I have opened an account in ADS SECURITIES due to their very good reputation (often at CNBC), no negative reviews, their large initial capital (400 milion $$$) and good trading conditions. After a while after opening of my account I have noticed that ADS offers positive swap rates both sides on some financial instruments. I have decided to play some Swap Trading. I have made first trades on AUDCAD on 30/01/2013. As my account was growing up I was adding some positions and reinvested my profits. I was trading on this pair till 29/04/2013 (so it was 90 days from the first position on audcad). I have closed my trades because the swap rates where changed to 4.95 point for Long and -6.82 point for Short so trading this pair hedge was no longer profitable. The swap rates that was previously offered was 3.85 Long and 8.06 Short.
From 29/04/2013 I have traded on other currency pairs. On 16/05/2013 I have sent a withdrawal form request for part of the profit. On 17/05/2013 I have received an email from Chief Dealer that my withdrawal will not be processed, that the terms and conditions offered on AUDCAD where wrong, all my withdrawals will be blocked and the account after the adjustment can go to a deficit. I have wrote back on 19/05/2013 that I do not agree to any retroactive changes of trading conditions, that they offered those Swap Rates for over half a year and If I have known that the conditions are different from that presented I would not have made a decision to trade this currency pair. I haven't received any answer to this email.
20/05/2013 on my account appeared order named "AUDCAD Swap Correction" in the amount of -45,257 $$$ and in a result my account came in a deficit. After about an hour after this correction order was deleted, all the traces where gone (besides my screenshots), and my account came back to its previous balance and I could normally trade on it. If I had my platform logout I wouldn't even know about it.
On 22/05/2013 the swap correction order appeared in my account once again and I received another email from Chief Dealer that the correction was made. He haven't referred in any way to arguments from my email why they shouldn't make it. He wrote only that according to market practice they are changing the AUDCAD conditions and they made the correction like the mistake in swap points never happened.
In that case, why in their Terms of Business they are writing that before making a trade You have to check the conditions offered with the platform and accepted them If they can change those conditions later at any time retroactively. In my view, in accordance with market practice, the errors caused by the fault of the broker should be resolved so that the client will not suffer from this any loss. In the regulations ADS record that the error due to their gross negligence they bear full responsibility for it. For me, this is an obvious result of such negligence, because how else can be called to offer instruments for at least six months that contain errors. If it wasn't glaring negligence I think it was a deliberate action to take deposits and "adjust" account if the customer would trade on any pair with a "trap".
I have evidence that positive swap rates where showed on several other financial instruments like: SGDJPY, XAGAUD,XAGINR, XAGEUR, XAUAUD, XAUEUR, XAUINR, USDRUB, USDTWD, USDPHP, USDMYR, USDKRW, USDNY, USDINR. So 19 % of their instruments had errors ??? I don't know what it was like on other pairs because I wasn't monitoring it all the time. For such a large company that has received the title of "Most Trusted Broker" and their employees are very often at CNBC, either their hire incompetent team that are setting terms and conditions, or it is their deliberate action. All in all, if they make profits on their mistakes why should they take care to don't make them.
After my email where I wrote that I won't leave this case and wrote about other pairs that have positive swap rates they also changed the conditions there. So far, on a currency pair that I haven't mention in that email the swap rates are still very favorable, which may cause in the future more "adjustments" for clients that will make trades there.
In my case, ADS have resolved it the way that they earned on their mistake and I have lost my initial deposit.
In addition, the adjustment was made unfairly. In the morning on 29/04/2013 it was (3.85 Long 8.06 Short), in the afternoon I noticed that they changed it to 4.95 Long and -6.82Short. So we can assume that those points should also be valid thru the time that I was investing because there were no interest rates changes thru this period. If they would like to adjust it "fair" they should add additional points for Long and take less money for Short positions. However, they preferred maximum favorably for them swap short at -8.06 !
They took from me profit of 22,628 $ and additionally charge me with 22,628 $ and booked on my account a loss of -45,257 $$$ (forty two thousands and two hundred fifty seven dollars ) an in the result I have a negative balance on my account.
In addition, the Chief Dealer wrote me in the email that the adjustment is made the way that this swap error never appeared. Seriously ??? If I were charged negative swap rates from the first day of my trading, after certain time my account would fall to 50% stop out level. So I would save half of my deposit !!! Now I just lost all of my deposit and in addition I have a negative balance there.
In their Terms of Buisness they are also writing (15.5 Confirmations, page 12 of Terms of Buisness) "............Account information will include trade confirmations with ticket numbers, purchase and sale rates, used Margin, amount available for Margin trading, statements of profits and losses, as well as current open or pending positions and any other information as required by Applicable Regulations. Confirmations shall, in the absence of manifest error, be conclusive and binding on you, unless 15 we notify you of an error in the confirmation in writing within three (3) Business Days of dispatch to you."
As a result I was sure that if any mistake would occur in calculating the swap points I would be notified within 3 working days about it and If not all the gains shown in the daily reports and on the platform are final and binding ! In addition on 11/03/2013 I have made a small withdrawal (after 41 days from the first trade on AUDCAD) and there was no problem with it.
On 23/05/2013 I have re-sent to the Chief Dealer and six other employees of ADS an email with my arguments and a solution that If there where errors on instruments that I have traded, I can ultimately agree to delete all positions held on AUDCAD. I haven't received any response for that.
29/05/2013 I have sent another email and also no answer.
