During the passing week the most interesting stories from the online trading industry included an expose of UK tabloids that fell for the tales of a binary options affiliate as well as scammers targeting the readers of FX news websites.
On Monday we reported that the holding company which is aiming to control FXDD, ForexWare and IronFX, has filed its financial results for the past few months. Nukkleus is paying $1.97 million per month to FXDirectDealer LLC for “providing personnel and technical support, marketing, accounting, risk monitoring, documentation processing and customer care and support”.
The news comes as the firm is preparing to engage in more transactions which are aiming to bring FXDD, ForexWare and IronFX into the holding group. The sole owner and director of Nukkleus, Emil Assentato, has engaged in building the firm with a multitude of brands after wholly acquiring IronFX Australia and a 9.9 per cent interest in IronFX Global.
On Tuesday we examined the get-rich-quick type of stories which the ‘yellow press’ loves to publish in order to generate more hits on online articles.
A variety of UK tabloid publications, including The Daily Mail, The Sun and The Metro, reported how Robert Mfune has become a rich kid, purchasing a Bentley and painting it gold. Not only that, but how he made his fortune trading binary options. Even The Times picked up on the story, providing an in-depth look into the lavish lifestyle of Mfune.
FXCM Class Action Lawsuit thrown out of court
This week a New York district court has dismissed a class action lawsuit filed against FXCM over its performance in the aftermath of the Swiss National Bank turmoil in 2015.
The plaintiffs in the case alleged that FXCM misled investors by claiming that its agency business model is less risky than it really was. In addition the lawsuit was charging some other executives in the company, including the broker’s CEO Drew Niv, with scienter. The allegations went as far as to say that FXCM had no risk management department nor any protocols that manage risk.
On Wednesday it was reported that the self-regulatory organisation aiming to manage relationships between clients and retail brokerages, KROUFR, has blacklisted TouchTrades.
Interestingly, TouchTrades is based in Northern Cyprus (TRNC) – a country recognised only by Turkey. Hence, the validity of this licence is highly questionable. Needless to say, any legally-registered brokerages operating from the island should possess a real CySEC licence.
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On Thursday it was reported that traders have received solicitation messages from a person who is claiming to be representing a popular website and claims that he is managing accounts. The scheme is aiming to collect money from people that trust the FXStreet brand.
Internal investigations conducted by FXStreet have yielded that the individual behind this scheme is Jordan Barta. According to the website, the emails have been sent from a domain which he registered.
On Friday we reported that the former COO of JFD group, Lars Gottwik, has been promoted to CEO, and will spearhead JFD Brokers focusing on the deployment of Guidants, a web based trading terminal addressing the German speaking markets.
The former CEO of the group Cyril Tabet now focuses on JFD Wealth as CEO while spearheading the launch of a new fintech focused venture addressing both the high net worth and personal finance marketplaces via robo-advisory solutions alongside a new set of strategic and technology partners.