Yes, "they told you". Well this is exactly my point, being part of Refco Group does not make you regulated by itself!!!!!! But people were buying the "we are under the umbrella" and all the other bs that was told them by the reps. I've been saying this for months but nobody was listening until the milk turned out to be sour. Well, guess what? That's why Refco FX is holding yr money "until further notice".
Zilch, if you're a RefcoFX customer. You cannot possibly benefit from either one. Why is "unregulated" such a hard concept?
Chood, stop spreading false information!!! Once again, I do not claim complete regulation (if there is such a thing), but this is what you would find in the NFA brochure if u bothered to read: ---- Who regulates off-exchange foreign currency trading? The CFTC has some regulatory authority over retail off-exchange forex markets. The Commodity Exchange Act (CEA) allows the sale of OTC forex futures and options to retail customers if, and only if, the counterparty (the person on the other side of the transaction) is a regulated entity. These regulated entities include the following: financial institutions, such as banks and savings associations, registered broker-dealers and certain of their affiliates, registered futures commission merchants (FCMs) and certain of their affiliates, certain insurance companies and their regulated affiliates financial holding companies, and investment bank holding companies. Under the CEA, the CFTC has the authority to shut down any unregulated entity that acts as a counterparty to forex futures or options transactions with retail customers. The CFTC also has the authority to take action against registered FCMs and their affiliates for violating the anti-fraud and anti-manipulation provisions of the CEA in connection with OTC forex transactions involving retail customers, but the CFTC cannot adopt rules to regulate these transactions. NFA has rules to protect customers in the retail off-exchange forex market. As mentioned later in this booklet, firms that introduce customers to forex dealers do not have to be regulated entities. NFAâs rules provide, among other things, that a forex dealer FCM must take responsibility for the activities of unregulated entities that solicit retail customers. Additionally, NFAâs rules require forex dealer FCMs to: observe high standards of commercial honor and just and equitable principles of trade in connection with the retail forex business; supervise their employees and agents and any affiliates that act as counterparties to retail forex transactions; maintain a minimum net capital requirement based on the value of open customer positions; and collect security deposits from those customers. NFAâs forex rules do not apply to all FCMs and their affiliates, however. Therefore, you should ask the dealer if NFA regulates its forex activities. 12 13
Funny, when they thought everything was OK, all these customers openly bragged how clever they were and that credit risk, reputation etc didnt matter as their costs were low. Now, theres a problem and they all scream for a regulator. Sorry folks, but its time to grow up.
I have to question the intelligence of any trader who kept money in a RFFX account the day after you knew its parent is going bankrupt.