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Fellow traders kindly guide me....Paxforex has cheated me!

Discussion in 'Scam Alerts' started by Cheth, Nov 30, 2012.

  1. Cheth

    Cheth Private

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    Hi,
    I am writing my recent experience about Paxforex broker. I read about them in a forum. They advertised that they were offering about 100% bonus to all the new customers. As I am new to trading, I thought I could use the bonus as an extra cushion, just in case I lose my deposit. I got in touch with the support via chat and asked them as to how the bonus stuff works? They directed me to the website link and they said that they have all the clauses pertaining to the bonus there - https://www.paxforex.com/account/forex_deposit_bonus_conditions_upto_100p
    After going through them I was a bit unclear with their clause 6 and 7. So I got in touch with the support guys again via chat. I told them that I am a bit unclear about their bonus clause that they have mentioned in 6 and 7 and asked them to make it simpler for me. I thought I would rather ask, what particularly I am confused about and told them – I have a few direct questions and I hope to get answers to that. I asked these

    1> Is the welcome bonus, a tradable amount? I mean, can I use it for trading in case if I lose the deposit?
    Support staff – “yes the amount we add to your account is tradable and can be used during margin calls.
    2> I am not sure about the bonus conditions that you have on your site. What if I don’t fulfill the volume requirement and wish to withdraw at some point later(because I knew that I will never be able to meet even 10% of their requirement and I did not want to be in some mess later on).
    Support staff – “It’s fine, if you can’t meet the requirement. We just take the bonus back and you can take the remaining back into your account.”
    Now what does the above statement confirm. It confirms that if I want to withdraw my money later and I have not yet met their volume rule, then the company would take ONLY my bonus back and I CAN take my profits and the deposit back. Right? Now there might be some of you who might understand the rules and conditions, but I could not. And hence I contacted the company support team to clarify my doubts!! I suppose I was not wrong in doing that.

    Just before the deposit, due to some technical reasons associated with Moneybookers, I asked them if they would consider my request of making the deposit via MB but for all the future withdrawals I would be using only Liberty reserve. I requested this option because MB have some outgoing and incoming transaction limits. The customer support responded back via email saying - Yes we can do that. After confirming the bonus condition and the LR option I went ahead and deposited 300 USD and got 100% bonus on that.

    Now, after about 2 months when I tried withdrawing the amount via LR, they came back saying that they cannot entertain the request and I should use the same option which I had used originally for the deposit. I would not have had any issues with that if I had bigger limit in my MB account. And that was the whole reason I had confirmed with their support staff, that they would allow me to use LR option later on. I reminded them that their staff had already confirmed that this would be possible. It took several to and fro emails between me and them, and finally they came up with another major issue.

    The company is holding my profits back!!
    __________________________________
    When I placed a request for the withdrawal they said that they would take the entire bonus back, if I withdrew anything before completing the volume requirement. I totally understand if they want their money back!! But they are asking me to even fore-go my profits??? After many years of struggling with forex and after 2 months of trading with Paxforex, I managed to make about 1283 $ which includes my deposit of about 280USD in that. In fact it was one my friend who had helped me with 1 or 2 confirmed setups and he had told me that these trades will surely work. I am not a big trader who earns BIG $ every month. I don’t want to mention much, but I have certain loans and other commitments that I have to take care of. This was the whole reason I even bailed out of my positive trades(trades were open for 3 days or so) so that I can withdraw my money. They started explaining that traders normally lose their bonus and hence they have a rule in place which says that I cannot withdraw profits until I complete 60 lots requirement. 60 lots!!! I cant even imagine of achieving that in another 1 year!!
    I would be wrong if I had asked for the bonus which the company owns. I am NOT asking for their bonus. Let them take their bonus back and give my money which I have earned by trading!!
    I have confirmed this at least twice before I deposited the amount, and they had clearly said that they would ONLY CANCEL my bonus and I CAN take the rest from my account. Am I missing something here? Just to confirm this I again contacted paxforex and asked them the same thing. The company representative clearly said that I can take everything except the bonus amount which they have added to my account. Please see the chat log that I saved after the conversation.


