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: KSiu@gaincapital.com 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@example.com | w: www.forex.com 34th Floor (cgc 34-03) | 25 Canada Square | Canary Wharf | London E14 5LQ Company representatives' emails: Stephanie Bromm <SBromm@gaincapital.com> Kim Siu <KSiu@gaincapital.com>
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: firstname.lastname@example.org| www.forex.com/uk 25 Canada Square | 34th Floor (CGC 34-03) | London E14 5LQ
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