Complaint involving Multis - FusionMarkets is trying to collect back profits

[SalimG]

Hello eveyone, the weirdest thing is happening with my FusionMarkets account, can someone tell me what is the best course of action? Here's te detail:
Two months ago I've traded 200 lots of SUGAR on my MT4 account at FusionMarkets for a couple of days, making a profit, when I received an email of Account Termination, the reason being "the continued movement of funds into and out of your account with limited trading". I then closed all my lots and requested a withdrawal, which they did. They've paid the correct amount, including 19.128 EUR of profits and leaving my account with a balance of zero.
Fast forward to this week, I received a new email saying there has been a swap error on their side 2 months ago that they have now corrected, leaving my account with a negative balance of 11.462 EUR and expecting that I cover this amount in accordance with some clause of their T&C.
Does anyone has knowledge of that kind of situation? A broker trying to collect back profits 2 months later because of an alleged mistake on their side? What are their recourses, knowing I am in Dubaï and that I believe I was under their Vanuatu juridisction, altough I have no way of being sure as they've closed my access to their website...

 

[compu-forex]

Just ignore them. Nobody launches an international lawsuit over 10k.

 

[4evermaat]

Two months ago I've traded 200 lots of SUGAR on my MT4 account at FusionMarkets for a couple of days, making a profit, when I received an email of Account Termination, the reason being "the continued movement of funds into and out of your account with limited trading". I then closed all my lots and requested a withdrawal, which they did. They've paid the correct amount, including 19.128 EUR of profits and leaving my account with a balance of zero.

So they paid all of your profits, leaving your account balance at 0, and then terminated your account.
Nothing illegitimate here (they have a right to not do business with you).


-> Can you attach the letter of account termination?
-> And if you have screenshot of your account statement after you completed the withdraw (or if you have statement, you can upload it here also). Your mt4 daily statement email after withdraw complete should be good enough.

-> Is this the website of fusion markets where you traded? https://fusionmarkets.com

Fast forward to this week, I received a new email saying there has been a swap error on their side 2 months ago that they have now corrected, leaving my account with a negative balance of 11.462 EUR and expecting that I cover this amount in accordance with some clause of their T&C.

100% non-sense.
-> Swap for "a couple of days" trades 200 lots would be 11.462 EUR? Does the email describe how they calculated this?
-> Are you sure the email is from the brokerage support staff and not some [other] scammer?
Can you please upload screenshot of this email?

-> And even if it were true that there was an actual swap error, why would that be your problem? Why would you want to continue trading there?

Does anyone has knowledge of that kind of situation? A broker trying to collect back profits 2 months later because of an alleged mistake on their side? What are their recourses, knowing I am in Dubaï and that I believe I was under their Vanuatu juridisction, altough I have no way of being sure as they've closed my access to their website...

Their Vanuatu jurisdiction does not offer Negative Balance Protection. But the truth is that no broker would put themselves in a position to lose money intentionally. So I don't see much to worry about.

2 months to notice that you wouldn't redeposit they made a swap mistake???

-> If you have spare time on your hands, you can reply to their email and request trade receipts (post trade reports) showing the execution of your trades in and out. And the daily swap charged each day.

But first, upload all the other evidence I requested above. Thanks.

 

[JCGourillon]

Hi there, the exact same thing is happening to me as we speak, except I live in France, I've traded north of 1200 lots of sugar (and other instruments as well) over more than 1 month and they've modified my account history so it now looks as if I have a negative balance of 99,154 (!) EUR in the account that they've themselves terminated 2 months ago, for the same reason they've told you. They also threaten to "contact local debt collectors in (my) region" unless I send them 70% of this amount...what do you think of this?

 

[SalimG]

Hi @4evermaat, here is the termination email:

Hi Salim,

We are reaching out to you today regarding your recent funding and trading activity.

Firstly, we want to note that the team that runs Fusion Markets also run Global Prime. Unfortunately, we will be unable to support you as a client at Global Prime either.

The continued movement of funds into and out of your account with limited trading is not something Global Prime can continue to support. We have made a decision at a managerial level to terminate your account.

We want to clarify that this is a business decision based on the feasibility of supporting your trading style and funding behaviour, which creates both costs and risks for us with marginal possible benefits.

It is not possible for us to support the ongoing transfer of funds in and out of your account due to both AML compliance and the costs and overheads associated with the frequent movement of funds without commensurate trading activity.

We kindly ask that you close your open trades by the 14th of April at 3 pm AEST so we can process a withdrawal for your remaining account balance; if there are any remaining open positions in your accounts at that time, we will close them for you. If we cannot process that withdrawal for any reason, we will contact you again for withdrawal instructions.

We hope you understand and use the advanced notice to manage any positions accordingly.

Kind Regards,
Hannah
Client Success Manager

And attached is the daily email of my zero balance account the next day after they've completed the withdrawal request

 

[compu-forex]

They also threaten to "contact local debt collectors in (my) region" unless I send them 70% of this amount...what do you think of this?

They are putting the cart before the horse here. Debt collection comes after a court case, which is not going to happen.

