What’s Happening with My Forex Funds?

In the early morning of September 1, users and traders of the My Forex Funds funding company have been affected by a very important news, related to the company’s regulation and, of course, to their funding accounts.

Statement issued by My Forex Funds

What happened to My Forex Funds?

Regulators in Canada and the United States have intervened the accounts of My Forex Funds; as of today they are temporarily blocked until at least September 11, when the first “trial” will take place. This movement may be due to several factors, mainly due to the implementation of changes in the regulatory rules to which the funding companieswere subject. This suggests that, most probably, it will not be the only one to be temporarily intervened.

What is the reason for the intervention of My Forex Funds?

Currently no one knows for sure what the reason for the intervention is, although it is very likely that the motive lies between these possible scenarios:

1. pressure from Finra: Finra (Financial Industry Regulatory Authority) is a non-profit organization dedicated to investor protection and market integrity. Finra could exert pressure to obtain more control over all those funding accounts, thus achieving more data to take care of market integrity.

2. New SEC regulations: The SEC (U.S. Securities and Exchange Commission) has modified the regulatory standards for funders. Taking this into account, they must gradually regulate all the companies that perform this function.

What will happen?

Based on the historical data of this company, it is very likely that it will be temporarily intervened until they get all the new regulation, which may generate discomfort in some investors. That said, the demise of My Forex Funds, a leader in the trading arena, is highly unlikely.

What can we do with funding accounts?

Unfortunately, it is not possible to carry out any economic activity via My Forex Funds in the financial markets, which causes a great impact on the level of profit for investors.

So far, the company has not commented on the matter and has not answered questions such as “What will happen to my funding account?“, to which we can briefly respond with a clear message, “patience”. In these cases you have to take courage and wait knowing that it is likely that the activity will be reactivated in a few weeks or months. Always remember that psychology is a fundamental pillar of a good trader. Keep calm in adverse times.

What is the solution?

One of the most effective solutions in these cases is to be foresighted and know how to diversify in several funding companies. With this we realize that any company can be affected or collapse at any time, it is possible that after My Forex Funds other large companies such as FTMO, True Forex Funds, etc… are intervened.

In short, it is advisable to rely on several funding companies at the same time, thus ensuring regular and uninterrupted trading activity. Funding companies are a great tool for investors, especially for those who are not willing or able to risk their own capital, but it is very important to be aware that it is necessary to diversify and not to rely only on one funding company. Traders who put all their eggs in one basket will be affected and will be inactive until at least September 11.