NFA orders monetary sanction of $320,000 against New York forex firm IKON Global Mark

ag_fx

Well-Known Member
#1
Quote from an email from NFA:


October 28, Chicago - National Futures Association (NFA) has ordered IKON Global Markets, Inc. (IKON), a forex dealer member to pay a fine of $320,000 as a result of an NFA Complaint issued and a settlement offer submitted by IKON and its principal, Diwakar Jagannath.

The Complaint alleged that IKON engaged in certain price slippage practices on the MetaTrader platform that were favorable to IKON and caused disadvantageous trading conditions for certain customers. The Complaint also charged that IKON failed to supervise the MetaTrader platform used for their forex business, and failed to supervise the firm's operations.

In addition to the fine amount, IKON must provide appropriate refunds to its customers as a result of these asymmetrical slippage practices.

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

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.
 
#2
Re: NFA orders monetary sanction of $320,000 against New York forex firm IKON Global

All are market maker bucket shops. Since 95-99% traders loose over long term, these firms are the next billion dollar companies as they swallow all the capital a trader has to offer.

Marketing is the key in this business. As loosing traders leave, they need new Traders. So they spend heavily on putting banners all over internet seducing new traders to open their forex accounts.

I used to use igmarkets for S&P 500 futures and they have their own algorithms which are making up prices and many times it has hit my SL wrongly.

After trading currencies, Few months back i switched to Nifty Future and i love it- My order goes directly on NSE Floor and is matched with other trader orders.
 
#3
Re: NFA orders monetary sanction of $320,000 against New York forex firm IKON Global

All are market maker bucket shops. Since 95-99% traders loose over long term, these firms are the next billion dollar companies as they swallow all the capital a trader has to offer.

Marketing is the key in this business. As loosing traders leave, they need new Traders. So they spend heavily on putting banners all over internet seducing new traders to open their forex accounts.

I used to use igmarkets for S&P 500 futures and they have their own algorithms which are making up prices and many times it has hit my SL wrongly.

After trading currencies, Few months back i switched to Nifty Future and i love it- My order goes directly on NSE Floor and is matched with other trader orders.

very wise post kf :)

what they do is once u start trading the categorize you from their statistics and if they find ur inexperienced they take the other side of your trade, this increases their profitability dramatically. I use to wonder how their yearly profits used to increase almost exponentially. Even when u are profitable they will find some way to extract your money for eg and this just recently happened to me. As it is becoming more and more difficult to transfer money to and from brokers by bank wire transfer i decided to transfer some money from 1 of one of my account from fxpro to ibfx australia. Fxpro says they have no charges for deposits or withdrawal while ibfx say they have no charge for deposits only charge for withdrawal. So technically if fxpro has no charge for payout and ibfx for deposit i should get pretty much near the entire sum of money i wanted to transfer. But when the money reached ibfx i found it less by $60/- its not much money but its the principle of the matter. On enquring fxpro said they sent whatever i requested with no charges deducted on their side and ibfx claiming they forwarded to my a/c exactly what the received with no charges deducted either.

They claim its bank charges but bank never before deducted this much charge, for this type of transfer .Now broker know damn well i'm not going to run behind some bank in new york for the sake of just 60usd so imagine they do this everyday. How much money they make.

another example I'll give you'll always notice whenever slippage happens its always on the stop side almost never or very very rarely on the target side?
In fact personally i've never been slipped on the target price so id have more profit its always on the stop side so ive had more than i intended to lose.

These days i trade long term positions with multi-level entry and am a practioner of quarters theory even then i am facing odd things from the broker and biggest problem im facing is now a days how to get the money back to india :confused: since now its become popular banks and AO's at the it dept are becoming very familiar with this concept and are quick to say its illegal via lrs.

Its really sad to see newbies with pipe dreams of forex $$$ millions i think this myth is perpetuated by the brokers now a days so many websites have ads for brokers promising insane leverage and pictures of housewifes and schoolgirls making millions smiling trading fx from their bedrooms.

humans seek comfort in groups and within the group will emerge a leader to whom they look for sloace and reassurance it makes no difference if the leader is right or wrong (like the broker) this has repeatedly happened throughout the ages.
 
#4
Re: NFA orders monetary sanction of $320,000 against New York forex firm IKON Global

IKON GM, NFA Member, the Latest News--Ikonfx.com

NEW YORK, Oct. 20, 2010 (GLOBE NEWSWIRE) -- Over the last year, IKON Global Markets, Inc. ("IKON GM") has formed a strategic alliance and joint venture with one of the world's largest exchanges to develop a suite of products tailored to the retail FX market. These products will offer the same user experience as traditional OTC FX, in conjunction with the all benefits of an exchange cleared financial product. There are many changes occurring in the global financial markets, most notably in the United States. The passing of the Dodd-Frank Financial Reform Act has brought on many new requirements and restrictions. These new policies enforced by the US CFTC and the NFA have affected the retail market as of the close of business Friday October 15th, 2010. Ultimately, as we consulted legislators, regulators and market participants over the past year, we came to the determination that the time has come for the Foreign Exchange market (particularly the retail market) to move to the customer protections and integrity of a regulated exchange. We at IKON have taken steps to create this possibility, and as a result of our strategic alliance, IKON GM has developed this new exchange based model. Given this glimpse into what we believe to be the future of retail FX, IKON GM has decided that we will no longer be acting as a traditional counterparty in the retail OTC FX market. Therefore, in order to prepare for this exchange based model, IKON GM has transferred or ceased trading with US based retail clients as of the close of business Friday October 15th, 2010. International clients have been transferred to IKON Capital, Ltd., an FSA registered firm. Although we will no longer be acting as a traditional counterparty in the retail OTC FX market, we will continue to service institutional clients, as well as make markets on exchange and ECN platforms. We look forward to bringing you further news of this new and innovative model in the coming weeks.
 
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