FBS scammed me

[shaan984]

Dear Sir!

Your order (Buy, 0.10 lot, USDTRY) has been thoroughly checked by our specialists one more time.

First and foremost, we would like to draw your attention that a client needs just enough margin for the order to be executed.
The required margin for this order with the leverage you had at that moment of the order execution (1:500) was 20 dollars. Though, please, kindly let us remind you that the spread is deducted upon the order opening and it is not included in the margin calculation.
Unfortunately, since USDTRY is an exotic currency pair, it is very volatile. Currently the economic situation in Turkey is unstable which leads to leverage decrease, spread widening or even closing this currency pair for trading by many brokers.
Please, kindly be reminded that according to the Customer Agreement:
3.3.7. Spread on trading accounts can be widened before, in time and after economic, political and other news release, during the Gap, at the time of Market opening (on Monday) as well as at the time of low market liquidity and when a market situation is conditional on high spreads.
The market situation has lead to a high spread for USDTRY currency pair (let us draw your attention to the fact that the spread can be checked right before the order opening). Therefore your balance has gone negative and your order has been closed automatically by Stop Out.

We would like to mention, that when current loss of all open orders on a trading account exceeds the allowed limit, a Stop Out event occurs, i.e. your margin level becomes less than 20%. In this case, the server will close your orders automatically one by one with the comment “so:…./…/…”.
Example: so: -314.7%/-62.9/20 – the order was closed by stop out (where -314.7% is the margin level at the time of order closure, -62.9 – remaining funds at the time of order closure, 20 – margin).
According to the Customer Agreement:
3.6.2. The Company is entitled to mandatory closing of a Client’s open positions without prior notification of the latter one, if Margin level is lower than 20% of the necessary margin for maintaining open positions.
3.6.5. When after a mandatory position closure the Client account has a negative balance, compensation is added to the account, which sets the account to zero.

This is exactly how your order has been executed: as soon as the order was opened the spread deduction has lead to the negative balance, the order has been closed automatically by Stop Out and the negative balance has been restored up to zero by the Company (62.93$).
Thus, the order under consideration was executed correctly and in full accordance with the trading conditions and Customer Agreement.

We are really sorry, that you have faced such situation, though, please, kindly take into consideration that since your account type has floating spread, it is highly recommended to check the spread before order opening. Also, exotic currency pairs are imposed by additional risks during the trading since they are the most volatile.

We hope we have managed to resolve this misunderstanding. As for the customer support reply, could you, please, kindly clarify which customer agent exactly you were talking to on the phone? We will definitely discuss the matter with this agent. Thank you for this feedback, it helps us to improve our services.

Sincerely,
FBS Official[/QUO

Dear Sir!

Your order (Buy, 0.10 lot, USDTRY) has been thoroughly checked by our specialists one more time.

First and foremost, we would like to draw your attention that a client needs just enough margin for the order to be executed.
The required margin for this order with the leverage you had at that moment of the order execution (1:500) was 20 dollars. Though, please, kindly let us remind you that the spread is deducted upon the order opening and it is not included in the margin calculation.
Unfortunately, since USDTRY is an exotic currency pair, it is very volatile. Currently the economic situation in Turkey is unstable which leads to leverage decrease, spread widening or even closing this currency pair for trading by many brokers.
Please, kindly be reminded that according to the Customer Agreement:
3.3.7. Spread on trading accounts can be widened before, in time and after economic, political and other news release, during the Gap, at the time of Market opening (on Monday) as well as at the time of low market liquidity and when a market situation is conditional on high spreads.
The market situation has lead to a high spread for USDTRY currency pair (let us draw your attention to the fact that the spread can be checked right before the order opening). Therefore your balance has gone negative and your order has been closed automatically by Stop Out.

We would like to mention, that when current loss of all open orders on a trading account exceeds the allowed limit, a Stop Out event occurs, i.e. your margin level becomes less than 20%. In this case, the server will close your orders automatically one by one with the comment “so:…./…/…”.
Example: so: -314.7%/-62.9/20 – the order was closed by stop out (where -314.7% is the margin level at the time of order closure, -62.9 – remaining funds at the time of order closure, 20 – margin).
According to the Customer Agreement:
3.6.2. The Company is entitled to mandatory closing of a Client’s open positions without prior notification of the latter one, if Margin level is lower than 20% of the necessary margin for maintaining open positions.
3.6.5. When after a mandatory position closure the Client account has a negative balance, compensation is added to the account, which sets the account to zero.

