Forex CT Customers Lost at Least $54 Million, Yet to Be Compensated

The liquidators of the now-collapsed Aussie broker, Forex Capital Trading (Forex CT) released a report last week revealing that they have identified at least 11,174 former customers of the platform. Additionally, the losses on the platform have mounted to at least AU$77.4 million ($54.21 million), which is only likely to increase.

Forex CT provided forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and contracts for differences (CFDs) trading services until June 2020. Based in Melbourne, the platform operated with a license from the Australian Securities and Investments Commission, but severely violated regulations with its boiler-room sales tactics.

The three individual liquidators from FTI Consulting highlighted that the brokerage operated with “significant levels of misleading or deceptive conduct and unconscionable conduct.”

The brokerage targeted unsophisticated investors with aggressive sales tactics and operated aggressive marketing campaigns from jurisdictions with almost no financial market oversight to avoid any implications in Australia.

In addition, the latest liquidators’ report revealed that only 10.5 percent of the identified Forex CT customers made profits on the platform.

“I strongly urge former Forex customers to register for a potential claim against the Company, in order to allow the Liquidators to request those claims be paid by Forex CT’s parent, Invesus Group Ltd in Gibraltar,” said FTI’s Senior Managing Director, Daniel Woodhouse.

Regulator's Action in Vane?

The illicit practices of the trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term came to the Aussie financial market supervisor’s notice around 2019, while ASIC cancelled the operating license of the platform in June 2020. Moreover, the regulator took action and received a court’s approval to impose an AU$20 million pecuniary penalty on the broker.

Furthermore, the regulator banned Forex CT’s sole director, Shlomo Yoshai, for ten years from offering financial services and imposed an additional fine of AU$400,000 on him. However, Yoshai cooperated with the regulator that trimmed the initially sought penalty of AU$70 million to AU$20.4 million.

However, none of the proceeds from the penalty has reached the affected clients’ pockets yet.