FXDD - nice honest outfit

pboyles

Legendary member
8,072 1,301
Strange isn't it, particularly in the litigious US, that no-one seems to have taken the damn thing to the courts. I suppose it's a faint hope from the authorities, but one would have thought a criminal prosecution for "incitement to defraud" or some such should be possible. And/or a damages 'class action' type suit from disgruntled clients, particularly where the authorities have fined brokers for the practice.

Or has there?
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 There was some talk of a class action against FXCM but Jason was boasting recently of how it had been withdrawn or they had won it, I cant recall.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.
 

rsh01

Experienced member
1,184 299
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?!
 

Rhody Trader

Senior member
2,620 264
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.
 
  • Like
Reactions: wackypete2

rsh01

Experienced member
1,184 299
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.
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.
 

The Leopard

Experienced member
1,877 1,020
A dishonest forex bucket shop? Whoever would have thought it? :LOL:

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.
 

rsh01

Experienced member
1,184 299
A dishonest forex bucket shop? Whoever would have thought it? :LOL:

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.
 
  • Like
Reactions: wackypete2

wackypete2

Legendary member
10,200 2,044
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.
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
 
  • Like
Reactions: rsh01

Rhody Trader

Senior member
2,620 264
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.
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.
 

rsh01

Experienced member
1,184 299
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.
 

Similar threads


AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock