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Fxcbs Server Failure

Discussion in 'Scam Alerts' started by Rodders, Jul 8, 2009.

  1. Rodders

    Rodders Private

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    In all my time trading, I've never come across this problem. I don't know whether I just have to write this off to bad luck, or whether the broker has a liability. There is not a fortune at stake here; but a big principal.

    I have a live trial account with FXCBS. I chose them because they are an ECN broker, and not regulated by the NFA. I'm using the account to live trial trading strategies. It's not a very large account (approx $10K).

    Last week the account froze; there was no data to the platform (MT4). I have only come across this before on demo accounts. At first, I didn't notice, as I was busy working my main accounts (with other brokers). When I did notice, I contacted FXCBS's on-line support service. The advised me that their server had failed.

    I had one open trade, and one pending trade. I managed to cancel the pending trade during a few seconds when the platform unfroze, but was unable do anything with the open trade. When, after an hour or so, the data feed was resumed, it showed that the open trade had passed its take profit, retraced, and passed its stop loss. As soon as the data was resumed the trade stopped out, about 5 PIPs below the S/L.

    This was not an enormous trade. I was looking for a profit of 20PIPs, and the S/L was 30 PIPs. Instead of a $200 profit, the server failure caused a loss of $350, so the account is about $550 down on where it would have been if FXCBS had provided a satisfactory service.

    The pending trade, by the way, would have triggered and made profit had I not canceled it; another $300. However, I have not pursued FXCBS for this, as I actually canceled that trade (even though the reason was their data problem).

    I asked the on-line help service what to do about my loss; they referred me to FXCBS's accounts department. I have emailed them 3 times; no reply.

    So, are FXCBS legally responsible for the loss? I doubt it; I have not read the agreement to determine the position, but my experience is that they are heavily weighted in the broker's favour. Are they morally liable? I think so, but as I've never had this problem before, I cannot speak from experience.

    I would expect a response from my emails, and if this were one of my larger accounts with other brokers, I'd expect the refund out of goodwill if nothing else.

    What do you think?
     
  2. Stony

    Stony Sergeant

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    This smells, definitely! Even if your platform was frozen, it should have been possible to close all open positions by calling the broker (by telephone). That is the usual procedure in case of IT-failures. The non-answering of mails is another red flag. I´d withdraw my deposits from this broker.
     
  3. ernest8fingers

    ernest8fingers Master Sergeant

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    I will predict outcome

    You have just been "hosed" by your Sh**ty Broker. FXCM is famous for this Broker trick. No back up server for mission critical Services? Of course not(for live trading none-only "records") . This is a POS scam Broker offering a "depositOnly" business model. Take your money out NOW! :hissyfit: As US based(NFA conforming) Forex Bucketshops approach the 7-31-09 deadline-they know their business share will evaporate and they are seeking to steal as much as Depositers will let them.Good luck. This is a Dubai based company I think. If they lie on the 1st page of their website-I think u can guess the outcome of your failed trade. This "company" is suspect at the very least-CAUTION!
     
    #3 ernest8fingers, Jul 8, 2009
    Last edited: Jul 8, 2009
  4. Rodders

    Rodders Private

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    Response

    Well, I eventually got a response from them and, just as I'd expected, there is small print in the service agreement saying that they are not accountable for the consequences of their service failure.

    They will not refund my loss.

    They have offered to make my next 10 trades commission free, which is worth about $80 at the trade size I'm testing at.

    Yes, as an experienced trader I should have thought to call them to cancel my trades.

    Yes, their help line I was in-touch with should have advised me to to that or offered to close the trades when I told them I had open trades.

    No, I'm not impressed.
     

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