Fellow traders, I need your help! Broker has cheated!

Hi,

I am writing this on behalf of one of my friend trader as he does not have access to this forex forum. He registered at paxforex about 2 months ago as they offered bonus to new traders. The broker clearly told him that they will give him a bonus of 50-100% if he invested 300 USD and he can use that bonus for margin calls. He was told that he cannot withdraw the bonus until he trades certain amount of lots and in case if he wants to withdraw before that, he is free to take everything except for the bonus which they have given him. But now after 2 months my friend has managed to earn about 1200 USD, but now the broker says that they will not allow him to with draw any profits or bonus as he has not completed the volume lots requirement which is about 60 lots!! I personally have several friends who have had bonus given by other brokerage firms and if they wanted to withdraw the funds before meeting the volume stuff they were free to take everything except the bonus. My friend is trying really hard to sort this out. He even had another chat with the support guys just 2 days ago and the guy over there confirmed that he can take everything except the bonus. But the same company has a different story when you talk to them via email. When he directly spoke to the guys at the company they started telling that normally new traders lose their money hence they give bonus, but in his case he had manged to make money....Did they mean that they earn only when we lose? Forget that, my friend told them that he has not lost their bonus and they can take it back. All he needs is his deposit and profits that he has made out lot of hard work. He has all the proof where the company had agreed to cancel only the bonus and not the profits.....I would really appreciate if some seniors could guide us. Below is the draft that my friend had drafted to post here....

fxGirl
Suchi


Draft -
To PaxForex
https://mail.google.com/mail/u/0/images/cleardot.gif

After having a very bad experience from Paxforex I am forced to post the below text in the forex forums. I never knew that the company would do something like this to it's customers. If there was a rule something like that then your customer represntative should have hightligted that the very first time I asked them to clarify my doubt. They cant give me different explanations when I ask them for something. They should know what they are talking. Because of that I am in trouble...


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Hi,
I am writing my recent experience about Paxforex broker. I read about them in a forum. They advertised that they were offering about 100% bonus to all the new customers. As I am new to trading, I thought I could use the bonus as an extra cushion, just in case I lose my deposit. I got in touch with the support via chat and asked them as to how the bonus stuff works? They directed me to the website link and they said that they have all the clauses pertaining to the bonus there - https://www.paxforex.com/account/for...ions_upto_100p
After going through them I was a bit unclear with their clause 6 and 7. So I got in touch with the support guys again via chat. I told them that I am a bit unclear about their bonus clause that they have mentioned in 6 and 7 and asked them to make it simpler for me. I thought I would rather ask, what particularly I am confused about and told them – I have a few direct questions and I hope to get answers to that. I asked these

1> Is the welcome bonus, a tradable amount? I mean, can I use it for trading in case if I lose the deposit?
Support staff – “yes the amount we add to your account is tradable and can be used during margin calls.
2> I am not sure about the bonus conditions that you have on your site. What if I don’t fulfill the volume requirement and wish to withdraw at some point later(because I knew that I will never be able to meet even 10% of their requirement and I did not want to be in some mess later on).
Support staff – “It’s fine, if you can’t meet the requirement. We just take the bonus back and you can take the remaining back into your account.”
Now what does the above statement confirm. It confirms that if I want to withdraw my money later and I have not yet met their volume rule, then the company would take ONLY my bonus back and I CAN take my profits and the deposit back. Right? Now there might be some of you who might understand the rules and conditions, but I could not. And hence I contacted the company support team to clarify my doubts!! I suppose I was not wrong in doing that.

Just before the deposit, due to some technical reasons associated with Moneybookers, I asked them if they would consider my request of making the deposit via MB but for all the future withdrawals I would be using only Liberty reserve. I requested this option because MB have some outgoing and incoming transaction limits. The customer support responded back via email saying - Yes we can do that. After confirming the bonus condition and the LR option I went ahead and deposited 300 USD and got 100% bonus on that.

Now, after about 2 months when I tried withdrawing the amount via LR, they came back saying that they cannot entertain the request and I should use the same option which I had used originally for the deposit. I would not have had any issues with that if I had bigger limit in my MB account. And that was the whole reason I had confirmed with their support staff, that they would allow me to use LR option later on. I reminded them that their staff had already confirmed that this would be possible. It took several to and fro emails between me and them, and finally they came up with another major issue.

The company is holding my profits back!!
__________________________________
When I placed a request for the withdrawal they said that they would take the entire bonus back, if I withdrew anything before completing the volume requirement. I totally understand if they want their money back!! But they are asking me to even forego my profits??? After many years of struggling with forex and after 2 months of trading with Paxforex, I managed to make about 1283 $ which includes my deposit of about 280USD in that. In fact it was one my friend who had helped me with 1 or 2 confirmed setups and he had told me that these trades will surely work. I am not a big trader who earns BIG $ every month. I don’t want to mention much, but I have certain loans and other commitments that I have to take care of. This was the whole reason I even bailed out of my positive trades(trades were open for 3 days or so) so that I can withdraw my money. They started explaining that traders normally lose their bonus and hence they have a rule in place which says that I cannot withdraw profits until I complete 60 lots requirement. 60 lots!!! I cant even imagine of achieving that in another 1 year!!
I would be wrong if I had asked for the bonus which the company owns. I am NOT asking for their bonus. Let them take their bonus back and give my money which I have earned by trading!!
I have confirmed this at least twice before I deposited the amount, and they had clearly said that they would ONLY CANCEL my bonus and I CAN take the rest from my account. Am I missing something here? Just to confirm this I again contacted paxforex and asked them the same thing. The company representative clearly said that I can take everything except the bonus amount which they have added to my account. Please see the chat log that I saved after the conversation.


Language: English
Full Name: Cheth
Your Question:
Staff: Paul E
05:23 There are currently 1 chat request(s) before you in the chat queue.
05:23 Your Question:
05:23 Please wait, an operator will be with you shortly.
05:23 You are now chatting with Paul E (Operator) - English
05:23 Paul E: Thanks for coming into live chat. Please feel free to ask me any questions you need; note that I am chatting with several other customers as well, so my responses may be delayed. I will be with you as soon as possible.
05:24 Cheth: Hi Paul...I had sent a request for withdrawal....could u please let me know the status
05:26 Paul E: Hello. When did you do it,sir?
05:27 Cheth: yesterday
05:27 Paul E: write to [email protected] please
05:33 Cheth: can u please tell me how much I can withdraw
05:34 Paul E: what account do you have?
05:34 Cheth: 81981
05:35 Paul E: account type?
05:36 Cheth: standard
05:36 Cheth: it is a standard account
05:37 Paul E: sir, you can take all from that account
05:38 Cheth: and that would be?
05:38 Paul E: i can't tell you, sir, i have no access to your account
05:40 Cheth: if I have not completed my volume requirement? Can I still take everything?
05:40 Paul E: yes, but without bonus
05:41 Cheth: thanks
Support Center: http://helpdesk.paxforex.com/


I even tried calling them up to see if I can sort this out. But they started explain that the conditions are mentioned at their site and I cannot really go about asking representatives for clarification. I said the first time I spoke to their company people, they had a totally different statement to what they are saying now and hence I am trying to clarify it. Is it wrong to clarify? The person said that probably the person whom I had spoken 2 months earlier was new to the firm. Do I have to ask the representative if he really knows what he is talking everytime I talk to them? The support team represent the company. So anything they say or do is as good as the company is saying that to me… Well what do you say about another confirmation that I got from their support staff, just today? How can they give wrong information to their customers and stop them from taking their own hard earned money….It seems like the company is making profits by snatching away the profits from their customers!!
I would request anybody reading this, to guide me as to how I could handle this….I have all the email and chat correspondences saved which I had with the company guys. It shows how the staff don’t stick to their own words. This shows the credibility of Paxforex ….I am sure after reading this anybody out there would think twice before they deposit their money in paxforex….

Also another friend of his tried sending an email to the company to see what was wrong. I have included that below

fxGirl
Suchi


----
Hello,

I am writing this email on behalf of Mr xxxxle. His Account number is 81981. You can consider me as his well wisher and a trade companion. It seems like you have denied to pay him his profits for some reason. Could you possibly explain to me, as to why you are doing that? I pinged him last night to see how he was doing with my trade setups and he mentioned that, due to some reason you have denied to pay him his profits. I thought there was just some confusion which can be sorted out easily. But after going through the emails between you and Mr xxxxle, it is apparent that you guys are holding back his money for no reason.

First of all I had suggested him to register with some well known brokers like Duka or Saxo, but he said that he is getting some bonus from your firm. I thought that it was fine as he is new to trading, and the bonus might give him some extra confidence! But now it seems like you are giving vague reasons for not allowing him to withdraw his profits.I do agree that the brokers would normally allow the customers to withdraw their funds only via the same option that they have used while depositing. But I suppose your support represntative had agreed to this option before Mr xxxxle deposited his money. You should not have agreed in the first place if you cannot oblige his request! It gives an impression that you badly needed a customer and hence agreed to his request?

I don't understand why you are telling him that you cannot give him his profit amount! I did go through the bonus terms and conditions at your web site - https://www.paxforex.com/account/for...ions_upto_100p
Condition 6 - "In Case the client wish to withdrawal amount which is more than 40% of deposit amount, it will consider as a cancellation of Forex Deposit Bonus Promotional." It says that in case if the client wants to withdraw his money which is more than 40% of the deposit amount then you will consider it as a cancellation of the bonus. So the client can still take his profits and you are ALLOWED TO ONLY take his bonus away from his account. So if you ar trying to take the client's profits along with the bonus then you are going against your own terms.

Now let's talk about Condition 7 - "A client has a right to decline the FOREX Deposit Bonus program of PaxForex. In this case (s)he can withdraw sums from his/her account without any limitations and restrictions, and the FOREX Deposit Bonus and Profit will be written off the account. " It says that the company has the right to decline the bonus program and in that case you take away both the bonus and the profits. But this clause seems to be only in certain cases where the client has somehow broken the trading rules. If you think Mr xxxxle has really broken some trading rule of your company then you are supposed to intimate him about why you are doing this. As far I see the whole thing going on here, I do NOT see any reason why you are blindly telling him that you will keep him off from his profits.

A few of the emails which my friend forwarded to me clearly explains the situation and it is also evident that your company had very clearly mentioned that in case he wants to withdraw the money before completing the trading volume then he is entitled to withdraw everything except the company Bonus. This was confirmed before he deposited the amount in your company and I suppose there was one more confirmation on this, from your support team yesterday. Now after confirming this on several occasions, you cannot deny by directing him to the terms and conditions page or sending him repeated emails saying that you can't. You can ONLY deny the profits if you can show that the client has broken the trading rules(if at all if you have any). Now if you try to come up with something NEW then it will only prove what you guys are upto!

I wish he had told me earlier about the situation. After reading his emails it was very apparent in each and every email how your support team changed their tone, their intention etc. In one of the emails your colleague even tried to change the whole meaning of the content of the email. remember the email where Mr xxxxle said something like - "anybody who knows English will know what I am trying to tell" he is right about that. I was shocked to see how your colleague tried to change the whole statement in favor of the company.

I hope we can sort this out. Else just let me know. I know better ways to handle this kind of situation. Your company will only lose future customers if my friend posted this on forex forums, but you will have to pay a huge amount as penalty in case if you are proven wrong. I am sure it will not take much time for us to prove what you have done to Mr xxxxle. I hope you take this seriously and handle this in a matured way and NOT like those funny emails, where one says Yes and the other says NO and the very next moment some one else says YES again. I suggest that you talk to your supervisor before you reply, because not just you, but the whole company will be put into trouble if you say something illogical.

Thanks
Sam

i cannot find any regulation for this broker there is a business reg number on there site but no regulators names or numbers like cftc or fsa asic this is why you should only put your money with regulated brokers. i dont know if there is much you can do if they dont respond maybe open a case with the financial ombudsman in your area.

WENDIGO

Right Wendigo, He has decided to open a case against them with the relevant authorities. He should have really gone for a regulated broker, but he fell for the bonus program that they were offering....

what the hell did you expect, you trade with a company in the virgin islands. you only open the account for a credit bonus and you didn't meet the terms u are complaining because they are telling u you have not met the required lots... if you haven't met the lots you can't take it out. guess what most brokers make money from your losses it's nothing new!

don't trade fx if all you want to do is make easy credit bonus money. open a account with casino online that will a much better option for u.

Going to second this, when it comes to bonus, please review ALL terms carefully..you'll find that most brokers will insist you complete a certain number of trades prior to withdrawing the same..rule of the thumb: there's no such thing as free money..

One of the best way to identify a fraudulent broker is if they offer bonus on deposit. run away as far as you can. And what on freaking helltown is paxforex???? sorry to say this, there are lots of stupid suckers in this planet and the bulk of them trade forex. Which company is paxforex?, what country is it located? and under which regulator? If you fail to do the due diligence and background search on any broker, then dont come here crying like a todler that youve been robbed.

Come to think of it, im thinking of opening a new fx brokerage and ill be naming it 'COME AND GET SCREWED FX' offering 500% bonus on all deposits and something tells me youll be the first to sign up there

Hi Scfx,

Let me clarify this. I never said that my friend was trying to withdraw the bonus. Before registering with them he had clarified that in case if he cannot complete the required lots, then can he take his deposit and profits and forego the bonus? The support people had confirmed that he can take everything except bonus. He is not trying to make easy money either!! I suppose I had mentioned that ....

fxGirl
Suchi

so he doesn't want the bonus just his deposited capital and his profits.
very usefull thread, it is good to mention it, so ppl to be more careful.

what i would do is to check if they are regulated
then call them and talk with the boss to tell you where is the problem
then if are regulated and continiue to delay you you should complaint to the authorities

but the most important is to find a person to talk via phone, with a name and surname, and that should be the boss of the company.
In worst case leave to your account a small ammount (like 100 dollars) to continiue trading as maybe broker dont like that you withdrawl all your capital and profits and stop trading with them.

PS inform us if you finally sends you your money.

Tell your friend to have a read of this;

metatrader virtual dealer plugin guide.pdf - 208.43 KB

Click on the download button on that link, Its the PDF file for the virtual dealer plugin manual for MT4, which as you can read on there, its a system which was made to screw the trader over completely, it talks about manipulated slippage to hit stop losses, etc.

Enjoy.

...I've no doubt this post will get edited not by me, or deleted, lol.