Brokerage issue - need some advice

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

Sergeant
Messages
227
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.
 
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