Problem caesartrade.com scam

[CaesarTrade]

Hi Eddiger,

Here is our Withdrawal Policy - caesartrade.com/withdrawal-policy
We don't charge for withdrawals on any of our offers. Even our Zero-Spread account.

The 400% bonus is different and is structured in a way so I can make money so you can make money.

At the end of the day, it provides an opportunity for small traders (as well as large) to trade with small deposit size and I claim is better than Binary Options.

What people do is arbitrage and bet big on two platforms - Buying on One and Selling on Another.
This occurred often in the early days with my large bonuses.
You can read more about this from Forex Magnates:
forexmagnates.com/exclusive-fx-firms-experiencing-arbitrage-in-far-eastern-markets-due-to-abuse-of-bonus-credits-by-traders/

Additionally, it's offered to traders with low amounts such as $25 and $75. It's very expensive to provide these bonuses without a commitment from the traders.

As the offer gets more popular, I always strive to lower the trading volume and cost that is attached to the 400% bonus offer.

And it's very legitimate as people are profiting and especially ones that have not had the opportunity to in the past.

Regards,
Eric

Again - I respect that you are cautious but I am more than happy to speak with you directly.
Just contact me
forms.aweber.com/form/89/177508589.htm

 

[Pharaoh]

You say you were worried about being torn apart by wolves. If so, why do you keep pouring steak sauce on yourself? Just answer the questions fully and completely and maybe this can be resolved.

Skipping that you initially tried to evade the question with a speech and also have the single most unconscionably vicious item I've ever seen embedded in bonus terms (and I've seen a lot of nasty ones), I still have an issue with the math.

$1159.06 + 600 (bonus) + 800 (error deposit) = $2559.06. How does that correlate with a balance of about $2800?

As AsstMod noted above, your company already admitted to one math error that resulted in this client being underpaid. Even if there had been no erroneous deposit and your new numbers are somehow correct, a client was initially denied money that should have been his. Further, one of your employees told us that public discussion was pointless since the client had gotten a profit. Now you are again trying to drag this out of the public eye into a private discussion. That's an option that expired when your client had an issue and couldn't get a proper answer privately.


I won't waste your time with a speech and will limit myself to a couple of solid pieces of advice:

If a broker won't answer a trader's questions in private, then a public forum is the next choice before filing complaints with regulators.

If a broker can't account for every penny in a trader's account, that's a broker no one should ever trade with.

 

[amahendran1984]

They are not ready to explain my profit calculation,Today i sent lot of emails to them for asking my profit calculation.Please tell me my next step,shall i go to file a case?

 

[CaesarTrade]

Well I feel like Mr. Putin after writing a post in the NY Times: usatoday.com/story/onpolitics/2013/09/12/mccain-putin-syria-op-ed/2803905/

Though you may not interpret it as such, but making a calculation error attests to the fact that we are not used to closing accounts nor making 50% deductions on client accounts.
That is why I am taking the time to address these issues and several surrounding comments that were made on this forum and created quite a stir on FPA judging by the amount of Views.

--The moderator contact me this morning and asked me to respond to a calculation. I assume it's this comment from Pharoah that is sandwiched in-between remarks that were remarkably harsh.
"$1159.06 + 600 (bonus) + 800 (error deposit) = $2559.06. How does that correlate with a balance of about $2800?"

I don't believe my calculations have changed since the beginning of this post, but I took the time today to look at the trader's account fresh.

Here is what I see and cannot see changing my company's opinion. We exercised our right to pay the client what was clearly his. Not the profits that were made from deposits and bonuses placed in error.
The only issue is the closing of his account. But the actions he took and from past behaviour of other traders who behaved similarly we made the decision to close his account and deduct 50%.

Here are the calculations:

On 8/8

The Balance started at 300

At the end of the day it was 1

On 8/15

The Balance was 200 and the Credit was 600

At the end of the day it was 1159.06 Balance and 600 Credit

On 8/16

The Balance was increased by two erroneous Deposits to 1959.06 with a Credit of 600

At the end of his trading run on 8/21

The Balance was 2821.78 and Credit of 600 and Equity of 3421.78

The trader emailed us on August 22nd:
-----
As I mentioned previously,Hi,
I want to withdraw 2550$ from my Account.Please process my withdraw request to my Perfect Money Account.Here i give the details.

Trading Account Id :
Withdraw Amount : 2550$
Withdraw Method : Perfect Money
Perfect Money Account ID :
-------

By withdrawing 2550, he would be left with 891 - which approximates 200 deposit and 600 credit that was issued incorrectly. And he would be playing with the house's money.

Thanks,
Eric

 

[Pharaoh]

2821.78 and Credit of 600 and Equity of 3421.78

OK, let's start again.

3421.78 - 600 = 2821.78 - Looks like everyone agrees on this.

