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Gain Capital (Forex.com) fined by NFA for fraud.


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Gain Capital (Forex.com) fined by NFA for fraud.

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Posts: 1,081 since May 2010

NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC

NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC
October 28, Chicago - National Futures Association (NFA) has ordered Gain Capital Group LLC (Gain), a forex dealer member located in Bedminster, New Jersey, to pay a $459,000 fine as a result of an NFA Complaint issued and a settlement offer submitted by Gain and its chief executive officer, Glenn H. Stevens.


NFA's Business Conduct Committee alleged that Gain engaged in abusive margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers. The Committee also alleged that Gain failed to maintain records for certain unfilled orders, failed to adequately review the activities and promotional material of the firm's unregistered solicitors, and failed to supervise the firm's operations.


In addition to the fine amount, Gain must also provide appropriate refunds to its customers as a result of these detrimental margin, liquidation and asymmetrical slippage practices.


Gain and Stevens neither admitted nor denied the charges. The complete text of the Complaint and Decision are available on NFA's website (www.nfa.futures.org).




--
I found this in the report :

However, orders involving greater than five standard contracts were blocked when the slippage was favorable to the customers but filled when the slippage was unfavorable to the customers and favorable to Gain.

As a result, from May 1, 2009 through July 31, 2009, customers trading greater than five standard contracts on the retail server experienced $169,502 in losses due tounfavorable slippage, yet never received any gains when favorable slippage occurred.

--

How many traders were cheated and they didn't noticed because their order size was too small ??

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Posts: 1,176 since Nov 2009

it isnt their first and wont be their last...

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sysot1t View Post
it isnt their first and wont be their last...

Can also say isn't the first or last, meaning others have done it and will do it again.

Mike

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Posts: 1,176 since Nov 2009

I would concur..


Big Mike View Post
Can also say isn't the first or last, meaning others have done it and will do it again.

Mike


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