Last Updated on November 11, 2024 by Richard Gibson
MyForexFunds used to be the top prop firm out there. Most firms today follow their model. However, in 2023, they got into a legal battle and shut their services down. Until they are back on business, we at MyForexReport decided to remove our article, where we disclosed our real-life experience with their account.
However, when we went through our backend search quarry, we found many traders who wanted to know about MFF and whether they would be back in action. With that in mind, my team and I went through their case files. I will summarise here what is happening with them ( as simply as I can). I will put that info here if there is any update about the case or if MFF decides to return.
What Happened to MyForexFunds
On August 29, The Commodity Futures Trading Commission (CFTC) filed a lawsuit in New Jersey against Murtuza Kazmi and his company, Traders Global Group Inc. (operating as “My Forex Funds”). They are accused of fraudulently soliciting customers to trade in leveraged foreign exchange (forex) and commodity transactions.
On August 29, a judge froze the defendants’ assets and appointed a temporary receiver to review their financial records. The CFTC aims to recover money for defrauded investors, impose fines, and permanently ban the defendants from trading and further violations. The defendants allegedly lured over 135,000 customers into their trading program by promising them a share of profits. Instead, they manipulated trades to ensure losses and profited from customer fees totaling at least $310 million. Kazmi allegedly used this money to buy luxury items and transfer millions to personal accounts.
MyForexFunds Court Case Update (September 2024)
My Forex Funds (MFF) won a partial battle against the CFTC, but the larger battle may still favor the CFTC.
Judge Zahid Quraishi unfroze more of MFF’s assets, leaving only $12.1 million under the CFTC’s control. The judge’s decision to release MFF’s funds was based on his confidence that MFF wouldn’t misuse them, thanks to their cooperation and legal representation. This means MFF may soon be able to process refunds and payouts. ( This is a hope from our side)
However, the more significant issue is that the court found enough evidence of wrongdoing to justify the initial asset freeze. Although this was not a full trial, the ruling suggests that the CFTC has a strong case, and the court supported its authority to regulate MFF’s activities.
The most significant impact of this ruling is that the judge dismissed the argument that prop firms operate in a “gray area” outside of regulations. He stated that while the environment may be simulated, the trading is real. This could lead to more scrutiny on prop firms, as the court emphasized that they are subject to regulation.MFF argued that because customers made no deposits and took no risk, the trades weren’t real, but the court disagreed. The judges think that the trades are pretty much real.
When it came to fraud allegations, the court sided with the CFTC. MFF misled customers by implying their trades were against outside liquidity providers. But the truth is, MFF was on the other side of almost all trades. The court found this misleading material misleading customer decisions, and MFF knowingly withheld this information.
The court further ruled that MFF’s fraud and unregistered activities were central to its business model, making it likely they would continue if allowed to operate. As a result, a preliminary injunction was issued to prevent MFF from resuming operations. However, the court did criticize the CFTC for wrongly claiming that Kazmi’s $31.55 million payment was suspicious when it was actually for Canadian taxes, something the CFTC failed to clarify to the court. Despite this, the mistake didn’t change the overall outcome.
So in Short
The court won’t yet allow the MFF to commence its operation, but it unfroze the assets so that they can pay the existing traders. Also, one significant point here is that the court thinks that there is no such thing as “STIMULATED TRADING” since money is involved. This is a good thing for the traders because now forex prop firms have to be legally regulated, at least in the USA.
MyForexFunds Court Case Update FAQs
It is hard to say for now. However, most of their assets are unfrozen so that they can pay back their existing traders. The court ruled that all prop firms fall under the regulations of the CFTC. So MFF can come alibit they have to maintain the rules set out by CFTC. It is only a matter of time.
MyForexFunds’s headquarters is situated in Ontario, Canada.
After a quick analysis of all existing prop firms, we found that The5ers and FXIFY are the best alternatives for MyForexFunds. They closely resemble MFF in that both firms provide MetaTrader. Like MFF, you can deposit a minimum of $39 (FXIFY) and $39 (The5ers) to get your funded account of $5000 or read our real-time experience to know about their services.
Richard Gibson is a trade analyst and writer for MyForexReport. He has over 10 years of experience in investing and trading equities, options and bonds. He trades options, stocks, and ETFs regularly following a value-driven investment philosophy. He’s a graduate of the University of MacEwan University, and holds a graduate certificate in financial planning from the University of Calgary.
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