2821.78 - 800 (deposited in error) = 2021.78

Unless you can show that a significant portion of that balance could not have happened without the use of that extra $800, then the client would be owed:

1/2 of 2021.78 = $1010.89

Yes, the client should have notified you. On the other hand, some people don't bother to balance their personal checkbooks (including me). Yes, any withdrawal above $2021.77 would leave him playing solely with house money, but you are attributing to conspiracy that which could be caused by carelessness.

Then again, if I double my account, the first thing I do is pull out at least my initial deposit. There's nothing illegal about playing with house money. The only "illegal" think he did was to consider the $800 error (an error made by CaesarTrade completely independently of any action the trader did) to possibly be a gift or perhaps to not have fully understood it.

Further, it was CaesarTrade's decision to close the account, not the client's decision. Your brokerage must be very new. There are plenty of new traders who don't consider bonus terms and would put in $200, get a big bonus, and then try to withdraw more than the initial deposit and profit. Some will be trying to rip off the company. Many will just not fully get the concept of how bonus money works. A smart broker will deny the withdrawal and explain the issue to the trader, not close the account (in this case subjecting the trader to a 50% loss of his funds), pay the trader less than he's owed by any possible calculation, and then refuse to recheck the amount, forcing him to go to a public forum to complain.

Some people have asked me what my "Business Consultant" day job is. Let's just say that I spend a lot of my time finding very polite ways to tell companies things like, "If you want to stop shooting yourself in the foot, put down the pistol and think very carefully before picking it back up again."

In your case, I see four options.

1. Fully justify cancelling some of the profits this trader earned. Considering the number of errors made on your side already, this is a very tall order. So, unless your proof is overwhelming, I advise against it. Otherwise, you'll end up convincing a lot of people that your brokerage is a scam.

2. Pay a total of $1010.89. This leaves the trader with a valid complaint, since he did not request that the account be closed. Normally, a broker is free to tell a client to go away and close the account. Normally, this doesn't cost the client 50% of his deposit and profits. You may be able to defend the company legally on this, but you'll leave a permanent stain on CaesarTrade's reputation. Who wants to deposit money knowing that if the broker decides to kick them out, they'll instantly lose 1/2 of their money?

3. Pay the full $2021.78 and tell the client to leave. This is a reasonable option. Consider the extra $1k the cost of learning to be more careful in dealing with issues like this as well as a motivation to get the calculations correct and not to drop an extra $800 into someone's account in the future.

4. Restore the unpaid balance (minus the $800 placed in error). Ask the client if he wishes to continue trading or not. If not, I still recommend that he get the full $2021.78, since at least 2 separate errors on the company's part contributed to this mess.


Now put down the pistol and think very carefully before picking it back up again and pulling the trigger. I've just put on a clean shirt and if you shoot yourself in the foot again, it might splatter.

 

[Master Yoda]

seems to me that the calculation Pharaoh made is just the right one:

(3421.78-600-800)/2= $1010.89

OR

(3421.78-600-800)= $2021.78

Depends what's your point of view.

I think you should find a quick settlement Mr. Eric Putin

 

[CaesarTrade]

"Now put down the pistol and think very carefully before picking it back up again and pulling the trigger"

Making comments like that suggest something that was never my intention.
Nor creates an atmosphere of dialogue. You can disagree with me but that doesn't me I am here to make a situation worse.

You are assuming my offer is just another forex broker deal, but it is not.
This is a very special offer with rules that can accommodate a large base of traders.
The offer not only makes money for traders with $25. It is also better than Binary Options which magazines such as Forbes question the integrity that industry.

Additionally, as you may or may not be aware, allowing withdrawals before bonus volume has been met is not typically done. That is why I have placed a
deduction fee which is reasonable.

Again, for any account, other than 400% our rules are the same as the best brokers in the industry, but when it comes to this specific offer
the conduct of the traders is very important. Whether you believe it or not, the markup is not very high as many people do play with the houses money.

Saying that, I came to this forum in good faith and responded as such.
I do not believe that I came here to throw my weight around.
As I have mentioned previously, we make mistakes and we try to correct them.
The client made no effort to have a dialogue with us despite what you have come to believe.

I will review what you have to say and consider but I will need time to read it through. As I try to be consistent.

That means if I do enact some of your suggestions it will be a new policy for the offer. When I make a deal with someone, I offer the same deal to my community of traders.

I am not pleased as to how some of the dialogue progressed, but I am thankful to the fact to be in a situation where I can learn from it.


Thanks,
Eric

 

[AsstModerator]

I suggest all sides stand down on this for the weekend. We can resume Sunday afternoon or Monday morning, depending on your time zone.

 

[CaesarTrade]

Hi,

Pharoah - I appreciate the fact that you took the time to write, in detail, how you feel about this case and suggest lines of actions that I should take.
Even printed out what you said and had a few reads of it.

It was busy weekend and morning, and don't think I will be able to respond until much later today.

But I am interested in your definition of what Scam is.
And how you see a good broker operating
What made you decide to contribute your time to this forum...

Thanks,

 

[Master Yoda]

Foreign exchange fraud - Wikipedia, the free encyclopedia FX scam definition