BMFN (Boston Merchant) SCAM

ibham1

Private, 1st Class
Messages
55
I opened an account with BMFN in August 2010. I successfully managed to withdraw $6,000 in November 2010 and a further $9,000 in May 2011. However, when I attempted to withdraw a further $6,000 in January 2012 I received an email stating my account has been “deactivated and closed due to system abuse.”

The email highlighted a section from their terms and conditions stating BMFN had the right to cancel all profits due to inaccurate pricing. I contacted them on many occasions demanding proof as I could not believe every single trade I placed over an 18 month period was affected by constant BMFN system failure. I have not been provided with any evidence whatsoever.

My account equity was over $20,000 when my account was deactivated. I have experienced this previously with another broker, if the client consistently makes money, the broker will use some generic clause in the terms and conditions to deny the trader his\her profits – the broker will also refuse to provide the trader with evidence as to why the trades were cancelled.

I am confident, with the help of FPA, I will receive all my funds from this broker aswell.
 

Pharaoh

Colonel
Messages
19,892
Submit a 1 star review. When it's approved, send a link to this thread and to the review page to BMNF. If they still won't respond, open an FPA Traders Court case.
 

ibham1

Private, 1st Class
Messages
55
I have now sent BMFN an email making them aware of this thread and the broker review. I will provide an update if I receive a response.
 

ibham1

Private, 1st Class
Messages
55
I received a long winded email implying I was a crook. This is the last paragraph of the email:

Lastly, no funds will paid to you by BMFN as none are rightfully due. In fact,
funds are owed to BMFN by you. As such the time and cost associated with
involving a third-party to resolve this dispute are of no concern to BMFN
should you decide to continue down that path. Again, BMFN has acted in
accordance with the terms and conditions contained within your Client Agreement
and any frivolous actions taken by you (which is contractually obligated to be
submitted to particular arbitrational courts)against BMFN will be met with a
prompt and competent counterclaim for the return of all trading profits
withdrawn by you.
 

Pharaoh

Colonel
Messages
19,892
Can you please post the entire email.

I wonder if this means that BMNF considers traders sharing their personal experiences with a broker online to be a "frivolous action".
 

ibham1

Private, 1st Class
Messages
55
This is the entire email:

Sir:

BMFN is aware of the posting. You have received numerous responses from BMFN on
this issue. No funds will be credited to you. BMFN is confident in its actions
and its records regarding your account activity and will not only defend some
actions in the applicable arbitration venue, but more over, will seek return of
the funds withdrawn by you. I will simply reiterate one of the numerous emails
sent to you on this subject.

Again, as stated in my email of February 8th, your account managed to exploit a
pricingdelay in our system whereby your account traded unavailable market
prices or pricing that was to be greyed out, allowing you to profit on approx
85-90% of your trades. Once realized, such funds were reclaimed and demands were
made for return of any withdrawals above and beyond your deposit totals. This
action was taken all in compliance with the terms and conditions of your Client
Agreement.

BMFN has and will continue to accommodate and work with clients who have valid
complaints and/or issues with our services or products. That being said, you
systematically preyed on our system over an extended period of time resulting
in enormous profits and a successful trade rate nearing perfection. Profits
realized are not rightfully yours as all activities are governed by
your Client Agreement which clearly states the terms agreed to with regards to
delayed pricing. BMFN's Client Agreement is structured to protect BMFN and
ensure that clients who, whether knowingly or inadvertently, are able to trade
inaccurate or delayed pricing are not able to unfairly profit from such system
issues. Just as BMFN would credit a client should an issue in the system result
in trading losses, BMFN is also contractually authorized to debit a client
should a system issue result in trading profits.

Lastly, no funds will paid to you by BMFN as none are rightfully due. In fact,
funds are owed to BMFN by you. As such the time and cost associated with
involving a third-party to resolve this dispute are of no concern to BMFN
should you decide to continue down that path. Again, BMFN has acted in
accordance with the terms and conditions contained within your Client Agreement
and any frivolous actions taken by you (which is contractually obligated to be
submitted to particular arbitrational courts)against BMFN will be met with a
prompt and competent counterclaim for the return of all trading profits
withdrawn by you.


Sincerely,

Compliance Department
Boston Merchant Financial, Ltd.
 

Pharaoh

Colonel
Messages
19,892
I have an idea for you Ibham. It's risky, since juries and judges can be a little unpredictable at times. It will also involve some expense, and I hope you've got detailed records of all of your trades.

Hire a lawyer. File a civil claim against BMNF for your funds. Challenge them to prove their case in a court of law.

Does BMFN really want to explain how a trader managed to somehow magically force a broker to execute trades at off market prices that they said were NOT available?

How long will brokers keep using that lame excuse? Personally, I don't want to have an account with a broker that allows other traders to manipulate the price feed. How can I know if the prices I'm trading at are real or not.
 

RahmanSL

Major
Messages
2,536
BMFN data (derieved from 100forexbrokers.com site):

• Year since: 2007
• Headquarters: BMFN - Russian Federation
BMFS - Boston, United States
• Company registration: Boston Merchant Financial Ltd, Russia
Regulation:Australia ASIC #379035;
Russian FFMS #1220;
Bulgaria FSC MIFID BGR00195 and RG 03 220.

ASIC regulated?? Really??

Well, there is a nice BMFN representative in Australia by the name of “Noah” who posted at the FPA Brokers Reviews section on 12-Sep-2011 stating:
Fellow traders and investors,
I work for BMF in our Sydney offices and will be BMF's contact person for FPA forum.
If anyone has any queries complaints, or suggestions please feel free to contact me directly [B]noah@bmfn.com.au[/B] or via telephone: (+61) 2 8095 7969
.”

Give Noah a tinkle to see what’s cooking over at BMFN and not forgetting to provide him a link to this post (as he might have forgotten where the FPA is since he, being z contact person for FPA forum, is not here since that first & last post)

There seems to be a hell lot of complaints at FPA forex brokers reviews on BMFN of a similar nature to this post resulting in a 2.5 star rating.
 
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