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Prop firm fraud in Futures? (on the back of My Forex Fund scam/CFTC ruling)
The part about the funded trader firm being the counter-party to trades is a pretty standard mode for most of these firms. At least some of them readily divulge this as "funded sim trading" or some similar term. At Apex (with Ritmic), i've not seen my fills be different than one would expect for market conditions. Same for Top Step thru Tradovate.
Can you help answer these questions from other members on NexusFi?
A bit off topic but one reason I would never trade Forex is because if the holding company that holds your account goes bankrupt, the US administrator has no control over foreign funds. It has happened in a past holding company bankruptcy, the accounts setup to trade US based futures, such as equity index, received their monies back but the Forex traders did not.
Yes, I do.
And do you know how many times CFD is mentioned in the Complaint and Statutory Restraining Order? 1 and 0 respectively. The single instance is text from defendant's website.
Commodity is mentioned 38 times in the CFTC's Complaint and 9 times in the judge's Statutory Restraining Order.
It seems you haven't read the actual court documents. Paragraph 117 of the Complaint states:
117. 7 U.S.C. § 2(c)(2)(C)(iv) provides that 7 U.S.C. § 6b shall apply to any retail forex transaction as if it were a contract of sale of a commodity for future delivery.
Further:
119. Traders Global entered into and offered to enter into retail forex transactions and retail commodity transactions with customers.
120. Those transactions were not executed (or offered to be executed) on an exchange.
156. Traders Global thus entered into, executed, and confirmed the execution of off-exchange retail commodity transactions in violation of 7 U.S.C. § 6(a).
I'll piggyback and say I'm baffled by the fact that someone would park money with a broker that is:
1. Offshore
2. Accepts credit cards as a form of payment
3. Isn't FINRA certified
Having said that, the Forex market isn't the problem. It's the broker. I would feel perfectly fine trading Forex through TD Ameritrade or Interactive Brokers.
I have no involvement in this case or in the futures eval space. I am not a lawyer. I trade my own cash account. Last night I read for the first time the Complaint and Statutory Restraining Order.
I think anyone interested in this situation should spend an hour or two reading through the actual court documents. You will learn a great deal! In the Complaint, read paragraphs 20-58 and Counts II and V. In the Statutory Restraining Order read paragraphs 3-7. It is Eye Opening!
Some are saying this case involves forex and so does not impact the futures/commodity eval space. This is completely false. I urge everyone to read the actual court documents. That's why I uploaded them.
If people will read the court documents we can have an informed discussion.
I read the documents by cftc but to me the issues lied in mff acting as a broker. I have been funded with earn2trade in the past, which uses futures.
Once you get funded orders go to actual market. I even proved it with a video.
That was some years ago but basically with futures you can immediately check if you are A-booked or not.
Concerning prop firms using CFDs, I wonder what is the difference between mff and what every CFD broker does. Who is the counterparty to a CFD operation? It's the broker itself that acts as a liquidity provider.....so let's forbid CFDs completely.
Cftc is going for companies that actually allowed traders to make money with low risk. They are going for one of the few legit possibilities for a "average guy" to make decent money.
On the other hand they did nothing for multi millionaire actors pumping NFT on tv.
They laundered billions using apes pictures.
MFF made a total profit of 170 millions, people were selling 1 single NFT drawing for 60+ million.
This is the regime making sure money stays the hands of a few.
They talk about spreads.... come on!! In the 80s traders had to pay 100 usd commission per contract and traders still.made money. Now they step in for 10 bucks per lot.
This is purely an operation to avoid an egalitarian society.
The same account manager that warned me about Forex called and informed me that my account was frozen. My holding company was MF Global and had gone bankrupt. MF Global was not the broker. I was set up to to trade S+P 500 futures. My and other MF Global accounts money had been transferred to Great Britain. After an initial refusal from the British court and a wait of 18 months they agreed to release and return the money to the US administrator.
I did, and from my understanding, the Forex traders as well received our money back.
Not yet but I think Futures prop firms are just as bad.
They employ trailing drawdowns of unrealized profits on traders, while simultaneously saying they want "long-term" traders. No long-term trader is going to trade "normally" with a trailing drawdown. So that proves it's not an actual evaluation of a person's trade, which proves the company doesn't care to "copy" their trades outside of a sim environment, and thus it's a gimmick and makes the industry look bad.
They use data from entities like Rithmic, which they know goes down and freezes and has issues with orders all the time, so this is favorable to leading to blown up accounts and more in reset fees.
They give traders tons of contracts to trade with, and no self help options or features to limit their max losses and profits, whereas other live places do like NinjaTrader. They know this will increase the probability of these contracts being used and leading to more blown up accounts. Enough rope is given for the trader to hang themselves, effectively.
I don't think professional traders or CFTC regulators would look at that and say "That's what this market is all about".
