NFA Taskforce durchleutet Geschäftspraktiken der FX Broker

[whipsaw]

Auf DAS Ergebnis der Untersuchungen darf man gespannt sein ^^

 

Just as foreign currency trading is on the verge of going mainstream, regulators say they are preparing to launch an investigation into whether foreign exchange firms are using unfair trading practices to take advantage of retail investors.

 

In two weeks, the National Futures Association – a self-regulatory body that polices the futures industry much the way Finra oversees the brokerage business – says it will begin analyzing trades executed by its 16 member forex firms. The regulator will search for signs these firms are designing computer systems to take advantage of what's known in the industry as "slippage" – small price movements that happen between when a customer orders a trade and when that trade is actually executed. While some slippage is normal (currency prices naturally fluctuate 24/7), the NFA will be looking to see if trades are being executed only when the currency price moves in the firm's favor. This would indicate a firm may be violating NFA rules mandating fair business practices, says spokesman Larry Dykeman. The group can then assess fines, and in some cases may suspend or expel a firm from membership in the organization.

 

The investigation follows after the NFA issued two complaints in October against Ikon Global Markets and GAIN Capital, accusing both firms of taking advantage of slippage at their clients' expense (These complaints are internal matters, not lawsuits filed in a court.) Both firms settled without admitting or denying the allegations, according to the NFA: Ikon paid a $320,000 fine to the NFA and has stopped offering retail FX trading to U.S. clients; GAIN, which paid a $459,000 penalty, went public in December. A spokesman for Ikon declined to comment.

 

 

© 2011 SmartMoney.com Are Forex Brokers Cheating Their Clients?

 

 

Zur Erinnerung: GAIN => Klick ; IKON