Thread: The Collective FX Recovery Effort

Originally Posted by ;

quote They shut off the website and communiions after they stole the capital.

Sad thing is some americans are still searching to get offshore/unregulated brokers because they want to have more leverage/margin. Very good luck with this

Sounds a lot like the PFG theft. Excellent luck. So much most FX clients have gotten nothing back and futures traders have managed to get 37% return. The courts are still grinding off the time and cash, so who knows where it will end up.

Sounds like these people will need to be hunted down like the dirtbags they are. When they're captured I hope they get treated as they deserve. I'll leave this to everyone's imagination.


PFG has been regulated and loed in the U.S. correct? I'm amazed daily how individuals are on here telling others the way this makes any bit of difference. I'll say it on again

YOUR MONEY IS NO MORE PROTECTED WITH A REGULATED U.S. BROKER THAN WITH A NON-REGULATED OFFSHORE BROKER. THE ONLY DIFFEREENCE BEING IN THE U.S.. YOU HAVE 10 TIMES THE MONEY AT RISK Due to the RIDICULOUS LEVERAGE REQUIREMENTS

Originally Posted by ;

quotesad thing is a few americans are still looking for offshore/unregulated brokers because they want to have more leverage/margin. Fantastic luck with this

Hunting more leverage only needs me to put up less cash to do the same trade. I trade using 500:1, it costs me $100 to do the same transaction requiring $1,000 here in the U.S.. Another $900 is kept within my FDIC insured personal bank account, not with any broker. I still only risk 1-2percent per commerce of my account balance within my FDIC Foreign Exchange account held at my bank.

The difference is that in the U.S. people are inclined to be prosecuted. Mr. Wasendorf has been sentenced to 50 years in prison. There is an incentive. Whereas sending the money to Belize is basically an invitation to be scammed.

Originally Posted by ;

The distinction is that in the U.S. people are likely to be prosecuted. Mr. Wasendorf has been sentenced to 50 years in jail. There's an incentive not to do it. Whereas sending the money is basically an invitation to be scammed.

Yes, you would think so. However, being prosecuted does not get the money back. Without mentioning any names, the largest broker here from the U.S. has been fined how many occasions? I am sure the money they make on which they are being fined for far surpasses the fines themselves and I don't see anybody being prosecuted. It seems like they've definitley cleaned up their act, but would they have done so without being fined?

Originally Posted by ;

The difference is that in the U.S. people are likely to be prosecuted. Mr. Wasendorf was sentenced to 50 years in jail. There is an incentive not to do it. Whereas sending the cash to Belize is basically an invitation to be scammed.

I really wish to use this to reach out to people who'd funds with TheCollectiveFX as there are a number of efforts being made to take care of these crooks. Just to address a couple things:

This was a US broker that MOVED into Belize. Since membership arrangements were implemented in the US and capital have been sent into a US bank that the prosecution would be subject to US law.

This is probably the largest thing any trader should worry about.... Your broker running away with your cash!

This isn't the first time and surely not the last time something like this will take place. The more brokers eliminate this, the longer it will happen.

I have a theory. The stranger the brokers name the one ought to stay away from it. More red lights whenever they offer high leverage and therefore are enrolled somewhere on an island or small country....

Regiion in some instances really doesn't protect your cash. Regiion does not follow that the authorities will safeguard your cash by having co signature rights on clients trading capital. The broker can nevertheless one day wake up and transfer all of the currencies into his account or any place else where it would be hard to get it straight from. Consider this. The tainted broker opens up an account with the assistance of other corrupt individuals somewhere in the world. Transfer all of the clients funds to that account. Withdraw it and evaporate. So simple.... This can all be done prior to any investigation even starts or before the first customer criticism reaches the government.

I think this serves as a lesson for a lot people. It appears just way too easy to open a FX brokerage to me. There are simply too many brokers in this business! By providing all sorts of advantages, They're currently competing against each other for business. If they don't make it there is the choice of cleaning out all client accounts and disappear from the radar.

Trading with ones own Bank in which you have low leverage and large spreads might be the sole guaranteed way going forward in this industry.

Sorry to those who have dropped their cash...

This is exactly why I trade with a high leverage broker. I believe my money is even less at risk since I only have 10% of what is necessary in a regulated U.S. broker. The rest sits in my insured personal account. If any broker can just run off with your cash, what exactly would be the U.S. regulations protecting us all from? Does not it make sense to trade someplace which just requires depositing 10% of everything you would want to at the U.S.? I've also brought this point up before too, nobody stands in the doors in the Las Vegas casino and asks Just how much of your net worth would be you earning? Where did the earnings come from? You can risk 2 percent per bet. This is a famous losing proposal, you cannot beat the house, yet nobody cares if somebody walks in with their lifetime savings and places it on black, nevertheless I can not trade forex where I want and with the leverage that I desire. It is a joke. It is there to restrain us, not shield us.