FXDD - nice honest outfit

I'm only aware of the CFTC/SEC/NFA actions against several brokers, Gain, FXCM and another one, plus of course FXDD now. There was some talk of a class action against FXCM but Jason was boasting recently of how it had been withdrawn or they had won it, I cant recall.

Even stranger is the fact that FXCM were only required to compensate US based clients, they got to keep what they had obtained from clients from other countries.

How out of order is that! Its ok to stitch up foreigners?!

US regulators have no authority over non-US accounts. It's as simple as that. Now if the NFA/CFTC are talking with the FSA, etc. there could be follow-on action for non-US accounts - depending on local regulations, of course.

Don't FXCM have wide spreads? I think the Eur/Usd is 3 pips?!

That wasn't enough for them?

Fook.

Ah right. PBs post states they got to keep the money they ripped off from foreign clients, this implies that either noone complained to their countries reg body - which seems unlikely, or that the talks between the US and other countries reg bodies didn't come to anything.

A dishonest forex bucket shop? Whoever would have thought it?

I've got one word for you:

Chicago Mercantile Exchange.

The benefits of an exchange are many, but one is that the price you see and get relates to something, rather than just being made up with the express intention of stripping the lining from your ass.

Exchanges do scratch the backs of the big players though - see flash orders, front running by HFTs et al. And CME is f dodge from what I read about its hand in the MF global debacle.

But I get your point.

Agreed.
Exchange traded markets aren't any better. The difference is in the way you get screwed and who is doing the screwing. What it amounts to is you have to understand the market you are playing in, how it works, who the major players are, what the probable issues are, and in what way that market is disadvantageous to the retail punter. Once you get a handle on all that you can either choose to trade a different market or learn to work around the problems. ANY market you trade in is chock full of shady characters and unfair regulations. Also, I said before, HFT is akin to a legally regulated scam.

Peter

No complaints may not be that far fetched. After all, the stuff FXDD is being hit with isn't exactly something that would be visible to the customer. As noted, the NFA spotted this because of an audit. Has the FSA, et al done a comparable audit? Further, the NFA has only just brought this action. To say that talks between regulators haven't amounted to anything seems a bit premature.

I was referring to PBs post - about FXCM.