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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 the 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
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 the 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
