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Broker reverses $20K winning trades for alleged latency arbitrage

  • #441
  • Nov 21, 2014 8:42am Nov 21, 2014 8:42am
there are 2 regulated brokers use price latency to adjust customers trade that i know: Forex.com and Ironfx
http://www.forexpeacearmy.com/forex-...langtitle.html
There is another thread about Ironfx adjust customer trade but I missed the link. A scam broker shouldn't have regutations, what the hell FCA is doing? FCA is a joke?
  • #442
  • Nov 22, 2014 1:01pm Nov 22, 2014 1:01pm
Quoting Abcxyz77
there are 2 regulated brokers use price latency to adjust customers trade that i know: Forex.com and Ironfx http://www.forexpeacearmy.com/forex-...langtitle.html There is another thread about Ironfx adjust customer trade but I missed the link. A scam broker shouldn't have regutations, what the hell FCA is doing? FCA is a joke?
well said
people leave, but this thread will go on for ever
  • #443
  • Nov 23, 2014 1:58am Nov 23, 2014 1:58am
Quoting Abcxyz77
there are 2 regulated brokers use price latency to adjust customers trade that i know: Forex.com and Ironfx http://www.forexpeacearmy.com/forex-...langtitle.html There is another thread about Ironfx adjust customer trade but I missed the link. A scam broker shouldn't have regutations, what the hell FCA is doing? FCA is a joke?
You can increase the list now by reading post number 431
  • #444
  • Nov 23, 2014 2:19am Nov 23, 2014 2:19am
Quoting yunben
{quote} first Thank you for your correction. Adal are really a specialist for brokers. My apology here. I just search the internet about alpari, fxcm, lmax, dukascopy customer agreement, and search scalp, latency,post market adjustment. I didn't find the terms. seeing you post here, I tried open a new account with fxcm, I do find the terms about latency in fxcm. but still I didn't see scalping in fxcm. Anyway, correct me If I am wrong. but I am not trying to lie. Do I need to lie? The fact is not enough? does forex.com trade against its clients?...
Yunben


You can't build a relationship while hurting the broker. If it is mentioned in "transparent" fashion, should you condemn the broker? they are not hiding it, you are only showing it to those who don't read or missed focusing. Latency trading will hurt them ;all of them , doesn't have to be in terms and conditions in the exact specific word you desire. Definitely this is not a new thing for brokers.

Try trading with those brokers (dukascopy, alpari ++) , and with NFA regulated; let us know how it goes. < I guess I know the answer from now but would rather wait and hear it from u. best of luck.
  • #445
  • Edited 4:19pm Nov 23, 2014 4:11am | Edited 4:19pm
The problem is I was not trading on so-called latency. it occurred just during I was executing my trading strategy. I should make profit from that trading case overall no matter there was the latency. The latency of their sever failure cause me lose and win at the meanwhile. However, after their unknow/secret adjustment, I lost a lot. That's surely unacceptable for me. If I trade on price latency, it would not be a problem for me because I might not lose from the case. For the Ironfx case above, although I don't know whether the client trade on latency or not. at least Ironfx allow the client to choose either withdraw original fund or adjusted trades. (no hurt to the client fund if he choose the former) But forex.com would only provide unknown adjusted trade to let you lose after adjustment, this means forex.com is even worse than Ironfx.


I would be happy if this post can be any effective to other traders. It is an alert that retail traders should not trust this market makers and read their agreements carefully. I have tried a lot of other brokers oanda,dukascopy,lmax and cityindex. No broker has latency problem, adjust profitable trade after market, or close winning accounts like forex.com. dukascopy may have similar terms too, but if there is no latency problem for their server, you may not have any trouble.

As for forex.com, I have lost hope/patience to get a compromise after they repeatly sent me the same email. no details. no changes. I would like to let FOS to investigate first and see what a third party would say.

After this case, I would let my forex circle all know it and get away from forex.com and any other possible MM broker. They either made a trap for retail traders or take profit from winning account legally. I didn't realize a regulated broker would treat its clients like this broker. Now I would only own accounts with ECN or local brokers (easier to launch a lawsuit).




Quoting t4fast
{quote} Yunben You can't build a relationship while hurting the broker. If it is mentioned in "transparent" fashion, should you condemn the broker? they are not hiding it, you are only showing it to those who don't read or missed focusing. Latency trading will hurt them ;all of them , doesn't have to be in terms and conditions in the exact specific word you desire. Definitely this is not a new thing for brokers. Try trading with those brokers (dukascopy, alpari ++) , and with NFA regulated; let us know how it goes. < I guess I know the answer from...
  • #446
  • Nov 23, 2014 11:00am Nov 23, 2014 11:00am
Quoting yunben
The problem is I was not trading on so-called latency. it occurred just during my trading strategy. I should make profit from that trading case overall. The latency of their sever failure cause me lose and win at the meanwhile. However, after their unknow/secret adjustment, I lost a lot. That's surely unacceptable for me. If I trade on price latency only, it would not be a problem for me because I might not lose from the case. For the Ironfx case above, although I don't know whether the client trade on latency or not. at least Ironfx allow the client...
was most of your trades around there so-called latency, you also said there latency just happen aound your trading strategy, if your system took advatange of there latency they did what they had to do, as far them sticking you with the losses did you make withdrawls on winning trades in the past
  • #447
  • Nov 24, 2014 1:36pm Nov 24, 2014 1:36pm
I still see forex.com as cheap and dirty
people leave, but this thread will go on for ever
  • #448
  • Nov 24, 2014 8:26pm Nov 24, 2014 8:26pm
Quoting PoundTrader
{quote}was most of your trades around there so-called latency, you also said there latency just happen aound your trading strategy, if your system took advatange of there latency they did what they had to do, as far them sticking you with the losses did you make withdrawls on winning trades in the past
I don't understand what you mean. My trades are quite frequent. several thousands of trades per year. If my strategy relies on latency. Do you mean there are latencies in forex.com platform so often? I said enough their server failure cause me lose and win at the meanwhile, my strategy should make profit no matter there is latency or not. It is unfair to take all profits and left loses or simply make secret adjustment in favor of forex.com only.
  • #449
  • Nov 26, 2014 12:13pm Nov 26, 2014 12:13pm
Quoting yunben
{quote} I don't understand what you mean. My trades are quite frequent. several thousands of trades per year. If my strategy relies on latency. Do you mean there are latencies in forex.com platform so often? I said enough their server failure cause me lose and win at the meanwhile, my strategy should make profit no matter there is latency or not. It is unfair to take all profits and left loses or simply make secret adjustment in favor of forex.com only.
So far no news. FOS is too slow. Have to wait and see.
  • #450
  • Nov 26, 2014 12:19pm Nov 26, 2014 12:19pm
Quoting t4fast
{quote} Yunben You can't build a relationship while hurting the broker. If it is mentioned in &quot;transparent&quot; fashion, should you condemn the broker? they are not hiding it, you are only showing it to those who don't read or missed focusing. Latency trading will hurt them ;all of them , doesn't have to be in terms and conditions in the exact specific word you desire. Definitely this is not a new thing for brokers. Try trading with those brokers (dukascopy, alpari ++) , and with NFA regulated; let us know how it goes. < I guess I know...
If the broker hurt you like in my case, would you forgive them?Why should I stop exposing their &quot; legal deeds&quot;?let's wait and see?
  • #451
  • Edited 2:10pm Nov 26, 2014 1:58pm | Edited 2:10pm
The client has the right to trade however he/she wants and to take every price opportunities comes his/her way regardless whether it's because of latency, or news or price patterns or indicators or the stars aligning in a certain way... If it's the server that's slow in giving the new prices, FIX THE SERVER!! Don't punish the trader.

I say to Yun that he takes this to the highest authority possible, not just the FOS, but the police and the court! It's about time those unscrupulous brokers be exposed and be put out of business. Gladly taking our money when we are losing and yet cry foul when we are winning? We are TRADERS, in a business to earn profit in speculating AND arbitraging forex prices using our skills and knowledge! I am sick and tired of us being treated as casino gamblers. They want to take just losers and no winners? Close their shop and go down to Las Vegas and open up a casino already. Stop wasting our time and our money!
Make your losses in demo. Earn your profits live.
  • #452
  • Nov 26, 2014 9:47pm Nov 26, 2014 9:47pm
Quoting Forexia
The client has the right to trade however he/she wants and to take every price opportunities comes his/her way regardless whether it's because of latency, or news or price patterns or indicators or the stars aligning in a certain way... If it's the server that's slow in giving the new prices, FIX THE SERVER!! Don't punish the trader. I say to Yun that he takes this to the highest authority possible, not just the FOS, but the police and the court! It's about time those unscrupulous brokers be exposed and be put out of business. Gladly taking our...
I am with you on this.
Striving to Develop & Implement Innovative Ideas
  • #453
  • Nov 28, 2014 2:11am Nov 28, 2014 2:11am
http://www.forexfactory.com/news.php...29#post7905575 come on all help yunben
people leave, but this thread will go on for ever
  • #454
  • Dec 1, 2014 10:39am Dec 1, 2014 10:39am
Quoting Forexia
The client has the right to trade however he/she wants and to take every price opportunities comes his/her way regardless whether it's because of latency, or news or price patterns or indicators or the stars aligning in a certain way... If it's the server that's slow in giving the new prices, FIX THE SERVER!! Don't punish the trader. I say to Yun that he takes this to the highest authority possible, not just the FOS, but the police and the court! It's about time those unscrupulous brokers be exposed and be put out of business. Gladly taking our...
Thank you for your kind comments. I am waiting for FOS's adjudication. If there is no reply from FOS over two months, I will launch a lawsuit.
  • #455
  • Dec 1, 2014 2:01pm Dec 1, 2014 2:01pm
Wow, this is just unbelievable. What a scam. Its getting more and more popular to accuse traders of latency arbitrage. I was accused of the same thing by my last two brokers and all of my profits were confiscated. Anyways hopefully you get it back and if not, make sure their reputation gets crushed or file a lawsuit! Good luck.
  • #456
  • Dec 1, 2014 6:10pm Dec 1, 2014 6:10pm
lucky me i just opened an account but not with forex.com.

Simen Kon,
Who were the 2 brokers that did you?

Speedy123
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  • #457
  • Dec 2, 2014 10:32am Dec 2, 2014 10:32am
My case is still progressing under FOS. lets wait and see.


ombudsman <[email protected]>
12:09 AM (18 minutes ago)
https://mail.google.com/mail/u/0/images/cleardot.gif
https://mail.google.com/mail/u/0/images/cleardot.gif
https://mail.google.com/mail/u/0/images/cleardot.gif
to me
https://mail.google.com/mail/u/0/images/cleardot.gif
Dear Mr Ben

Thank you for your email requesting an update on progress of your complaint.

Your letter has been forwarded on to the team currently dealing with the complaint.

I can assure you that your complaint is progressing here at the Financial Ombudsman Service. We have obtained the file of papers from Gain Capital - Forex.Com UK Limited to complete your case file and to avoid further delays at the assessment stage.

Yours sincerely


Scott Cullinane | CCD Administrator | Financial Ombudsman Service | Tel No: 0207 093 5500 | Fax: 020 7093 5501
Exchange Tower, London, E14 9SR





Quoting simenkon
Wow, this is just unbelievable. What a scam. Its getting more and more popular to accuse traders of latency arbitrage. I was accused of the same thing by my last two brokers and all of my profits were confiscated. Anyways hopefully you get it back and if not, make sure their reputation gets crushed or file a lawsuit! Good luck.
  • #458
  • Dec 2, 2014 10:56am Dec 2, 2014 10:56am
Quoting yunben
My case is still progressing under FOS. lets wait and see. ombudsman <[email protected]> 12:09 AM (18 minutes ago) {image} {image} {image} to me {image} Dear Mr Ben Thank you for your email requesting an update on progress of your complaint. Your letter has been forwarded on to the team currently dealing with the complaint. I can assure you that your complaint is progressing here at the Financial Ombudsman Service. We have obtained the file of papers from Gain Capital - Forex.Com UK Limited to complete your case file and...
lets hope you get justice from FOS.
Striving to Develop & Implement Innovative Ideas
  • #459
  • Dec 3, 2014 8:32pm Dec 3, 2014 8:32pm
I kind of skimmed over most of the pages in this thread but to summarize:

- You have a high freq scalping strategy
- Your strategy scales in a lot so you average down your losses.
- You have been trading it successfully for 5 years no problems with the same broker.
- All of a sudden your broker had some latency problem at the same time that you made massive wins.
- They assumed you were arbing them, and your profits are revoked and you end up with losses.
- forex.com has been proven to have latency issues which makes arbing a real possibility so you can understand why they reacted their way
- however, it is unfair because you claim strategy is not arbing related.

Does that sound about right?

So assuming you are telling the truth - yes that sucks but sounds like you have a winning strategy. Just move to a real broker that has decent infrastructure and keep trading it. If you were genuinely making money without arbing forex.com, your strategy will work on other brokers too. Based on your MyFxBook, you'll make that 20k back in under a month.

I'm assuming that having a scalping strategy where trades are open for less than a minute is not sufficient "proof" to kick someone off for arbitrage no?
  • #460
  • Dec 4, 2014 9:06pm Dec 4, 2014 9:06pm
Why has thread starter yunben been banned??
All posts are my personal opinion
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