The Origin Of The Alleged Incident Of My Forex Funds
At 2023/9/1, the official website of My Forex Funds suspended all services without warning, including all services such as websites, backstage accounts, and trading servers, and announced the following words on the official website.
My Forex Funds As a result of investigations by U.S. and Canadian regulatory agencies, all services and assets were frozen. The official was also investigated and placed in Zahid N. in Trenton, New Jersey on 9/11. Judge Quraishi held a hearing on whether to issue a preliminary restraining order.
After the incident, all services were suspended, and all accounts and withdrawals also stopped operating, including accounts that are undergoing assessment and accounts that have passed the assessment and are waiting for profit sharing. All accounts have been affected by the incident, and the scope of impact involves the use of Users of My Forex Funds around the world, including myself.
This incident is even more shocking for the Prop firm industry. After all, My Forex Funds has been among the top in the industry in the past in terms of community voice and user feedback at home and abroad, and even the good impression of the smooth operation of withdrawals.
However, something has happened. I can only review that I haven't done enough homework. Let's just believe that the compensation plan will be brought back after the hearing. At this moment, the registration fee will be recognized as a loss and the lessons learned will be reviewed.
CFTC 的指控 - My Forex Funds 是一場騙局
"Could it just happen so suddenly? 」
After seeing the contents of a 40-page complete document, I think things may not be as simple as I thought.
This document is composed ofThe U.S. Commodity Futures Trading Commission (CFTC) The investigation and submission, and the investigation time is about one year, not one or two months, and there is also a lot of evidence against My Forex Funds. This evidence may be in any form, including text, e-mail, etc., and according to the CFTC's investigation and allegations, My Forex Funds is a scam.
After reading the 40-page document, I will provide some key points and my views to readers who are concerned about the development of this incident.
"CFTC Document Disclosure"
CFTC Charges Full Documentation
The CFTC accused “My Forex Funds" of being a large-scale fraud scheme. The plan induces investors to believe that they will have the opportunity to participate in the foreign exchange market as professional traders and use the funds of “My Forex Funds” to trade. However, in fact, investors' transactions are not as transparent and fair as they think.
在這 40 頁文件中，詳細列出 CFTC 的指控理由以及各種證據，有興趣了解可以閱讀上方完整文件，我也整理以下幾個重點。
1.My Forex Funds defraud and hide actual opponents
Although My Forex Funds claims that customers' transactions will be carried out with third-party "liquidity providers", in fact, Traders Global (non-third-party liquidity providers) are the actual counterparties to almost all customers' transactions.
Traders Global 將最成功的交易者訂單以 STP 帳戶方式執行，也就是把訂單交由海外真正的流動性提供商處理，大部分則以非 STP 方式執行。
- 以 STP 方式執行訂單交易者
最成功的交易者訂單是用 Traders Global 存入 Dealer 資金交易(真正的用公司資金進行交易)，若交易者賺錢，Traders Global 也賺錢，但 Traders Global 反而不指望交易者賺錢，根據指控，以 STP 方式執行訂單的交易者比往常更容易賠錢(因為 Traders Global 會在這些訂單額外加更大的點差)；若交易者賠錢，Traders Global 也賠錢，但最大損失規則有虧損上限。也就是目的都希望把這些最成功的交易者壓迫到邊緣，直到不是使用Traders Global 的資金(非以 STP 方式執行訂單)。
- 以非 STP 方式執行訂單交易者
而根據指控，使用 STP 方式執行訂單的客戶非常少，在調查期間有24,000個通過考核，但只有不到 100 個帳戶是以 STP 方式執行。也就是大部分包含多數通過考核的交易者都是以非 STP 方式執行訂單，當客戶賺錢，Traders Global 就賠錢；當客戶賠錢到帳戶終止，再購或重置帳號可以讓 Traders Global 賺錢，而這種方式才是 Traders Global 可以很好操弄帳戶的方式。
2.My Forex Funds uses special software to reduce the profits of successful customers
My Forex Funds secretly uses special software to influence customers' orders to execute at a lower or higher price than the price displayed when the customer's order is sent, which causes customers to unknowingly bear more losses. For a more successful trader, the larger the profit, the more serious the slippage in the account, and the longer the order execution time, in order to avoid large withdrawals, suppress customer profits, and increase customer losses.
And this is where the "slippage" was criticized at the beginning. As everyone knows, it turned out to be artificially manipulated.
3.My Forex Funds charges improper commissions
The transaction commission fee is a commission of US 33 per lot, and they claim that Traders Global is a liquidity provider, so the transaction fee will be considered reasonable, but Traders Global is not a liquidity provider and does not actually require a commission. They only made about US7 7 million from the commission.
4.My Forex Funds terminates trader's account in a false name
The CFTC discovered and accused My Forex Funds of terminating customer accounts while falsely claiming that traders had violated trading rules, when in fact they did not violate any rules.
The Impact Of My Forex Funds On The Entire Prop Firm Industry
According to this allegation, it basically revolves around Traders Global and Kazmi themselves, Traders Global does not hold a compliance license and claims to be a third-party liquidity provider to customers. The trading environment is also artificially manipulated to increase risks to traders. It was accused by the CFTC of being a Ponzi scheme.
