The NFA slaps Alpari US for $200,000

For Immediate Release
July 26, 2012
For more information contact:
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org

NFA issues $200,000 fine against New York forex firm Alpari US LLC

July 26, Chicago - National Futures Association (NFA) has ordered Alpari US LLC, a futures commission merchant and forex dealer Member located in New York City, to pay a $200,000 fine as a result of an NFA Complaint filed in June 2012 and a settlement offer submitted by Alpari and two of the firm's principals, Jermaine C. Harmon and Richard A. Lani.

The Decision, issued by NFA's Business Conduct Committee, found Alpari violated several NFA requirements, including improperly cancelling forex trades and removing profits from customer accounts, failing to timely report trade data and other required information to NFA, failing to observe high standards of commercial honor, failing to comply with NFA's Enhanced Supervisory Requirements and failing to keep accurate records. The Decision also found that Alpari - together with Harmon and Lani - failed to supervise.

In addition to the $200,000 fine, Alpari is required to refund within 30 days to customers losses they incurred as a result of the price adjustments that Alpari made to their accounts in connection with an October 2011 "market event." Alpari must also provide verification to NFA that these refunds were paid to and received by customers.

Alpari must also submit a written report to NFA within 180 days of the effective date of the Decision which documents the results of an independent review of Alpari's electronic trading platforms conducted by a qualified outside party and the steps Alpari has implemented to remedy deficiencies with the firm's internal controls.

Alpari, Harmon and Lani neither admitted nor denied the charges. The complete text of the Complaint and Decision are available onNFA's website.

3 members like this

Comment by Jimmy Adamson on August 2, 2012 at 8:37pm: This is not good at all. My account is with Alpari US. Time to look for another broker.

Comment by Ken Brennan on August 15, 2012 at 1:08pm: Joachim,

Thanks for this. I actually had a live account that Alpari funded as a promotion and I was trading for several months. When I was losing money or breaking even everything was fine. The day after I made a huge gain and demonstrated that I had finally figured out how to get around all their one-sided tactics, I was told that unless I deposited some more cash my account would be terminated. I let them close it. No loss to me.

Comment by Ken Brennan on August 15, 2012 at 1:09pm: Jimmy, So far I'm fairly impressed with MBTrading. But I'm not sure you can get that from overseas.

Comment by Ken Brennan on August 15, 2012 at 1:11pm: Personally, I think Alpari is laughing at 200,000.00. They have single clients with more cash in their accounts than that. This fine does not go far enough to make brokers think twice.

Comment by Jimmy Adamson on August 18, 2012 at 3:22pm: Hi Ken,

Unfortunately, MBTrading does not operate in Japan. I have been trading my UK account mostly. I have a hard time trying to use my Alpari US account. I will probably close out my Alpari US account and find a broker here in Japan. The usd is just too weak of a currency that I will open a yen based account in Japan. I can remember when it was 360 jpy to the usd, now it is 79 jpy/usd. Having sailed the world when I was in the Navy, I have noticed that the purchasing power of the usd has been getting steadily weaker. I some cases, jpy was accepted over usd.

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