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Bforex SCAM

Discussion in 'Scam Alerts' started by ibham1, Aug 9, 2010.

  1. ibham1

    ibham1 Private, 1st Class

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    I opened an account with Bforex.com in December 2009. I successfully withdrew my deposit and some profits in February 2010. However, when I continued to make profits and attempted to withdraw further profits in May 2010 my account was frozen.

    I received an email from Bforex Holdings saying I had multiple accounts with Bforex and manipulated their trading system. I also had an account with Mecaforex, which I found out afterwards was a white label of Bforex. Either way - I did not breach their terms and conditions and did not abuse their system. The same trades were placed on both Bforex and Mercaforex platforms.

    Bforex still have over $11,000 of my money. I saw that Alvin050 case was successfully resolved by FPA against Bforex, this has given me renewed hope.

    I have tried to contact Bforex and Mercaforex on numerous occassions but they never return my calls, hang up on me and disconnect me from the live chat.

    Since I am getting nowhere and FPA has already had success liasing with Bforex I will be filing a complaint against Bforex.

    What is very worrying is that Bforex's advert are popping up everywhere, they are growing at an alarming rate. If any traders are in profit with Bforex they will also have their accounts frozen.
     
  2. Pharaoh

    Pharaoh Colonel

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    Leave a detailed review. Once it's approved, send a new message to BForex. Tell them that you've got an active thread (this one) and a complaint in the FPA's reviews. That might be enough to get their attention.

    Post here and let everyone know if they responded or not.
     
  3. ibham1

    ibham1 Private, 1st Class

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    Thanks Pharaoh, I have already left a review for Bforex using my real name. I will contact them one final time and let you know the response - if any.
     
  4. ibham1

    ibham1 Private, 1st Class

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    Well, sent them an email a week ago and no reply from Bforex. I will now proceed with filing a complaint against them.
     
  5. bforex rep

    bforex rep BForex Representative - There is one confirmed sca

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    Dear FPA readers,

    The most important facet of the retail trading business is honesty, transparency and the provision of optimal trading conditions, these are factors that the foundations of the bforex group were built upon. So to see these complaints being posted on FPA is a major concern to us. Therefore we would like to make a few things clear to all traders that may read these reviews and seek to legitimize these claims.

    Any trader that enters the market in order to TRADE – that means profit from the real market trend and natural volatility, will ALWAYS receive their profits, as they were generated in a fair manner. However, sadly this is not the case for the reviews that you see above as profits were NOT achieved in a legitimate way. That means:

    1) They seek to “scalp” the trading system, which means to trade “inside the spread” of the quoted currency pair – thereby effectively abusing the brokers “fixed spread system”. Bforex provides traders with a fixed spread system so that it can guarantee limit and stop orders under all market conditions. This spread does not widen even in the most volatile circumstances providing the trader with a better opportunity to enter the market at a fair price. In any case bforex does mention in its trading agreement that it does not allow” SCALPING” as a trading strategy.

    2) The profits were generated from a technical error in the system such as an erroneous quote or “bad price tick” - which can occur on any financial trading system today.


    99% of Forex Traders come to trade the real market and catch onto a profitable trend. These traders have enjoyed and will continue to enjoy the wide range of tools and promotional benefits that bforex can offer as an award- winning global broker. Most importantly their profits are ALWAYS guaranteed to be returned to them.

    For the other 1% of traders there that are looking to profit through “technical errors” or through “SCALPING”, we make our position clear through our trading agreement.

    In response to the particular case of Ibham - after intensive investigation, we have concluded that the profits generated from your account were done in an abusive manner. In fact we sent you an email on 11 May 2010, to that effect, stating "that you opened multiple accounts with Bforex Holdings and manipulated our trading system. " You did not directly respond to this email.

    We would welcome direct contact with you again to demonstrate more clearly what we mean as abusive. Please email queries@bforex.com

    Thank you
     
    #5 bforex rep, Aug 24, 2010
    Last edited: Oct 3, 2010
  6. ibham1

    ibham1 Private, 1st Class

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    Thank you Kate for your response. I would like to response to the two points you mentioned implying my trades were illegitimate:

    1) Your terms and conditions define scalping as the following:

    Any transaction closed within 120 seconds from opening time shall be regarded as “Scalping”.

    I respect your definition of scalping and have honoured this during all my trades placed with all Bforex companies. All my trades have been open for longer than 120 seconds – therefore I was not scalping hence all trades were legitimate and honoured your trading agreement.

    2) I appreciate we do not live in a perfect world and system errors do occur. However, Bforex claim to be a professional organisation where technical errors must be kept to an absolute minimum. If you said to me that 1% of my trades were affected by technical errors in the system I would accept this considering humans and computers can and do make mistakes. For you to say all my trades were affected by technical system errors over a six month period is absurd. For every trade I placed with Bforex I received online trade confirmations, which neither I or Bforex ever disputed. Therefore, the trades were agreed on by both parties.

