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Broker reverses $20K winning trades for alleged latency arbitrage

  • #61
  • Oct 26, 2014 9:14am Oct 26, 2014 9:14am
in 2007. forex.com said "You can definately scalp with Forex.com, even during high volatility trading periods where rates may change milliseconds after you submitted a trade request, we will not fill you at a worse price without your permission."

it seems they now are eating their words.

http://www.forexfactory.com/showthre...lping+forexcom

here is what forex.com ever say

Oct 2, 2007 3:09am

  1. http://assets.forexfactory.net/nfs/c...tar49105_8.gif Forex.com
  2. | Commercial Member | Joined Sep 2007 | 6 Posts

http://www.forexfactory.com/resource...oader-dark.gif
Hi dominicanosrus

"Taking the other side of the trade" is what brokers do, but perhaps the term has been poorly explained. When you buy a watermelon, and the farmer takes your cash, he is "taking the other side of your trade."
When you place a trade and sell EUR/USD we buy it from you. Another trader may then buy EUR/USD from us.
You can definately scalp with Forex.com, even during high volatility trading periods where rates may change milliseconds after you submitted a trade request, we will not fill you at a worse price without your permission.

  • #62
  • Oct 26, 2014 9:52am Oct 26, 2014 9:52am
FYI the deducted sum is strange. There is no possible combination of the PnL amounts on that statement that would result in $19,276.33. That is, if i didnt fk up the excel sheet (but i dont believe so).
  • #63
  • Oct 26, 2014 10:29am Oct 26, 2014 10:29am
if Forex.com = watermelon
i think i'll buy my vegetables elsewhere


to be honest though, most have done there due diligence on Forex.com before opening an account
so prefer to open an account elsewhere

maybe its just best to stop whining and take the rest of the profits and move on and just be grateful you have a 200k account
many of the 95% would love to be in your position
  • #64
  • Oct 26, 2014 11:57am Oct 26, 2014 11:57am
i used to use forex.com in 2012-2013. My case isn't as bad as this guys but i had about 20 thousand dollars in my account with forex.com and i had placed short sell orders on aud/usd when it took a massive drop from 1.05 to .90 in a couple of months. Everytime I would place a sell order during the news coming out my orders would show up as executed and profit would increase and then 1 minute later after being up couple hundred dollars the account would pop up a message saying that the order had an issue and wasnt executed and my profit would be erased.

i contacted them after the first two times about it and decided to record it on a camera and sent them the recording of multiple occasions of exectued profitable trades going through and then being wiped away. they denied my recording and claimed i fudged the video and used software to make it look like they were cheating me.

i withdrew all my funds immediately from forex.com

i've reported forex.com about my case with recordings and screen shots to multiple associations and financial reporting bureaus.
i've yet to hear anything regarding my case.
in total I was cheated about ten thousand dollars of profits from 15 trades i had made that were deemed un executed as my profits showed up in my account on shorts on aud/usd when it dropped

it is only a matter of time before forex.com is taken down or lose their customers because of fraud

