Ava Capital Markets Limited or AvaFx - Scam

[sach]

Hi Fellow Traders,

Here is brief description of my experience with AvaFx :

I have taken 2 traded on Nikkie225 on 13th June 2013 before market closes UK time and market opens again at 23:46 GMT. When market opened at the usual time both my trades were stopped out at prices 12925 and 12950 while the market opened at 12555. It is a difference of around 400 points. During normal market conditions spread on this broker is 20 points which is anyways way higher than market standard but at market open they said that market was very unstable so the spread was widened to 400 points which is impossible unless they were manipulating the market. They even told me that the price even reached 13250 while the day high for 13th june didn't even reach 12900. They are biggest scam broker I have ever seen and I tried to resolve the issue with them several times but they are not ready to listen to my issue. All they said is they haven't done anything it was the market rates.

I had chat with their customer care enquiring about specifically about spread on Nikkie225 and they told me maximum spread under unstable market condition could reach 40 points but here we are seeing 400 points difference. I have attached the hourly chart, my account statement and chat log to prove their scam.

Never ever think of using this broker, this is my advice because they seem to trade against your positions and when there is less liquidity in the markets they widen the spread and close your positions by placing the trades at your stop loss price. My example is big enough proof to prove their scam.

Now I am wondering how to get my losses back from them because they said they will not compensate me.

Thanks
Sachin Jain

 

[Master Yoda]

Are you sure they said the maximum spread is 40? maybe they meant 40 in 4 decimals (which is 400 in 5 decimals)
Can you ask them for an explanation? also invite them to respond here.

 

[Pharaoh]

I don't trade stock indexes, so have no idea what a normal spread is on those. I do know that for Forex, spread can easily double (or more) if there's a rough market opening.

You may want to contact some other brokers that carry this item and see if they show any unusual activity at that time.

 

[Master Yoda]

Yes but his main claim is that they promised him max spread of 40 although you can't promise that in indices as the spread on indices is floating

 

[Pharaoh]

Chat reps aren't always the most reliable sources of data. The rep told him that the spread normally maxes at 40. That doesn't rule out the possibility of it getting wider.

Sach, send a message to every address you can find for AvaTrade. Invite them to please join this discussion thread and explain how the spread went to 10 times what their rep said should be the usual maximum.

 

[Master Yoda]

True but also if they used the word max the company is not off the hook and they need to compensate the client, they also need to refresh working procedures of the chat reps of what they can and can't say.

 

[Pharaoh]

We would need to see the exact wording of the chat to see just how deeply the rep committed them to 40 points.

 

[sach]

Thanks for replies fellow members.

I would like to tell you that normal spread on Nikkie index on GFT platform is 4-5 points and on other major platforms its not very different from GFT. Although AvaFx already had very high normal spread of 20 points on Nikkie still you can't expect anyone to increase it to 20 times of the normal spread. Whatever market conditions are do you expect your spread to be that wide ? I asked their representatives numerous time for help but in reply they said you can post this to any forum and we don't care about that as this is not what their company did it was market conditions. I havel posted the screenshots of the chat log with their representative on the forum, last screenshot has the conversation where their representative told me that maximum you would probably see is 40 points. Also posted Nikkie hourly chart and my account statement showing the stoploss executed. Also I would like you guys to go on Avafx.com and select live chat and ask the representative about the maximum spread which you could expect on Nikkie.

The maximum on Nikkie on the whole day was no where near to 12950 (my stop loss) and they closed me out at market open. Guys I lost around 3000 pounds sterling($4500) on these 2 trades and I seriously need help to sort this matter. I hope to get help from the forum members to guide me how to get my losses.

View attachment Ava_ChatLog.docx

Thanks
Sachin

 

[Master Yoda]

did you ask the company to reply here?

 

[sach]

Yes I have invited them to reply here.

did you ask the company to reply here?