This is exactly how your order has been executed: as soon as the order was opened the spread deduction has lead to the negative balance, the order has been closed automatically by Stop Out and the negative balance has been restored up to zero by the Company (62.93$).
Thus, the order under consideration was executed correctly and in full accordance with the trading conditions and Customer Agreement.

We are really sorry, that you have faced such situation, though, please, kindly take into consideration that since your account type has floating spread, it is highly recommended to check the spread before order opening. Also, exotic currency pairs are imposed by additional risks during the trading since they are the most volatile.

We hope we have managed to resolve this misunderstanding. As for the customer support reply, could you, please, kindly clarify which customer agent exactly you were talking to on the phone? We will definitely discuss the matter with this agent. Thank you for this feedback, it helps us to improve our services.

Sincerely,
FBS Official

When you say the margin was 20$ but the order has been executed for 163$ when I have balance of 100$.The pip difference at the time of position were 1000 pips this is what I have received in my mail from your representative then how you have calculated the margin and how can the position can opened up when there is not enough balance .
Points to be noted.
1, You are saying margin 20$ that is for 100 pips but when I opened the position the difference was 1000 pips I have checked in demo and I had only 100$ the margin would be 170$
2, When there is not enough balance the position doesnt get open up ..saying "Not enough balance"
3, When I contacted the support your representative named Russell talked in such a rude manner and asked me to sue them .
4,spread differencr of 1000 pips each pip value is 0.17 cents.Now you yourself do the calculation 0.17*1000= 170$ .and what you are saying the margin would be around 170$ for 1000 pips.This clearly proves that you should provide the refund immediately.
5, The spread difference now is 100 pips when I traded it was around 1000 pips .

I have clearly given you the points for my claim .I hope forex peace army will also take this into consideration and check my point I have necessary evidence also.

Thank you
Shahnawaz.

 

[FBS Official Rep]

I'm not surprised to hear about FBS scamming people.

A very famous Thai Forex "trader" named Kittiyakorn Watcharawalrakarn works very closely with FBS to scam hundreds of investors in Thailand and worldwide

Dear Sir/Madam!
Thank you for the provided information. We hope that it will help other potential clients of the bespoken Kittiyakorn Watcharawalrakarn to avoid such situation.
We definitely understand your degree of frustration in case you have become a victim of Kittiyakorn. Though, as it is written in your claim, Kittiyakorn is a client of many brokers, as one might guess. Therefore, please, kindly let us disagree with the statement that activity of one client can be equated to activity of the whole company.
As for the trading scheme, we would like to remind you that according to the Customer Agreement:
7.4. To provide confidentiality of all trading operations, performed by the Client, access to a trader Personal Area and trading terminal are secured via passwords. The Client is solely liable for keeping his/her logins and passwords. The Company is not responsible for any losses caused by disclosing the password to any third parties.

We would like to inform you that the company is ready to cooperate in case official papers from police are provided.
Hope for your kind understanding.
Sincerely,
FBS Official

 

[FBS Official Rep]

Its always good to see reps reply on the complaint, keep it up FBS Official Rep

Thank you a lot. We do everything to give our customers best support.

 

[FBS Official Rep]

When you say the margin was 20$ but the order has been executed for 163$ when I have balance of 100$.The pip difference at the time of position were 1000 pips this is what I have received in my mail from your representative then how you have calculated the margin and how can the position can opened up when there is not enough balance .
Points to be noted.
1, You are saying margin 20$ that is for 100 pips but when I opened the position the difference was 1000 pips I have checked in demo and I had only 100$ the margin would be 170$
2, When there is not enough balance the position doesnt get open up ..saying "Not enough balance"
3, When I contacted the support your representative named Russell talked in such a rude manner and asked me to sue them .
4,spread differencr of 1000 pips each pip value is 0.17 cents.Now you yourself do the calculation 0.17*1000= 170$ .and what you are saying the margin would be around 170$ for 1000 pips.This clearly proves that you should provide the refund immediately.
5, The spread difference now is 100 pips when I traded it was around 1000 pips .

I have clearly given you the points for my claim .I hope forex peace army will also take this into consideration and check my point I have necessary evidence also.

Thank you
Shahnawaz.

