Discuss FIGfx.com

[hailongsong]

withdraw received!

It is 0:49 in Beijing, just passed midnight

after a long day and night, I opened my Figfx platform, and found money transfered! Then I logged in to my email and moneybookers, Vola! 700usd IN!

Thanks Figfx!

You have proved to be a honest and descent broker.

And I will keep trading with you.

Best regards!

 

[yazzy]

regulations re. affiliates

Hi Mr Javier Keeth,

A few questions re. affiliate scheme:

1. Your website mentions that to qualify for rebate commission, "[affiliates] have referred at least 3 active traders". However, in the document "Introducing Broker.pdf", "In order to qualify for its compensation as provided herein, IB must introduce and maintain at least five (5) customers accepted by FIG Solutions or at least 2 (two) customers with an aggregate minimum deposit of $5,000". Which one is correct, or does FigFX have 2 different schemes, IB and Affiliates?

2. The T&C also states "One account per house hold, per partner is allowed to generate commissions." If I am an affiliate, can I refer my relative (living in my same household) as my client, and still qualify for the commission? Of course, the relative trades independently on his/her own. How many "same household" clients can I refer, without violating your regulation? What about clients from "same household" but different from mine?

3. Can you confirm that FigFx conforms to the non-hedge rule, ie. traders are not allowed to have both long and short trades on the same currency pairs at any time? If so, then can we have multiple sub-accounts, each trading a currency pair in different direction?

Thanks

 

[Javier Keeth]

Hello Yazzy,

Thank you for your interest in FIGfx Brokers.

1. FIG treats 'online' and 'offline' IB's differently.
An online IB is called an agent, and is usually a website owner, a google marketer, a social network fan that utilizes some sort on online connections to introduce friends and website visitors to open accounts. Hence, the terms are quiet easier and less restrictive. An online agent need 3 active members in his downline only.

An offline IB, is a regional representative introducing broker that usually operates his own office in his region. Offline IB's have different terms and are usually required to handle their clients totally, from account opening, funding, withdrawals, customer support and etc. An offline IB has to comply with certain monthly turnover requirements, and specific-sized accounts to qualify.

2. To avoid problems and disputes against FIG, as those we faced earlier. We are not accepting any sort of 'suspicious' trading. We strongly believe that by not serving clients in such situations, FIG will save itself and it's clients from getting into endless discussions weather that trade or account were genuine.

In general, -and I here assume that you will act as you described above literally- there is not supposed to be any conflicts or problems if you are the partner and your brother or wife is trading -independently, and in good faith-. In most cases, such accounts are immediately placed in a constantly monitored group, where an agent will be checking the trades as well as the trading scheme for any possible 'smart moves'.

After a while, the accounts are either released into the pool, or notified to withdraw their money. FIG will have to terminate the account before reaching a point where a claim will be filed.

3. On your own account, you can hedge your positions the way you like with no restrictions. The only restriction in this case is hedging a spot against it's future which is strictly prohibited.

As for sub accounts, it's a little different. Having two (or more) accounts in your downline that are hedging each other is a clear indication that the accounts are not here to trade, but to generate commissions. Both accounts will be notified and removed from that particular referer downline. If the case continues, both accounts will be asked to withdraw their initial deposits.

Have a nice day

 

[yazzy]

2. To avoid problems and disputes against FIG, as those we faced earlier. We are not accepting any sort of 'suspicious' trading. We strongly believe that by not serving clients in such situations, FIG will save itself and it's clients from getting into endless discussions weather that trade or account were genuine.

In general, -and I here assume that you will act as you described above literally- there is not supposed to be any conflicts or problems if you are the partner and your brother or wife is trading -independently, and in good faith-. In most cases, such accounts are immediately placed in a constantly monitored group, where an agent will be checking the trades as well as the trading scheme for any possible 'smart moves'.

My father and myself are both traders. I am an online affiliate with a number of downline clients (including my father, he rather allows me than someone else to receive rebates from his trading). Is the fact that my father is among my downline going to be frowned on by FigFx? I personally can not see any conflict of interest there. Or to avoid problems, should I go to the extent that I would not trade on my FigFx account, even though independently from all my downlines?

