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Screenshot of a breaking news alert e-mail from Q2 2017
LeapRate Exclusive… LeapRate has learned that a number of leading affiliates of South African retail forex broker ACM Gold have lost patience with ACM Gold and its continued regulatory problems, and are shifting their business to other brokers.
ACM continues to have its FSB license listed as ‘provisionally withdrawn‘, now for more than a month, meaning that ACM can continue doing business and executing trades for existing clients, but cannot take on any new clients. And that’s where affiliates and IBs typically make their money – introducing new clients into forex brokers.
ACM’s current troubles are believed to have resulted mainly due to the activity of its largest affiliate, Platinum Forex. Platinum is owned and run by a charismatic and popular pastor named Colin Davids who had his assets seized by South African authorities under suspicion that he was running a pyramid scheme financing his lavish lifestyle.
Another ACM affiliate, Go Direct Stock Market Investments (GDSMI), was recently issued an FSB warning after complaints received from Go Direct clients that their money has never been paid back, and that they have not received promised returns on their investments.
In one specific example we have learned of, another (former) sizable ACM Gold affiliate called Billionaires Consortium is shifting its client business from ACM to CM Trading, another FSB regulated dealer.
The problem which some of the affiliates are having, however, is moving the existing clients to new brokers. Not all clients have been able to get their money out of ACM.
LeapRate has received an official response from an ACM Gold spokesperson on the situation:
- We ended our relationship with Billionaires Consortium over two months ago.
- We ended our relationship with Go Direct a year and a half ago.
- Our company name is ACM Gold, not ACM Golf [editor’s note – we fixed the typo].
- All clients are welcome to and are able to withdraw their funds. Your sentence reflects otherwise, and this is hugely concerning.
We will continue to follow this situation. Stay tuned to LeapRate…