The US National Futures Association (NFA) has ordered Traders Edge Inc., an NFA Member introducing broker located in Madison, N.J., to withdraw from, and not reapply for, NFA membership.

The Decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA’s Business Conduct Committee and a settlement offer submitted by Traders Edge, in which it neither admitted nor denied the allegations.

The Complaint alleged that Traders Edge’s website displayed misleading and deceptive trading results that were not presented net of commissions and fees and included discussions about profit that were not accompanied by an equally prominent discussion of the risk of loss, in violation of NFA Compliance Rules 2-29(b)(1), 2-29(b)(3) and 2-29(b)(5).

The Complaint also alleged that Traders Edge (through its employees) engaged in misleading and deceptive sales solicitations, in violation of NFA Compliance Rules 2-2(a) and 2-29(a)(1).

Further, the Complaint alleged that Traders Edge failed to adequately disclose fees to customers prior to the commencement of trading, in violation of NFA Compliance Rule 2-4.

Finally, the Complaint alleged that Traders Edge failed to diligently supervise the firm’s operations and employees, in violation of NFA Compliance Rule 2-9(a).

In its Decision, the Hearing Panel found that Traders Edge violated NFA Compliance Rules 2-2(a), 2-4, 2-9(a), 2-29(a)(1), 2-29(b)(1), 2-29(b)(3) and 2-29(b)(5).