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Broker reverses $20K winning trades for alleged latency arbitrage

  • #261
  • Oct 31, 2014 4:31am Oct 31, 2014 4:31am
so how was it going? I just want to hear that all the regulators take back their certificates from forex.com, how could a bucket shop have FCA,NFA? Wtf? Yun ben if you want to continue trading jus choose bank broker: Dukascoppy,Saxo bank,citifx pro they have insurance for account.
  • #262
  • Oct 31, 2014 6:48am Oct 31, 2014 6:48am
We all know that bucket shops' terms and conditions basically sum up to say ' we are right and you are wrong, and when you are right and we are wrong, the former applies,' but that's the deal you sign up to if you trade with them. The thread starter is being naïve crying that he got caught exploiting a latency issue with them...all you guys supporting his possible litigation against them, well meaning though it might be, are in effect almost certainly going to see him lose more money. The simple fact is if you don't like the playing field find another. or if you stay accept it for what it is.
it's all gone a bit........
  • #263
  • Oct 31, 2014 7:39am Oct 31, 2014 7:39am
Don't let them get away with it.
  • #264
  • Edited 12:37pm Oct 31, 2014 7:52am | Edited 12:37pm
Quoting petetong
We all know that bucket shops' terms and conditions basically sum up to say ' we are right and you are wrong, and when you are right and we are wrong, the former applies,' but that's the deal you sign up to if you trade with them. The thread starter is being naïve crying that he got caught exploiting a latency issue with them...all you guys supporting his possible litigation against them, well meaning though it might be, are in effect almost certainly going to see him lose more money. The simple fact is if you don't like the playing field find another....

Guess this guy is from North Korea, where there is no such a word "fair" in their wooden heads.
  • #265
  • Oct 31, 2014 8:32am Oct 31, 2014 8:32am
Quoting yunben
{quote} Guess this guy is from North Korea, where there is no such a word "fair" in their wooden heads.
I think he is just accurate, if unsympathetic.
If you can get all your money out then all it has cost you is time.
Move on, there are plenty of others....
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  • #266
  • Edited 12:32pm Oct 31, 2014 9:00am | Edited 12:32pm
Quoting Exodus
{quote} I think he is just accurate, if unsympathetic. If you can get all your money out then all it has cost you is time. Move on, there are plenty of others....
Sure this case is not a big problem for me. I am still profitable in this market. The stolen money is not much for my fund, it is even a small portion compared with the profit that I made from them in the past 4 years.

my post here is to show my experience and alert other traders.

also it works as a punishment to the broker.

As there are thousands of traders seeing what happened, the broker noticed this post. A director from forex.com called me and explain their decision (previously only a manager wrote me a simple email). Anyway, no matter what the result it is. They now have a bad reputation and some traders also emailed that they decide to withdraw fund from forex.com and try other brokers. I feel at least this post has some effect.
  • #267
  • Oct 31, 2014 10:15am Oct 31, 2014 10:15am
I personally think that yunben was trading latency, but my thoughts are useless because i have no proof.

I keep wondering why forex.com does not simply publish evidence that yunben is latency arbitrage trader ? Are there something to hide ? Or there are no such evidence ?
  • #268
  • Edited 11:46am Oct 31, 2014 10:35am | Edited 11:46am
Quoting passass
I personally think that yunben was trading latency, but my thoughts are useless because i have no proof. I keep wondering why forex.com does not simply publish evidence that yunben is latency arbitrage trader ? Are there something to hide ? Or there are no such evidence ?
You are definitely wrong. it is my strategy. it is consistent with my past records.
on the contrary, I trade technically. I am profitable but profit is not very high. I do have loses too.
I have said that:
the winning trade can be in seconds, it is simply because the take profit target is only 5-30 pips.
if I set stop loss to be 10-20 pips instead of 50pips, there can be many stop loss executed in seconds.
the market condition that day is a small flash crash. once bounces, it will be a large reverses. all experienced traders can recall some cases. My judgement is correct with technically analysis. my overall buy signal is correct, I don't think they use raw bank data to adjust the profit to be -19276.33. they take all profits but feel shameful to say that. They even didn't give me the adjusted trade activity so far. They are not as honest as you think they are.

if forex.com can give all closed accounts any reason, you can say they are honest. but in fact they don't even give any excuse. you can check in forexpeacearmy broker review
if you see something hide, I guess they use so-called price latency to execute their market-maker clause. that is they can trade with you as counterpart but avoid regulator penalty as it is in their agreement. If they win, they take it. if they lose, they can throw it to the market or take it from you. there is no risk for them.
The most doubtful question is not my trades. it is why they can allow latency as long as 12 minutes and do nothing. it is unbelievable for a specialized broker. I never see it before.
  • #269
  • Oct 31, 2014 10:47am Oct 31, 2014 10:47am
Quoting yunben
{quote} Sure this case is not a big problem for me. I am still profitable in this market. The stolen money is not much for my fund, it is even a small portion compared with the profit that I made from them in the past 4 years. my post here is to show my experience and alert other traders. also it works as a punishment to the broker. As there are thousands of traders seeing what happened, the broker noticed this post. A director from forex.com called me and explain their decision (previously only a manager wrote me a simple email). Anyway, no matter...
I am glad this is coming out at this timing as I have similar incident with this shitty broken and they deserve what is aid about there reputation. Just another crap bucket shop!
All posts are my personal opinion
  • #270
  • Oct 31, 2014 10:56am Oct 31, 2014 10:56am
It sounds like they were trading against your position and didn't want to take the loss. File formal complaints with all the regulatory agencies. Get a lawyer that specializes in these things and file suit for recovery of your profits and legal fees. You can get your money back if you push this hard enough.
  • #271
  • Oct 31, 2014 11:21am Oct 31, 2014 11:21am
I am sorry to hear this buddy. Complain to FCA
You may want to take a look at lmax or other real prime ecn brokers (while lmax is not broker,but exchange)

Quoting yunben
Why admin here try to modify the thread title again and again? I tell the truth no matter what it was. Fellow traders need to be alerted.
Regarding this,i saw signs of this issue happening long time ago.The only reason i visit this site now is just for the calendar.For me FF is already pre sold to their advertisers/brokers
  • #272
  • Oct 31, 2014 11:24am Oct 31, 2014 11:24am
Quoting yunben
{quote} You are definitely wrong. it is my strategy. it is consistent with my past records. on the contrary, I trade technically. I am profitable but profit is not very high. I do have loses too. I have said that: the winning trade can be in seconds, it simply because the take profit target is only 5-30 pips. if I set stop loss to be 10-20 pips instead of 50pips, there can be many stop loss executed in seconds. if forex.com can give all closed accounts any reason, you can say they are honest. but in fact they are not. they don't even give any excuse....
We don't have evidence to make a judgement that Yun Ben is cheating but why forex.com doesn't say publicly a word about his case? I don't care about forex.com, i just want to know the truth, i just want to see NFA step in and say something. I want to know did regulators protect customers? Petertong must be coming from jungle, i'm 100% sure that he have no idea what is FCA,NFA..... They say brokers submit their customers balance, trade activities to NFA every week, and forex.com modified Yun Ben balance, so where are you NFA? Are you limit leverage for US residents to 50 and the prohibition of using credit card to deposit is just for fun? Where are you CFTC?
  • #273
  • Edited 12:01pm Oct 31, 2014 11:38am | Edited 12:01pm
Quoting passass
I personally think that yunben was trading latency, but my thoughts are useless because i have no proof. I keep wondering why forex.com does not simply publish evidence that yunben is latency arbitrage trader ? Are there something to hide ? Or there are no such evidence ?
i really waiting this moment..... they have this GUTS?

look at post 106 by profitfarmer
Quoting profitfarmer
{quote} OK, here you go, fresh hot screenshots from my broker's market maker and ECN account /it isn't forex.com, but will be perfect to explain above/ One is ECN, other is market maker, rices are side by side to easy visualization. EU and UJ pairs. Guess what! EU the market maker too slow to mimic the ECNs pullback...maybe a lagging server.... BUT WAIT!! Look at UJ! The same server not only not lagging, but ahead about 15 pips!! Now think over what your broker is doing, and what you need to fight against to make your green pips! You think in such...
what evidence that they can provide? evidence that they have A LOT of latency problem(i would prefer call this TRICK)? what do u think passass?
No Pain, No Gain
  • #274
  • Oct 31, 2014 11:42am Oct 31, 2014 11:42am
Quoting Abcxyz77
{quote} We don't have evidence to make a judgement that Yun Ben is cheating but why forex.com doesn't say publicly a word about his case? I don't care about forex.com, i just want to know the truth, i just want to see NFA step in and say something. I want to know did regulators protect customers? Petertong must be coming from jungle, i'm 100% sure that he have no idea what is FCA,NFA..... They say brokers submit their customers balance, trade activities to NFA every week, and forex.com modified Yun Ben balance, so where are you NFA? Are you limit...
When son of a Bush left office he instructed those dogs not even to bark let alone bite.
  • #275
  • Oct 31, 2014 11:51am Oct 31, 2014 11:51am
Quoting goldfinger
{quote} When son of a Bush left office he instructed those dogs not even to bark let alone bite.
What do you mean?
  • #276
  • Oct 31, 2014 8:11pm Oct 31, 2014 8:11pm
why forex .com dont pay yunben yet ?
When you lose, I'm the loudest who laugh at your face )
  • #277
  • Edited 9:35pm Oct 31, 2014 8:11pm | Edited 9:35pm
Quoting 2Good2beTrue
{quote} i really waiting this moment..... they have this GUTS? look at post 106 by profitfarmer {quote} what evidence that they can provide? evidence that they have A LOT of latency problem(i would prefer call this TRICK)? what do u think passass?
I understand why they don't give me any evidence. my trade is no difference from my trading style. If they give me such kind of evidence, they will fail the case.
At the same time, I don't understand if they are honest, why they don't give me so-called adjusted trade activity based on raw bank data. I open a post here and invite them to discuss. but so far there is no comments/material evidence from the broker.


From my understanding, the broker doesn't worry about FOS, FPA or any regulator else. The worst case for them if they fail the case is they return my fund of around $20k.

But they are more concern about FF, because there are thousands of traders. If many traders just say it is normal and open secret, we all know it or it is fair. The broker will be very happy, and next time, the victim can be you.

I have said many times:
my trade activity is not excess. from Adal's chart, their latency problem occurred in the middle of my trades. My trades are consistent with my strategy.
They say my trade volume are too big totally over 200lots that day. If you consider my account is about 200k and my last 6 months trading volume is 2760 lots. Is the trading volume really huge for me as an experienced trader? I think there many traders can trade more volume than me. I was ever rejected by a prop shop who said their traders volume is 5-10 times of my average monthly trading volume.

There are many things I don't understand too.
1.why they allow latency so long time? (from Adal's chart, it is 12mins) can you believe a big broker just let latency and do nothing?
2.how much is the lag? (that is a criteria how they judge a trade is based on latency). my winning trade is 25s to 4 minutes, is it possible to predict the price if the latency lag is only in several seconds?
3.why there is no open announcement about this severe latency issue? It seems to be another normal case for them. They don't even make apologize. They don't need public/clients know it.
4.how much profits they earn from this latency period? (they probably deliberately pretend their server got failure and make profits from this man-made failure)
5. why they didn't give me so-called raw-bank-data adjusted trade activity? (do they lie? they simply take all profits but try to make it look fair)


maybe there are still more to ask.
  • #278
  • Oct 31, 2014 8:42pm Oct 31, 2014 8:42pm
Quoting Zelo
why forex .com dont pay yunben yet ?

Thank you Zelo. my understanding is above.
  • #279
  • Oct 31, 2014 9:07pm Oct 31, 2014 9:07pm
Even FCA don't care about this case, obviously their market maker price is slower than ECN brokers most of the time, who's know when it happens? Forex.com want to keeping their price latency so they can cancelled profits legally. Forex.com customers are withdrawing their money back, only who's don't know about this incident will trade with them. I'm afraid that my Market maker can do this trick to me too, the advice is stay away from news release time and hope that price latency not happening.
  • #280
  • Oct 31, 2014 9:22pm Oct 31, 2014 9:22pm
Quoting Abcxyz77
Even FCA don't care about this case, obviously their market maker price is slower than ECN brokers most of the time, who's know when it happens? Forex.com want to keeping their price latency so they can cancelled profits legally. Forex.com customers are withdrawing their money back, only who's don't know about this incident will trade with them. I'm afraid that my Market maker can do this trick to me too, the advice is stay away from news release time and hope that price latency not happening.

I would add that even a guy with IQ below 70 knows if their server fails, it is fair at least they should cancel all profits and all losses at the same time. But forex.com say it is fair only a trader loss money from their price.
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