3. On your own account, you can hedge your positions the way you like with no restrictions. The only restriction in this case is hedging a spot against it's future which is strictly prohibited.

As for sub accounts, it's a little different. Having two (or more) accounts in your downline that are hedging each other is a clear indication that the accounts are not here to trade, but to generate commissions. Both accounts will be notified and removed from that particular referer downline. If the case continues, both accounts will be asked to withdraw their initial deposits.

In the FigFx's "Customer Agreement" downloaded from your website,

7. NOVATION OF OPPOSING CONTRACTS.
Whenever there may exist in any Customer Account two (2) or more open and opposite Contracts providing in whole or in part for the purchase and sale of the same Foreign Currency, Cross Currency Pairs or Metal Contracts on the same Value Date, such Contracts shall automatically be canceled and replaced by an obligation to settle only the net difference between amounts payable in respect of the relevant currencies under the relevant Contracts, and/or the net difference between the quantities of the relevant currency deliverable there under.
​

This, as I understand, disallows hedging.

Also, from the FAQ in your website,

Hedging is to open a new position(s) of the same without liquidating the current floating position(s) at a %25 fee. At the pop up “New Position Window”, check mark the “Hedge” box before submitting the order.
​

In light of these statements and your reply, can you clarify? Moreover, the %25 fee (is that 25%? and of what value?) seems excessive. Within the EA, how can these "Hedge" box be checked?

The question was raised as I use different EAs on the same pair, one may buy but the other may sell, so 2 (or more) trades may exist and they are not of the same direction. By sub-accounts, I meant different accounts under the same name (not belonging to different downline clients) to get around the non-hedging rule (as allowed by other US-based brokers). Obviously, if FigFx allows hedging then there is no need for them.

4. Question re. withdrawal

Again, from the website FAQ:

If deposits were funded using credit card, withdrawal might be processed by crediting to the same credit card “upon availablility” or bank wire with 18.5% fees of the withdrawal amount. This fee is charge by the credit card processor; not by FIGfx.
​

Is the 18.5% fee of the withdrawal too high? I do not think any bank /credit card processor charge that much for a transfer. Can you confirm?

5. Deposit via Moneybookers

Again, from the website FAQ:

For Moneybookers deposits, a fee of 2.9% (plus credit card fees) is applied. You can always check Moneybookers fees at http://www.moneybookers.com/app/help.pl?s=fees
​

Is this "2.9% (plus credit card fees)" charged by FigFx or Moneybookers? From Moneybookers website, they only charge 1.99% to 'protect' them from exchange rate variation, which I think is acceptable. However, there is no such thing as "credit card fee" from Moneybookers, as there is no 'credit card' involved here, only money transfer from Moneybookers to FigFx account. We are only talking about deposit of fund from trader's Moneybooker account to FigFx, not how the fund gets deposited into trader's Moneybooker account, which is a different transaction.

Thank you,

 

[hyper]

yazzy, stop wasting your time with this broker. They do not want consistently profitable traders, as it means that they will lose money. They even ban completely legitimate Expert Advisors like FAP Turbo and Forex Shocker.

 

[Javier Keeth]

Hello Yazzy,

a) As for the case of you and your father, I personally do not see any conflict of interest either. But because some people use such tricks to manipulate the rebate system, FIG decided to disallow trading in this manner.

Also, and as mentioned before, cases can be different. It is obvious when someone just referred their wife or father and are gaining decent rebate pips. While in other cases, it is also obvious that the trader is simply entering endless, meaningless trades which have only one reason of being placed, increasing the generated pips.

I really can not judge without taking a look at the accounts, but to stay on the safe side, FIG really recommends you not to do it this way. While we understand that you might be a decent trader/affiliate and have no relation to any sort of cheating, this particular point is where all problems start (aka, affiliate program) - So staying away is really much better.

b) Hedging
The two snippets you provided actually act as a rule, and an exception.
Hedging, the way it used to be dealt with and in accordance with the new rules active, and those to come have been discontinued. Yet, FIG has decided to continue allowing hedging positions for interested traders at an additional cost of 25% of that positions margin.

