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Broker reverses $20K winning trades for alleged latency arbitrage

  • #21
  • Oct 24, 2014 4:17am Oct 24, 2014 4:17am
Quoting Kong
Sorry to hear about your loss, but you'll recover. Just interested to know if you were profiting from price latency as they claim.. ?
To be frank, I use copy trade in this account. I trade in other account and this account will copy my trade. I noticed my other account is making money. but this account is still losing. I do add more size to trade in this account. But it basically follows my strategy as the market condition gives overall buy signal . No matter what happens I will trade like that at that time.
  • #22
  • Oct 24, 2014 4:37am Oct 24, 2014 4:37am
Quoting yunben
{quote} To be frank, I use copy trade in this account. I trade in other account and this account will copy my trade. I noticed my other account is making money. but this account is still losing. I do add more size to trade in this account. But it basically follows my strategy as the market condition gives overall buy signal . No matter what happens I will trade like that at that time.
Well they have seized your profits on the grounds that you broke one of the clauses in the agreement you signed when you registered with them.

If you can prove otherwise (that you were not profiting from price latency arbitrage) then you could take that to the authorities and hopefully recover your money.

If you were profiting from price latency arbitrage (if this was your trading method) then unfortunately they are in their rights to do what they have done.

I wish you the best of luck with it
  • #23
  • Oct 24, 2014 4:39am Oct 24, 2014 4:39am
I will never open an account with them nor fxcm.
  • #24
  • Oct 24, 2014 5:06am Oct 24, 2014 5:06am
Quoting Kong
{quote} Well they have seized your profits on the grounds that you broke one of the clauses in the agreement you signed when you registered with them. If you can prove otherwise (that you were not profiting from price latency arbitrage) then you could take that to the authorities and hopefully recover your money. If you were profiting from price latency arbitrage (if this was your trading method) then unfortunately they are in their rights to do what they have done. I wish you the best of luck with it
even as they said there is a price latency. it is their problem. I am executing my strategy and my trading is partially affected due to their latency. They can list what kind of latency it is. start from what time to what time and which trade got problem. Then I can argue with them. It is surely shameless for them to take all profits and left the loses.

I am wondering if there is price latency, Can they publicize it so that all trader know it? there is no public notice from their website and it seems so weird only I have the price latency. I am an independent retail trader and stay far far away from their server.

So if they publicize it, they should pay the all trader's loss during that time, I don't think they are willing do that.
  • #25
  • Oct 24, 2014 5:13am Oct 24, 2014 5:13am
You need to contact the National Futures Association as soon as possible. This is theft. Feel sorry for you yunben.
  • #26
  • Oct 24, 2014 5:43am Oct 24, 2014 5:43am
This sounds like a big scam. As a customer you have the right to at least see evidence regarding the contents of their claims? Or perhaps an external party has the right to do so. (not into law myself)

Also, it might sound silly but on further contact with them be sure to mention your posts (for example on this forum). When these things go public sometimes miracles can happen.
  • #27
  • Oct 24, 2014 6:08am Oct 24, 2014 6:08am
sad to hear that.

Wondering should i close close my forex.comAU from Australia .

They are such a big company, and so many accounts, and they closed yours?
  • #28
  • Oct 24, 2014 6:19am Oct 24, 2014 6:19am
Looking your trades, many profitable ones was opened and closed within one minute, it is not hard to figure out that you was taking advantage of a latency/lag problem of forex.com.

Surely you have read and agreed the various agreements at the time you opened yor account, and surely one agreement was that you will not take advantage of this sort of lag problems that may happen from time to time.

