Forex trading is a hard enough profession without having to worry about the criminal activities of your broker, and even the biggest Forex brokers can have problem with the law!
Recently the National Futures Association brought an “emergency enforcement” against one of the largest brokers in the US, FXDD. You can find more information in this news release from the NFA itself…
For Immediate Release
December 07, 2012
NFA takes emergency enforcement action against New York forex dealer member, FX Direct Dealer, LLC (FXDD)
December 7, Chicago – National Futures Association (NFA) has ordered FX Direct Dealer, LLC (FXDD) to either post a bond or place funds in an escrow account to ensure that the firm can meet its obligations under any restitution order that may result from a related NFA disciplinary action. The customer restitution is estimated to be $3.3 million. NFA’s Business Conduct Committee (BCC) issued a Complaint against FXDD earlier this year, charging that FXDD engaged in price slippage practices that benefitted FXDD to the detriment of customers. Similar cases involving asymmetrical price slippage practices have also resulted in customer restitution. FXDD is a futures commission merchant, retail foreign exchange dealer and forex dealer member of NFA, located in New York, New York.
The Member Responsibility Action (MRA) shall remain in effect until the resolution of the BCC Complaint and upon a final determination of the amount of restitution, if any, that FXDD owes to customers. FXDD may request a prompt hearing on this matter before NFA’s Hearing Committee.
The following Compliance staff members are responsible for this case: Sarah A. Walsh (312-781-1202) and Dan Pierson (312-781-1507).
I’m sure you’ll agree with me that these kinds of illegal practices have to be stamped out. I don’t have funds with FXDD but if I did I’d be heading for the exit NOW!