Dear Sir!
Please, kindly let us point out the parts of our previous reply, answering to your questions.

You need just enough margin for the order to be executed.
The required margin for this order with the leverage you had at that moment of the order execution (1:500) was 20 dollars. Though, please, kindly let us remind you that the spread is deducted upon the order opening and it is not included in the margin calculation (!). I.e. as soon as you open an order, the spread is deducted (not the margin), but the platform does not calculate spread before order opening, only margin is calculated, and the needed margin for this order was 20$.

The position is not opened in case you do not have enough margin. The warning "Not enough balance" appears only if you do not have enough margin, not if the spread is wide. You can also read this in the Customer Agreement:
3.4.4. Order processing for open orders
a) At the moment when a Client’s order to open the position comes to the server, an automatic check of the
trading account for free margin for the open order is carried out. In the event that the necessary margin is present,
the order is opened. If the margin is not sufficient, the order is not opened, and a notice about absence of funds is
created on the server.

As for the spread, you are absolutely right, the spread was high at that period. Let us repeat once again that USDTRY is an exotic currency pair which is very volatile. Current economic situation in Turkey is the reason of such enormous spread widening or even closing this currency pair for trading by many brokers.
Please, kindly be reminded that according to the Customer Agreement:
3.3.7. Spread on trading accounts can be widened before, in time and after economic, political and other news release, during the Gap, at the time of Market opening (on Monday) as well as at the time of low market liquidity and when a market situation is conditional on high spreads.
The market situation has lead to a high spread for USDTRY currency pair (let us draw your attention to the fact that the spread can be checked right before the order opening).
We would like to point out that the spread has widened before you have opened an order, which means that you could check it and decide if you should open an order or not.

Hope we have managed to clarify the issue. Let us know in case of any other questions.

 

[FxMaster]

Thank you a lot. We do everything to give our customers best support.

You are most welcome!

 

[shaan984]

You are most welcome!

Dear Sir!
Please, kindly let us point out the parts of our previous reply, answering to your questions.

You need just enough margin for the order to be executed.
The required margin for this order with the leverage you had at that moment of the order execution (1:500) was 20 dollars. Though, please, kindly let us remind you that the spread is deducted upon the order opening and it is not included in the margin calculation (!). I.e. as soon as you open an order, the spread is deducted (not the margin), but the platform does not calculate spread before order opening, only margin is calculated, and the needed margin for this order was 20$.

The position is not opened in case you do not have enough margin. The warning "Not enough balance" appears only if you do not have enough margin, not if the spread is wide. You can also read this in the Customer Agreement:
3.4.4. Order processing for open orders
a) At the moment when a Client’s order to open the position comes to the server, an automatic check of the
trading account for free margin for the open order is carried out. In the event that the necessary margin is present,
the order is opened. If the margin is not sufficient, the order is not opened, and a notice about absence of funds is
created on the server.

As for the spread, you are absolutely right, the spread was high at that period. Let us repeat once again that USDTRY is an exotic currency pair which is very volatile. Current economic situation in Turkey is the reason of such enormous spread widening or even closing this currency pair for trading by many brokers.
Please, kindly be reminded that according to the Customer Agreement:
3.3.7. Spread on trading accounts can be widened before, in time and after economic, political and other news release, during the Gap, at the time of Market opening (on Monday) as well as at the time of low market liquidity and when a market situation is conditional on high spreads.
The market situation has lead to a high spread for USDTRY currency pair (let us draw your attention to the fact that the spread can be checked right before the order opening).
We would like to point out that the spread has widened before you have opened an order, which means that you could check it and decide if you should open an order or not.

Hope we have managed to clarify the issue. Let us know in case of any other questions.

I don't agree on this as I was not able to see the spreads when I was trading now the spread are also near 250 news time and normally the spreads are 100 only .There was no information provided on this pair as it was newly listed.Suddenly spread went to 1000 pips only to close my account.

 

[compu-forex]

shaan,984,

Whilst I sympathise with your situation, I am a big critic of brokers and their tricks but in this case I have to agree with FBS. They did nothing to cheat you. This is how the market operates. No sensible trader will ever open 0.1 lots of anything, let alone XXXTRY on a $100 account. XXXTRY routinely hits over 25 000 pips on its spread, and that is not an exaggeration. With $100 you should be looking at a cent account, or at the very worst open 0.01 size trades and even that will be too risky.

