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NFA foreclosing Forex Dealers

I've just received the following from Alex Benjamin ([email protected]) at and am reposting it with his go ahead - thanks Alex.

Heads up for anybody with accounts with these dealers.

The last few weeks has seen the NFA foreclosing on a lot of forex dealers who are undercapitalized. The following firms have been shut down as a result:

1) United Global Markets, LLC
Today the CEO just sent an email out to clients saying they were going out of business because they could not meet their capital requirements.

2) Trend Commodities Limited
On June 19 the NFA shuttered Trend Commodities due to fraud and for failing to meet their capital requirements.

3) Spot FX Clearing Corp
On June 14 the NFA shuttered SpotFX due to fraud and for failing to meet their capital requirements.

4) FX Option1 Inc.
On June 7 the NFA shuttered FX Option1 due to fraud and for failing to have adequate security deposits for customers.

5) Spencer Financial LLC
On May 17 the NFA shuttered Spencer Financial due to fraud and for failing to meet their capital requirements.

6) Alpha Forex
On May 14 the NFA shuttered Alpha due to fraud and for failing to meet their capital requirements.

Do you have money with the following? their current capital - IF SO GET OUT NOW
One World Capital $1,105,000
Open E Cry LLC $1,062,810
Velocity4X $1,587,000
Direct Forex LLC $1,523,000
Easy Forex US Ltd $5,011,644 - they are above the 5 mio threshold but only just and with a name like that - get out.
3D Forx LLC $ 2,525,372
E FX Optioons LLC $1,709,752
FiniFX $1,464,000
Forex Club $3,304,000
Forex International Investments Inc $1,464,620
Forward Forex $1,793,767
FXCM LLC $759,689
GFS Futures & Forex $3,074,000
Nations Investments $1,699,000
Royal Forex Trading $1,102,000
SNC Investments $1,565,000
Tradition Securities $781,869
I Trade FX -$3,039,000 Note these guys are already bankrupt --- negative capital.!!!!!
MB Futures $3,080,000
Money Garden Corp $3,399,844
Dear Alex,

My name is David Waring and I am the Managing Director in charge of Business Development here at FXCM.

Let me start by saying that I appreciate your work here as I think it is important for traders to understand what is going on in the industry so they can be informed and make sure that they hold their account in a place where their funds are safe. With this in mind I would like to make clear that FXCM LLC is a dormant FCM which our firm registered to potentially start offering futures trading sometime down the road. When clients open their account with FXCM as you can see from our trading agreement and from the name on the account where client's are depositing their funds they deposit their money with our Forex FCM Forex Capital Markets LLC.

As you can see from the CFTC's financial data page Forex Capital Markets LLC where client funds are held has over $51 Million in adjusted net capital and is one of the most well capitalized FCM's in the industry.

Thank you again for your time with this and let me know if there is ever anything that I can do to assist you or your traders.


David Waring
Managing Director
FX Business Development
Forex Capital Markets LLC
32 Old Slip, 10th Floor
New York, NY 10005
Tel (212) 897-7660
Fax (212) 897-7669
Email: [email protected]
Once again I would like to say I hope everyone forgives me for publishing in an open forum what they may have considered to be confidential mails. I would like to make just a couple of comments
1. An ex NFA employee as one mentioned offers me absolutely no additional comfort at all.
2. I found the FXCM reply to be very refreshing whereas I sensed an air of almost needing to justify in parts of the other emails.
3. If the issue about raising minimum capital to 5 bucks is no big deal for some as they infer one said being half way there already...then DO IT NOW.. and then the issue is no longer an issue..
why wait for the crackdown from the regulatory body. create confiddence and grow your business by taking the competition on. But who am I to tell these guys how to run their business

Thanks for following this up and educating us alleyb - much appreciated.