a small penalty, but this was only a handful of clients and was also a first offense.

I'm personally happy to see the NFA is jumping in and taking action to protect the profits that traders made.
 

Alpari

Alpari Representative
Messages
118
Thank you for your posts.

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
 

RP1

Corporal
Messages
101
ahh gotta love damage limitation posts eh ;)

Well at least you have shown up unlike others
 
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