Example:
When you buy 1 Lot of EUR for example, the account's used margin shall show you $1000
When you sell 1 Lot of EUR also, the used margin will show $250, and not $0, as it used to be earlier.

As you can see, 25% of the overall margin is still locked for your hedged position. And this, applies to any/all hedged positions on any account.

c) Withdrawal Fees
Earlier, and at the time of composing that contract agreement probably; FIG was planning to use the credit card withdrawal facility provided by an offshore processor (cardsgate.com) which actually was an uncompleted deal. Credit card deposits are now performed using Moneybookers only. FIG withdraws your profit to Moneybookers, where you can inject that to your approved credit card on their system.

d) Moneybookers Deposits
When you deposit cash from your moneybookers account to FIG's account, the fee is 1.9% only. When you use Moneybookers solely as a merchant gateway, the applied fee will be 2.9% instead of 1.9% AFAIK. Please check moneybookers.com

That of course is charged by Moneybookers. FIG's deposit policy is pretty straight forward; Whatever shows as an incoming amount on any payment system is credited to the traders account. And for as far as I know from our backoffice, even the Moneybookers fee of 2.9% is covered by FIG and not the depositor as of February 15th 2010.​

Thank you and have a nice day

 

[yazzy]

yazzy, stop wasting your time with this broker. They do not want consistently profitable traders, as it means that they will lose money. They even ban completely legitimate Expert Advisors like FAP Turbo and Forex Shocker.

hyper, thank you for your advice.

Javier Keeth, thank you for your reply. Is the above a valid claim? Does FigFx have a FULL list of existing commercial EAs that are banned from running? Do you update the list at will? I read the thread and got concerned that the trader profits disappeared from their journal for no reason, and only placed back AFTER the complaint was heard through FPA.

 

[stevesmain]

To Yazzy


Hyper is pretty much correct!

They have banned various EA's without prior notice except to say that they changed the rules but posted on their web site and did not tell the clients until the sh...t hit the fan, then they complained about the feed back they got from all the clients whose acct. they froze.

If they see that you are using a constant pattern and obviously making money they will use the clause "aggressive trading" and shut you down. Example setting up pending orders and then canceling them and get this an average of 3 a day. Now that will really bog down a server, right - no not at all. Any one with a sane mind will see thru that they do not really like positive traders.

Spinner, aka Javier, posted that they grew by 8k clients recently. How many positive reviews of those?? does the word ponzi mean anything here?

Yazzy a point to really take note of in these posts is the difficulty traders have to close a trade, a horrendous amount of requotes. I had 20 yup count em 20 requotes to close a trade during a not too busy time when the market was not volatile.

All that glitters is not gold!

 

[Javier Keeth]

hyper, thank you for your advice.

Javier Keeth, thank you for your reply. Is the above a valid claim? Does FigFx have a FULL list of existing commercial EAs that are banned from running? Do you update the list at will? I read the thread and got concerned that the trader profits disappeared from their journal for no reason, and only placed back AFTER the complaint was heard through FPA.

Hello Yazzy,
Yes of course. We do have a list which is clearly published on our websites. In 99% of all dispute cases like with this steves thing, the trader just never reads, then claims never knowing about them. If everybody paid enough attention to read just the way you did, no broker would ever have any problem.

Thank you


Stevesmain,
When you still seem to be unable to understand is that you are a cheater. Please stop assuming that all people do the same dirty tricks to earn their penny. Some people know what they are doing, and hose actually never face any trouble.

A simple common sense issue - when of over 10K traders, 20 are unhappy, the problem is most probably in those 20 traders, not in the broker. I would really suggest you go back to where you learned forex and ask for a refund.

 

[stevesmain]

To Spinner aka javier


To bad, spinner, you do not get your facts straight!

Sticks and stones etc. No cheating involved what so ever! All trades were set manually, had to use stops to get out of trades set manually, with the requotes mentioned to close a trade was done manually. No EA's in use!

Simply put made money with a system and as it was a constant = any trader the uses a trading pattern can be subject to Fig's displeasure!