Problem AVAtrade cancelled my profits

[astgh92]

thank you, for your help,
my documents are ready and will be posted per OFFICIAL request

 

[astgh92]

My documents are still undr verification at AVAtrade,
I'll surely post the result here.

 

[4evermaat]

I've seen this before. A broker suddenly
deciding that a [profitable] client's account is suddenly invalid.

Trades cannot just be cancelled. If there was a legitimate error, reimbursements/reversals can be made. This is usually immediately or within 24-48 hours tops. And multiple clients would be affected. But it doesnt change the historical trades.

Legit brokers don't do this. Any anti-fraud/AML checks are done prior to acct opening. Deposits and/or withdrawals match the name of the account holder.

Some questions for AVAtrade (OP can also add their own answer):

1. How long was the account open for?
2. When was the discrepancy in acct opening docs first noticed?
3. Was the original deposits returned?
4. Who clears your trades normally?
5. Who cleared the cancelled trades?

 

[AvaTrade CCare]

Dear 4evermaat,

Security checks are done on every single deposit made via credit card. It serves to verify that the credit card used for the deposit has not been reported lost, stolen, or in any way corrupted. It is not mandatory for customers to verify their accounts prior to making a deposit. Customers can open an account, deposit in it, and start trading, however, they have 14 days to verify their accounts or the accounts get blocked due to missing documents.

The account was blocked due to missing documents on November, the 12th, according to the time frame mentioned above. On the 14th of November, 2018, the customer uploaded the utility bill, which was deemed forged. The original deposit was immediately cancelled and refunded, and any trades that were done were cancelled.

Kind Regards,
The AvaTrade Team

 

[4evermaat]

Dear 4evermaat,

Security checks are done on every single deposit made via credit card. It serves to verify that the credit card used for the deposit has not been reported lost, stolen, or in any way corrupted. It is not mandatory for customers to verify their accounts prior to making a deposit. Customers can open an account, deposit in it, and start trading, however, they have 14 days to verify their accounts or the accounts get blocked due to missing documents....

[emphasis added]

There is no rational reason for a legitimate broker to do this (allow deposit Before fully verified account) . But it does have a benefit of allowing impulsive gamblers to deposit and hopefully lose their deposit. And if the client somehow wins, you can just claim they are not verified and just stall/try hold onto their money that way.

Because a legit brokerage needs real collateral (margin) to make trades on behalf of their clients, the client needs to be verified and deposit cleared funds prior to trading.

Why would any broker allow live trading without cleared funds?
Where was the collateral coming from if the funds were fraudulent?
The funds were legit enough to trade (or toss in a bucket, lol), but not legit enough for a withdrawal?​

Q: This client on this scam thread; which division (country) of AVAtrade is the trading account held? Who is the regulator for this account holder?

 

[AvaTrade CCare]

Dear 4evermaat,

The issue with the account holder here is not that the deposit was not cleared. The deposit was made via credit card under the name of the account holder. AvaTrade's Terms and Conditions clearly state that the verification of an account is mandatory for a withdrawal. It is up to the customer to decide whether he/ she wants to deposit before or after his/ her account is verified. Many people make a deposit, and do not trade until the account is verified as well. Since a fake document was uploaded in this case, the initial deposit was immediately cancelled.

The trader was allowed to trade in good faith, as any other trader. Had the account holder uploaded a proper, genuine utility bill, his account would have been verified, and any funds in the account could have been withdrawn without any delay.

Kind Regards,
The AvaTrade Team

 

[4evermaat]

Dear 4evermaat,

The issue with the account holder here is not that the deposit was not cleared. The deposit was made via credit card under the name of the account holder. AvaTrade's Terms and Conditions clearly state that the verification of an account is mandatory for a withdrawal. It is up to the customer to decide whether he/ she wants to deposit before or after his/ her account is verified. Many people make a deposit, and do not trade until the account is verified as well. Since a fake document was uploaded in this case, the initial deposit was immediately cancelled.

The trader was allowed to trade in good faith, as any other trader. Had the account holder uploaded a proper, genuine utility bill, his account would have been verified, and any funds in the account could have been withdrawn without any delay.

Kind Regards,
The AvaTrade Team

The initial deposit(s) that were "cancelled" immediately: Was it paid back to the client in full?

So all the trades that were done using the initial deposit(s) funds as margin: were all those trades cancelled also? I don't see how real trades can be done with fake money.

I still stand on my original premise that no legitimate broker would even allow [legit, non bucketed] trades to occur unless the trader's account and deposit was fully verified first. It just makes no sense, unless the goal is to never have to return the deposit/profit anyway.

Of course not all jurisdictions verify or penalize this properly. So the trader ultimately must be diligent with whom they trade with.

Also, which division of AvaTrade was the client account with? (which country/which regulator)?

 

[astgh92]

AVAtrade support is FUNNY ...

I wrote to their complaints department and answered that I need to send a new Ubill, after

I sent them my bill via email, and after 1 week I received a request to send an Armenian version of it,
I sent the Armenian version of my bill and received answer that it has been passed to relevant department,/really ???/

after 1 week they said to upload it myself that my account is ready for it,
I tried to login but my account is still blocked.

AVA Your support is funny and I suppose they have no contact with each other,
but no matter I request my profit of $582 wich you can't keep for you

pay it or give me final answer as I need to close the opened case against you in this forum
and vote you as a scam broker and made new complaints against you.