ive even contacted the secret service department since they deal with online crime investigations within us territory.
gain capital is based in the uk but they have offices in the united states.
  • #65
  • Oct 26, 2014 12:07pm Oct 26, 2014 12:07pm
may be with only $500 capital like me, they would not cheat me.... but i must think twice to increase capital in forex.com
3Some Candle TacticaL
  • #66
  • Oct 26, 2014 1:04pm Oct 26, 2014 1:04pm
Quoting Carlsberg
if Forex.com = watermelon i think i'll buy my vegetables elsewhere to be honest though, most have done there due diligence on Forex.com before opening an account so prefer to open an account elsewhere maybe its just best to stop whining and take the rest of the profits and move on and just be grateful you have a 200k account many of the 95% would love to be in your position
i can only imagine, how their company it is.. selling a watermelon for worth 100k, on a single clients.
as far i know, there's no such 100% honest brokerage, let's be honest with our mind, they need to made a living too.
yet there's a plenty of wildcard trader which able to rip off brokers money pool balance, especially when they collecting rather big money said over 100k.
logic is, an order of watermelon worth of 500 USD, doesnt rig the cage, but when someone order for worth 100k, it's attract many attention, many case is they have a special 'cage' for this client, but this time not for the watermelon, but this 'cage' are for the money, when i think that way.. your 'special' case are more acceptable and reasonable.. since you're special... with a special 'cage'.
hope all got the picture behind the watermelon chronicle.
  • #67
  • Oct 26, 2014 3:54pm Oct 26, 2014 3:54pm
Quoting fxindikator
{quote} i can only imagine, how their company it is.. selling a watermelon for worth 100k, on a single clients. as far i know, there's no such 100% honest brokerage, let's be honest with our mind, they need to made a living too. yet there's a plenty of wildcard trader which able to rip off brokers money pool balance, especially when they collecting rather big money said over 100k. logic is, an order of watermelon worth of 500 USD, doesnt rig the cage, but when someone order for worth 100k, it's attract many attention, many case is they have a...
I believe there are 100% honest brokerages out there -- I have been using one for last 2 years. They do it by aligning their interests with yours, and profiting from commissions, spreads, and swaps only.
Build good relationships with others.
  • #68
  • Oct 26, 2014 5:23pm Oct 26, 2014 5:23pm
Quoting PoundTrader
i swear some of you guys can't be traders, those are weekend spreads when market close, any real traders undwerstands this
I just had a chat with them and they acknowledged the spread was before market closing not after that.
Attached Image (click to enlarge)
Click to Enlarge Name: spread3.jpg Size: 49 KB
Failure, is a wonderful teacher!
  • #69
  • Oct 26, 2014 5:41pm Oct 26, 2014 5:41pm
Quoting mike1349
{quote} I just had a chat with them and they acknowledged the spread was before market closing not after that. {image}
OMG, of course it's before market close http://www.easyfreesmileys.com/smileys/lol-045.gif i give up
  • #70
  • Oct 26, 2014 7:36pm Oct 26, 2014 7:36pm
Quoting PoundTrader
{quote}OMG, of course it's before market close {image} i give up
Who needs Comedy Central when we have FF :-)
  • #71
  • Oct 26, 2014 7:47pm Oct 26, 2014 7:47pm
Quoting mike1349
{quote} I just had a chat with them and they acknowledged the spread was before market closing not after that. {image}
what the point of having spread while market is closing anyway ?? the market didnt even move too.
this kind of joke or something ?
  • #72
  • Oct 26, 2014 10:03pm Oct 26, 2014 10:03pm
Quoting PoundTrader
{quote}OMG, of course it's before market close {image} i give up
Something is wrong in here and you can't clarify that unless clowning around .May be you wanna answer Chris or already gave up?

http://www.forexfactory.com/showthre...13#post7824613
Failure, is a wonderful teacher!
  • #73
  • Oct 27, 2014 3:26am Oct 27, 2014 3:26am
Quoting yeniful
ive even contacted the secret service department since they deal with online crime investigations within us territory. gain capital is based in the uk but they have offices in the united states.
can you explain this please? very interested
  • #74
  • Oct 27, 2014 3:50am Oct 27, 2014 3:50am
Yun Ben, I am same background as you, migrated to Singapore from the same country. The only thing different is that I am still struggling with the trading to make consistent profit. It sounds still far to me but I have the faith that the day will come, sooner or later.

I shall share my opinion with you, just for your consideration. Life is never absolutely fair for every one. In the business world, some time we have focus on our main missions and ignore these hiccups from indecent misbehaviors of others. I know some one in person who started a new company with so-called friends, and end-up his S$50K are basically "robbed" by other director even though the company is still making money. If he insist on to get the money by legal action, he may or may not get it back due to high cost of lawyer fees. He just skipped it and start new company by himself, now his company is much more than previous one he co-started with so-called friends.

My point here is our main focus is the ability to make money, not to punish the bad apples on our further cost. By taking a legal action you may get a penny back due to the expense of lawyer fees. Why not just forget the forex.com and focus on your trading business.

There are many brokers in Singapore including Oanda. Why not consider to use local brokers, at least, when such things happened, we know where to make a complain and the government has to give a formal reply for any single complain cases.

My two cents only.
  • #75
  • Edited 4:51am Oct 27, 2014 4:40am | Edited 4:51am
Hi, Earchca:
Thank you for joining discussion for my case. However, I don't understand your point/idea of just forget it and let it go. I was robbed by this broker and that money is worth my day job 4 months salary. I am exposed to this risky market just want to make some profits by day and night. but they simply robbed it by one finger. This feeling is similar to one trader got his account blow off. If someone kick your head, you got hurt but just say let it go, you even don't ask for help from police and say god will punish it. I don't know when God will punish them. But If I can expose this case to this and more forums, more traders will be alerted and this fraud will be then punished.

I have been trading for over 5 years. Of course I do know how to choose brokers according to my strategy. I also have Oanda accounts. but I don't use it anymore and will try other brokers. I can give you a lot of reason why I don't use Oanda. but that's another topic. Forex.com is a listed broker and I never thought they would do this kind of scam. After this case, I have to think it over whether I should go on my career as a professional retail trader or not.



Quoting earthca
Yun Ben, I am same background as you, migrated to Singapore from the same country. The only thing different is that I am still struggling with the trading to make consistent profit. It sounds still far to me but I have the faith that the day will come, sooner or later. I shall share my opinion with you, just for your consideration. Life is never absolutely fair for every one. In the business world, some time we have focus on our main missions and ignore these hiccups from indecent misbehaviors of others. I know some one in person who started a new...
  • #76
  • Oct 27, 2014 4:52am Oct 27, 2014 4:52am
Yunben, my point is that the money is big, however not big enough to make your life different.. it does not worth to spend a lot of energy to go to time consuming legal procedure. Yes try the best to recover but dont let it affect your trading goals.

In the sample i given, the guy is making much big money now, $50K robbed money is just sweet memeory for him now. If he had spend all his time to recover the money, he would be him as of today now.....
  • #77
  • Oct 27, 2014 5:11am Oct 27, 2014 5:11am
What I can say is so far my life is not greatly affected by this case and I don't spend all time on this case.
I just share my experience here and see other's traders opinion on the case itself.
If almost all traders say it is a scam, why I shall let it go? At least, expose the case itself will work as one of the punishment measure on the broker without much effort.


Quoting earthca
Yunben, my point is that the money is big, however not big enough to make your life different.. it does not worth to spend a lot of energy to go to time consuming legal procedure. Yes try the best to recover but dont let it affect your trading goals. In the sample i given, the guy is making much big money now, $50K robbed money is just sweet memeory for him now. If he had spend all his time to recover the money, he would be him as of today now.....
  • #78
  • Oct 27, 2014 5:30am Oct 27, 2014 5:30am
Personnally i do think this is a scam, at least, not fair game for clients. Hope one day you earn this amount on monthly, even weekly basi, and smile when you talk the experience with others
  • #79
  • Oct 27, 2014 12:07pm Oct 27, 2014 12:07pm
Interesting, FF has blocked this thread from the front page obviously because Forex.com is an advertiser.

Clearly FF cares more about their advertisers than you and me. See Pdf. Should be listed.

I've been using Forex.com for years without problems but I haven't had $11k days.

Yunben, I suggest you file a complaint with the SEC. Not sure if you have to be US citizen to but worth a try.
Attached File(s)
File Type: pdf Forex FactoryLast replied.pdf   90 KB | 720 downloads
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  • #80
  • Edited 12:36pm Oct 27, 2014 12:20pm | Edited 12:36pm
Quoting Don M
Interesting, FF has blocked this thread from the front page obviously because Forex.com is an advertiser. Clearly FF cares more about their advertisers than you and me. See Pdf. Should be listed. I've been using Forex.com for years without problems but I haven't had $11k days. Yunben, I suggest you file a complaint with the SEC. Not sure if you have to be US citizen to but worth a try. {image}
Thank you very much! Don.
I also noticed Admin of Forexfactory changed the thread title for several times just to relieve the pressure on forex.com until now the title editing period is expired.
I know as a retail trader, I may not get the money back easily. But with your fellow traders' support, expose more here and there and more traders get alerted, Forex.com will feel it regretful to rob a trader's fund so rudely. Thank you all!
I have referred my complain to FOS. If they cannot solve the problem. I will file a case with FCA and finally report to the police.
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