Broker deducted from my commission after IB client lost money | Forex Factory

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Attachments: Broker deducted from my commission after IB client lost money
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Broker deducted from my commission after IB client lost money

  • #1
  • First Post: Jan 14, 2015 7:04pm Jan 14, 2015 7:04pm
Dear Sir/Madam
I am a broker of LMAX.In 2014, LMAX Sales Representative(qilin.wang) Deducted $2492.53 from My business commission by Threaten me to cancel my business qualification.I think it is not reasonable.So i want to put $2492.53 back,Can you help me? Some evidence in the attachments inside.thank you !Yours sincerely
Baojun qiao
2015-01-14
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  • #2
  • Jan 14, 2015 7:24pm Jan 14, 2015 7:24pm
Quoting qbjstone
Dear Sir/Madam I am a broker of LMAX.In 2014, LMAX Sales Representative(qilin.wang) Deducted $2492.53 from My business commission by Threaten me to cancel my business qualification.I think it is not reasonable.So i want to put $2492.53 back,Can you help me? Some evidence in the attachments inside.thank you !Yours sincerely Baojun qiao 2015-01-14 {image} {image}
Can you translate your attachment into English please so we can understand what happened.
Make your losses in demo. Earn your profits live.
  • #3
  • Jan 14, 2015 7:46pm Jan 14, 2015 7:46pm
Quoting Forexia
{quote} Can you translate your attachment into English please so we can understand what happened.
One of my clients traded in LMAX platform,He failed transaction,He owed LMAX $2492.53. Qilin.wang ,LMAX Sales Representative,She doesn't let me out of my money, Threaten me to cancel my business qualification,and Deducted $2492.53 from My business commission account. I think this is not acceptable ,so I want my $2492.53 back ,
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  • #4
  • Jan 14, 2015 7:48pm Jan 14, 2015 7:48pm
Quoting Forexia
{quote} Can you translate your attachment into English please so we can understand what happened.
thank you! i have to post these here!
  • #5
  • Jan 14, 2015 7:54pm Jan 14, 2015 7:54pm
How did your client "fail the transaction" ? Did he do a chargeback to his creditcard when he lost money trading?

Are you an introducing broker?
  • #6
  • Jan 14, 2015 7:57pm Jan 14, 2015 7:57pm
Quoting qbjstone
{quote} One of my clients traded in LMAX platform,He failed transaction,He owed LMAX $2492.53. Qilin.wang ,LMAX Sales Representative,She doesn't let me out of my money, Threaten me to cancel my business qualification,and Deducted $2492.53 from My business commission account. I think this is not acceptable ,so I want my $2492.53 back , {image}
Ok.

1. What's your relationship with LMAX? Are you an Introducing Broker of LMAX?

2. You business commission? How did you earn that? Did you get your business commission from LMAX or from you clients?

If it's your clients who traded on LMAX and lost money then this is between your client and LMAX. IF you are an Introducing Broker for LMAX, as far as I understand about the Introducing Broker's role, once you introduce a client to LMAX, that client becomes a client of LMAX and not you; their account is directly with LMAX. So if they lost money because of your client's trading activities, LMAX should go after your client and not you. Once you introduced the client to LMAX and the client opened the account with LMAX, your job is done and you owe LMAX no responsibilites or obligations over your client's trading activities whatsoever. I would suggest you to talk to the Head Office of LMAX in England.

Good luck!
Make your losses in demo. Earn your profits live.
  • #7
  • Jan 14, 2015 8:03pm Jan 14, 2015 8:03pm
How did your client "fail the transaction" ? he lost all his money
  • #8
  • Jan 14, 2015 8:05pm Jan 14, 2015 8:05pm
Are you an introducing broker?

yes
  • #9
  • Jan 14, 2015 8:15pm Jan 14, 2015 8:15pm
Quoting Forexia
{quote} Ok. 1. What's your relationship with LMAX? Are you an Introducing Broker of LMAX? 2. You business commission? How did you earn that? Did you get your business commission from LMAX or from you clients? If it's your clients who traded on LMAX and lost money then this is between your client and LMAX. IF you are an Introducing Broker for LMAX, as far as I understand about the Introducing Broker's role, once you introduce a client to LMAX, that client becomes a client of LMAX and not you; their account is directly with LMAX. So if they lost money...

thank you for your advice!
  • #10
  • Jan 15, 2015 1:27am Jan 15, 2015 1:27am
You sent them email regarding this issue?
What explanation they gave you about this?
  • #11
  • Jan 15, 2015 6:19pm Jan 15, 2015 6:19pm
Quoting Arjun Bajaj
You sent them email regarding this issue? What explanation they gave you about this?
I have not seen a reply,thank you!
  • #12
  • Jan 16, 2015 2:12am Jan 16, 2015 2:12am
Quoting Forexia
{quote}IF you are an Introducing Broker for LMAX, as far as I understand about the Introducing Broker's role, once you introduce a client to LMAX, that client becomes a client of LMAX and not you; their account is directly with LMAX. So if they lost money because of your client's trading activities, LMAX should go after your client and not you. Once you introduced the client to LMAX and the client opened the account with LMAX, your job is done and you owe LMAX no responsibilites or obligations over your client's trading activities whatsoever. I...
Incorrect, unless he was getting paid a one off compensation aka CPA, he is still on the hook. If I remember, LMAX's IB works on revenue sharing. So yes, if the client took a loss (i'm assuming because of yesterday's event) then by default, the IB's commissions get deducted as well. Its called revenue sharing for a reason. profits or losses, its shared. The OP probably never came across a situation where a client's money got into -ve equity.

OP: Was this a result of yesterday's chaos or is it unrelated? Because it does spell trouble for LMAX if the client is in -ve equity.
  • #13
  • Jan 16, 2015 9:38am Jan 16, 2015 9:38am
Quoting jw1981
{quote} Incorrect, unless he was getting paid a one off compensation aka CPA, he is still on the hook. If I remember, LMAX's IB works on revenue sharing. So yes, if the client took a loss (i'm assuming because of yesterday's event) then by default, the IB's commissions get deducted as well. Its called revenue sharing for a reason. profits or losses, its shared. The OP probably never came across a situation where a client's money got into -ve equity. OP: Was this a result of yesterday's chaos or is it unrelated? Because it does spell trouble for...
Ah I see. That's why I suggested him to contact LMAX in HQ to discuss. IB arrangements across different brokers are all different I guess. There are IB who are not into profit-sharing. This is good for us traders actually so the brokers can't screw us too much. If we are making too much losses due to the broker's manipulation, IB's won't be too happy. I hope so too this is not related to the SNB crap which has so far wiped out or about to wipe out TWO biggest retail forex brokers.
Make your losses in demo. Earn your profits live.
  • #14
  • Last Post: Jan 19, 2015 6:22am Jan 19, 2015 6:22am
The more I think about this, the more questions come to mind. Why would they deduct IB commissions? Considering IB's get paid a part of the commission, equity profits or losses shouldn't play a role. Would be good if the OP updates on this or tells the whole story from the beginning.
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