FX Introducing Broker gets NFA whip

United States financial regulator has taken an emergency enforcement action against Ifinix Futures Inc. Ifinix is an Introducing Broker and 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 Firm Member of NFA, the firm also operates as Pro Active Futures.

NFA's investigation of the firm found that IFINIX's principal Benhope Munroe created fabricated bank statements in a deliberate attempt to deceive NFA regarding the firm's deficient capital position. The purported bank statements indicated that the firm's operating account had a current balance of more than $60,000. However, as discovered by NFA through its investigation, the firm's bank account actually had a Negative Balance Negative Balance In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place Read this Term. Therefore, IFINIX has failed to demonstrate that it is in capital compliance with NFA Financial Requirements.

Effective immediately, the Member Responsibility Action (MRA) suspends Ifinix from NFA membership until further notice. Ifinix and all futures commission merchants (FCMs) carrying customer accounts introduced by the firm are also required to provide copies of the MRA to their customers. In addition, Ifinix is prohibited from disbursing or transferring any funds over which it or any person acting on its behalf exercises control, without prior NFA approval.

The MRA will remain in effect until Ifinix has demonstrated that the firm is in complete compliance with all NFA Requirements. Ifinix may request a prompt hearing on this matter before NFA's Hearing Committee.

Grab your latest copy of the Forex Magnates Retail Forex Industry Report.