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A Surprising Outcome to an FPA Investigation

Discussion in 'Scam Alerts' started by Scam Investigations Committee, Dec 4, 2008.

  1. Scam Investigations Committee

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    Recently, the FPA declared InstaForex to be a scam, since they provided no evidence to back up their reasons for confiscating profits from FPA members Yulia and Barunia. There was a second scam investigation being run against InstaForex for confiscating profits from another FPA member. Our investigator, Gerard, didn't hold out much hope of getting that trader's money back, but continued to exchange messages with InstaForex.

    FPA member Aras194 is a very successful, high leverage, high risk trader. Amazingly, she managed to return almost $8000 profit from an opening balance of about $100 in less than one week. Note: We won't object if she decides to share a little bit about her trading strategies in our forums.

    She then complained to the FPA after InstaForex cancelled all of her trades. InstaForex representatives claimed they were all off market. A brokerage does have the legitimate right to cancel individual trades based on incorrect price feeds. Then again, having bad price feeds for several days in a row while still allowing customers to place trades would be a really bad thing for a brokerage to do.

    InstaForex representatives publicly accused Aras194 of cheating at the FPA's forums and other forums online. In emails to the FPA, an InstaForex representative called Aras194 an "anonymous Iranian scammer" and made other derogatory statements about her. Lt. Gerard attempted to explain that the profits made by Aras194 were unusually large, but were very possible. He even gave a real life example of how he made a lot size error in his usual conservative trading style and accidentally gained 25% of his account balance in 15 minutes instead of the 2.5% he was targeting. The InstaForex representative was not impressed.

    Gerard was surprised and amazed when a different InstaForex representative emailed and said that $7950.07 in profits were being restored to Aras194's account. He even wrote back to absolutely confirm that there had not been a problem in translation.

    InstaForex did not return a small amount of money from one active trade that was open at the time that InstaForex closed all trades and deleted the trading history of the account. InstaForex also did not pay approximately $60 to Aras194's IB. Aras194 did the honorable thing and paid her IB the money owed by InstaForex after withdrawing all profits.

    We do feel that InstaForex still owes the IB referral fees. Since Aras194's IB is in another country, we do not understand their argument that this was some sort of self-referral scheme. We also strongly feel that InstaForex owes a public apology to Aras194 and other traders in her country, as well as to FPA Investigator Gerard.

    Since the vast bulk of the money owed to Aras194 has been returned to her, we feel that this does serve as an admission that InstaForex was wrong to try to confiscate this money. We also feel that InstaForex has made a significant step toward improving its image. Aras194 has agreed that we may consider her case against InstaForex to be resolved.


    Official FPA Case Resolution

    Aras194’s Original Complaint


    Note: At this time, the case of Yulia and Barunia against InstaForex is still considered by ther FPA to be a Confirmed Scam. We now have some hope that their issue with InstaForex can be resolved soon.

    Details and Discussion of Yulia and Barunia's Case
     
  2. joao

    joao Private

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    So what is her strategy

    I would be very much interested in finding out what is her strategy, to start out with 100 and end up with 8000 almost sounds too good to be true. Either she was lucky or then she has a skill or strategy which i would love to learn from. Thanks.
     
  3. fxtender

    fxtender Private

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    FPA again!

    Good job, wish I knew who to have 'most' of this problem! :)
     
    #3 fxtender, Dec 4, 2008
    Lasted edited by : Dec 4, 2008
  4. Mearyeaurng

    Mearyeaurng Recruit

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    So How did she manage to....

    So what system did she use to turn $100 to $8000 in a week. That is an amazing system/strategy?

    I sure would love to learn how to do that.

    Bests,
     
  5. Pharaoh

    Pharaoh Colonel

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    800% profits... If the broker hadn't already confirmed confirmed this while arguing about how they didn't really owe her the money, I would find it a little hard to believe.

    I always go on and on about being extra careful with risk management. Then again, if it's only $100, why not take a chance? Make sure your broker will margin call you and not bill you for going below $0.00 first!

    I hope Ms. Aras will share at least a little bit of her strategy.

    Congrats to the FPA's investigators for fighting back for traders.


    (Correction - 8000%, not 800%. Thanks Rodhuy!)
     
    #5 Pharaoh, Dec 4, 2008
    Last edited: Dec 5, 2008
  6. synaesthetique

    synaesthetique Private

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    Instaforex is a bunch of crooks and deserve to be shut down and prosecuted to the full extent of their local laws and banned from future involvement in securities; regardless of whether or not they did fess up and pay out in the end. Seems that it doesn't matter how big or small the amount, they will use any means necessary to keep your deposits and profits by using actions which are blatantly illegal in the United States as well as most other countries. It's a shame they still promote themselves and have a presence about the internet, since as long as that continues they will keep suckering honest people into their little unfriendly bucket shop.


    To those asking about this traders strategy - even if she did share it I'm sure many would not have the stomach to trade it (myself included) since it most certainly involves significant risk.
     
  7. yurps

    yurps Private, 1st Class

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    oh poor aras194

    I am almost sure that aras's strategy is the classic fast/slow broker....Basically she watches a fast ECN like Hotspot or MB Trading, and finds some ****ty broker with a slow crap feed. When quick volatile moves occur, aras sees them on the ECN and still can place trade on crap brokers like InstaForex. Anyhow hope she stashes enough away cause the days of this are numbered.
     
  8. rodhuy

    rodhuy Recruit

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    8000%

    Pharoah, um thats 8000% !!! not a measly 800 !!
     
  9. egajayi

    egajayi Recruit

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    Thanks

    Thanks to FPA,
    FPA is indeed a saviour to all forex traders. I love your approach to this kind of matter. Please keep on revealing more of these scammer till they all go to hidding.
     
  10. Akintunde

    Akintunde Recruit

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    a real Genius Idea

    i most sincerely would really like to lear:eek:oh:n the amazing trading strategy of a ''guru''
     

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