This is something for ALL traders who have money on any USA Forex brokers. YOUR MONEY IS NOT SAFE FROM BANKRUPTCY!
Here is a quote from a letter from a NFA and CFTC registered/regulated broker given to a friend regarding his account:
"... Under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used for off-exchange forex trading, if XXXXX becomes insolvent and you have a claim for amounts deposited or profits earned on transactions with XXXXX, your claim may not receive a priority. Without a priority, you are a general creditor and your claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Even customer funds that XXXXX keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors."
Bottom Line: NFA, or CFTC or funds kept separate are no guarantees of safety of your monies! Retail Forex Trading is not safe unlike FUTURES and OPTIONS contracts.
Be warned, be guided and be smart!
Right now, I am very sorry to all those who have money at FXLQ; this letter serves as a bad news for them.
Here is a quote from a letter from a NFA and CFTC registered/regulated broker given to a friend regarding his account:
"... Under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used for off-exchange forex trading, if XXXXX becomes insolvent and you have a claim for amounts deposited or profits earned on transactions with XXXXX, your claim may not receive a priority. Without a priority, you are a general creditor and your claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Even customer funds that XXXXX keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors."
Bottom Line: NFA, or CFTC or funds kept separate are no guarantees of safety of your monies! Retail Forex Trading is not safe unlike FUTURES and OPTIONS contracts.
Be warned, be guided and be smart!
Right now, I am very sorry to all those who have money at FXLQ; this letter serves as a bad news for them.