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  1. #1
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    Default Brokers - the good, the bad, and the ugly


    Noticed this recently, - may be of interest

    www.forex-markets.com/NewswireFXCM.htm


  2. #2
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    COMMISSION ADVISORY BEWARE OF FOREIGN CURRENCY TRADING FRAUDS

    Have you been solicited to trade foreign currency contracts (also known as "forex")?
    If so, you need to know how to spot foreign currency trading frauds.
    The United States Commodity Futures Trading Commission (CFTC), the federal agency that regulates commodity futures and options markets in the United States, warns consumers to take special care to protect themselves from the various kinds of frauds being perpetrated in today's financial markets, including those involving so-called "foreign currency trading."

    A new federal law, the Commodity Futures Modernization Act of 2000, makes clear that the CFTC has the jurisdiction and authority to investigate and take legal action to close down a wide assortment of unregulated firms offering or selling foreign currency futures and options contracts to the general public. In addition, the CFTC has jurisdiction to investigate and prosecute foreign currency fraud occurring in its registered firms and their affiliates.

    The CFTC has witnessed the increasing numbers and growing complexity of financial investment opportunities in recent years, including a sharp rise in foreign currency trading scams. While much foreign currency trading is legitimate, various forms of foreign currency trading have been touted in recent years to defraud members of the public.

    Currency trading scams often attract customers through advertisements in local newspapers, radio promotions or attractive Internet sites. These advertisements may tout high-return, low-risk investment opportunities in foreign currency trading, or even highly-paid currency-trading employment opportunities. The CFTC urges you to be skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with minimal risks, or that employment as a currency trader will make you wealthy quickly.

    Understanding Legitimate Foreign Currency Operations

    Generally speaking, foreign currency futures and options contracts may be traded legally on an exchange or board of trade that has been approved by the CFTC.

    Even where currency trading does not occur on a Commission-approved exchange or board of trade, the trading can be conducted legally where, generally speaking, one or both parties to the trading is (or is a regulated affiliate of) a bank, insurance company, registered securities broker-dealer, futures commission merchant or other financial institution, or is an individual or entity with a high net worth.

    Where forex firms do not fall into the categories of regulated entities outlined above and engage in foreign currency futures and options transactions with or for retail customers who do not have high net worths, the CFTC has jurisdiction over those firms and their transactions.

    Warning Signs of Fraud

    If you are solicited by a company that claims to trade foreign currencies and asks you to commit funds for those purposes, you should be very careful. Watch for the warning signs listed below, and take the following precautions before placing your funds with any currency trading company.

    1. Stay Away From Opportunities That Sound Too Good to Be True

    Get-rich-quick schemes, including those involving foreign currency trading, tend to be frauds.

    Always remember that there is no such thing as a "free lunch." Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.

    2. Avoid Any Company that Predicts or Guarantees Large Profits

    Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.

    The following are examples of statements that either are or most likely are fraudulent:

    "Whether the market moves up or down, in the currency market you will make

  3. #3
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    Noticed this on the ASIC website which may be of interest.....

    04-132 Traders eligible for seminar refund under enforceable undertaking

    Wednesday 5 May 2004

    The Australian Securities and Investments Commission (ASIC) has acted to protect the interests of participants who attended educational seminars conducted by Mr John Duggan of Ulmarra in New South Wales, under the business name Forex Pacific.

    ASIC has accepted an enforceable undertaking from Mr Duggan following concerns that financial product advice was provided during the course of the Forex Pacific educational seminars, and that Mr Duggan was arranging for participants to deal in financial products.

    As Mr Duggan does not hold an Australian Financial Services Licence (AFSL) and is not an authorised representative of an AFSL holder, he is not licensed to provide financial product advice or arrange for people to deal in financial products.

    Under the enforceable undertaking, Mr Duggan has agreed to advise his clients of ASIC's concerns with an agreement with United States-based broker Forex Capital Markets LLC (US Capital), and refund all referral fees he has received under the agreement to clients who request a refund from him.

    In addition, Mr Duggan has undertaken to:

    terminate his agreement with US Capital;
    advise his clients that under the agreement with US Capital, he received a referral fee for each transaction his clients effected through US Capital;
    advise his clients of ASIC's concerns that Mr Duggan and his representatives may be giving financial advice without being licensed;
    advise his representatives that ASIC is concerned they may be giving financial advice without being authorised by an AFSL holder; and
    post a notice on the Forex Pacific website about ASIC's concerns for a period of 21 days.
    Further, Mr Duggan has agreed to provide ASIC with all contact details of his clients and representatives to ensure he has complied with the terms of the undertaking.

    'Individuals who provide educational services and do not hold an AFSL must not arrange for consumers to deal in financial products or give financial product advice', ASIC Deputy Executive Director of Enforcement, Mr Allen Turton said.

    'Licensing requires people who provide financial product advice or arrange for consumers to deal in financial products to disclose the various risks associated with dealing with financial products or accepting financial advice.

    'ASIC has taken action to stop the seminars in contravention of the Corporations Act to protect consumers who did not receive the benefit of these disclosures, and who may not have been aware of the potential risks in accepting the advice that was provided during the seminars', Mr Turton said.
    Background

    The Forex Pacific educational seminars were offered through workshops and over the Internet.

    In the seminars, Mr Duggan trained participants to use the trading platform software of US Capital. He and his representatives also made recommendations about trading in the foreign exchange market during the seminars and subsequent chatroom discussions.

    Mr Duggan had an agreement with US Capital under which he was obliged to refer clients to US Capital. In return, US Capital paid him a referral fee for every trade a client transacted through US Capital.

    Clients were also able to open a trading account with US Capital by forwarding a completed application form to Mr Duggan or by following a link on the Forex Pacific website.

