A Review Of Forex Refco
Forex refco more properly known as REFCO FX Online is a service offered by REFCO FX, LLC formerly a foreign exchange trading subsidiary of REFCO. REFCO is a financial services company based in New York. Forex refco is offering in exchange for a fee, streaming market prices, trade execution, and access to research, and straight through processing.
The exchange rate quotes provided by forex refco are updated 24 hours a day and offer real-time quotes more than twenty currencies and hundreds of crosses. This is comparable to other competing services, which provide similar services and coverage.
The service also offers trade execution capabilities, or the ability to buy and sell online. Most other services offer the same but forex refco claims to have quick and easy screens designed for traders who wish to move large volumes of currency.
One of the unique parts of the REFCO offer is access to research. After paying for the whole service, customers can access Global Research, an institute owned by REFCO as well as a free trial of research from third parties at no additional cost. Straight through processing is also offered. In the context of this paid service, it means that a new office REFCO has established will provide pre-trade margin check and access to day-end reports online, including and not limited to customer reports. Forex refco encourages each customer to have contacts with any major trading desk. REFCO also states that they continue to believe in people contact. In light of this, they offer 24-hour customer support for a wide range of functions, such as placing order with trading desks, explaining and giving details on customer statements or helping with inquires with regards to navigating the online foreign exchange trading platform. REFCO, the New York based financial firm that makes once made forex refco, suffered a collapse in October 2005, following an announcement that Phillip R. Bennet, its chief executive officer and chairman, had tried to hide over 430 million US dollars in bad debt from investors and company auditors. This led to Bennet being arrested and charged with Securities Fraud. As a result, prices of shares in REFCO quickly started a massive drop from a starting point of $28 per share all the way down to around $.08 per share. All trade on REFCO stock was then stopped and REFCO was delisted from the New York Stock Exchange. Before the collapse of October 2005, REFCO was the largest broker on the Chicago Mercantile Exchange and had over 4.1 billion USD I around 200,000 active accounts. Though it was denied by REFCO, it is generally believed to have held 75 billion USD in leverage. REFCO had only been a public company for a few months before the collapse. There was a rush of investors and there was great investor confidence due to the strong average annual gains in the five years before the initial public offering. Refco was the fourth-largest U.S. foreign exchange broker before its Oct. 10 revelation that Phillip Bennett hid $430 million of debt from investors and auditors. Within the week REFCO filed for bankruptcy within as clients frantically withdrew more than $3 billion from accounts. This leaves forex ventures of REFCO including forex refco in doubt in the present day.
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