Hello,
We would like to introduce ourselves and then reply to BigBird.
We are Sterling Gent Trading Ltd (SGT), a BVI Licensed and regulated broker. We were incorporated in 2006 and became one of the first brokers to get regulated by the FSC in BVI back in 2010. This, like BigBird, is our first post in anywhere in any type of forum.
The crux of what is annoying BigBird is the initial exchange rate he received to enter into a particular trading strategy that traded in USD. BigBird’s GBP funds were converted with the authority of BigBird’s MM by way of an LPOA by the LP where the strategy was traded. That exchange cost BigBird $1,800 and that is what this is all about. BigBird thinks that somehow SGT is responsible for his trading decision to enter in a USD traded strategy.
In fairness, BigBird did inform us that he would go to a forum to seek more experienced people’s viewpoint, with our reply being that of course but to please be sure that the information be accurate. Unfortunately this didn’t happen and we thank FPA for giving us the opportunity to respond to the many inaccuracies in BigBird’s post.
We will begin by saying that we are surprised by some of the language used by BigBird. BigBird calls the BVI “dubious waters”. We are unsure what he means by that exactly but the BVI is an Overseas British Territory with a judicial system based on English law and an excellent pool of professionals. There is a stringent process upheld by the FSC to regulate SGT and we appreciate that process.
Secondly, BigBird seems to be surprised that SGT has an unblemished record. SGT is certainly not surprised. SGT has been in business for 9 years and as the BVI authorities can attest, we have never had an issue. Not one. This is something we are very proud of and work hard to maintain.
SGT has been completely transparent with BigBird. We gave him all the information he asked for during lengthy skype chats and a number email exchanges. The comments regarding placing him in spam with no further replies is simply not true. Each and every one of his emails were replied to. If for some reason his server identified our emails as spam, that is something we did not manage.
1. BigBird and his MM decided on a “handsome looking trading strategy”. At no time did SGT contact BigBird with any solicitation about doing business. Communication regarding the trading strategy was between the BigBird and his MM and at no point prior to the Withdrawal Request being sent to SGT did BigBird communicate with SGT.
2. At no time did BigBird contact SGT to do “some due diligence”.
3. The IB that BigBird was dealing with is not and never has been an employee of SGT.
4. BigBird opened an account with SGT and gave HIS Money Manager Limited Power of Attorney to trade the account. BigBird then deposited GBP with SGT.
5. SGT was advised by the MM that the “handsome trading the strategy” which BigBird selected, was ONLY being traded on liquidity provided through the Currenex technology at a new LP. In order for BigBird’s Trader to trade the strategy, funds were wired to the designated LP. Regarding the comments that the strategy was only available at SGT, again not true. SGT had to open up an account with the new designated LP that offered the strategy. This was an expense to SGT both financially and in time spent on the application, KYC, etc.
6. The MM’s VERY first trade out of the gate, by way of the LPOA, was to convert BigBird’s GBP to USD at the Liquidity Provider so the Trader could trade the strategy. The rate that the Trader got was issued by the LP and had nothing to do with SGT. (We note that another poster in this forum has correctly pointed out that in order for BigBird to trade the selected strategy that HE chose, he would have had to send USD anyway, and that BigBird would likely have received the same rate if not a worse rate from his local bank.)
7. BigBird is confusing the fact that money sent to the LP is money sent to another broker. The LP – which like many other LPs is also a broker. The account held at the LP is held in the name of SGT, not BigBird.
8. The MM, by way of the LPOA, had complete trading control over BigBird’s account. So frankly, BigBird should really be directing all his questions to his MM. SGT was simply the broker who facilitated the trading.
9. We have listened to the recording that BigBird had with the IB and there is no mention by the IB that he is an SGT employee, let alone the right hand man to the owner. We do try to police and work with 3rd parties, such as IB’s and Money Mangers, but it is impossible to monitor or control all outside communications.
10. SGT’s first communication with BigBird was when he contacted our trading desk to enquire about his withdrawal. SGT immediately contacted BigBird, using the telephone number provided and confirmed that he had sent the withdrawal to SGT. SGT then contacted the IB to advise him that the customer wanted to close the account. SGT was told by the IB that they were already discussing the issue with BigBird and asked us to wait 2 business days before processing the wire. As any Broker will tell you, when MMs are involved and performance is poor, there is often interaction between the client/IB/Manager to see if there is an alternative product that can be offered and the account can be salvaged in any way. We simple informed the IB that we had received a withdrawal form from the client and the IB replied that he was dealing directly with BigBird to try and offer another solution.
We have replied to each and every email from BigBird and on one recent occasion he actually thanked us. BigBird’s email: “Thanks for this in depth response. Sorry I haven't returned , Ive been extremely busy, indeed focussing on more positive things.” So, we are unsure why BigBird wants to blame SGT for giving him in depth responses.
Just to make it perfectly clear, as I think there was some confusion, when reading other posts, regarding the return of Big Birds funds. Big Bird has received back his funds, with a full account statement.
For full transparency, there was a delay in funds being returned as outlined above and unfortunately the Bank swift was indeed incorrect causing an extra few days delay. I appreciate Big Birds concern, but we were in regular contact with him throughout this process.
Regards
SGT Team.