You also need to explain 2 things......how is it you could not see the spreads.....it's right there in the trading platform? and how is it the brokers fault that you are trading a pair where you cannot see the spreads

 

[FBS Official Rep]

I don't agree on this as I was not able to see the spreads when I was trading now the spread are also near 250 news time and normally the spreads are 100 only .There was no information provided on this pair as it was newly listed.Suddenly spread went to 1000 pips only to close my account.

Dear Sir!
We would like to clarify that while saying that you could check the spread beforehand we meant that you always can see the current difference between Ask and Bid price in the MetaTrader4 platform. This information is not hidden and could be checked at any time in the Market Watch of your platform.
As for the information provided on this currency pair, first, you can check the contract specification on our website (https://fbs.com/trading/specs?account=standard). Though, please, don't forget to choose the correct account type and Forex Exotic since USDTRY is an exotic currency pair. Second, you can check the contract specification in your trading platform by clicking on the currency pair in the Market Watch with the right button of the mouse, then choosing Specification option.
Also, we would like to remind you that during your conversation with our customer support agent the latter has sent you the ticks of your order, where it is clearly seen that the spread had widened long before you have opened an order. Therefore, your words that the spread has widened only in order to wipe your account are not justified.
Hope we have managed to clarify all the points!
Sincerely,
FBS Official.

 

[shaan984]

It was a newly listed pair and there was no information provided that the spreads can go around 1000 pips which is 10 times more than the normal range and it was a newly listed pair .While adding the pair you haven't provided any information through mail to your exisiting customers that the spreads can go around 1000 pips what I saw was only 100.I hope you understand just pointing out that it was only my fault it will not prove that you are on the right side .When you can see the spreads have got up to 10 times more than the normal range .You guys have won awards and everything but you won't inform your clients the required information .Now if you show me the agreement points that was signed before usdtry pair added into FBS . I hope you would consider this valid points being a recognised broker and provide me a refund as soon as possible.

Dear Sir!
We would like to clarify that while saying that you could check the spread beforehand we meant that you always can see the current difference between Ask and Bid price in the MetaTrader4 platform. This information is not hidden and could be checked at any time in the Market Watch of your platform.
As for the information provided on this currency pair, first, you can check the contract specification on our website (https://fbs.com/trading/specs?account=standard). Though, please, don't forget to choose the correct account type and Forex Exotic since USDTRY is an exotic currency pair. Second, you can check the contract specification in your trading platform by clicking on the currency pair in the Market Watch with the right button of the mouse, then choosing Specification option.
Also, we would like to remind you that during your conversation with our customer support agent the latter has sent you the ticks of your order, where it is clearly seen that the spread had widened long before you have opened an order. Therefore, your words that the spread has widened only in order to wipe your account are not justified.
Hope we have managed to clarify all the points!
Sincerely,
FBS Official.

 

[FBS Official Rep]

It was a newly listed pair and there was no information provided that the spreads can go around 1000 pips which is 10 times more than the normal range and it was a newly listed pair .While adding the pair you haven't provided any information through mail to your exisiting customers that the spreads can go around 1000 pips what I saw was only 100.I hope you understand just pointing out that it was only my fault it will not prove that you are on the right side .When you can see the spreads have got up to 10 times more than the normal range .You guys have won awards and everything but you won't inform your clients the required information .Now if you show me the agreement points that was signed before usdtry pair added into FBS . I hope you would consider this valid points being a recognised broker and provide me a refund as soon as possible.

Dear Sir!
Please, kindly let us repeat once more time for you the main points of our previous replies.
USDTRY is an exotic currency pair, extremely volatile on its own, but even more unpredictable lately due to economic situation in Turkey.
Consequently, the spread can widen at any time.
On our site it is stated that USDTRY is an exotic currency pair, which implies that it can be very unstable and the spread can widen drastically.
Please, kindly let us quote the Investopedia here:
"An exotic currency is a foreign exchange term for a thinly traded currency. Exotic currencies are illiquid, lack market depth and trade at low volumes. Trading an exotic currency can be expensive, as the bid-ask spread is usually large."
Here is the link to the article - https://www.investopedia.com/terms/e/exotic_currency.asp
But more than that, you were informed about the current spread right before you have opened the order, since the spread was shown in the Market Watch as well as on the left upper corner of the chart field (there the current Bid and Ask prices are shown).