Broker Capital (apparently) has no broker/traders giving specific trading recommendations/advice/instructions whatsoever and the advice and instructions were given to me were from employees of a third party firm, as I understand it, an Introducing Broker firm employed by Broker Capital to expand its Client base ONLY. Therefore the Introducing Broker acted in a capacity far beyond its remit and acted fraudulently. The people that I dealt with were rude and demanding.
I did understand and accept the risk disclaimer on its website but I had been conned to believe that these people were acting on behalf of Broker Capital and were expert traders. I was told that the relevant employees of the Introducing Broker have had their employment terminated, which I understand at this stage, is the only action taken by Broker Capital therefore I am very surprised that a legal claim for damages have not been commenced by Broker Capital against the Introducing Broker.
The entire situation for me was a nightmare that began with a $5000 deposit which spiralled out of control with many more deposits as a result of severe margin difficulties arising from a number of trades in the wrong direction with no stop loss, forcing me to make deposits up to 121000 and finally ending in the account being margined out. I was, all of the time, given the incentive to add funds by being given $42000 in bonuses. From my discussion with Ana that Broker Capital do not give bonuses so I assume that it was the Introducing Broker making these. I had an account of about $203000 comprised of my funds of $121000, $42000 in bonuses and early profits of about $40000.
I will give 2 examples of the trades that I was instructed to make:
One trader instructed me to buy volume 7 of silver right at the previous week’s high when I was warning him of a reversal but he demanded that I take the trade. He could not have picked the high any better. Then he rang a few hours later and told me to double up to buy 7 more. By now I was approaching my first margin call.
Another trader did the same in buying wheat, assuming that a gap would close. I told him that momentum was strongly down but again he demanded that I take the trade. A third trader leveraged up on wheat long, gold, SP500 and WTI to finish my account but not before I needing to add more funds to my account to lift the margin level. In fact I had recommended to this trader that I close all trades whilst I had over 100,000 in equity but they were adamant that the trades would come out in profit. This was because they risked losing the $42000 they had deposited into my account. I wished that I had of acted.
In total, I had spent $21000 savings and borrowed $100,000. I am now in big trouble with the Australian Tax Office for using funds from my pension account which may result in a hefty fine or raising my tax rate from 15 to 40%. I also had a guy shouting abuse down the phone last week saying the firm’s reputation was at stake and demanding that I raise my margin level.
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.