Till now, despite my attempts to contact them I haven't get any response and my account is still on negative balance.
If the ADS will not shortly enter into negotiations thru the FPA court my next step will be to lodge a Complaint to their regulator (Central Bank of the U.A.E.) and to inform public opinion that ADS will take advantage even on their own "mistakes".
I`m kindly asking all the FPA members for help and advice how can I receive my money back
From 29/04/2013 I have traded on other currency pairs. On 16/05/2013 I have sent a withdrawal form request for part of the profit. On 17/05/2013 I have received an email from Chief Dealer that my withdrawal will not be processed, that the terms and conditions offered on AUDCAD where wrong, all my withdrawals will be blocked and the account after the adjustment can go to a deficit. I have wrote back on 19/05/2013 that I do not agree to any retroactive changes of trading conditions, that they offered those Swap Rates for over half a year and If I have known that the conditions are different from that presented I would not have made a decision to trade this currency pair. I haven't received any answer to this email.
20/05/2013 on my account appeared order named "AUDCAD Swap Correction" in the amount of -45,257 $$$ and in a result my account came in a deficit. After about an hour after this correction order was deleted, all the traces where gone (besides my screenshots), and my account came back to its previous balance and I could normally trade on it. If I had my platform logout I wouldn't even know about it.
On 22/05/2013 the swap correction order appeared in my account once again and I received another email from Chief Dealer that the correction was made. He haven't referred in any way to arguments from my email why they shouldn't make it. He wrote only that according to market practice they are changing the AUDCAD conditions and they made the correction like the mistake in swap points never happened.
In that case, why in their Terms of Business they are writing that before making a trade You have to check the conditions offered with the platform and accepted them If they can change those conditions later at any time retroactively. In my view, in accordance with market practice, the errors caused by the fault of the broker should be resolved so that the client will not suffer from this any loss. In the regulations ADS record that the error due to their gross negligence they bear full responsibility for it. For me, this is an obvious result of such negligence, because how else can be called to offer instruments for at least six months that contain errors. If it wasn't glaring negligence I think it was a deliberate action to take deposits and "adjust" account if the customer would trade on any pair with a "trap".
I have evidence that positive swap rates where showed on several other financial instruments like: SGDJPY, XAGAUD,XAGINR, XAGEUR, XAUAUD, XAUEUR, XAUINR, USDRUB, USDTWD, USDPHP, USDMYR, USDKRW, USDNY, USDINR. So 19 % of their instruments had errors ??? I don't know what it was like on other pairs because I wasn't monitoring it all the time. For such a large company that has received the title of "Most Trusted Broker" and their employees are very often at CNBC, either their hire incompetent team that are setting terms and conditions, or it is their deliberate action. All in all, if they make profits on their mistakes why should they take care to don't make them.
After my email where I wrote that I won't leave this case and wrote about other pairs that have positive swap rates they also changed the conditions there. So far, on a currency pair that I haven't mention in that email the swap rates are still very favorable, which may cause in the future more "adjustments" for clients that will make trades there.
In my case, ADS have resolved it the way that they earned on their mistake and I have lost my initial deposit.
In addition, the adjustment was made unfairly. In the morning on 29/04/2013 it was (3.85 Long 8.06 Short), in the afternoon I noticed that they changed it to 4.95 Long and -6.82Short. So we can assume that those points should also be valid thru the time that I was investing because there were no interest rates changes thru this period. If they would like to adjust it "fair" they should add additional points for Long and take less money for Short positions. However, they preferred maximum favorably for them swap short at -8.06 !
They took from me profit of 22,628 $ and additionally charge me with 22,628 $ and booked on my account a loss of -45,257 $$$ (forty two thousands and two hundred fifty seven dollars ) an in the result I have a negative balance on my account.
In addition, the Chief Dealer wrote me in the email that the adjustment is made the way that this swap error never appeared. Seriously ??? If I were charged negative swap rates from the first day of my trading, after certain time my account would fall to 50% stop out level. So I would save half of my deposit !!! Now I just lost all of my deposit and in addition I have a negative balance there.
In their Terms of Buisness they are also writing (15.5 Confirmations, page 12 of Terms of Buisness) "............Account information will include trade confirmations with ticket numbers, purchase and sale rates, used Margin, amount available for Margin trading, statements of profits and losses, as well as current open or pending positions and any other information as required by Applicable Regulations. Confirmations shall, in the absence of manifest error, be conclusive and binding on you, unless 15 we notify you of an error in the confirmation in writing within three (3) Business Days of dispatch to you."
As a result I was sure that if any mistake would occur in calculating the swap points I would be notified within 3 working days about it and If not all the gains shown in the daily reports and on the platform are final and binding ! In addition on 11/03/2013 I have made a small withdrawal (after 41 days from the first trade on AUDCAD) and there was no problem with it.
On 23/05/2013 I have re-sent to the Chief Dealer and six other employees of ADS an email with my arguments and a solution that If there where errors on instruments that I have traded, I can ultimately agree to delete all positions held on AUDCAD. I haven't received any response for that.
29/05/2013 I have sent another email and also no answer.
Till now, despite my attempts to contact them I haven't get any response and my account is still on negative balance.
If the ADS will not shortly enter into negotiations thru the FPA court my next step will be to lodge a Complaint to their regulator (Central Bank of the U.A.E.) and to inform public opinion that ADS will take advantage even on their own "mistakes".
I`m kindly asking all the FPA members for help and advice how can I receive my money back
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