I am submitting the case against: www.Forex.com My Case is: I am a day trader. I have a major account with forex.com with around $204k. I trade with forex.com for over one year. over all is profiting but not very much and not that consistent. total profit is around $50000. On oct 15, 2014, I made about$11000. However, the next day I found my account is disabled. I decide to withdraw my fund and email my customer manager for inquiry what happens. The customer manager just say he is sorry about that and the financial department is processing my fund withdrawal. I decide to withdraw my fund because I ever have the experience that my other account with forex.com was ever disabled (they usually disable accounts once you make consistent profits for several months) before but all fund and profit were returned. I open an new account with forex.com because their IB urge me to open an account with them again for account interest and spread discount. There was no problem during the last whole year. However, all of sudden, they disable my account and told me all my positive trade that day is forfeited (totally positive trade $19276.33) leave an ' Admin Trd Adj -19276.33' in my account that means only my negative trade that day (around $8000) was left. Please note in forex.com website, they allow all tradings including EA . I don't understand what makes them forfeit my profitable trades and leave only negative trades in my account If their server got wrong, how come retail trader should be punished and how come they can do like this. That is totally scam and unacceptable. I declare I just traded by my strategy. I have been trade with the strategy (trade with pyramid for trend bounce back) for over 4 years. I don't know what happens to their server/platform. My strategy is based on the indicators and timeframes. No matter their server got wrong, I will execute the trades based on my strategy and sure will make profits on that day. It is totally nonsense they say because I make use of their server problem and then took all my profits and left all negatives. Their logic is: If their server got problem and you lose, you have to accept it. but if you make profit, you have to be punished. They can't lose anyway. that's it.
I have 4 argues:
1. My trades are based on 1min/5min mainly trend bounce back with small pip 5-30 pips take profit . you can check my trading records atwww.myfxbook.com/members/yunben and check the duration. There are many many trades closed less than 1min. The trades on Oct 15, 2014 are consistent with my strategy and trading style.
2. I ever heard price latency. normally a forex company latency is less than 1 second and even lower. My trades is short but still longer than 25 seconds to several minutes. How do they determine all my profiting trades are invalid and loss trades valid? Forex.com needs to make a report what's wrong with their server. start time and end time, how long is the price latency. Forex.com claim during the price latency they will trade with traders. they should not make profit based on price latency. This means they should cancel all trades during the price latency not just my profiting trades only. In facts, they make profits by taking fund from my account.
3. If their server got wrong, they should make an open announcement to all their clients and public, cancel all lose and win trade of their clients not me alone. So far I didn't see any public announcement that they claim their server got wrong on that day.I am wondering whether forex.com just give an excuse and take fund from my account because I make profits.
4. Let us know whether the institution traders have this price latency too. I am wondering whether forex.com make use of this latency to make money on retail traders. at a huge price movement time, Forex.com decide to trade against its customers without risk by this kind of latency, it knows what to trade with its clients. if the latency is as low as 1 minutes or less. Only super short term traders that have multi-account knows what happens. Then for those who make profits, forex.com will claim they make use of the latency and easily take away their fund. They all make money on retail traders by this scam.
Please accept this email as formal notice regarding FOREX.com UK recent decision to close the above referenced FOREX.com account you hold with us and effectively terminate the customer agreement between your person and FOREX.com UK in full accordance with the agreement with such termination becoming effective as of the date of this email.
As a result of a recent quality control review of your account activity, we determined we are no longer in a position to continue extending our services to you. As such, we have determined to close the account.
Please note your account status has been changed to “Terminated” which bars further login and trading capabilities. Your account does not appear to have any open positions and have $185,656.03 available to withdraw. To receive your funds, please complete, sign and submit the attached withdrawal request which is provided herein for your convenience.
Should you have any questions following this communication, please do not hesitate to contact me.
Kim Siu | Compliance Analyst | GAIN Capital – Forex.com UK Ltd. D: UK [highlight=transparent !important][highlight=transparent !important][highlight=transparent !important][highlight=transparent !important]+44 (0)207 170 0770[/highlight][/highlight][/highlight][/highlight] x61023 | e: [email protected] w: www.forex.com 25 Canada Square | 34th Floor | Canary Wharf | London E14 5LQ
2) Dear Mr. Yun,
Gain Capital has conducted an audit of the trading activity on account 11112780. The result of this audit determined that the trading on 15 October 2014 was conducted on price latency arbitrage. In accordance of section 28.5 of the Customer Agreement you hold with Gain Capital:
As the trading that occurred is a violation of this Agreement, Gain Capital will retain the ill-gained profits in the amount of $19,276.33.
Stephanie Bromm, Compliance Manager | GAIN Capital – Forex.com UK Ltd. d: UK [highlight=transparent !important][highlight=transparent !important][highlight=transparent !important][highlight=transparent !important]+44 (0) 207 170 0785[/highlight][/highlight][/highlight][/highlight] x61012 | e: [email protected] | w: www.forex.com 34th Floor (cgc 34-03) | 25 Canada Square | Canary Wharf | London E14 5LQ Company representatives' emails: Stephanie Bromm <[email protected]> Kim Siu <[email protected]>
This is clearly case for regulator to solve. They accepted your orders for prices which their platform/servers offered at that time, which is binding. The latency between their servers and liquidity providers to hedge your positions (if they do?) is the risk connected with their business and they should be taken into account when calculating their commissions for your trading to minimize such risks. If there was no bug intentionally exploited from your side, post trade manipulation of such kind is absolutely unacceptable and should be avoided by reputable brokers at all times.
theHand posted: And read those documents they want you to sign before you can withdraw the remainder of your funds. Very likely you admit wrong doing or something once you sign those.
Thanks, I have withdrawn the remaining fund. The case now is reviewed by FOS. Forex.com said they adjusted the trade profit/loss by raw bank data and now profit become $-19276.33. I don't accept the way. It means they traded against me. They punished me while this is due to their server failure problem. here is the email from forex.com.
Dear Mr Yun,
Thank you for your time on 30th October 2014 regarding your account status with GAIN Capital-FOREX.com UK Ltd. As per our conversation you requested the following information relating to off market transactions that were placed on the 15th October 2014
1. The transactions that were executed on off market rates 2. The rates that we used to make adjustments to the above referenced transactions 3. The profit and loss due to the adjustments for each transaction 4. The time that the transactions we traded on off market rates
As part of the FCA Handbook SUP 10 Dispute Resolution: Compliant (DISP) GAIN Capital-FOREX.com UK Ltd is obliged to provide you details on referring your complaint to the Financial Ombudsman Service. We provided you with this information on the 24th October 2014 and advised you have the right to refer your complaint to the Financial Ombudsman Service. We were notified by Financial Ombudsman Service that you filed a complaint with them on 25th October 2014 regarding your account termination and the adjustments we made to transactions that were executed on off market rates.
In line with our regulatory obligations, we will provide the case information relating to the aforementioned transactions directly to the Financial Ombudsman Service. We will allow the Ombudsman to independently review the complaint and provide both of us a response to their findings.
Kind Regards, Mike Bermingham
Mike Bermingham | Operations Director| GAIN Capital - Forex.com UK Ltd d: +44.(0).207 429 7914| f: +44.(0).207 236 4870 | e: [email protected]| www.forex.com/uk 25 Canada Square | 34th Floor (CGC 34-03) | London E14 5LQ
considering the 268 lots you traded on oct 15, 2014 - https://www.myfxbook.com/members/yunben/11112780/708787 I would have to say that your trading system was arbitrage. I've seen this happen at Alpari on Forex Factory a while back . same dispute but the broker always wins because they include trading clauses that we agree to when opening an account.
No, you don't trust anyone. Probably the best regulators are in Australia. Those brokers I give preference, shortly followed by Singapore.
UK and USA are a joke. You just have to see how the banks behave. HSBC had special boxes made for the drug cartels to make it easy to deposit their cash in Mexico. Then they get bust and the fine is like a few weeks revenue. Clearly that system is corrupt to its core. And I suspect quite close to collapse.
And again there's no talk of criminal cases, just fines. Small ones compared to the gains these people made.
Historically when markets have reached this level of corruption the money simply leaves. NYSE has lost about 90% of its volume and the little bit they do have is just the HFT firms battling it out against each other. Granted some of it's competition, but clearly there is something structurally wrong with the markets.
So you need to spread your risk over a few brokers and use leverage to minimise counter party risk. And it goes without saying you will be taken to the cleaners a few times before it becomes apparent who can be trusted.
There are a few which I tend to like.... but not in the U.S. A broker that has its base somewhere but a local UK branch and in most of the major countries (like Germany, Italy, France, etc) in Europe would be my bet.
I checked their US version customer agreement. It seems they dare not take a penny from its clients pocket (say, realized profit/loss). but in UK version, they have a lot of terms that allow them to adjust trades after the market. They forbid scalping or price latency which never appears in US version. This all because they trade against you. You win means they lose.
Stay away from Forex.com
I found forex.com have different terms in customer agreements in their UK/US version. According to their UK agreement, they can do anything to your account in their discretion. I have to say, they very very likely do this deliberately to its retail clients . They can easily delete your profit by their UK agreements. but they can't change customers realized profits/losses in US agreement.
