CFTC shuts down JadeFX
In a move of complete and utter disregard for peoples’ belongings the CFTC have shut down the trading operations of JadeFX and freezes the companys’ accounts. The allegation is that they are breaking the CFTC’s regulations. The interesting thing of course is that JadeFX is a Belize registered company and that they have no American customers (they all we’re kicked out last year when the CFTC started their crusade against home forex traders). I am very frustrated with this, I have a nice sum of money in there that I can’t access now. I am not an American, I should not be affected by their crap.
Apparently the CTFC argues that they have jurisdiction because the liquidity provider that JadeFX is using is Citi, but why the hell doesn’t they just send Citi a cease and desist letter and JadeFX can find another partner to trade with.
So basically I’m counting on the CFTC to penalize JadeFX for their “wrong doings” and I’m not counting on getting any of my money out. Thank you CTFC for protecting me as a trader and taking all my money. Thank you protectors of the Free World.
I’ve sent this to the CFTC. I don’t expect a reply:
“Dear Sir(s).
I would like a explanation why you are interfering with my right as a world citizen to trade with currencies on a fair market as provided by JadeFX out of Belize (not a US state FYI). I am a Swedish (Sweden is also not a US state) citizen. Please inform me on what grounds you are stopping my broker JadeFX from dealing with me? Whom are you trying to protect here?
JadeFX is saying that they will not process any withdraws while this process is in action, so I can’t get my money out. Also it is of course likely that they will be forced into bankruptcy if you don’t stop interfering with their business, and then I’m sure I won’t get any money. So if you were trying to protect me from losing money on trading Forex you instead just made me loose 100% (instead of gaining 143% like I did during 2010). Thank you very much.
BR Johan Axelsson
Customer at Jade FX, not an American citizen under your jurisdiction.”
The Jade FX website is down, but we have been getting some updates in emails within the MT4 platform. It doesn’t look good.
The CFTC wouldn’t have frozen their accounts and shut down their website for simply using a US-based liquidity provider.
Read between the lines, JadeFX’s owners are clearly lying or withholding negative information.
http://www.forexfactory.com/showthread.php?t=283245
I’m not sure that they have frozen the accounts, it is just JadeFX telling us that they won’t process withdraws during the investigation. They have stated that their customers equity is segregated, and as such they shouldn’t be able to use that to pay their lawyers or run of with it. But of course, it can be just a statement, I have no insight into the actual structure. The FAQs page still work: http://www.jadefx.com/faqs.htm
Thanks for the great research into Jacobs whereabouts. If I get to the states any time soon I will egg his house
Sign up to donnaforex.com private group about this…Send email to admin@donnaforex.com. You need to show proof that you are jadefx trader.
Hi thanks for your website I enjoy reading it. I followed and traded with JadeFX. Where are you going to now FinFX?
REgards
This shames me to be an American.
@John
Oh no, don’t take it like that. The CTFC is trying to “protect” us I still think. It is not the best way thou…
@Andreas
I’m there. Nickname Someguy at Donnas.
@Flash
I have active accounts at Alpari UK and The Collective FX still. This small incident have probably stopped me from getting an account at HotForex (right now at least), and I probably won’t get an account at FinFX straight away either.
I’m even thinking about pulling out of The Collective FX, just in case they’re in for the same crap as Jade. My EAs haven’t been performing too good there for some time anyhow. The spread is often just a few fractions of a pip better than Alpari UK and they charge a member fee on top of that.
I’m gonna be very cautious for some time I think. Maybe I’ll stick everything in the Alpari UK account. They’re FSA regulated.
In a way i am glad jade burn’t me. It is an important lesson to learn. I always had reservation about the structure/regulation. I’m experienced enough with investing not to get caught in these traps - got greedy with scalpers. Probably move over to Mig (Switzerland)
Regards Flash
@Flash
If I get my money out, I’ll be glad, otherwise probably not so much
MIG is probably a good one regulation wise, don’t know anything about them trading wise.
The legal documents are signed and in the public.
Here is the CFTC complaint:
http://www.cftc.gov/ucm/groups/public/@lrenforcementactions/documents/legalpleading/enfjadecomplaint030111.pdf
The CFTC news announcement:
http://www.cftc.gov/PressRoom/PressReleases/pr5997-11.html
And the legal documents:
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=1lkWRzyg-HLx-7eBPrE-EVTzL56FdGaCE0umgBA-Ox1INtwG4r1Gy3pWWBw1m&hl=en&authkey=CPXz9OcH
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=1ww-KfhjsIbTZ9R2bs41m-uT5t_LV5DfTknRlEu0plvQrkaz-5xOl81qDLM4a&hl=en&authkey=CLq5z9UJ
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=1cWIuVvAknjUBYBGiHTtEOj_QirVHsLpwMyv1D0zMEHPQp0Eb9gM08mtBH7pS&hl=en&authkey=CKKF_IwJ
@Dave
Thanks a bunch. Feels better with this information even thou the Future is still uncertain for our funds.
Sadly America has never been able to take a balanced view of America’s place in the world. And it is unlikely to learn how to do so as it sinks down the league tables of affluent nations, whilst its’ government continues the delusion that America can print its’ way out of trouble.
Good luck with your cash recovery.
Were you trading Forexshocker with Jade? Have you had any joy with it with other brokers?
Best wishes from England
@Pete
I was very upset when I wrote this, and in hindsight it was correct by the CTFC to shut JadeFX down. Jacob was stealing money from the deposited funds. When I wrote the above we didn’t have a clue why they interfered thou, and no one would answer. The lack of information was really the most annoying thing. Hopefully we soon get our funds, or parts of it at least, back and I can try to find another broker to trust them with.
Yes I was trading ForexShocker at JadeFX, but only EURUSD, GBPUSD and EURGBP. The others wasn’t performing so well. I haven’t traded with it since the shut down. Don’t really think the spreads at my Alpari/UK account is good enough to be worthwhile.
BR Johan