To sum up, you have violated the agreement between you and your broker, and they closed your account.
You are lucky that they give you back most of your money, the best thing you can do now is apologize with them and go find a new broker.
  • #29
  • Oct 24, 2014 6:32am Oct 24, 2014 6:32am
Quoting tunera
Looking your trades, many profitable ones was opened and closed within one minute, it is not hard to figure out that you was taking advantage of a latency/lag problem of forex.com. Surely you have read and agreed the various agreements at the time you opened yor account, and surely one agreement was that you will not take advantage of this sort of lag problems that may happen from time to time. To sum up, you have violated the agreement between you and your broker, and they closed your account. You are lucky that they give you back most of your...
There is many investment companys who trade this way. Think its called high frequency trading. Each trade makes a tiny amount but doing it multiple times adds up very fast. It is not breaking the law. From the way forex.com is handling this situation i can assume they are not a ECN broker. They are a maket maker. It is in their best interest that there client loses, just like being at the casino.
  • #30
  • Edited 7:00am Oct 24, 2014 6:33am | Edited 7:00am
I believe you might be from forex.com. Thank you for joining this discussion at last.
1. My trades are based on 1min/5min mainly trend bounce back with small pip 5-20 pips take profit. you can check my trading records at www.myfxbook.com/members/yunben
and check the duration. There are many many trades closed less than 1min.
You may never heard some experience trader they only trade to take 3-5pips. I can tell you there are many.

2. I ever heard price latency. normally a forex company latency is less than 1 second and even lower. based on my trading record and their decision, the price latency should at least be over 1 minutes and last quite long time. from forex.com decision, it seems rightly start when I make profit and end when all my trades. All my lose trades are not affected but the winning trades invalid. Is that possible? What happens to your server? Is it again a scam?
Please let us traders know your server latency start time and end time. I can argue what can be my strategy and lose trade it should be and what price latency can be.

Please publicize an announcement to all your fellow traders. Cancel all lose and win trade of your clients not me alone.

3. Please let us know whether the institution traders have this price latency too. I believe forex.com use 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 trader and have multi-account knows what happens. Then forex.com will claim they make use of the latency.



Quoting tunera
Looking your trades, many profitable ones was opened and closed within one minute, it is not hard to figure out that you was taking advantage of a latency/lag problem of forex.com. Surely you have read and agreed the various agreements at the time you opened your account, and surely one agreement was that you will not take advantage of this sort of lag problems that may happen from time to time. To sum up, you have violated the agreement between you and your broker, and they closed your account. You are lucky that they give you back most of your...
  • #31
  • Oct 24, 2014 6:47am Oct 24, 2014 6:47am
tunera is not working for forex.com! he is actually great contributer to this forum! he is just saying the logical explanation of why this happened.
  • #32
  • Oct 24, 2014 6:47am Oct 24, 2014 6:47am
looks like you also knew about the latency problem and you was trying to take advantage of this loophole, why would you trade with such big amount with a bucketshop or STP broker, why not go for ECN?
Don't speculate trade with surety.
  • #33
  • Oct 24, 2014 6:47am Oct 24, 2014 6:47am
Quoting numbnuts
{quote} yup, not even a courtesy reacharound. Bastards.

Lol..
Memories caught in time but never forgotten
  • #34
  • Edited Oct 25, 2014 5:21am Oct 24, 2014 6:52am | Edited Oct 25, 2014 5:21am
Quoting yunben
I believe you are from forex.com. Thank you for joining this discussion at last. 1. My trades are based on 1min/5min mainly trend bounce back with small pip 5-20 pips take profit. you can check my trading records at www.myfxbook.com/members/yunben and check the duration. There are many many trades closed less than 1min. You may never heard some experience trader they only trade to take 3-5pips. I can tell you who there are many. 2. I ever heard price latency. normally a forex company latency is...
By the way I forgot to write that i'm sorry to read about your story, and that i wish you good luck!

So, NO i'm not in any way affiliated with forex.com or any other broker, i'm just a retail trader like you.


I agree this is their problem and they have to fix it in order to be able to offer a decent service to their clients, however this doesn't mean that clients have the right to "rob" them exploiting this problem, if you want to do it i would say do it from time to time (like a few trades every week), with a decent leverage (not too much), i mean do it in a way that stay far from their radar (i'm not advising anyone to do this kind of i suppose illegal trading activity! but, if you really want to do it, at least do it in a smart way, otherwise you are going to be catch and your account closed!).

