Brokerage issue - need some advice

Status
Not open for further replies.

supermario811

Recruit
Messages
1
Hi Guys,

I would appreciate if any of you are able to provide me with some advice please.

I have a trading account with one of the brokerage firms. In this account there was about US$5k deposited in it. I gave access to a third party and he was trading on my behalf.

This said 3rd party managed to deposit an additional US$10k more funds into this account using my paypal account. He did this so as to avoid margin calls on the open trades. Upon realising this was done, I raised a ticket to the brokerage helpdesk requesting the account to be disabled, and for the brokerage to reverse the deposits back to me. As I thought the account had been disabled, the money will be "safe" in the trading account, however the next day i continued to received margin calls notification on the trading account. And lo and behold, the account value was mostly wiped out leaving me a total of about $50.

I contacted the helpdesk and they explained that although the account was disabled, the positions will not be closed, which means that the positions will still be running its course, and in this case, it was moving further out of the money for me until it hit margin call. I find that really puzzling. They also continued by saying that as i have knowledge of these trades. They are unable to reverse back the deposit of US$10k to me, and will only be willing to offer a goodwill sum of US$2k to close this case.

I mean, this is really a summarised version of the story, but the gist of the story is mainly as such.

I personally do not think that the compensation is fair (too low imo), but then again, i might be wrong. Hence i am seeking some advice on this matter. I would really appreciate any advice. Thank you.
 

fxoday

Master Sergeant
Messages
328
I am sorry about your problem, this experience is a bad story on the broker, but you said if account trading hold by manager account that trade for your behalf, what the bridge is used PAMM account or something else. Disabled account but get margin call is bad result, if your broker still willing to cover US$2K, I think still good than losing all money.
 

holycow

Master Sergeant
Messages
294
Not an advise or suggestion, but something is better than nothing however you still have an option to choose from..!
 

Enayess

Recruit
Messages
110
I am always confused by moments when a brokerage company restricts the right to choose and forces clients to act in such difficult conditions, when you can not control anything. It seems to me that such situations lead to complete loss of capital. I would probably insist on withdrawing the funds.
 

Mnefyn

Private
Messages
21
Never agree to such terms without signing a clear contract with the rights and obligations of the parties.
In fact, you just gave the money to someone you don't know. And you accordingly have no guarantee that this will end safely...
 

quasi

Recruit
Messages
1
Hi, I am very sorry for what happened. I am not an expert and I don't know how and if the issue has been resolved by now.
Some key points for consideration.

I only assume that If they were not in any fault they would probably not offer any "goodwill sum".
How on earth do you disable an account and leave open positions in it?
You obviously requested the closure due to security concerns and to avoid further financial loss.

Without knowing the contract details with the broker and other technicalities, there is a possibility I would not close the case so fast and escalate the matter further.

Wish you well
 

jim67

Private, 1st Class
Messages
143
sorry but its always a mistake to give any one acsess to your money never trust people you can only rely on your self in forex
 
Status
Not open for further replies.
Top