    Language: English
    Full Name: Cheth
    Your Question:
    Staff: Paul E
    ________________________________________
    05:23 There are currently 1 chat request(s) before you in the chat queue.
    05:23 Your Question:
    05:23 Please wait, an operator will be with you shortly.
    05:23 You are now chatting with Paul E (Operator) - English
    05:23 Paul E: Thanks for coming into live chat. Please feel free to ask me any questions you need; note that I am chatting with several other customers as well, so my responses may be delayed. I will be with you as soon as possible.
    05:24 Cheth: Hi Paul...I had sent a request for withdrawal....could u please let me know the status
    05:26 Paul E: Hello. When did you do it,sir?
    05:27 Cheth: yesterday
    05:27 Paul E: write to accounting@paxforex.com please
    05:33 Cheth: can u please tell me how much I can withdraw
    05:34 Paul E: what account do you have?
    05:34 Cheth: 81981
    05:35 Paul E: account type?
    05:36 Cheth: standard
    05:36 Cheth: it is a standard account
    05:37 Paul E: sir, you can take all from that account
    05:38 Cheth: and that would be?
    05:38 Paul E: i can't tell you, sir, i have no access to your account
    05:40 Cheth: if I have not completed my volume requirement? Can I still take everything?
    05:40 Paul E: yes, but without bonus
    05:41 Cheth: thanks
    ________________________________________
    Support Center: PaxForex - Powered by Kayako Engage Help Desk Software


    I even tried calling them up to see if I can sort this out. But they started explaining that the conditions are mentioned at their site and I cannot really go about asking representatives for clarification. I said the first time, I spoke to their company people, they had a totally different statement to what they are saying now and hence I am trying to clarify it. Is it wrong to clarify? The person said that probably the person whom I had spoken 2 months earlier was new to the firm. Do I have to ask the representative if he really knows what he is talking everytime I talk to them? The support team represent the company. So anything they say or do is as good as the company is saying that to me… Well what do you say about another confirmation that I got from their support staff, just today? How can they give wrong information to their customers and stop them from taking their own hard earned money….It seems like the company is making profits by snatching away the profits from their customers!!
    I would request anybody reading this, to guide me as to how I could handle this….I have all the email and chat correspondences saved which I had with the company guys. It shows how the staff don’t stick to their own words. This shows the credibility of Paxforex ….I am sure after reading this anybody out there would think twice before they deposit their money in paxforex….
     
    #1 Cheth, Nov 30, 2012
    Last edited: Dec 6, 2012
  2. BigT1

    BigT1 Sergeant Major

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    Cheth,
    This appears to be a completely fraudulent firm.
    About PaxForex, The Fastest Growing Forex Company. - PaxForex
    .
    The Company Name and Reference#:
    Paxinvest.com LTD Reg. Number 1588590
    appears to have no meaning in the London Companies House, the FSA-UK, FINMA, or the BVI, where they claim to have offices.
    .
    Here is a link to view their London location, a mail drop virtual office:
    https://plus.google.com/11070246813...US#110702468135277319282/about?gl=US&hl=en-US
    .
    Below is an image of their BVI location:
    .
    This operation looks strangely familiar to another I just helped bankrupt.
    More research needed; stay tuned.
    .
    Anthony Ingrassia, CTA
    NFA ID#: 0278164
     

    Attached Files:

    • BVI.
      BVI.jpg
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    #2 BigT1, Dec 1, 2012
    Last edited: Dec 1, 2012
  3. ada1976

    ada1976 Private, 1st Class

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  4. nicknick

    nicknick Private

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    #1 ForexPeaceArmy should make a simple page on all the required checks for an investor. So before anyone deposits with any broker they have a list of things to confirm about that broker before they deposit

    #2 If you can prove that the broker has scammed you or is in the process of doing so - then you should give them 7-10 working days to fix it or else you will do the following:

    #2a - make a website like I did for Universal-fx.com, I made Universal-fx.us and exposed them and all their facts. When you explain to your broker that this will happen to them I am sure they will return your money. If they don't - do the following:

    #2b - create that website and contact their regulator with that website (if they are not regulated which was my case) then you contact INTERPOL and the United States FBI Internet Crime Complaint Center (IC3) | Home

    #3 - once you get your money back - think a few times before you consider any broker that is not regulated and if you have any doubt at all EMAIL the FPA here and ask them about a broker before you deposit.


    Now - stop wasting time and do these things now, not later, now
     
  5. BigT1

    BigT1 Sergeant Major

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    Hi Nick,
    FPA has a thorough educational unit including the Military School where all aspects of trading are discussed. Chapter 38 etc. cover brokers and scams:
    Forex Military School | Complete Forex Education by a Pro Banker - Forex Peace Army Forum
    .
    In addition, there is a database of broker reviews, coupled to a discussion board for each:
    Forex Currency Trading Broker Reviews By Forex Traders
    .
    plus a record of exposed scams:
    Forex Scams Forex Frauds
    .
    and as you know, these Scam Alerts for works in progress, and the Trader's Court of Open & Closed cases.
    .
    Problem is most victims who get sucked in to frauds do not bother to do any due diligence before sign-up and come seeking help only after the horse is stolen.
    Even you, a sophisticated entity with a forex business would have avoided your own involvment by so doing.
    .
    The simple truth is if you have made the decision to try to trade these markets as an individual without the aide of a financial professional, you need to:
    Know Your Broker,
    Know Your Regulator,
    Know Yourself.
    .
    AI
     
    #5 BigT1, Dec 1, 2012
    Last edited: Dec 1, 2012
  6. Cheth

    Cheth Private

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    Thanks Nick,
    I am not really sure if I am good enough to create a website but I can surely go ahead and log a complaint against them at the FBI site that you provided.Thanks a lot for stopping by and posting a suggestion, Nick
     
  7. Cheth

    Cheth Private

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    Thanks BigT1, the news that you have got is really shocking ....even I did feel something odd when I spoke to them over the phone. The guys whom I spoke to had a very different accent(I thought they probably have some non-UK guy working for them, and off course that is normal), but I felt odd when my email was responded with a similar tone, intention and writing style, but with 2 different names!! The moment I sent an email saying that I would go ahead and post my case on the internet, their team started appreciating how good my trades were and things like that. The moment I said that I am new to trading and in fact it was my friend who had helped me in the trade setups, they immediately changed their tone and even threatened me that I will have to pay penalties if their company is in anyways made liable to any legals costs later on...It seems like you have even logged a case at NFA? This money is my hard earned money and I cant really afford to lose it at any cost!!

    Thanks!!
     
  8. Pharaoh

    Pharaoh Colonel

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    A friend assisting you with trade setups is perfectly ok. If you turned your account number and password over to a friend who then entered trades for you, you've probably violated their terms of service.

    Complaining about having trouble getting a withdrawal would never make you liable for damages if there really is a problem getting a withdrawal. You would only be liable for legal costs if you do something that unfairly forces them to have legal costs.

    I read the link you provided to the bonus terms. If your withdrawal exceeds 40% of your deposit and you haven't met the terms to keep the bonus, they cancel the bonus. That's actually better than some companies that have the terms set up to grab your profits or prevent withdrawals altogether.

    I have some suggestions for you.

    1. Don't talk to them on the phone. Keep everything in writing.

    2. If you have any positions open, close them as soon as possible. It would be very sad if some anomalous price spike wiped out your account.

    3. Invite them to come to this thread and explain themselves. Let them now you'll be very happy to ask that the thread be marked as Resolved - as soon as your money arrives.

    4. Have a friend contact them in LiveChat to ask where they are located, registered, etc.

    5. If you haven't done so already, leave them a 1 star review.
     
  9. Cheth

    Cheth Private

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    Hi Pharaoh,

    Yes, I have never allowed anyone else to trade for me. My friend only assisted me in the trade setups.
    I am afraid that is exactly what my problem is. Their terms and conditions says if I dont complete the volume requirement then they will cancel the bonus, but these guys are withholding both my deposit and profits. After reading the conditions at thier site, I was not very sure about a few things, and hence contacted their support to clarify my doubts. The guys over there (at least twice before deposit and atleast once recently) confirmed that in case if I like to withdraw the funds from my account before trading the required volume then I can withdraw everything except the bonus. I have the proof of the above statement. But Now they say that they will not give my profits until I complete 60 lots?? Why are they changing their own words? Moreover they seem to be causing lot of trouble while I trade. I get a lot of requotes when I have already set the deviation to 5 points. I have checked the log that the price difference was not more than 2 pips....They also try to slow down the trade execution when I am about to enter into a good trade or while trying to exit with profits. This does not happen if the trade hapens to be a bad one. I just need my deposit and the profits. I dont need their bonus!!
     
    #9 Cheth, Dec 5, 2012
    Last edited: Dec 5, 2012
  10. Pharaoh

    Pharaoh Colonel

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    Get a screenshot of those bonus terms. Email them, attach the screenshot, and also copy/paste those terms into the text. Tell them that you are happy to surrender the bonus, but want the deposit and all profits as per the terms of the contract.
     

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