Broco Refused to Pay Rebate

[x-pi]

I was the IB of Broco, but early of June 2009, Broco suddenly stopped my IB contract when I was asking my comission. I'm accused of doing fraud to them because I spare my comission to my client. Here are the nonsense :

Early of April, my rebate wasn't paid also. At that time, the amount was about 4000 USD. The IB department was saying that the minimum clients requirement was not met. Then I contacted my account manager whose contact detail is written on my control panel at Broco's User Area. Then, I was given the contact of someone, lets call her Mrs. X, because she was the specialist for this matter. I contacted her, and then I explained to her that I spare a part of my comission to my client in order to make him trading at Broco. So the comission was really important to me, and if it is not paid, I would be in trouble. She said she was understand and than a few hours latter she contacted me, saying there was good news, I could get my comission. Well thank you for the help, and my rebate was paid. NO warning, NO explanation about rules that forbid me to spare my comission, and the most important think, they knew I spare my comission with my client.

Early of May, I was aksing about the rebate for April, and they paid to me about 6000 USD, and again here, NO warning about any fault here, and they KNEW I spare my comission.

On June, my IB contract was terminated, and I asked my client to count on his trading, well the number of comission should be 17K USD. Well, here is clear that they didn't want to pay, because they said NOTHING previously. Just if they said that on April, than I should knew that it is forbidden by the rule. When I asked to the IB department, why Mrs. X didn't say about that rule at all on April, the answer was very unsatisfying, that time (on April) Mrs. X was a trainee, her word shouldn't be taken into consideration. How come a company made a decission and you may not trust their decission? How could a company mistaken a trainee as a specialist? Why didn't them remind me if I made mistake, but paying my comission on April and May instead (and they had known the fact that I'm sparing my comission with my client)? This is unreasonable and I think they just didn't want to pay, so they found any ways to escape from their duty to pay my comission.

Thats the story how Broco rip me, and everyone should be careful with this broker.


For addition, here is the agreement point that they used as a reason to terminate my contract.

2.15. Partner does not have a right to conduct any calculations with Clients (with or without cash, in
national or foreign currency) including receiving money, securities or other property from Clients

I didn't get any advantage here, since I didn't receive anything for my mutual cause. Instead, I should spare my comission that I should enjoy by myself. I would be happy to get all the 4K, 6K, or even the 17K by myself than to spare it with anyone else. The statement isn't stating that I shouldn't give part of my comission at all.

 

[Natalie18]

Reply from Broco

Hello

This clause in the agreement clearly says about impossibility of sharing the rebate with your Client.

Please read the agreement carefully before you start relations with any broker.

Besides, our policy is to have partners who care about developing of our joint business and attract more clients, consult them about our services, build their web-sites.

Unfortunately, you understand partnership in a different way - to met minimum requirement so as to obtain the profit.

You forgot to mention about trading style of your client. It was not honest absolutely. Other two Clients existed just for meeting essential criteria and not for trading itself.

Since you like talking about violating rules, let's remember that we paid you rebate in April despite you did not meet the simpliest rule of having three active Clients. That was my decision and though our IB manager was against it I insisted. I wish we could follow other way that time. I hoped that you will involve more and more Customers and was wrong.
In the end of May our security department revised trades of you Client and we got frustrated.
So everything is not the way you presented above.

 

[x-pi]

Hi,

This clause in the agreement clearly says about impossibility of sharing the rebate with your Client.

Please check on Google.com, type the keyword "Broco rebate". You will found several IB giving rebates, your rules isn't clear at all. Not only me who misinterpret this matter... or probably this unclear point will be use in the future, to terminate the IB contract if the rebate is too big. So those IB who offer rebates, should be careful.

You forgot to mention about trading style of your client. It was not honest absolutely.

Well, if profitable client is called not honest, I guess traders should be aware of this broker. Besides, my client also told me that the spread of his trading pair suddenly doubled, and also the order execution is sometimes take 5-8 seconds which is quiet terrible.

Other two Clients existed just for meeting essential criteria and not for trading itself.

I bring you clients, and this is your reply, because it is only two. If I have a bad purpose to Broco, I would ask people to register when my IB agreement was signed, so there will be no April case, in which my rebate couldn't be paid because lack of active clients. So you should know how difficult to attract clients to your broker here.


The point now is why didn't you tell me as an IB if sharing rebate is not allowed, you have known this since April. Your friends said it was OK, two months later it is NOT allowed, while at the same time other IBs still offering rebate, the same as I am. If you feel the trades were not honest to you, then could told me, complaint about the trading style. One more thing, the agreement was ended early of this month, so the clients trades for May was still on the agreement and it was your duty to pay me the rebate on June 5th, 2009. So, if it is the case, the conclusion is "you are enjoying the profit from clients who I introduced and you don't want to spare me my part".

 

[Natalie18]

Reply

Please check on Google.com, type the keyword "Broco rebate". You will found several IB giving rebates, your rules isn't clear at all.

Thank you for your information, we will investigate

[/QUOTE] Besides, my client also told me that the spread of his trading pair suddenly doubled, and also the order execution is sometimes take 5-8 seconds which is quiet terrible.[/QUOTE]

We warned about it, spreads for Asian session are really expanded.

[/QUOTE] So you should know how difficult to attract clients to your broker here.[/QUOTE] Sure, that's the sense of the program. Therefore a lot of our IBs have huge spendings related to ad campaings and holding their offices. Partners are not just for obtaining rebate through manipulations but for sharing responsibility of the company's performance.

 

[x-pi]

Hi,

Therefore a lot of our IBs have huge spendings related to ad campaings and holding their offices.

Sure, I have a spending also, in form of rebate. I think spending of advertisement should be adjusted to the region, compared to the competitors. Here, most of IBs don't use office and they give rebates. I also follow them in order to compete, give rebates, for other brokers I give prizes, or another programs. I have told you and your friend on my explanation at April, but you stay silence, your friend even said "I understand you". Well, I thought it is OK and I go on with my this way, if you have concern also on your IB, you should told me that time.

It is really fortunate that I'm not making big advertisement, or even establishing an office for Broco. What happen if after I did spending, suddenly you cut the contract? It would be a major blow for every IBs surely.

Besides, the right contract termination way is Broco should pay my rebate for last month, and we don't work together again in the future, since last months they are still clients that are referred by me.