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Prop firm fraud in Futures? (on the back of My Forex Fund scam/CFTC ruling)
Prop firm fraud in Futures? (on the back of My Forex Fund scam/CFTC ruling)
Marco44
Chicago, USA
Posts: 5 since Jan 2023
Thanks Given: 6
Thanks Received: 2
Given the recent fallout in Forex prop firm fraud scandals, does anyone have any knowledge or experience in similar situations in futures prop firms? Or, does the regulated exchange make this difficult or impossible?
Any insight and/or info is greatly appreciated!
Thanks,
Alex
Can you help answer these questions from other members on NexusFi?
Everyone should be diversifying across multiple prop firms to minimize individual payout risk. Personally I use replikanto trade copier and have multiple vps to copy trades between all my Rithmic accounts, Apex, TopStep, and Earn2Trade
What fraud scandals are you talking about? Could you link to some articles?
Marco44
Chicago, USA
Posts: 5 since Jan 2023
Thanks Given: 6
Thanks Received: 2
I’m not allowed to add links yet (new to community) but if you google “My forex Funds scam” you should see a bunch of info. It’s thrown the prop firm industry in to a tizzy!!
To begin to understand the CFTC vs. Traders Global case, we must start with reading the actual court documents: the CFTC's Complaint and the judge's Statutory Restraining Order. Both are ATTACHED.
Please note: the CFTC will soon amend its Complaint. I can upload the amended Complaint when it appears.
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!
This case is not only about forex. Both the Complaint and Statutory Restraining Order specifically and repeatedly include "retail commodity transactions" as well.
In addition to forex, Traders Global (MyForex) also offered trades in Metals, Oil, Stock Indexes, and also Bitcoin and Ethereum. These involve three regulated futures/commodity exchanges: COMEX, NYMEX, CME.
I believe we will soon see this impact the unregulated futures evaluation prop firm companies as well. Earlier this week Deel stopped providing payout services to the unregulated futures evaluation prop firms.