End of the Road for I-Trade FX

Is it the end of the road for I-Trade FX? It appears that way, if announcements seen and a notice posted on the website mean anything.

I Trade FX notice

Forex Capital Markets LLC (www.fxcm.com) announced on May 4, 2009, it has reached an agreement to acquire the U.S. and international retail forex clients of i-Trade FX. Subject to regulatory approval, accounts are expected to be transferred from i-Trade FX to FXCM on May 8, 2009. source 

This source offers an explanation on what is happen although there could be more to this particular story.

Like several other forex firms, I-Trade FX has decided to cease offering service to US retail clients. Other firms that have decided to exit the U.S. retail business include ODL Securities, Hotspot FX, and CMC Markets. To offer retail forex trading services under NFA rules, Forex Dealer Members (FDMs) will be required to have a minimum of $20 Million in firm capital as of May 16, 2009. source 

I-Trade FX’s relationship with the David Smith/OLINT and the resulting problems with the the NFA has certainly not helped their cause. Last  month, the NFA fined I-Trade FX US $250,000.

Interestingly, the shut down appears to be affecting some non-us clients. One visitor to the blog from Australia commenting on the issue, said  that since May 8, 2009,  she has been unable to get access to her account and the lack of response from I-Trade has been a source of frustration. 

We would love to hear from I-Trade FX.  I-Trade FX customers would love to hear from you.

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Of interest: