We the members of the Scam Investigations Committee of the Forex Peace Army have deliberated on all the evidence available to us and have reached a conclusion. It is our opinion that...
FPA Member Ibham1 complained in the FPA's forums about his account being frozen and withdrawals being blocked by BForex. He reports that BForex accused him of having multiple accounts and of manipulating their trading system before cutting off contact, leaving about $11,000 in his account unaccessible. He did have a second account with a WL of BForex, but was unaware of the relationship between the two companies at the time the accounts were opened.
The case was assigned to FPA Investigator Ken. He tried to get negotiations going via email. Both sides decided to do some of it publicly in the forums and reviews. BForex's newest representative to the FPA, Kate, posted an accusation that Ibham1's profits were made from scalping and taking advantage of technical errors such as bad price ticks. Ibham1 replied that BForex defines scalping as trades being held for less than 120 seconds. He stated his trades were all held longer than that. This was not disputed by BForex. He also agreed that any real technical errors could result in trades being nullified, but asked how this could possibly be more than 1% of all trades.
After a delay of over 2 weeks, Kare did reply in the forums and told a very different story. This time, she accused Ibham1 of news trading to exploit volatility. To prove that this was against BForex's TOS, she posted some of them in the forums.
Ibham1 freely admitted to news trading. He also denied breaking any of BForex's TOS. BForex's website has extensive writings about how they guarantee quotes and executions even during illiquid market conditions. As written, it looks to us like an open invitation to news traders.Section 8 and subsections 8.8 and 8.10 to the Bforex trading agreement state:
Section 8 -“Without prior notice to, or receipt of further authority from the Client, BForex shall have the right to close out all or any part of any position or account of Client, upon or at any time after the occurrence of any of the following events:”
Subsection 8.8. - “BForex considers it necessary for its own protection;”
Subsection 8.10 - “Client who engages in what is deemed, illegitimate, unlawful, unethical system abuse, system arbitrage, or any other trade that may be deemed at one point or another as a violation of trading standards be it based on the amount of time the transaction was opened or by virtue of the fact that the trade was opened inadvertently at an incorrect price, time, or instrument.”
During email negotiations, Ken kept asking Kate for information about where BForex's TOS ban news trading and where those TOS say that trades can be nullified. Kate kept referring to Section 8 of the TOS as posted in the forums. Ken pointed out that Section 8 as posted by Kate gives the broker the right to close individual trades or even a trading account. It does not say anything about nullifying trades or confiscating profits.
Negotiations were going to slowly, so Ken gave a deadline for Kate to show why BForex didn't owe the money. Kate promised Ken that his information request would be passed on to the BForex Board of Directors. She then wrote back and said that BForex would no longer deal with the FPA, and threatened legal action if the FPA put the words BForex and Scam together in the FPA's forums. Ibham1 asked for the same information and reports that he was not replied to.
As part of earlier discussions, Ken asked Kate who else at BForex had access to the web proxy she was using to post in the forums and reviews. She said she didn't understand the question. Ken explained further and she chose to ignore the question. That web proxy was used to create forum accounts that correlated to fake 5 star reviews left for BForex at the FPA.
All available evidence points to BForex oweing Ibham1 the profits that he rightfully earned. BForex has chosen to not talk to the FPA. That is their right. They have chosen to not talk to a client who has a good reason to feel he is owed money. We do not consider that to be a right they can claim. They have left the FPA no choice in this matter.
Failure to pay money legitimately owed to traders is the FPA's first definition of Scam. Further, BForex has apparently tried submitting fake reviews for itself. We consider that to be highly unethical. Under these circumstances, BForex.com has forced us to declare it to be a scam. We offer BForex a chance to have this scam finding lifted by meeting all of the following requirements. First, BForex must pay money owed to Ibham1 as well as apologizing to him. Second, BForex must publicly apologize for attempts to manipulate the FPA's reviews. Third, BForex must either pledge to honor trades placed this way in the future or make their TOS clearly state what trades will be cancelled.
BForex.com is hereby blacklisted by the Forex Peace Army. We urge all traders to not do business with this broker. If you have an account with them, we recommend you withdraw all funds as quickly as possible. We urge Ibham1 to take all appropriate legal steps to recover his money.
We thank FPA Investigator Ken for his efforts on this case. We extend our regrets to FPA member Ibham1 for his loss of funds.
Discussion thread for the FPA Scam Finding against the BForex
Ibhm1's original complaint thread against Bforex.com
Review Page for BForex.com