28.4 Access to the Trading Systems is provided “as is”. Gain Capital UK makes no warranties (express or implied), representations, or guarantees as to merchantability, fitness for any particular purpose or otherwise with respect to the Trading Systems, their content, any documentation or any hardware or software provided by Gain Capital UK. Technical difficulties could be encountered in connection with the Trading Systems. These difficulties could involve, among others, failures, delays, malfunction, software erosion or hardware damage, which difficulties could be the result of hardware, software or communication link inadequacies or other causes. Such difficulties could lead to possible economic and/or data loss. In no event will Gain Capital UK or its affiliates or any of their employees be liable for any possible loss (including loss of profit or revenue whether direct or indirect), cost or damage including, without limitation, consequential, unforeseeable or special damages or expense which might occur as a result of or arising out of using, accessing, installing, maintaining, modifying, deactivating or attempting to access the Trading Systems or otherwise. Gain Capital UK further reserves the right, in its reasonable discretion to unwind an executed Transaction or adjust the price of executed Transactions (including Transactions that have been confirmed or settled) to a fair market price if the Transaction was mispriced because of technical difficulties with the Trading Systems.
28.5 Internet, connectivity delays, and price feed errors sometimes create a situation where the price displayed on the Trading Systems do not accurately reflect the market rates. The concept of arbitrage and “scalping”, or taking advantage of these internet delays, cannot exist in an over-the-counter market where the client is buying or selling directly from the market maker. Gain Capital UK does not permit the practice of arbitrage on the Trading Systems. Transactions that rely on price latency arbitrage opportunities may be revoked. Gain Capital UK reserves the right to make the necessary corrections or adjustments on the Account involved. Accounts that rely on arbitrage strategies may at Gain Capital UK’s sole discretion be subject to Gain Capital UK’s intervention and Gain Capital UK’s approval of any Orders.
28.6 Gain Capital UK shall have no obligation to contact you to advise upon appropriate action when there are changes in market conditions.
3. Prices, Margin And Valuations Are Set By FOREX.com And May Be Different From Prices Reported Elsewhere. FOREX.com will provide prices to be used in trading, valuation of Customer positions and determination of Margin requirements. Although FOREX.com expects that these prices will be reasonably related to prices available in the interbank market, prices reported by FOREX.com may vary from prices available to banks and other participants in what is known as the interbank market. FOREX.com will exercise considerable discretion in setting and collecting Margin. FOREX.com is authorized to convert funds in Customer’s Account for Margin into and from such Foreign Currency and Metal at a rate of exchange determined by FOREX.com in its sole discretion on the basis of then-prevailing money market rates
13. Internet Trading. Since FOREX.com does not control signal power, its reception or routing via Internet, configuration of Customer’s equipment or reliability of its connection, FOREX.com shall not be liable for any claims, losses, damages, costs or expenses, including attorneys’ fees, caused, directly or indirectly, by any breakdown or failure of any transmission or communication system or computer facility or trading software, whether belonging to FOREX.com, Customer, any market, or any settlement or clearing system when Customer trades online (via Internet).
15. Quoting Errors. Should a quoting error occur due to a mistype of a quote or a misquote given by telephone and/or electronic means (including responses to Customer requests), FOREX.com is not liable for any resulting errors in Account Balances and reserves the right to make necessary corrections or adjustments on the Account involved. Any dispute arising from such quoting errors will be resolved on the basis of the fair market value, as determined by FOREX.com, in its sole discretion, of the relevant Currency at the time such an error occurred. In cases where the prevailing market represents prices different from the prices FOREX.com has posted on our screen, FOREX.com will attempt, on a best efforts basis, to execute trades on or close to the prevailing market prices. These prevailing market prices will be the prices, which are ultimately reflected on the Customer Statements. This may or may not adversely affect customer realized and unrealized gains and losses.
Forex.com at least shows two features of scam in 'You'll be banned for winning too much' and 'Skewing quotation of prices'
Ways in which you can be defrauded: Stop Hunting/Running That's Immoral: Forex brokers always advice on proof-less fact that you will hardly face any stop running in this market. This fabrication is the boldest and biggest claim of them. In fact the truth of the matter is that there exists much more forex stop running than there is in futures. The stop running in this market is possibly the same as in the equity markets. Suspicious spike: Sometimes, on the chart of a broker, there's very fast increase in candlestick when there's nothing taking place on another's chart. Indicator like stop-loss is prompted mainly to give indication of that dubious spike. You'll be banned for winning too much: You must have heard that winning frequently in forex can cause you to be banned. Win too much and be barred in Forex, you may ask yourself. But it's true. Leaning: Brokers claim they charge you a three-pip layout when trading the well-known pair of currencies. But the pips they are making may run into double digit figures, for example 10 or even more. He skews the price to do this. As you are not conducting your trading at an exchange, your broker can proffer you any price he wishes to. Skewing quotation of prices: Commonly, brokers in the forex market lean prices. The broker is capable of just giving you the currency price as quoted by the bank he uses to trade. Different banks have different currency pricing structures. You will never get to know what the true real price is, in the absence of a central exchange where all prices flow through.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.