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Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
From what I saw on their NFA report, there was one claim which they appear to have won and there was a second claim that was counted twice on their report. As I said before, there could be multiple reasons for an arbitration. It could be wrong doing of the company or one of it's clients. Just because there was arbitration doesn't make them at fault. BTW, I have absolutely nothing to do with Velocity but am using them to make a point. Arb is a part of the securities business period. Every firm encounters it at some point.
Can you help answer these questions from other members on NexusFi?
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
Just a head's up, if you want to mention me, make sure to put a space between Private and Banker. I don't know who that other impostor is, lol!
I agree that in these elevated concern situations that the brokers should and most likely are available to answer questions about this. If you're concerned, don't wait for your broker to contact you, contact them. Be proactive.
Again, Atlas Ratings is a brand new organization with no track record. Why would I ever put any weight their findings? Just because Zero Hedge posts something on their website doesn't make it true. If anything, I would question a majority of what they post on there.
I found this on the NFA website. I wanted to get as much information before sending an email to Jack Edward Earnest or Dale Box. Can we say that this was an over site or normal practice for Velocity Futures? I think I need to find out more before I send an email to Velocity, this merits some attention as far as I'm concerned. If they operate in this manner then I don't feel safe doing business with them.
Narrative for 0317696 - VELOCITY FUTURES LLC
November 9, 2011
CFTC Sanctions Velocity Futures, LLC, for Supervision Violations
Velocity Agrees to Pay a Civil Monetary Penalty of $180,000
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges against Velocity Futures, LLC, a registered futures commission merchant, for failing to supervise diligently the handling of its customer accounts.
The CFTC Order finds that from July 2003 until at least December 2007, Houston-based Velocity failed to develop and implement an adequate system to monitor the trading of customer accounts by third parties and protect customers against potential account churning. In addition, the Commission further finds that Velocity failed to conduct a diligent background check on Norbert Grupe, the principal of El Toro Consult SL, a foreign introducing broker (FIB) and commodity trading advisor, even though Velocity was aware of his potential criminal background.
The Order further finds that when Velocity signed the agreement with El Toro, the firm conducted a cursory background check on Grupe, which revealed no significant information. Subsequently, Velocity learned that an individual with the same name had been convicted of felony grand theft in Florida, but Velocity took no further steps to investigate or to determine if it had entered into an FIB agreement with the same individual. Instead, Velocity allowed Grupe to continue to introduce and to trade customer accounts through 2007. Grupe was, in fact, the convicted felon and a fugitive from the Florida Department of Corrections.
Finally, the Order finds that Velocity failed to develop and implement an adequate system to review trading and to detect potential churning in customer accounts controlled by third parties.
The CFTC Order imposes an $180,000 civil monetary penalty and cease and desist order on Velocity and requires that the firm undertake new supervisory procedures.
The CFTC Division of Enforcement staff members responsible for this case are Kyong J. Koh, A. Daniel Ullman II, Todd Kelly, Peter M. Haas, Paul G. Hayeck and Joan Manley.
I said someone had asked that, but she didn't reply. She did send me the link to the reports on all the FCMs though (sorry, can't post the link -- go to cftc.gov => market reports => financial data for fcms, and I had to download the PDF to view it)
I see that Rosenthal Collins is at the bottom of the list too, and also that PFG reported having 5 million bucks extra in seg ...
Looking for a futures broker and wonder whether the ratings from Atlas are valid?
I really like what I read about Matt and his team at Optimus, but Vision Financial is rated #50 by Atlas. That seems to be only marginally better than PFGBest/Peregrine …
Well I got socked with a 30 euro fee from Velocity this month. I'm doing consulting work full time right now and trading only the only the last 90min of the day and didn't meet the 25 trade minimum. I did a lengthy chat with them about this and there is no leeway. I told them this is not competitive. I paid over $5.50/trade this month! Their response was that I should deactivate my platform to avoid the fee next month, which implies trading with another broker. Which is what I did.
This doesn't make any sense to me as I've generated thousands in commissions over the past several years. Why they are willing to risk making zero commissions in order to try and get an extra 30 euros out of me is illogical.