TheCollectiveFX

[Dewey McG]

Someone posted elsewhere that the white label was forexpgt.com

Anyone know anything about this or what happened?

[Dewey McG]

This appeared on IFSC's page today:

BDG FINANCIAL SERVICES LTD. aka THE COLLECTIVE FX GLOBAL

International Financial Services Commission Warning Notices BDG FINANCIAL SERVICES LTD. aka THE COLLECTIVE FX GLOBAL

Posted on June 4, 2014 · Posted in Warning Notices

Office of the International Financial Services Commission,

Sir Edney Cain Building,

Belmopan,

Belize, C.A.

3 June 2014

WARNING NOTICE

BDG FINANCIAL SERVICES LTD.

aka THE COLLECTIVE FX GLOBAL

It is notified for general information that BDG Financial Services Ltd., operating under the trading name of “The Collective FX Global”, is no longer licensed by the International Financial Services Commission of Belize (IFSC) for trading in foreign exchange or to engage in any other international financial services. The Company’s licence had expired on 31 December 2013.

All persons concerned are asked to take note and exercise caution.


GIAN C. GANDHI

DIRECTOR GENERAL

International Financial Services Commission of Belize

[dudest]

Someone willing to hire a bounty hunter to find Gary Slingo:

http://forums.babypips.com/melting-pot/ ... olved.html

.

[rocketman99]

Someone willing to hire a bounty hunter to find Gary Slingo:

http://forums.babypips.com/melting-pot/ ... olved.html

.

Google is your friend. http://www.companydirectorcheck.com/gary-slingo

This dude was the sole director of another FX operation that was "dissolved". Guess same thing happened. Closed company, took clients money and fled to Belize.

Anyway, maybe Googling the directors of the company you want to deal through is in order. For example, Global Prime is owned by Gleneagle Securities who appear quite large, but frankly never heard of them till I googled Global Prime.

[Pedigree]

Google is your friend. http://www.companydirectorcheck.com/gary-slingo

This dude was the sole director of another FX operation that was "dissolved". Guess same thing happened. Closed company, took clients money and fled to Belize.

Anyway, maybe Googling the directors of the company you want to deal through is in order. For example, Global Prime is owned by Gleneagle Securities who appear quite large, but frankly never heard of them till I googled Global Prime.

Quite useful.

Also good to clarify for one's self is the issue of clients' funds safety as it relates to the location of the funds. It is good to remember that as far as this is concerned, "segregated" does not always mean segregated. If as is commonly the case, the broker is advertised as segregating clients' funds, but the segregated account is in the broker's name, this is of hardly any real benefit to the trader. How is anyone to know what goes on with the funds from day to day, particularly in circumstances when the broker is under some financial pressure or the other? As long as the "segregated account" is in the broker's name, they can do anything with the funds if push comes to shove.

A truly segregated account is that in which the broker allows the trader to maintain a percentage of his trading funds in a separate account in the client's name from which the broker will receive regular Client Bank Guarantees to confirm the integrity and availability of the funds. The broker then allows the trader's account to be traded with the account balance reflecting in addition the balance in the separate account. Outside of the requirements of the trading account, the broker has no access to the funds in the separate account.

A third option is to segregate your funds personally for yourself. In the UK, for instance, every trader is covered by the FSCS to the tune of £50,000. If you have 200K to trade with, you can deposit 50K with the broker and keep the remaining 150K in a separate account (of course in your name). You will trade your 50K account as you would a 200K one in terms of money management with the proviso that funds can be quickly transferred to the trading account as the need arises. There is the added advantage here that your separated 150K will, in the mean time, earn you some interest on the side.

My heart goes out to Dewey, bbclenet and anyone else affected by this. One can only hope that it ends with the recovery of the funds involved. Obviously, the incidents with PFGBEST and now CollectiveFX demonstrate clearly that the issue of funds security is an increasingly serious one that must be given special consideration from the outset and a way forward settled for that will guarantee a fair outcome for all concerned in case of the unexpected.

[rocketman99]

Google is your friend. http://www.companydirectorcheck.com/gary-slingo

This dude was the sole director of another FX operation that was "dissolved". Guess same thing happened. Closed company, took clients money and fled to Belize.

Anyway, maybe Googling the directors of the company you want to deal through is in order. For example, Global Prime is owned by Gleneagle Securities who appear quite large, but frankly never heard of them till I googled Global Prime.

Quite useful.

Also good to clarify for one's self is the issue of clients' funds safety as it relates to the location of the funds. It is good to remember that as far as this is concerned, "segregated" does not always mean segregated. If as is commonly the case, the broker is advertised as segregating clients' funds, but the segregated account is in the broker's name, this is of hardly any real benefit to the trader. How is anyone to know what goes on with the funds from day to day, particularly in circumstances when the broker is under some financial pressure or the other? As long as the "segregated account" is in the broker's name, they can do anything with the funds if push comes to shove.

A truly segregated account is that in which the broker allows the trader to maintain a percentage of his trading funds in a separate account in the client's name from which the broker will receive regular Client Bank Guarantees to confirm the integrity and availability of the funds. The broker then allows the trader's account to be traded with the account balance reflecting in addition the balance in the separate account. Outside of the requirements of the trading account, the broker has no access to the funds in the separate account.

A third option is to segregate your funds personally for yourself. In the UK, for instance, every trader is covered by the FSCS to the tune of £50,000. If you have 200K to trade with, you can deposit 50K with the broker and keep the remaining 150K in a separate account (of course in your name). You will trade your 50K account as you would a 200K one in terms of money management with the proviso that funds can be quickly transferred to the trading account as the need arises. There is the added advantage here that your separated 150K will, in the mean time, earn you some interest on the side.

My heart goes out to Dewey, bbclenet and anyone else affected by this. One can only hope that it ends with the recovery of the funds involved. Obviously, the incidents with PFGBEST and now CollectiveFX demonstrate clearly that the issue of funds security is an increasingly serious one that must be given special consideration from the outset and a way forward settled for that will guarantee a fair outcome for all concerned in case of the unexpected.

Australia has similar rules. Customer funds need to be segregated by law into a separate trust onshore which is protected by the government. I think it's also to the tune of $200k. I am not sure how this works for non Australian citizens.

But as you mentioned there is "segregation" and segregation. I used to trade through GFT until they started going through business changes and moving my account first from the US to UK then to some other company they sold my business to. Even though their documentation spoke about segregation of accounts as per Australian law, my money eventually came from a foreign bank via money transfer into my bank when I closed my account. I got all my money, but as usual the broker was not telling the entire truth.

[Dewey McG]

I called and spoke with the director of the IFSC in Belize. There is no reason why The Collective cannot disperse funds from the clients account. He suggested getting an attorney in Belize, but they wanted a $5000 retainer PLUS expenses, $250- $500 per hour attorney's fees PLUS 20% of what they recover. By the time they would be done nothing would be left.

This keeps getting uglier

[Dewey McG]

BTW--another person who was one of the leading people there is Heeja Han .

[SatchFan]

BTW--another person who was one of the leading people there is Heeja Han .

Thanks for the updates Dewey. I assume you got your request for funds in by now. Any news or response on that yet?

[Dewey McG]

Thanks for the updates Dewey. I assume you got your request for funds in by now. Any news or response on that yet?

Nope. Not a word from them, plus the phone numbers are disconnected and some of the e-mails don't work any more