Threats, intimidation and even lawyers are great tools for bringing pressure to bear. I would do the same if I were in their shoes, however, the stark reality is that it goes no further unless you are prepared to expend the cash and energy to drag a case through an expensive time-consuming court process. Do not even reply to the email, or acknowledge the existence of the dispute in any way.

 

[oscarra]

They also threaten to "contact local debt collectors in (my) region" unless I send them 70% of this amount...what do you think of this?

YES a stupid joke in your country, no way for a debt collector to act without any French court order, very slim chance for this to be legally enforced, probably not even authorized to provide financial services ….however expect further harassment, best open your own thread here, see how far they push

Vive la République, vive la France !

 

[4evermaat]

We are reaching out to you today regarding your recent funding and trading activity.

Firstly, we want to note that the team that runs Fusion Markets also run Global Prime. Unfortunately, we will be unable to support you as a client at Global Prime either.

The continued movement of funds into and out of your account with limited trading is not something Global Prime can continue to support. We have made a decision at a managerial level to terminate your account.

We want to clarify that this is a business decision based on the feasibility of supporting your trading style and funding behaviour, which creates both costs and risks for us with marginal possible benefits.

It is not possible for us to support the ongoing transfer of funds in and out of your account due to both AML compliance and the costs and overheads associated with the frequent movement of funds without commensurate trading activity.

-> How many times did you fund/withdraw before this? For how much USD?

I suspect they just didn't like the profits you made. I've really never heard of any broker doing this. Usually they would jack your profits at the time of withdrawal (block/delay the withdrawal). Their business model certainly isn't the same as Global Prime in the past. I would really like @Fusion Markets to respond here.

-> if there was an email before this (or live chat transcript), can you please copy that email also? The email talking about the swaps being miscalculated and the recalculation of a negative balance.

--------------------------------------------

-> Please leave a review of your experience also, here:

Fusion Markets review: Is it a legit or scam forex broker?

Fusion Markets have a great range of products to trade and their spreads and fees are the lowest I was able to find. I am really excited to be working with this broker.

www.forexpeacearmy.com

-> and

Global Prime review: Is it a legit or scam forex broker?

I have been using Global Prime for almost a year now. GlobalPrime (GP) is one of the very few brokers in the industry who actually provides receipt for trades I took. I am really impressed by their prompt customer support and honest brokerage service.

www.forexpeacearmy.com

Note that the review process is separate from the problem report (this thread)

---------------------------

Regarding the swap costs. I don't know if the rates were 100% correct or not, but 2 things to consider:

1) whose responsibility is it to ensure correct swap rates are charged?
2) If the trades were at a loss, would they have credited your account with the error swap?

@Fusion Markets really has some explaining to do. I think this behavior covers a period after @Jemook left GP, but if he can share some insight, it might be helpful.

 

[AsstModerator]

There is a problem. SalimG opened the thread. Then JCGourillon added a post claiming to have a nearly identical problem with the same broker. I was going to move JCGourillon's post to a new thread so that his issue could be handled separately, but I took a moment to check the IPs. SalimG and JCGourillon have more than one IP overlap since this thread opened.

The FPA will not waste time supporting multis. The policy on Problem threads by multis is simple. The thread is locked, marked as being a complaint by multis, and is moved to the Resolved Issues folder.

Too bad. This was an interesting thread. I wanted to see how the broker would respond.

Edit: Fusion Markets requested the thread be temporarily re-opened so they can reply. They have, and now it's going back to being locked.

 

[Fusion Markets]

Hi Everyone,

I’m a representative of Fusion Markets and would like to address the recent concerns raised. As a representative of the company, it is my utmost priority to ensure transparency and clarify the situation above.

First and foremost, I would like to emphasize that at Fusion Markets, we greatly value and support legitimate trading activities on our platform. We strive to create an environment where all our legitimate clients can conduct their trades seamlessly and without issue.

Regarding the specific case mentioned in this thread, I am unable to disclose detailed information about the trades involved but can say that we did recently have an issue whereby one symbol was incorrectly set to pay swaps 'in dollars' rather than 'by interest' on a single trading server. Unfortunately with errors such as this there are often groups of traders who monitor and share such issues amongst themselves as arbitrage opportunities to exploit. Any arbitrage trades that were made to take advantage of a material error may face correction to the correct swap rate as a result.

It is important to note that our Terms of Service, specifically section 19.2, clearly outline our stance on material errors. We have a well-established process in place to rectify such errors, whether they result in positive or negative outcomes. In this particular case, it is our responsibility to correct the error and recover funds.

Moreover, I would like to address the concerns raised by @4evermaat, who asked if the material error resulted in a loss would we rectify that also? Yes, we would indeed take appropriate actions to recover those losses for our clients. We strive to uphold fairness and integrity in all our dealings, and that means material errors are rectified in both positive and negative outcomes.

We understand the frustration expressed by some members here regarding this incident, and recognise that these situations can sometimes be a prickly subject. We want to assure you that maintaining a secure and fair trading environment is of paramount importance to us, and one of the principles of our company.

We hope this response has provided you all with clearer context and if you’d like to discuss this with us further, I’d encourage you to reach out to our team at help@fusionmarkets.com.

Thank you for your continued support and understanding.