Witch-hunt Towards Non-US Brokers Continues - CFTC Obtains Injunction Against Halifax Investment Services
Friday,25/04/2014|17:16GMTby
Adil Siddiqui
Australia based Halifax Investment Services has been shown the red card by the financial regulator in the US. The CFTC has reported that it has obtained a permanent injunction against the FX brokerage firm for soliciting US residents.
The U.S. Commodity Futures Trading Commission (CFTC), the main financial watchdog that supervises FX derivatives in the US has given the concept of free-market a new meaning. In a notification issued today, the regulator announced that it has received a legal mandate from the courts which prohibits an Australian based financial services firm from soliciting US residents for investment purposes.
The United States exercised its might in the world of financial markets through its directive against Halifax Investment Services. The Sydney head-quartered firm, which offers traders a number of trading platforms and products was found guilty by the regulator for promoting its services to US residents, despite the firm not holding the correct regulatory status in the US.
James B. Zagel of the U.S. District Court for the Northern District of Illinois issued a Consent Order of Permanent Injunction that bars Australian firm Halifax Investment Services, Ltd. from soliciting orders to trade foreign currency (Forex) from United States residents who do not qualify as eligible contract participants (ECPs). Details in the Order state; “that between October 18, 2010 and February 5, 2013, Halifax maintained a website that permitted United States residents who were not eligible contract participants to potentially apply to open leveraged Forex Trading accounts by submitting information online to Halifax’s website.”
Since 2008, FX traders in the USA have witnessed a number of significant changes that alter the way they deal with global FX brokers. New rulings deployed by the financial watchdog have prohibited foreign based brokers to solicit and promote products to US residents. Only firms registered in the US as a Retail Foreign Exchange Dealer (RFED) or Futures Commission Merchants (FCMs) are allowed to offer their products to residents.
The latest directive (Order) comes one year and two months after the CFTC filed a complaint against the broker. According to the CFTC complaint, Halifax acts as an RFED and knowingly solicits or accepts orders from non-eligible contract participants (non-ECPs) located in the U.S. without being registered with the CFTC as an RFED. Among other things, the complaint states that Halifax operates a website that permits U.S. customers to open trading accounts by submitting online account applications, and that nothing in Halifax’s online account application states that Halifax does not accept U.S. customers or precludes non-ECPs from opening forex accounts with Halifax. Apart from the permanent injunction, details in the complaint state that the CFTC; “also seeks civil monetary penalties, trading and registration bans, disgorgement and rescission.”
Australian providers are all too familiar with regulatory dealings with the US. In 2011, the CFTC reported that a number of global providers were soliciting US clients without the necessary paperwork. Vantage FX was caught-out along with ten other providers. The internationalisation of business and commerce has created a uniform code of conduct; this was reinforced during the 2009 G20 Summit which looked at OTC products and the role they played in the 2008 global recession. The US and Japanese regulators were the first major bodies to implement new leverage restrictions post the discussions, a concept that is expected to roll out in Singapore and other jurisdictions in the coming months.
Halifax no longer allowing US residents to open an account
Halifax Investment Services offers a wide range of asset classes. According to its website it also offers traders a choice of platforms including; MT4, GFT’s Deal Book and the Saxo Trader.
Surprisingly, the firm has not placed a standard disclaimer that is common on several non-US brokers website, the fact that they do not deal with US residents. Several competitors including Think Forex has the necessary data on its website which states: “Please note: We do not service United States entities or residents.” Brokers have questioned the role of regulators when trying to impose rules against firms authorised under another authority, the US has been prominent in its targeting of misbehaving firms however the implications of non-compliance are unclear. The key question is what powers the regulator has in enforcing its rules!
The U.S. Commodity Futures Trading Commission (CFTC), the main financial watchdog that supervises FX derivatives in the US has given the concept of free-market a new meaning. In a notification issued today, the regulator announced that it has received a legal mandate from the courts which prohibits an Australian based financial services firm from soliciting US residents for investment purposes.
The United States exercised its might in the world of financial markets through its directive against Halifax Investment Services. The Sydney head-quartered firm, which offers traders a number of trading platforms and products was found guilty by the regulator for promoting its services to US residents, despite the firm not holding the correct regulatory status in the US.
James B. Zagel of the U.S. District Court for the Northern District of Illinois issued a Consent Order of Permanent Injunction that bars Australian firm Halifax Investment Services, Ltd. from soliciting orders to trade foreign currency (Forex) from United States residents who do not qualify as eligible contract participants (ECPs). Details in the Order state; “that between October 18, 2010 and February 5, 2013, Halifax maintained a website that permitted United States residents who were not eligible contract participants to potentially apply to open leveraged Forex Trading accounts by submitting information online to Halifax’s website.”
Since 2008, FX traders in the USA have witnessed a number of significant changes that alter the way they deal with global FX brokers. New rulings deployed by the financial watchdog have prohibited foreign based brokers to solicit and promote products to US residents. Only firms registered in the US as a Retail Foreign Exchange Dealer (RFED) or Futures Commission Merchants (FCMs) are allowed to offer their products to residents.
The latest directive (Order) comes one year and two months after the CFTC filed a complaint against the broker. According to the CFTC complaint, Halifax acts as an RFED and knowingly solicits or accepts orders from non-eligible contract participants (non-ECPs) located in the U.S. without being registered with the CFTC as an RFED. Among other things, the complaint states that Halifax operates a website that permits U.S. customers to open trading accounts by submitting online account applications, and that nothing in Halifax’s online account application states that Halifax does not accept U.S. customers or precludes non-ECPs from opening forex accounts with Halifax. Apart from the permanent injunction, details in the complaint state that the CFTC; “also seeks civil monetary penalties, trading and registration bans, disgorgement and rescission.”
Australian providers are all too familiar with regulatory dealings with the US. In 2011, the CFTC reported that a number of global providers were soliciting US clients without the necessary paperwork. Vantage FX was caught-out along with ten other providers. The internationalisation of business and commerce has created a uniform code of conduct; this was reinforced during the 2009 G20 Summit which looked at OTC products and the role they played in the 2008 global recession. The US and Japanese regulators were the first major bodies to implement new leverage restrictions post the discussions, a concept that is expected to roll out in Singapore and other jurisdictions in the coming months.
Halifax no longer allowing US residents to open an account
Halifax Investment Services offers a wide range of asset classes. According to its website it also offers traders a choice of platforms including; MT4, GFT’s Deal Book and the Saxo Trader.
Surprisingly, the firm has not placed a standard disclaimer that is common on several non-US brokers website, the fact that they do not deal with US residents. Several competitors including Think Forex has the necessary data on its website which states: “Please note: We do not service United States entities or residents.” Brokers have questioned the role of regulators when trying to impose rules against firms authorised under another authority, the US has been prominent in its targeting of misbehaving firms however the implications of non-compliance are unclear. The key question is what powers the regulator has in enforcing its rules!
Retail Trading & Prop Firms in 2025: Five Defining Trends - And One Prediction for 2026
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
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Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
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Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
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We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