This accusation document report reveals a lot of industry secrets, and now it can't be said that there are no possibilities for the future of this industry. After all, there are still many normal operations. If you use a compliant third-party liquidity provider and disclose all the information, you shouldn't get to the step of My Forex Funds, but it's also difficult.It is said that there will be no new actions in the supervision of the United States and Canada.
In Sidley This newsIt was pointed out that the U.S. SEC passed an amendment on August 23, 2023 to expand the supervision of proprietary trading companies by FINRA, the main regulator of over-the-counter trading. It is estimated that 64 companies will be affected, and these are not members of FINRA. This direction is really not a bad thing for the entire industry. It can be regarded as throwing an olive branch to provide a regulated alternative to becoming a member, but it also symbolizes that the Prop Firm industry will usher in major changes in the future.
這次突發的監管，總體來說，也許是一個行業興起的必經道路；個體來說，分散風險的教訓還是更難能可貴，而這也是目前正在進行的規劃，配置非美加地區的自營商，同時也確保使用的三方流動性提供商是持有監管牌照，或是直接使用Broker backed 的 Prop Firms，並且開不同公司的帳號分散風險，在公司能順利出金前獲取分潤，最後利用自有資金操作，才是長期之策。
Regarding this matter, we can only wait for the official announcement after the 9/11 hearing to deal with it. Regardless of whether the news is good or bad, we always plan for the worst first, recognize the loss this time, and based on the details of the allegations given in this document, avoid falling into a similar trap again..
My Forex Funds Tracking
My Forex Funds Hearings Postponed
Regarding the MFF incident, the Ontario Securities Commission of Canada has extended its investigation into Traders Global Group Inc. And Muhammad Murtuza Kazmi's interim order, the hearing originally scheduled for September 13, 2023 was postponed to October 30, 2023.
Court Order for Provisional Receivership of My Forex Funds
MFF's original website has been unable to connect and the SSL has been removed. The current url is ”http://www.myforexfunds.com/“, The above picture information will be displayed after the connection, to the effect that the CFTC will appoint a temporary receiver to freeze the assets of Traders Global Group for investigation. Customers are expected to be able to claim compensation, but they still have to wait for the investigation.
There are ways to contact you below the website, but the above information does not mention information about how to make a claim. In fact, it is uncertain whether you can make a claim. This email is not a contact channel for claims, but since you have left your contact information, you may wish to try it.
Court Orders Release Of Most Of My Forex Funds Founder’s Assets
InThis reportIt was pointed out that the U.S. court ordered the release and return of most of the assets of founder and CEO Murtuza Kazmi on 11/14, worth about 100 million U.S. dollars. However,美元12.08 million of these assets will remain frozen.
The report pointed out that although Ian McGinley, director of enforcement at the CFTC, said: "The CFTC is committed to eliminating retail fraud in the market. Anyone who provides or signs a leveraged retail foreign exchange contract without registration, or provides or signs a leveraged retail commodity contract off-site, is in clear violation of the law. 」
But Kazmi's legal team previouslyDismiss the CFTC's charges, And in response to the CFTC's jurisdiction over proprietary trading business and the submitted evidence, the transactions between My Forex Funds and its customers are not within the jurisdiction of the regulatory agency.
However, in the latest report, it is pointed out that sinceTemporary receiverSince the intervention, the defendant has appeared in court, hired experienced lawyers, complied with court orders, provided asset accounts to the CFTC and testified in court, expressing interest in resolving the case.
Therefore, the judge wrote in a 28-page opinion: "No matter what concerns the CFTC originally had about the possibility of the defendant squandering its assets, they seem to have been greatly reduced. 」
Since Kazmi is very cooperative in this case, the court also believes that a temporary receiver is no longer needed to enforce the court's order, so the contact information of the temporary receiver has been removed at the bottom of the login to the My Forex Funds website.
Although most of the assets were returned, the judge held that My Forex Funds had restricted profits related to 8% of customers with "real accounts", so part of the assets were still frozen.
My Forex Funds - INVESTIGATION EXPLAINED
Readers who are interested in understanding the English commentary of the full text of the document can also watch this video to explain the incident with an affected MFF Live Funded Trader.
Risk Warning:
Forex and Contract for Difference (CFD) margin trading carries a high level of risk and may not be suitable for everyone. The high degree of leverage can work against you as well as for you. Before deciding to trade forex and CFDs, you should carefully consider your trading objectives, level of experience, and risk appetite. You may sustain a loss of some or all of your initial investment. You should be aware of all the risks associated with forex and CFD trading, and seek advice from an independent financial advisor if you have any doubts.
Please note that before deciding to purchase any retail proprietary trading firm challenge, you should carefully consider the company's challenge trading objectives, drawdown risks, and various rules. You may lose part or all of your initial funds used to purchase the challenge account.
Some proprietary trading firms (Prop Firms) provide all accounts to clients with virtual funds in simulated accounts. All trades are conducted only in a simulated environment. For details, please refer to the announcements on the official websites of each prop firm.
Similarly, I passed it once before, and then the operation failed by mistake. This time I finally succeeded.
I am also a victim. I failed the first exam. In the second exam, the first level was almost over, and I encountered this incident.
I really appreciate Xiaosheng for organizing and analyzing this incident in detail, so that Chinese people who cannot understand (do not understand) foreign languages can easily and clearly understand the beginning and end of the incident.
It seems that I just took the exam this time, and I really confessed, and I recognized a loss of$499🥲.
Hope it helps you!