    You also mention having multiple accounts with “Bforex Holdings”. I have only one account at Bforex.com, I have other accounts which may come under the “Bforex Holdings” umbrella. For example, when opening the account at MercaForex, I was not aware it had any association with Bforex as it traded under a different name, the website was different, as was the telephone number, address, staff etc. I was never asked if I had an account with any associated companied. If I provided false information during the account opening process I would understand if you used it against me but this clearly is not the case.

    As far as I am concerned the onus lies with the company with whom I am opening an account with to ask if I have an account with an associated company. Alternatively the account opening department should perform the necessary checks. In the UK I have a bank account with HSBC, I opened another bank account at First Direct. During the application process First Direct asked me whether I have an account with HSBC, I answered Yes. HSBC belongs to the same group as First Direct, I had no problems opening my account. Having accounts with associated companies is not illegal and I have not violated any agreements. Having an account at different brokers who belong to the same group is not an excuse to freeze an account and deny access to funds.

    I received the email dated 11th May 2010, you incorrectly state I never responded. My first response to Bforex was on the 12th May 2010. The first time I emailed MercaForex was on 2nd June 2010. These, and subsequent emails were ignored as I never received a response. I then tried to make contact via the online chat. As soon as I mentioned my name\account number I was immediately disconnected. This occurred on a number of occasions, such behaviour is totally unprofessional.


    I have not profited by scalping or technical errors. To summarise, all trades were open for more than 120 seconds - I have not scalped using any of my Bforex accounts. It is impossible for all my trades to be affected by technical system errors. Having accounts with a subsidiary, white label, Introducing broker or any form of associated company is not illegal. If this is a problem then I suggest the account opening procedure is changed where the applicant is asked if he\she already has an account at any of the companies listed. This did not occur in my case and therefore cannot be regarded as an issue.


    Kind Regards
     
  7. Pharaoh

    Pharaoh Colonel

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    He shoots! He scores!!!

    Think I'll make some popcorn and get a front row seat for this one. Can't wait to see how the Bforex rep responds to this.
     
    Makaram likes this.
  8. NickB

    NickB Forex4Noobs Rep.

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    Wow that is really funny. Good luck man, this broker seems like a joke. I will warn all my site users to stay away.
     
  9. gbenga112

    gbenga112 Corporal

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    @ NickB

    Bforex rep has suddenly disappeared into thin air because of simple questions from ibham1.


    @ NickB
    Nice to know you have refunded Rosemarie as you promised.

    I was going through UFXBANK youtube channel ( UFXBankvid )and I saw your company Forex4Noobs is one of the seven friends the channel has..Out of curiosity I would like to know your relationship with this broker because UFXBAnk has refused to remit my profit of $11,717 ( ufxbank username gbenga )since December 2009.


    Also so that your customers would not fall into the hand of this broker.
     
  10. bforex rep

    bforex rep BForex Representative - There is one confirmed sca

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    In response to Ibham

    ‏Dear Readers,

    Following recent correspondence between Forex Peace Army (FPA) and Bforex regarding the subject matter, we would like to clarify the reasons for terminating the account of Mr. Inderjit Bhambra.

    In the online retail foreign exchange world, brokers are extremely vulnerable to many types of client system exploitations. Such exploitations are of considerable risk and therefore treated accordingly. The fight against these system exploitations requires vigilant risk management policies and immediate action- taking due to the volatility of the market and the possible outcome of such exploitation.

    The case of the subject matter certainly falls within the scope of system exploitation and therefore bares the consequence of account termination.
    Following an investigation made by our fraud detection department, an indication of suspected system abuse was found.

    Mr. Inderjit Bhambra’s trading behavior suggested that he was working in a certain pattern. The pattern suggested that most trades made by Mr. Inderjit Bhambra were consequent to a news release of a specific region and the following trade being open on the currency of that specific region.

    For example:

    On 19/01/2010 8:30:04 GMT, a trade was opened on GBP/USD following an announcement from the UK. On 22/01/2010 8:30:02 GMT, another trade was opened on GBP/USD following an announcement from the UK. On 26/01/2010 8:30:01 GMT, yet another trade was opened on GBP/USD following an announcement from the UK.

    The same case is repeated for the AUD/USD pair on 23:30 GMT following an announcement made from Australia, USD/JPY pair on 00:30 GMT following an announcement from Japan and much more. Attached you can find a scan of Mr. Inderjit Bhambra trade report indicating the specific trades.

    The conclusion of the investigation was that Mr. Inderjit Bhambra was using a latency in the system’s data feed so as to have an advantage over Bforex and to gain unlawful profit.

    As you may understand, a deliberate attempt to gain profits resulting from system abuse is a risk Bforex is not willing to and shall not accept.

    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.”

    Based on the above, Bforex had no choice but to act in accordance with its trading policy and risk management policy to close Mr. Inderjit Bhambra’s trading account and refuse the unlawful profit made.

    Nothing in the foregoing shall derogate from any claim and/or right and/or remedy to which Bforex is entitled under any law and/or agreement, and Bforex fully reserve all its rights.

    We hope that this is clear to Mr. Inderjit and other traders who would seek to make profit unlawfully.
     

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