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Attachments: Forced to close my account
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Forced to close my account

  • Post #1
  • Quote
  • First Post: Apr 17, 2021 6:51am Apr 17, 2021 6:51am
Global Prime notified me less than 48 hours before the ASIC Product Intervention Order took effect (which significantly reduced retail traders leverage), resulting in me losing nearly $15,000 in my account.

ASIC announced the change 5 months ago. but I was told about it on Thursday afternoon. They said I could either deposit $100,000 to cover the leverage reduction that would take place in the next couple of days, or my account would easily go into margin call and pretty much all my open trades would be closed.
  • Post #2
  • Quote
  • Edited 3:11pm Apr 17, 2021 8:17am | Edited 3:11pm
Quoting truelifeajf
Global Prime notified me less than 48 hours before the ASIC Product Intervention Order took effect (which significantly reduced retail traders leverage), resulting in me losing nearly $15,000 in my account. ASIC announced the change 5 months ago. but I was told about it on Thursday afternoon. They said I could either deposit $100,000 to cover the leverage reduction that would take place in the next couple of days, or my account would easily go into margin call and pretty much all my open trades would be closed.
Maybe just price went against you and not generally Global Prime. Probably hit support and find out and they will do a trade investigation.
Titan Black
Quoting truelifeajf
Global Prime notified me less than 48 hours before the ASIC Product Intervention Order took effect (which significantly reduced retail traders leverage), resulting in me losing nearly $15,000 in my account. ASIC announced the change 5 months ago. but I was told about it on Thursday afternoon. They said I could either deposit $100,000 to cover the leverage reduction that would take place in the next couple of days, or my account would easily go into margin call and pretty much all my open trades would be closed.
You were emailed as were all other clients. Mind if I share the proof here?

Regards,
Jeremy
I think sharing this kind of information here is conterproductive. Whats the dates that Global Prime notified clients?
Struggle is a path.
Global Prime notified me, for the first time on Thursday 15th April 2021.

They also assisted me withdraw money into accounts that were not in my name, knowingly breaching their AML regulations.
Quoting truelifeajf
Global Prime notified me, for the first time on Thursday 15th April 2021. They also assisted me withdraw money into accounts that were not in my name, knowingly breaching their AML regulations.
The expression, "They also assisted me withdraw money into accounts that were not in my name, knowingly breaching their AML regulations", makes you appear dangerous.

You knew your withdrawal attempt was a regulatory breach, but you proceeded with the act anyway. In an attempt to taint the image of your broker, you ended up shooting yourself in the foot.

Nonetheless, I'm really interested in knowing how your broker assisted you with such an act.
Process is the kernel of trading.
The trading world is speaking about ASIC Product intervention for the last 5/6 months... What you should have done is to talk with GP and ask them when would these changes get applied for AU clients long time ago like many informed people did. I´m not even Australian and I knew about this. Not being informed is no excuse, it´s in your own best interest to be informed of what is going on with the Forex world specially if you have that amount of money to invest. When you don´t do your home work and then say ¨Oh, I didn´t know¨ see how far that takes you in life in every legal situation and specially on courts. I´m with GP here.

Yeah notifications are important but it is also important to be informed about things and if necessary take the first step in the interest of protecting your assets.
Quoting truelifeajf
Global Prime notified me less than 48 hours before the ASIC Product Intervention Order took effect (which significantly reduced retail traders leverage), resulting in me losing nearly $15,000 in my account.
I assume you are an Au resident? Because then you might have been limited to Au entity only, which would include the 1:30 fx major pair leverage cap (less for exotics, crypto, etc).

Unless you opted to be accepted as a Professional/Wholesale client.


Quoting truelifeajf
...ASIC announced the change 5 months ago. but I was told about it on Thursday afternoon....
ASIC was doing a consultation since August 2019. The final ruling in Oct 2020 was just a matter of time. GP and several other brokers were making necessary preparations.

I assume this email only went out to GP's Au resident clients, perhaps not "all" clients.

Quoting truelifeajf
...They said I could either deposit $100,000 to cover the leverage reduction that would take place in the next couple of days, or my account would easily go into margin call and pretty much all my open trades would be closed.
If you knew since 5 months ago about the actual ASIC leverage mandate (and the proposed mandate even earlier), and the fact that you are not a day trader (you purposely hold overnight positions, apparently for several days or weeks at a time)...... why didn't you unwind your positions earlier? Or deposit more to cover the additional margin requirements?

It would be nice if you posted a screenshot of your total open positions. So we can see what you were working with. If you are going to claim "$100k margin call" and "$15k equity loss from liquidation" of all positions, i think you could show us the real exposure you had at the time of your notification to back the claims.

You did not post a total portrait of your outstanding positions, but if you had 1:200 leverage (max gp offers), and $15,000 drawdown.....let's consider a hypothetical situation to simulate the risk you might have been taking:

Margin call is 120% margin level, stop out is 100% margin level

Let's assume a starting balance of $50k USD
20 lots of EURUSD, 1:200 leverage would be $12,139 margin required.
75 pips drawdown to be $-15,000, but margin level is 288%, and you have ≈100 pips left until you get margin called.

Attached Image (click to enlarge)
Click to Enlarge Name: 2be4df3d8585c1fa8dd55dcb31ba4c2b.png Size: 89 KB


now that leverage drops from 1:200 to 1:30 and

$50k USD balance
20 lots of EURUSD, 1:30 leverage would be $80,928 margin required.
75 pips drawdown to be $-15,000, but margin level is 43% and margin stop out is instant. (Unless you add the $100k suggested to your acct balance)

Attached Image (click to enlarge)
Click to Enlarge Name: 282c2eda745fcb4d28aa48c3c98a609c.png Size: 90 KB


Quoting truelifeajf
...They also assisted me withdraw money into accounts that were not in my name, knowingly breaching their AML regulations.
if this were really true,

a) doesn't that make you a co-conspirator?
b) would you be willing to return the money and allow them to send it "correctly" according to your interpretation of the AML?

Side q: did you email porn to the GP staff when contacting them about this (or any time)? Came up in the discord. Assuming the actors are over the legal age of majority, would like some evidence also, lol.
Quote
Global Prime notified me less than 48 hours before the ASIC Product Intervention Order took effect (which significantly reduced retail traders leverage), resulting in me losing nearly $15,000 in my account.

ASIC announced the change 5 months ago. but I was told about it on Thursday afternoon. They said I could either deposit $100,000 to cover the leverage reduction that would take place in the next couple of days, or my account would easily go into margin call and pretty much all my open trades would be closed.

I can't comment on whether you were notified or not but I'm kinda surprised you were not aware.......as you mentioned, it has been general knowledge for 5 months now.

What I will say, is the fact that you 'lost' $15k due to being forced to close your trades is an incorrect assertion. If you have a $50 000 balance and you pull in a drawdown of $15 000 in open trades, you do NOT have $50 000.......you have $35 000. There is just no other way this works. If you have to close your trade, you can simultaneously open with some other broker(that give the desired leverage) the same amount of trade volume and you will be in the exact same position as before you closed the trades ie $35 000 equity. The most you can complain about losing is the cost of commissions and spread to open the new trades.
  • Post #10
  • Quote
  • Edited 11:54pm Apr 17, 2021 10:43pm | Edited 11:54pm
Quoting kennyhubbard
{quote} I can't comment on whether you were notified or not but I'm kinda surprised you were not aware.......as you mentioned, it has been general knowledge for 5 months now. What I will say, is the fact that you 'lost' $15k due to being forced to close your trades is an incorrect assertion. If you have a $50 000 balance and you pull in a drawdown of $15 000 in open trades, you do NOT have $50 000.......you have $35 000. There is just no other way this works. If you have to close your trade, you can simultaneously open with some other broker(that...
Correct. Any clients who went into margin call after the leverage reduction were kept on 1:100 and given multiple options. We did not force the closure of any client's trades.

More than happy to share all the information including trading statements, proof of all the emails being sent out and the final bank transfers to the Mods of FF (at the clients consent) if that helps.

Regards,
Jeremy
Well I wasn't aware of any ASIC regulation until the Thursday before it all happened. GP accepted they made no attempt to notify me earlier.

The only option I was give was add enough to cover the additional margin requirement (way too much money to cough up in 24 hours).

They did say they could keep the account open but only allow me to close trades. I use a trading method which involves hedging so if I can't open a hedge (instead of a SL), then all I can do is close trades (whether they're already in a hedge or not)... so ultimately, the only option available to me was to close the trades.

I applied to be a pro trader, they accepted the application after some fuss over one question where they basically gave me the answer to the question and then said that if I can write that I agree with that answer then they can approve my pro application. I replied accordingly. This was now Friday night.

Then over the weekend they reduced my leverage anyway, declined my pro trader application, locked my account and said I had to withdraw all remaining funds. No explanation given.

I wanted to withdraw into someone else's account. They allowed this... more than once. It's not illegal for me to do that. It's against their obligations to AUSTRAC and the like. Why they allowed it? I don't know.

I only learned it was announced 5 months ago after looking into it after Global Prime informed about it on Thursday. I don't think any reasonable trader should be expected to keep up with regularity changes without the help of their broker. If this was an ASIC order saying that there's new KYC requirement or something - no big deal... but the order would KILL retail trader's accounts and Global Prime absolutely has a responsibility to inform their customers as early as possible.

It's a weird scenario - going from not informing me about the account-killing ASIC change, giving me answers on the Pro Trader application, accepting it, rejecting it, reducing my margin, cancelling my account, and then helping me put all that money into other people's accounts.
Sharing private information from clients for me is a red flag.

No one have a reason here.

The client and the broker keep trying to punch each other.

The amateur part of the broker is not migrate accounts to other jurisdiction. Rookie broker here.

The client saying the broker did this and did that is childish aswell.
Struggle is a path.
As I already mentioned, we have all the emails that we sent you about the ASIC changes and you were notified as were all other ASIC clients months ago.

We sent all your funds back to bank accounts that you supplied with the same name as your Global Prime account.

Happy to share thru the mods at FF however seems you are unwilling to do this. All you have to do is send your bank statements where you received the funds and we share ours showing where we sent to and the mods can give a verdict. I'll include all the emails we sent to you as well.

We are willing to show our side, you don't seem to be so this isn't going to go anywhere. If you are so convinced about what you are saying why not take us up on the offer?

Regards,
Jeremy
  • Post #14
  • Quote
  • Edited 9:01am Apr 18, 2021 8:34am | Edited 9:01am
I'm only here to outline my experience. I have no interest in someone adjudicating anything between us except AFCA, VCAT, etc. I don't care what some mod on a forum decides. I wouldn't have thought they'd even care to be part of such a silly process. This is not court. It's a forum where people simply discuss things.

In fact, you are willing to share confidential information about a trader's account just because some person in a forum by the name of "truelifeajf" says "I'm that guy"? That's concerning. You just sought permission from "truelifeajf" to share someone's trading information in a public forum, and with mods without properly verifying who truelifeajf actually is.

What I want to discuss is that Global Prime never contacted me until Thursday about this key information. You tried to help but given the short notice and my trading style the only option was close the trades myself or let them be closed by your system (which would be worse and I'd likely end up owing you money I think). You offered me Pro Trader, you gave me Pro Trader, then you took it away, reduced my leverage, and then didn't want me as your customer any more - after 6 years of trading with you.

I think that's an interesting discussion - an experience worthy of sharing to the good people here who may be interested in reading about such an experience.

You're most welcome to say that you sent me emails well before Thursday or anything else you'd like to say - that's the joy of a public forum.

But in addition to the sucky situation I ended up in because of you, I do feel it's worth really honing in on the fact that you gave me answers to the Pro Trader questions, and that you paid funds into accounts where you took no steps to confirm they were actually my accounts. I think that is additional concerning behaviour from a regulated broker. The largest moral issue I have with you is that you gave me Pro Trader status but then without notice or reason retracted that status and closed my account. What an awful thing to do when there was so much money at stake.

You haven't responded to why you did that - and perhaps you don't want to respond to that in a public forum; that's entirely up to you. Each of us are entitled to say as much or as little as we like on anything to do with this thread. I've outlined what I've wanted to outline and I hope it benefits the Forex Factory community.
For one broker that needs trustsocre on their site says all.

There are plenty of good ones out there.
Struggle is a path.
  • Post #16
  • Quote
  • Last Post: May 21, 2021 9:27pm May 21, 2021 9:27pm
Not good enough Global Prime!

The ASIC rules allowed for positions Pre product intervention to be grandfathered and the new leverage rate only applied to new positions. Why GP did not offer this to clients is just ridiculous and could have avoid all the pain described in the thread!
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