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Problem Fxopen scam - see my proofs

I am having an issue with a company
I have some additional information now with which to answer some of your other questions.


Hello all,

1, Why did fxopen ignore me, and waited 3 weeks for sending me a reply and reacted only after I brought up this SCAM suspicious matter on FPA forum?

As soon as your initial letter of claim was received, you were given notification that the investigation had begun. You were assigned a ticket number. We didn't wait until you posted about it here. The investigation began long ago.

2, Why did not fxopen notify me immediately having found out the " technical problems" ?

Due to the complexity of the issue it took a lot of time and a lot of correspondence between FXOpen and the LP in question. There was an extremely large amount of trades to identify one by one. This is why it took a while.

3, Are you claiming that you had technical problems all day long? Specify, and verify the time frame you had had technical problems! Specify, and verify what problems did you experience, explain in technical terms!

As was explained previously, the problem was one of erroneous prices from an LP. It took some time to shut down this LPs incoming non market quotes.

4, FXOPEN claims "on May 16, 2012, some trading orders were executed at the prices not existing on market at that period of time." BUT they deleted all my winning trades. How could be possible that only my winning trades were executed at the prices not existing on market at that period of time? Only mine were deleted, and only the winning ones?

All trades of all traders affected were voided, not just yours.

5, Did you delete thousands of other traders' trades as well?

Yes.

6, It says: "The total re-calculated P&L of the orders was negative. " Aka, basically instead of I had made 40K, I lost money in 60 winning trades. Is this a joke?

The trades were winning trades only when non market prices were used. The real market price that they were filled at by the LP resulted in a loss rather than a gain.

7, Why the total re-calculated Profit Loss of all my trades was never presented to me?

Would you accept the losses if you were shown?

8, Since you dont disclose your liquidity provider, so there is no way to verify whether the orders had been executed at the fictitious prices. No cross-checking, no transparency leaves the door open to be considered your action cheating and Fxopen is scam. To avoid that stigma, please verify that orders had been executed at the fictitious prices! You must have some proofs to show!

As stated previously, an NDA with many of our LPs means that we legally cannot identify them.

I do not take answer satisfactory and nor I believe any of it at all. Be sure that I take this FPA court and pursue legal action as well.

Mr. Jafar Calley, is your turn now to get things straight! Until then it is a SCAM to me.

FXOpen has been open and honest and has acted with integrity. I really wish you could see that.
 
Hello, as a customer of FXOpen with an ECN account I would like to know how in an ECN an order can be filled without a counterpart. If there were non market prices, any orders at these prices should have been declined. If you as a Broker absorb any wins or losses and fill orders at any price, existing in the real market or not, from my understanding there is no real trading taking place except with your dealing desk and you are acting as a market maker. Please explain in detail how your order execution works.
 
Hello, as a customer of FXOpen with an ECN account I would like to know how in an ECN an order can be filled without a counterpart. If there were non market prices, any orders at these prices should have been declined. If you as a Broker absorb any wins or losses and fill orders at any price, existing in the real market or not, from my understanding there is no real trading taking place except with your dealing desk and you are acting as a market maker. Please explain in detail how your order execution works.

Our execution model works as follows:

We agregate severals streams of external LP's (ECN's, banking and non banking institutions) and limit orders of the participants in our ECN.

On the client's end, they get the best bid/ask from all sources. If a client is not directly matched with another client in our system, the order is passed via STP to an external LP.

Please see the pic below for a graphical representation of order flow in our system.

FXOpenECN.jpg.jpg
 
Where Kovacs' trades on ECN? If so, then the price offered by the LP is the price. If it's off-market, then any loss should be absorbed by the LP, not by innocent traders who were only trading what was offered to them.

If the LP refuses to honor the trades, then FXOpen should take action against the LP.

I'm still very confused by the prior statement about the company absorbing any loss. It looks to me like the entire problem is being resolved by cancelling profitable trades and neither Fx Open nor the LP is absorbing anything.
 
Thank you, but now I still don't understand how it's technically possible, that an order gets filled, when there is nobody to fill it. You are saying, the order is passed to an LP. What happens then? How are positions opened and how can a position be opened on one side but not on the other? And also, have all orders in that period of time been invalid? If not, what happened if for example a long position was opened at a fictional price and then closed at an existing price? How could the trade be removed? Technically there must have remained a valid short position.
 
Thank you, but now I still don't understand how it's technically possible, that an order gets filled, when there is nobody to fill it. You are saying, the order is passed to an LP. What happens then? How are positions opened and how can a position be opened on one side but not on the other? And also, have all orders in that period of time been invalid? If not, what happened if for example a long position was opened at a fictional price and then closed at an existing price? How could the trade be removed? Technically there must have remained a valid short position.
Dear Tweetle,
Let us clarify once more what happened: we have been receiving the nonmarket quotes from one of our LPs. Mr. Kovacs had his orders executed with this LP at the erroneous prices.Then the LP corrected the wrong prices for the real ones having reviewed all the orders executed at non-market rates. As a result of this, FXOpen incurred the losses for the orders were initially profitable. After that we decided to void the trades of Mr. Kovasc and absorb his losses, so his trades were cancelled.
 
LoL...Thats Bull**** Excuse

It is real. You have to know about because all LPs have a paragraph in the Trading agreement similar as this - WE shall have the right to annul and/or reverse any trades which are deemed untrue or opened at a fictitious price not existing on the market at the time of opening.
 
... his orders executed with this LP at the erroneous prices.

Unbelievable! I have 3 questions:
- Are we talking about ECN???
- When the LP sent wrong prices and they got filled, shouldn't be the LP who cover the losses?
- Did I understand correctly that the trades were not only cancelled but changed to loss trades? Where did you find counterpart for the trades?

Thanks
VT
 
Unbelievable! I have 3 questions:
- Are we talking about ECN???
- When the LP sent wrong prices and they got filled, shouldn't be the LP who cover the losses?
- Did I understand correctly that the trades were not only cancelled but changed to loss trades? Where did you find counterpart for the trades?

Thanks
VT

Hi VT

All LPs are Market Makers. If they modify the fill prices there is little an ECN broker which is fed by those LPs to do anything about it.

What is clear here is that the LP offered the wrong prices to FXOpen's ECN then they modified the trades. FXOpen did not change anything.
 
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