Forex Factory Xela is a well-known and respected online platform that provides traders with a wide range of resources and tools to help them navigate the forex market. However, in recent years, the platform has been embroiled in controversy, with its membership being revoked by several regulatory bodies. In this article, we will explore the reasons behind Forex Factory Xela’s membership revocation and what it means for traders.
Forex Factory Xela was established in 2004 and quickly gained popularity among forex traders as a reliable source of market information. The platform offers a range of services, including market analysis, trade alerts, and a forum where traders can discuss market trends and strategies. However, in recent years, the platform has been criticized for its lack of transparency and for allowing unscrupulous traders to manipulate the market.
One of the main reasons why Forex Factory Xela’s membership was revoked is the platform’s controversial practice of “thread bumping.” Thread bumping is the process of repeatedly posting on a forum thread to keep it at the top of the page, even if there is no new or relevant information to share. This practice is widely regarded as spamming and is frowned upon by most online communities.
In addition to thread bumping, Forex Factory Xela has also been accused of allowing traders to manipulate the market by posting false or misleading information on the platform. This practice, known as “pump and dump,” involves artificially inflating the price of a stock or currency by spreading rumors or false information, and then selling the asset at a profit once the price has risen.
These practices have caught the attention of several regulatory bodies, including the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). In 2017, Forex Factory Xela’s membership was revoked by FINRA for violating several rules, including failing to maintain accurate records and failing to establish and maintain a supervisory system.
The SEC has also taken action against Forex Factory Xela, issuing a cease-and-desist order in 2018 for violating securities laws. The order alleged that the platform had been operating as an unregistered broker-dealer and that it had failed to disclose its compensation arrangements with traders.
The revocation of Forex Factory Xela’s membership by these regulatory bodies is a significant blow to the platform and its users. Traders who relied on the platform for market information and analysis will now have to look elsewhere for reliable sources of information. The revocation of membership also raises questions about the future of online trading platforms and the need for greater regulation and oversight.
In conclusion, Forex Factory Xela’s membership revocation is a result of its controversial practices, including thread bumping and allowing traders to manipulate the market. The revocation by regulatory bodies such as FINRA and the SEC highlights the need for greater transparency and oversight in online trading platforms. While the revocation is a setback for Forex Factory Xela and its users, it also presents an opportunity for the industry to learn from these issues and improve the standards of online trading.
