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Broker reverses $20K winning trades for alleged latency arbitrage

  • #321
  • Nov 2, 2014 3:51pm Nov 2, 2014 3:51pm
Quoting Carlsberg
{quote} those reviews have to be some of the most shocking ever for any Forex broker page after page of complaints and tricks that would appear to be straight out of the "rogue dealers handbook" its too much, the only missing complaint is they kept all the money who trades with a broker like this? they should add to the small print "All winning accounts will be closed immediately and only losers may apply"
look like if you win with this broker they close your account seem like the norm with this broker
  • #322
  • Nov 2, 2014 4:38pm Nov 2, 2014 4:38pm
Quoting PoundTrader
{quote}look like if you win with this broker they close your account seem like the norm with this broker
thank you for your info
people leave, but this thread will go on for ever
  • #323
  • Nov 2, 2014 8:46pm Nov 2, 2014 8:46pm
withdraw your money before they run like capital spread
  • #324
  • Nov 2, 2014 8:52pm Nov 2, 2014 8:52pm
Quoting PoundTrader
{quote}look like if you win with this broker they close your account seem like the norm with this broker
Really funny but it's true, Gain Capital trade against customers and they always win, if you dare to win they're disable your account, they are win no matter what!
  • #325
  • Nov 2, 2014 8:56pm Nov 2, 2014 8:56pm
Quoting Abcxyz77
{quote} Really funny but it's true, Gain Capital trade against customers and they always win, if you dare to win they're disable your account, they are win no matter what!
i wasn't trying to be funny, i see thats what they do when you win
  • #326
  • Nov 2, 2014 9:01pm Nov 2, 2014 9:01pm
with that kind of money you should of been trading on there ECN platform http://www.gaingtx.com/platform.shtml
  • #327
  • Nov 3, 2014 2:49am Nov 3, 2014 2:49am
Quoting PoundTrader
with that kind of money you should of been trading on there ECN platform http://www.gaingtx.com/platform.shtml
Bro.now as long as I see their logo, It looks like all rubbish to me. Definitely every trader should be alerted and read their agreement carefully for all brokers.
It is weird until now they just kept silence. No details of adjusted trade activity. 52% profitable adjustment, 48% unprofitable adjustment, what's that in detail?
Is that really what a listed company can do to its client?
  • #328
  • Nov 3, 2014 7:51am Nov 3, 2014 7:51am
I've had friends who had their accounts closed by Gain using standard scalping trading, closing accounts isn't restricted to latency or whatever. It might be bc they were profitable who knows. However the difference is that they previously paid out the profits and allowed my friends to withdraw in full. Whereas this time with yunben they actually deleted the profitable trades and kept the losers. Is it simply because yunben was trading much larger amounts and they suddenly got greedy? That they'd actually do something like that is what sets the alarm bells ringing.

By the way I've looked yunben's statement, a mishmash of short term and medium term trades. Trading activity on it looks like any other typical account cept larger and the limited martingale bit. Same strategy over a few years on several brokers. Anyway you see it, he traded the same over the alleged period as any other. So this latency arbitrage excuse is just pure bs.
  • #329
  • Nov 3, 2014 8:02am Nov 3, 2014 8:02am
Gain needs to release details about all the trade adjustments it made to the account. Timestamps and prices before/after the adjustment. Without this information, its impossible to pass any judgement if the adjustments were adequate. The onus to demonstrate that is on them tho.
  • #330
  • Nov 3, 2014 12:47pm Nov 3, 2014 12:47pm
people who can try to help by going to this thread and give forex.com a lesson http://www.forexfactory.com/news.php...78#post7843425
people leave, but this thread will go on for ever
  • #331
  • Nov 3, 2014 4:46pm Nov 3, 2014 4:46pm
Quoting Aussi
people who can try to help by going to this thread and give forex.com a lesson http://www.forexfactory.com/news.php...78#post7843425
good work!
  • #332
  • Nov 3, 2014 5:16pm Nov 3, 2014 5:16pm
Quoting Iro
I've had friends who had their accounts closed by Gain using standard scalping trading, closing accounts isn't restricted to latency or whatever. It might be bc they were profitable who knows. However the difference is that they previously paid out the profits and allowed my friends to withdraw in full. Whereas this time with yunben they actually deleted the profitable trades and kept the losers. Is it simply because yunben was trading much larger amounts and they suddenly got greedy? That they'd actually do something like that is what sets the...

Thank you. Now a real third party is reviewing my case. Is there anything you want to ask forex.com?

here is Jack's Boss email. They now have only off-market data adjustments. seems they don't want to talk to me. they only provide the details to FOS. I do have a lot of questions to ask them, especially what's the story behind their latency.

Dear Mr Yun,

Thank you for your time on 30th October 2014 regarding your account status with GAIN Capital-FOREX.com UK Ltd. As per our conversation you requested the following information relating to off market transactions that were placed on the 15th October 2014

1. The transactions that were executed on off market rates
2. The rates that we used to make adjustments to the above referenced transactions
3. The profit and loss due to the adjustments for each transaction
4. The time that the transactions we traded on off market rates

As part of the FCA Handbook SUP 10 Dispute Resolution: Compliant (DISP) GAIN Capital-FOREX.com UK Ltd is obliged to provide you details on referring your complaint to the Financial Ombudsman Service. We provided you with this information on the 24th October 2014 and advised you have the right to refer your complaint to the Financial Ombudsman Service. We were notified by Financial Ombudsman Service that you filed a complaint with them on 25th October 2014 regarding your account termination and the adjustments we made to transactions that were executed on off market rates.

In line with our regulatory obligations, we will provide the case information relating to the aforementioned transactions directly to the Financial Ombudsman Service. We will allow the Ombudsman to independently review the complaint and provide both of us a response to their findings.

Kind Regards,
Mike Bermingham

Mike Bermingham | Operations Director| GAIN Capital - Forex.com UK Ltd
d: +44.(0).207 429 7914| f: +44.(0).207 236 4870 | e: [email protected]| www.forex.com/uk
25 Canada Square | 34th Floor (CGC 34-03) | London E14 5LQ
  • #333
  • Nov 3, 2014 5:36pm Nov 3, 2014 5:36pm
The FOS has a bad track record for trading-related cases like this. I doubt they even have the capability of determining if a trade was off-market or not, let alone by how much. Gain will show them thier trade-data and the relevant sections of their fine-print/customer agreement and that will be that. The FOS is better for cases like when the insurance company acts up and similar consumer protection stuff.
  • #334
  • Nov 3, 2014 5:44pm Nov 3, 2014 5:44pm
Yuben I read this whole thread. I'm sorry this happened to you. Good luck I hope you get your money.
  • #335
  • Nov 3, 2014 8:20pm Nov 3, 2014 8:20pm
Quoting forexverif
Yuben I read this whole thread. I'm sorry this happened to you. Good luck I hope you get your money.

Thank you very much. forexverif. I wish you happy trading.
  • #336
  • Nov 4, 2014 12:45am Nov 4, 2014 12:45am
Quoting PoundTrader
with that kind of money you should of been trading on there ECN platform http://www.gaingtx.com/platform.shtml
Sir, I would rather burn my money than deposit to any company related to Gain Capital, do you really think that it's a real ECN, really funny! I love your senses of humor =)))
  • #337
  • Edited 2:54am Nov 4, 2014 2:15am | Edited 2:54am
Quoting shrike
The FOS has a bad track record for trading-related cases like this. I doubt they even have the capability of determining if a trade was off-market or not, let alone by how much. Gain will show them thier trade-data and the relevant sections of their fine-print/customer agreement and that will be that. The FOS is better for cases like when the insurance company acts up and similar consumer protection stuff.


I hope FOS can work effectively. I read the news "FCA fines FXCM UK £4 million ($6.7M) for asymmetric slippage". If the statements of FCA are true, gain should be fined by millions of dollars also. In this case, I am apparently unfairly treated and they abused their agreements.

the news is at:
https: //leaprate.com /2014/02/fca-fines-fxcm-uk-4-million-6-7m-for-asymmetric-slippage/


“When consumers lose out because of poor conduct it undermines confidence in the integrity of our markets. The FCA will use all the tools at its disposal – supervision, rule-making and enforcement – to ensure that firms do not exploit conflicts of interest or the trust placed in them by their clients.”
Tracey McDermott, the FCA’s director of enforcement and financial crime, said:
“Not only did FXCM UK fail to treat its customers fairly or correctly apply our rules, I am particularly disappointed that it was not transparent in its dealings with the FCA. We expect all firms to put customers at the heart of their business, and we have taken action to ensure clients of FXCM UK will get redress.”
FXCM UK placed ‘over the counter’ foreign exchange transactions known as rolling spot forex contracts on behalf of retail clients, which were then executed by another part of the FXCM Group. Between August 2006 and December 2010, the FXCM Group kept profits from favourable market movements between the time the orders were placed by FXCM UK and executed by the FXCM Group, while any losses were passed on to clients in full – a practice known as asymmetric price slippage.
FXCM UK also failed to check that its order execution systems were effective, and whether its order execution polices complied with the FCA’s rules on best execution.
These rules require firms to take reasonable steps to secure the best possible deal for their clients. The FCA also expects firms to treat their customers fairly (FCA principle 6) – FXCM UK fell short of both of these standards.

The FCA expects firms to take reasonable steps to obtain the best possible results for retail and professional clients when executing orders on their behalf (‘best execution’). The FCA highlighted these rules in the most recent edition of Market Watch, and is undertaking a thematic review of best execution across a number of markets.
Forex markets are ‘over the counter (OTC)’ – based on bilateral transactions between counterparties in the market. This means end-clients rely heavily on the price quoted by the counterparty acting on their behalf. In addition, once opened, contracts cannot be transferred between firms. As a result, clients cannot shop around once they have traded, even if they think that they can get a better result elsewhere.
Rolling spot foreign exchange transactions are:
contracts to buy or sell foreign exchange where prices are agreed but payment is made later, or
contracts where the profit made or loss avoided depends on changes in the exchange rate (known as ‘contracts for difference’).
The relevant FCA principles for business:
A firm must pay due regard to the interests of its customers and treat them fairly (customer interest – principle 6)
A firm must deal with regulators in an open and cooperative way, and must disclose to the FCA appropriately anything related to the firm of which the FCA would reasonably expect notice (relations with regulators – principle 11).
  • #338
  • Nov 4, 2014 3:16am Nov 4, 2014 3:16am
Quoting Abcxyz77
{quote} Sir, I would rather burn my money than deposit to any company related to Gain Capital, do you really think that it's a real ECN, really funny! I love your senses of humor =)))
Here are the words of FXCM:
"This is how the system was set up. As far as we were concerned at the time, the customer traded with us, and we hedged," Mr. Niv said. "The only thing we held back on was the price improvement. We still gave the customer the best price out of multiple market makers."

Gain's clients traded with gain, but Gain never hedge it. this is the way casino does.
  • #339
  • Nov 4, 2014 5:29am Nov 4, 2014 5:29am
Personally for me, it's an outrage from the side of the broker..
  • #340
  • Nov 4, 2014 5:42am Nov 4, 2014 5:42am
Quoting yunben
{quote} Here are the words of FXCM: "This is how the system was set up. As far as we were concerned at the time, the customer traded with us, and we hedged," Mr. Niv said. "The only thing we held back on was the price improvement. We still gave the customer the best price out of multiple market makers." Gain's clients traded with gain, but Gain never hedge it. this is the way casino does.
Sorry, but can you explain "hedged", what does it mean?
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