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Unregistered Forex Brokers Sued by CFTC

The CFTC made a major move against unregistered forex brokers – they sued no less than 14 brokers. Lawsuit were filed in 4 different courts across the US.  Here are the names of the companies:

  1. EuroForex Development LLC, a Delaware LLC;
  2. FIG Solutions Limited, Inc., a Delaware corporation;
  3. ForInvest, a Delaware corporation;
  4. FXOpen Investments Inc., a Delaware LLC;
  5. FXPRICE, a Delaware LLC;
  6. GIGFX, L.L.C., a Delaware company;
  7. InovaTrade, Inc., a company with purported offices in Florida;
  8. InstaTrade Corporation d/b/a InstaForex, a British Virgin Islands company;
  9. InvesttechFX Technologies, Inc., a Canadian corporation located in Toronto;
  10. J&K Futures, Inc., a company with purported offices in California and New York;
  11. Kingdom Forex Trading and Futures, Ltd., a Nevada company;
  12. Prime Forex, LLC, a Delaware LLC;
  13. Wall Street Brokers, LLC, a Delaware LLC; and
  14. ZtradeFX LLC, a Connecticut LLC.

Bloomberg reports that the CFTC is seeking an injunction to stop the firms from operating until they comply with the regulations.  Are you a client of one of these firms?

In 12 complaints, the allegations show that the companies worked as forex brokers and took the opposite side of the client’s transactions. In two other ones, against ZtradeFX LLC and FXPRICE, the firms have just operated as unregistered forex brokers.

It’s interesting to see that also FXOpen, that also has an ECN model is also in the list of companies that were sued for working against the forex traders.

The CFTC definitely works hard to fight problematic forex brokers. There’s a lot of doubt about whether some of its rules, such as the leverage limit, protect forex traders.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.