NexusFi: Find Your Edge


Home Menu

 





Velocity Futures charged Maintenance Fee. Need new broker recommendation


Discussion in Brokers

Updated
      Top Posters
    1. looks_one ThatManFromTexas with 8 posts (5 thanks)
    2. looks_two Private Banker with 7 posts (11 thanks)
    3. looks_3 kareninsc with 5 posts (5 thanks)
    4. looks_4 Big Mike with 4 posts (9 thanks)
      Best Posters
    1. looks_one josh with 3.5 thanks per post
    2. looks_two Big Mike with 2.3 thanks per post
    3. looks_3 Private Banker with 1.6 thanks per post
    4. looks_4 kareninsc with 1 thanks per post
    1. trending_up 20,618 views
    2. thumb_up 49 thanks given
    3. group 17 followers
    1. forum 57 posts
    2. attach_file 2 attachments




 
Search this Thread

Velocity Futures charged Maintenance Fee. Need new broker recommendation

  #41 (permalink)
 
Private Banker's Avatar
 Private Banker 
La Jolla, CA
 
Experience: Master
Platform: Sierra Chart, X_Trader Pro, OptionsCity
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863


ddnut View Post
@Private Banker,
I agree that a forum post would be the wrong response. The company needs to make a statement to their customers and press release regarding what happened at MFG and PFG and how it will not occur at Velocity. Given that futures brokers are "self-regulated", the high number of CFTC/NFA disciplinary actions is what concerns me. One would need to look into these actions for more information regarding severity/recurrence, but the list from Atlas does give people a place to start.

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.

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Better Renko Gaps
The Elite Circle
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Deepmoney LLM
Elite Quantitative GenAI/LLM
Exit Strategy
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
36 thanks
NexusFi site changelog and issues/problem reporting
25 thanks
GFIs1 1 DAX trade per day journal
19 thanks
The Program
18 thanks
  #42 (permalink)
 
Private Banker's Avatar
 Private Banker 
La Jolla, CA
 
Experience: Master
Platform: Sierra Chart, X_Trader Pro, OptionsCity
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863


wwwingman View Post
@Privatebanker, I think an answer on the forum is not enough or maybe like @ddnut said even not the right way to go. but we do need an answer.
MFG is potentially the beginning of a shift of this industry and PFG is not the end. every broker should consider talking to their clients on such moments, regardless of their rating.

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.

Reply With Quote
Thanked by:
  #43 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
Developer
Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,398 since Jun 2009
Thanks Given: 33,173
Thanks Received: 101,537



Private Banker View Post
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.

Tyler is nothing if not amusing

And if you don't hate the finances of the world you live in quite enough already, ZeroHedge is always ready to help push you over the edge! LOL...

But guys.. please... create a NEW thread for this Atlas report discussion. It deserves its own thread. Someone do it already.

Mike

We're here to help: just ask the community or contact our Help Desk

Quick Links: Change your Username or Register as a Vendor
Searching for trading reviews? Review this list
Lifetime Elite Membership: Sign-up for only $149 USD
Exclusive money saving offers from our Site Sponsors: Browse Offers
Report problems with the site: Using the NexusFi changelog thread
Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #44 (permalink)
 itrade2win 
New York
 
Experience: Intermediate
Platform: Sierra Charts, TOS
Trading: E-mini S&P 500
Posts: 751 since Aug 2010
Thanks Given: 447
Thanks Received: 437

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.

Case Summary

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.

Media Contacts

Dennis Holden

202-418-5088

Last Updated: November 9, 2011

Reply With Quote
  #45 (permalink)
 
ThatManFromTexas's Avatar
 ThatManFromTexas 
Houston,Tx
 
Experience: Advanced
Platform: NinjaTrader
Broker: Mirus Futures/Zen-Fire
Trading: TF
Posts: 2,265 since Feb 2010
Thanks Given: 1,206
Thanks Received: 4,348


itrade2win View Post
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.

Case Summary

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.

Media Contacts

Dennis Holden

202-418-5088

Last Updated: November 9, 2011

For what it's worth ... a $180,000 CFTC fine is not a large fine ... relatively speaking.

I use Rosenthal Collins. They have paid several fines many times the size of this one. They still seem to be a reliable FCM.

Just my opinion.

I'm just a simple man trading a simple plan.

My daddy always said, "Every day above ground is a good day!"
Reply With Quote
  #46 (permalink)
Cigarist
Surrey UK
 
Posts: 6 since May 2012
Thanks Given: 0
Thanks Received: 3

Does anyone know who is Velocity's auditor?

Reply With Quote
  #47 (permalink)
kareninsc
Walhalla, SC
 
Posts: 9 since Jan 2012
Thanks Given: 3
Thanks Received: 6

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 ...

Reply With Quote
  #48 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
Developer
Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,398 since Jun 2009
Thanks Given: 33,173
Thanks Received: 101,537

New thread for Atlas Ratings discussion



Mike

We're here to help: just ask the community or contact our Help Desk

Quick Links: Change your Username or Register as a Vendor
Searching for trading reviews? Review this list
Lifetime Elite Membership: Sign-up for only $149 USD
Exclusive money saving offers from our Site Sponsors: Browse Offers
Report problems with the site: Using the NexusFi changelog thread
Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #49 (permalink)
 
cunparis's Avatar
 cunparis 
Paris, France
 
Experience: Advanced
Platform: Market Delta & Ninjatrader
Trading: ES
Posts: 2,565 since Jun 2009
Thanks Given: 1,162
Thanks Received: 2,093

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.

I will trade with Mirus for a while.

Follow me on Twitter Reply With Quote
Thanked by:
  #50 (permalink)
 
eudamonia's Avatar
 eudamonia 
Sacramento, CA
 
Experience: None
Platform: None
Broker: ADM and Sierra Charts
Trading: ES, CL
Posts: 315 since Jul 2010
Thanks Given: 308
Thanks Received: 449


@cunparis

Are you using X Trader with them or one of the other platforms?

Visit my NexusFi Trade Journal Reply With Quote




Last Updated on August 17, 2012


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts