Liteforex SCAM with real proof

[BigT1]

So sorry, I overlooked that; am glad to hear he is pursuing on principal.
AI

 

[ElizavetaLiteForex]

Dear sirs,
Here is the full quote of clause 6.8.: "In case the price change is related to the difference between the last instrument price before the market closing and the first instrument price at the opening of the market, or is connected with the news release, and increases profits by more than 10% of the Equity, the Company reserves the right to adjust financial result of such transactions to an amount proportional to the difference in the prices indicated above by means of funds deduction with a following comment. In some cases, the Company can set limits of less than 10% of total deposit to the minimum profit change". This clause is contained in Public Offer Agreement which must be accepted by each customer in order to open trading account. So, we reckon that it has been read. But nobody reads it. And now, we can see the result of negligence and unwillingness to know the important terms of work. I wonder, why do they start blame the company instead of spend a little time and finally read the agreement? I understand, it was not pleasant surprise for Rajivxxx to discover that such terms had been applyed to his trade. But if he doesn't like the agreement why he accepted it? Ok, get to the point. There was a situation on Rajivxxx's trading account which was considered as suitable for clause 6.8 applying. The company had applyed this clause so all is correct.

 

[PaladinFX]

Dear sirs,
Here is the full quote of clause 6.8.: "In case the price change is related to the difference between the last instrument price before the market closing and the first instrument price at the opening of the market, or is connected with the news release, and increases profits by more than 10% of the Equity, the Company reserves the right to adjust financial result of such transactions to an amount proportional to the difference in the prices indicated above by means of funds deduction with a following comment. In some cases, the Company can set limits of less than 10% of total deposit to the minimum profit change". This clause is contained in Public Offer Agreement which must be accepted by each customer in order to open trading account. So, we reckon that it has been read. But nobody reads it. And now, we can see the result of negligence and unwillingness to know the important terms of work. I wonder, why do they start blame the company instead of spend a little time and finally read the agreement? I understand, it was not pleasant surprise for Rajivxxx to discover that such terms had been applyed to his trade. But if he doesn't like the agreement why he accepted it? Ok, get to the point. There was a situation on Rajivxxx's trading account which was considered as suitable for clause 6.8 applying. The company had applyed this clause so all is correct.

Dear Madam,

regarding the two sentences of my quote which are shown in bold type:
1.) If you do not like newstraders and scalpers as your clients, why don't you state so clearly and openly on your website (and make sure broker comparison websites know about it, too) instead of hiding it in a POA or ToS? I think we all know the answer to that without need for further elaboration.
2.) If you know that hardly any trader reads POA and ToS documents, you should ensure, in your own interest, that issues which will probably lead to contention are known to potential customers by actively pointing them out ... instead, you choose to accept traders' deposits and then cancel their winning trades, if they don't suit you.

This doesn't exactly show prudent business behaviour, since you might gain some (rather meager) profits short-term, but irredeemably spoil your reputation as an honest and trustworthy broker.

Bonus programs and flashy advertising will keep you in business only so long before word about how you really conduct your business spreads.
The 'supply' of new traders falling for old tricks is not inexhaustible, you should realize.


Paladin Consultants
Germany

 

[Pharaoh]

Hello Elizavita,

Nice of you to finally join the conversation.

There are a couple of issues that make this issue interesting.

1. Why would a broker enforcing some part of the terms of service send the message about this from the AML department? That's sort of like getting a note about an adjustment in your tax rates signed by the KGB or FBI.

2. Why not explain exactly what trades, what the opening/closing prices were, and how this exactly violated the terms.

3. "In some cases, the Company can set limits of less than 10% of total deposit to the minimum profit change" - Why not just come out and ban news trading directly? This clause lets you cancel up to 100% of the profits of ANY profitable news trade.

4. Does "increases profits by more than 10% of the Equity" mean that this rule only applies to profitable trades? Any legitimate restrictions on news trading should apply equally to profitable and unprofitable trades.

 

[BigT1]

Hello Pharaoh,
The very idea that any broker should have a right to arbitrarily cap profit% on trades is blatant evidence of fraud.
Even in Russia, there are laws regarding open market trading.
Additionally, the single tick of a clock can be considered 'News', for every second brings something new.
No legitimate company can defend against one sided trade cancelations.
If the RAFMM arbitrates against the client in this case, it will stand as strong evidence of the collusion that RobertForex has alledged.
Such a ruling, if made, will be strong evidence that the SRO itself should be dissolved by the Russian Government via Federal Financial Markets Service.
I suggest this one needs to be played out fully on principal grounds alone, to either strike down this kind of arrogant broker activity, or expose underlying systemic collusion if it exists.
.
AI

 

[Pharaoh]

Further to that, the fact that this rule capping profits (but NOT losses) applies to weekend gaps would indicate that LiteForex isn't passing trades on to the real market and doesn't even seem to be fully hedging its net trades before the weekend (if it's hedging at all).

I can understand a market maker blocking scalping and news. Capping profits for news and also for weekends looks to me like a sign that something is DEEPLY wrong with LiteForex.

 

[BigT1]

Pharaoh,
As a reminder, NFA regulated brokers are required to be limited by the 15-minute rule, and can only bust ALL trades on BOTH sides, simultaneously; and only when the reversal eminates from a 3rd party liquidity provider and has been signed-off by an NFA Registered, legally responsible Principal of the firm and such reversal has been certified as having been communicated to all clients within the time limit.
.
Never could this be done if a client was trading against the Broker itself, while acting as a Market Maker.
Many international traders should really take a hard look and learn to understand their are real differences between working with Real Brokers, as opposed to 3rd world Bucket Shops.
.
AI

 

[Rajivxxx]

Dear sirs,
Here is the full quote of clause 6.8.: "In case the price change is related to the difference between the last instrument price before the market closing and the first instrument price at the opening of the market, or is connected with the news release, and increases profits by more than 10% of the Equity, the Company reserves the right to adjust financial result of such transactions to an amount proportional to the difference in the prices indicated above by means of funds deduction with a following comment. In some cases, the Company can set limits of less than 10% of total deposit to the minimum profit change". This clause is contained in Public Offer Agreement which must be accepted by each customer in order to open trading account. So, we reckon that it has been read. But nobody reads it. And now, we can see the result of negligence and unwillingness to know the important terms of work. I wonder, why do they start blame the company instead of spend a little time and finally read the agreement? I understand, it was not pleasant surprise for Rajivxxx to discover that such terms had been applyed to his trade. But if he doesn't like the agreement why he accepted it? Ok, get to the point. There was a situation on Rajivxxx's trading account which was considered as suitable for clause 6.8 applying. The company had applyed this clause so all is correct.

Well as you already said that "No body reads it" so i am normal trader as others and not read that. as you are expecting it from your clients that they read your all lengthy pdf files ,lets see first are your staff members read it of not , just chat with your customer acer,

Please see all 3 pics






This guy "Basil keaton" is their and he also no idea about this 10% after i am showing him his own rules ,then he is fully speechless and start saying that 10 % profit is very rare condition , and giving me that email again and again , NOW problem is that this broker is a dealing desk and trade against his own clients ,so in normal manual trading because 99% traders loss their money ,these BS come with these rules which protect him to loose also they can change it as they want and any time ,that's why if some one trade with scalping, news-trading or any other system they can edit their pdf files and start saying that why not read 1st. even your employs have no idea about your rules.

 

[Pharaoh]

So they've got a 2 minute rule too. That proves LiteForex is a market maker beyond any possible doubt.

What I don't get is that if LF already bans trades under 2 minutes, why wouldn't they just ban news trading. That's a simple and straightforward rule that is easy to understand.

Instead, LiteForex permits news traders to lose any amount, but restrict the profit to 10% of the account - AND allow themselves to decide that they can grab more if 10% of the account is too much.

I'm all for brokers having Terms of Service, Terms & Conditions, etc., as long as those terms are clearly written and are fair. Rules allowing profits to be cancelled as being "too much profit" and that are vaguely written don't qualify for this in my book.

When this goes to a vote, I won't have to spend a lot of time to make my decision.

 

[Thai_trader]

So they've got a 2 minute rule too. That proves LiteForex is a market maker beyond any possible doubt.

What I don't get is that if LF already bans trades under 2 minutes, why wouldn't they just ban news trading. That's a simple and straightforward rule that is easy to understand.

Instead, LiteForex permits news traders to lose any amount, but restrict the profit to 10% of the account - AND allow themselves to decide that they can grab more if 10% of the account is too much.

I'm all for brokers having Terms of Service, Terms & Conditions, etc., as long as those terms are clearly written and are fair. Rules allowing profits to be cancelled as being "too much profit" and that are vaguely written don't qualify for this in my book.

When this goes to a vote, I won't have to spend a lot of time to make my decision.

The problem with this "news trader" clause is that I run a grid system on liteforex cent account that is always in trades. The trades would very very rarely last less than 2 min (btw, lite will accept <2 min trades but if they see that is a habit then they start canceling them). However, all my trades have a TP set on the server and often time when the price moves during a news event my TP is hit and the trades are closed. I have been doing this with lite for over a year now and never had any trades canceled due to these terms. I'm not trading the news. But how do you keep your server side TP or SL from being hit if the price moves after a news event (as often does).

The problem with this broker is that much is up to their discretion. I have made profits on all my accounts with them and make regular withdrawals. I also refuse all bonus credits they have offered. I have had issues with delays in pulling larger sums of money out (2-10 days) but I'm sure that is because they are not well capitalized and require new funds to come in to pay out withdrawals. Of course this should be a red-flag. Of course they are a MM. Of course their regulators are a total joke. I am fully aware of all that and I still trade with them and make profits that can be withdrawn.

It's up to the trader to be aware of the conditions given by their broker. Am I happy with lite forex? Not really. The support is horrible and their general attitude with everything is terrible. Since All the funds I currently have in accounts with them is pure profit and all initial investment has been withdrawn I'm not nearly as concerned anymore. I like being able to test a strategy on a live account that is based in cents so I can test with a very small balance.

I would never recommend anyone to trade with them on a live standard account (200 leverage max they give) and to deposit large sums of money with them. They are not that kind of broker. But you will not get cent conditions on the more repuatble and regulated brokers.

And the fact is, if you are trading micro lots and smaller, the broker will be taking on the other side of the trade. The LP will not accept such small orders.