    End of release

    http://www.asic.gov.au/asic/asic_pub...g?openDocument




  4. #4
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    The CFTC's Division of Clearing and Intermediary Oversight regularly receives financial reports from futures commission merchants (FCMs). The data is taken from the most recent financial report received by the Division just before publication. The summary is available in both Adobe PDF and Microsoft Excel spreadsheet formats for viewing or downloading.

    Therefore, iff you wish to know the net capital of each reguated brokerages you can find it in Selected Financial Data for Futures Commission Merchants

    http://www.cftc.gov/tm/tmfcm.htm




  5. #5
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    FYI.

    2 Nov 2004 12:53 ET DJ CFTC Charges Calif Forex Co With Fraud, Misappropriation

    WASHINGTON (Dow Jones)--The Commodity Futures Trading Commission is accusing a California foreign currency firm with fraud and misappropriation of funds.

    The CFTC on Tuesday announced it filed a complaint against White Pine Trust Corp.

    The San Diego firm is accused of fraudulently soliciting customers purportedly to invest in foreign currency and foreign currency options. The CFTC complaint alleges the company fraudulently misrepresented how customer funds would be held and falsely promoted its expertise in trading foreign currency.

    The complaint alleges that since February 2003 the company fraudulently solicited at least $650,000 from customers.

    The CFTC also alleges the company misappropriated funds to pay for personal and business expenses.

    The regulator is seeking repayment to defrauded customers.

    The company could not immediately be reached for comment.


    - By Jeff Bater, Dow Jones Newswires; 202-862-6616;
    Jeff.Bater@dowjones.com

    (END) Dow Jones Newswires


  6. #6
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    Check out your broker...........


    http://www.cftc.gov/files/tm/fcm/tmfcmdata0408.pdf



  7. #7
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    More scary stories from CFTC

    GFT Forex

    Pacific Trading Group, Inc., v. Global Futures & Forex, Ltd. and Gary Lee Tilkin. CFTC Docket No. 02-R080. Filed November 16, 2004. BFI Forex Fund, L.L.P., v. Global Futures & Forex, Ltd., and Gary Lee Tilkin. CFTC Docket No. 03-R030. Filed November 16, 2004. Complainants Pacific Trading Group, Inc., (PTG) and BFI Forex Fund, LLP (BFI) filed separate reparations complaints seeking to recover damages (including punitive damages) in excess of $1 million from respondents Global Futures & Forex, Ltd., and Gary Lee Tilkin due to various violations of the CEAct. Complainants alleged that Global and its owner Tilkin in participation with Donald C. O’Neill (O’Neill) improperly Traded complainants foreign currency (Forex) accounts, resulting in losses in excess of $700,000. After a careful review of the record it was concluded that respondents had churned complainant’s accounts in violation of section 4b of the CEAct. Further, it was found that the respondents’ violations of the CEAct had resulted in direct monetary damages to the complainants in the amount of $762,201.98. Accordingly, respondents were ordered to pay Pacific Trading Group, Inc., the sum of $468,781.69 within 30 days from the date this judgment becomes final, plus interest at the rate of 1.30 per annum from June 11, 2002, to the ate of payment, plus filing fees of $250.00. Accordingly, respondents were further ordered to pay BFI Forex Fund, LLP $293,420.49 with 30 days from the date this judgment becomes final, plus interest at the rate of 1.30 per annum from June 11, 2002, to the date of payment, plus the filing fee of $250.00. Administrative Law Judge, George H. Painter. CFTC Docket Nos. 02-R080 and 03-R030.

    http://www.cftc.gov/opa/adv04/opawa47-04.htm





  8. #8
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    FOREXGEN.COM SCAM Alert! from forexbastards.

    http://www.forexbastards.com/forex-f...=1354#post1354

  9. #9
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    im not implying its a scam or anything of the sort. Just curious really if anyone here has heard of currency concepts limited and have any opinions on the company?

  10. #10
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    Blackcap

    I have heard of them, but I know little about them.

    I think Xerof mentioned them awhile back....

    Sorry I cant be more helpful

    rgds - arco

  11. #11
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    Blackcap,

    www.nzcurrencyconcepts.co.nz gives you quite a lot of info on what they are doing and some historic performance outcomes. I know the trader there, but haven't followed their fortunes for quite some time.

    It is certainly not a scam, I can vouch for that.

    Xerof
    Last edited by Xerof; 29-10-2007 at 02:06 PM.

  12. #12
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    thanks to you 2. Will have a look. Have heard about it from a friend. Looks like a hands off approach

  13. #13
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    Look what I saw in the paper today.

    Disclaimer: Do not take my posts seriously. They are only opinions.

    AMR has sold all shares and is pursuing property.

  14. #14
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    I have just noticed that ABM-Amro are using Oanda charting, but in addition to currencies they also offer commodites, bonds, and idices. Interesting.

    http://www.abnamromarketindex.com/uk...leMarkets.aspx

  15. #15
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    I found these reviews which seem positive, but not sure at the moment if NZ citizens can trade.

    http://www.forexpeacearmy.com/public...arketindex.com


    ABN AMRO is the largest bank in the Netherlands with over 3,000 branches in more than 60 countries and territories, over 96,000 full-time equivalents worldwide and a balance sheet total of 880.8 billion EUR (as per December 2005).
    Within Europe, ABN AMRO plays an important role in the private banking sector.
    Outside Europe, other key markets for ABN AMRO are the USA and Brazil. ABN AMRO is listed on numerous stock exchanges, including Euronext and the New York Stock Exchange.
    Last edited by arco; 30-11-2007 at 11:47 AM.

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