But ok i guess now there's nothing you can do anymore, just open an account with another broker, and continue to trade like you always do.

Good luck!


Edit:
**P.s.
Oh by the way i accused you of have traded exploiting their latency problem, without really knowing anything about your trades!
Please accept my apologies, you see this thread is hot basically you are accusing the broker to rob your profits, they are accusing you to have exploited their lag stuff, everybody accuse everybody and i just jumped on this accusation dance with both feet
Sorry for that ahahah
  • #35
  • Oct 24, 2014 6:55am Oct 24, 2014 6:55am
Quoting KingHussain
looks like you also knew about the latency problem and you was trying to take advantage of this loophole, why would you trade with such big amount with a bucketshop or STP broker, why not go for ECN?
they ever close one of my account. but because they can return all fund/profit. I thought they are at least regulated listed company should better than others. they give me rebates such as interest (125 per month) and lower spread 0.6 less. I like to use MT4 it is convenient. Dukascopy and IB don't provide. Now I am trading with Lmax.com. So far no problem.
  • #36
  • Oct 24, 2014 7:01am Oct 24, 2014 7:01am
Quoting yunben
{quote} they ever close one of my account. but because they can return all fund/profit. I thought they are at least regulated listed company should better than others. they give me rebates such as interest (125 per month) and lower spread 0.6 less. I like to use MT4 it is convenient. Dukascopy and IB don't provide. Now I am trading with Lmax.com. So far no problem.
good for you
Don't speculate trade with surety.
  • #37
  • Edited 7:22am Oct 24, 2014 7:02am | Edited 7:22am
Quoting tunera
{quote} By the way I forgot to write that i'm sorry to read about your story, and that i wish you good luck! So, NO i'm not in any way affiliated with forex.com or any other broker, i'm just a retail trader like you. But i used to make a few profitable deals years ago using alpari nz, and they had this latency/lag problem, not everyday, just sometime, someday, and sometime i used to see price move in one direction (even big moves!) in other brokers, but on alpari no moves.. So what you do, you buy or sell, and wait the lagged broker to be syncronized...
If their server have problem, sure they should publicize this issue to all and say sorry to all its clients and cancel all trades during that time. I am not alone to be punished and also some other traders who loses due to the latency. I must execute my strategy during that time or I have to see my account losing.

If they don't make it open, it means they believe anyone can predict the market is actually making use of the price latency.
  • #38
  • Oct 24, 2014 7:16am Oct 24, 2014 7:16am
Not sure if that has something to do with it, but apparently primexm had problems on oct 15:

http://forexmagnates.com/exclusive-2...vulnerability/

Maybe Gain is using the primexm bridge?
  • #39
  • Edited 9:30am Oct 24, 2014 7:30am | Edited 9:30am
Quoting shrike
Not sure if that has something to do with it, but apparently primexm had problems on oct 15: http://forexmagnates.com/exclusive-2...vulnerability/ Maybe Gain is using the primexm bridge?

The delay in the report is 10s-15s. My trades is longer than that. Please note there are also several profitable trades over 2 minutes, they simply take all profitable trades say that all invalid.

If there is any problem, they should cancel all trades during that time. not just my profitable trades.


According to information obtained exclusively by Forex Magnates an attack by a single user of one of the brokers connected to PrimeXM last Wednesday (15th of September) has resulted in the company’s MT4 server suffering severely, with customers of more than 20 brokerages connected to the server experiencing delays between 10 and 15 seconds. - See more at: http://forexmagnates.com/exclusive-2....znrYPtIW.dpuf
  • #40
  • Oct 24, 2014 8:53am Oct 24, 2014 8:53am
Interesting thread. I wouldnt bother with the FSA. I would just see a lawyer and see if you can sue for the profits and damages on top. Otherwise you will waste months. I would include a letter to the FSA anyway. Hope you win.
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