Do not invest more money than you can afford to lose.
The US National Futures Association (NFA) has announced it is permanently barring from membership the Chicago-based introducing forex broker Vankar Trading. The body overseeing the forex and introducing brokers in the US has also barred Vankar’s president John Karvelas from acting as a principal of an NFA Member for 10 years. Karvelas must also pay a $15 000 fine.
The NFA’s Business Conduct Committee (BCC) decision is based on a complaint from this February and a settlement offer submitted by Vankar and Karvelas. The complaint alleged that the broker failed to maintain adjusted net capital and accurate books and records. Furthermore, Vankar and Karvelas failed to supervise the firm’s operations.
According to its website, Vankar is acting as an introducing broker of FXCM, FXCM UK, Gain Capital and ATC Brokers. Additionally, it is offering clearing and execution on futures, futures-options, FX and OTC cleared products, capital introduction services, consulting, algorithmic trading development and monitoring, expertise on hedging techniques and managed futures investments, etc.
This is not the first run-in of Vankar with the NFA, of which it has been a member since 2001. In 2008 the broker was accused by the organization’s BCC of failing to implement an adequate money laundering program, as required by US law and NFA’s regulations. Back then the matter was settled with Vankar paying a $12 500 fine.
The net capital problems started in 2013 when the NFA adjusted the computation methods and Vankar’s capital decreased significantly. After several letters on the subject and considering the previous compliance issues of Vankar, the NFA made another review of the broker in July 2015 when it was conducting both futures and forex business. The NFA exam found that Vankar was failing to maintain the minimum required adjusted net capital, current books and records and Karvelas failed to supervise the company business.
