Gainsy - robbing traders since 2012

compu-forex

Sergeant
Messages
149
I am here to tell you the story of my experience with Gainsy.com

I know that there will be those that will tell me(superfluously) that you should not trade with an unregulated broker, and, yup. point taken. At the time they provided conditions that I needed and I took a calculated risk. I have traded with some unregulated brokers before and got away with it.

Gainsy has been systematically stealing trader funds ever since they started. I have been trading FX for over 10 years and this Gainsy is the most blatant theft that I have ever experienced. Make no mistake.....I screw up plenty and have donated heaps of cash to my learning curve. I am man enough to stand up and admit when it is my fault. Often I don't like it and may even get angry at the broker but I have developed an understanding of how the market works.......so I know when I have been mugged.

At this stage I have written off the $14 000 that they stole from me, but I am now on a mission to highlight their tactics and bring an end to them.

Firstly, an examination of the company reveals that it is an International Business Company(IBC) registered in St Vincent & Grenadines(SVG). This company only consists of a postal address and the are represented by a company in SVG in the IBC register so you cannot know who the director/owners are. They have a telephone number in the UK, website hosted in Germany and skype support from Hong Kong. This company does not really exist other than in cyberspace.

To understand their tactics I need to explain how their website works. As with many brokers, you as the client, have a personal area or wallet for the receipt of funds and from where you can distribute funds to your various trading accounts.

The first tactic they use is simple delay. It takes a week for them to respond when you request withdrawal from a trading account to your personal area. Funnily enough the reverse is instant. Then they start with things like "you cannot transfer funds with open positions".....and no margins were not the issue.

Then they start asking you for verification documents. Each withdrawal getting more and more difficult. Things like bank account statements showing how I funded my Neteller account which was used to fund my Gainsy account. Then there was the skype interview, followed by the request for a tax domicile certificate(at $500 cost). I am sure that the next step would have been a full apostilled suite of documents. So far all can be ascribed to a very diligent anti money laundering effort----sure. I went through all of this with $15 000 sitting in my personal area waiting on approval for withdrawal.

What happened next is what blew my mind. Somebody accessed my personal area on their website and transferred the funds awaiting withdrawal into my trading account and then ran a script that opened and closed high spread trades which destroyed the account in about 10 minutes.

Of course they investigated and concluded that there was no unusual activity from their side, so I must have given out my passwords to a third party which breached their terms and conditions - case closed.

So let's analyse this. I think it safe to say that I didn't destroy my own account. It was not an errant EA because it actually happened on 2 accounts that I have at Gainsy, the second being a PAMM account.....fortunately only their funds in that account. I only opened the PAMM account because I was trying to suck up to them to try get my funds back.

I also was not hacked for 2 good reasons :-

1. My other tradings account were not touched. If I was hacked the hackers would have had access to all my trading accounts and I have several others with more funds in;
2. Whoever did this was familiar with the Gainsy website and how to transfer the waiting funds. It is not intuitive so you have to know what you are doing.

So who else has motive......lets follow the money.....there was $15000 in the account and now it's gone......oh wait it hasn't just vanished. It is sitting in the Gainsy account as they are counter party to those trades. They claim to be STP so they would have hedged those trades. Unfortunately they refuse to tell me who their liquidity provider is and then authorise them to provide me with the LP trade logs which would have proved they were innocent.

What this boils down to is straight-forward theft. They transferred the funds from my account to their account through a series of high spread trades(about 300 in 10 minutes).

Of course you could suggest that they are a victim as well because they lost the $10 000 in the PAMM account. Well same reasoning applies, the funds were simply transferred from that account back into their account via a sequence of high-spread trades, so they lost nothing. I also find it strange that they didn't even lift an eyebrow about what happened to "their' funds. Not an email, skype call or telephone call to ask WTF I thought I was doing........

After that I started some more indepth research and have found several complaints of either hacked accounts or another tactic. They often "erroneously" transfer your waiting funds into a PAMM account(or simply claim it was you that did the transfer). They funds cannot be withdrawn as you enter the fund for a contracted period(called rollover). The PAMM account then makes some substantial losing trades.....some principle.....all fund end up in their account.

It is also interesting to note that you cannot change the website or the MT4 passwords without their input, so they have all your passwords.

I will let all these facts speak for themselves.

At this stage I am not looking for anything but would like any other victims to come forward with their story because this has been going on for a while and it is very hard to stop them.

You can view the account here :-

https://www.myfxbook.com/members/compuforexpamm/gainsy-real/2641218
 

compu-forex

Sergeant
Messages
149
Why didn't you read their FPA review page before opening an account? The FPA reviews should be one of the first places to check before sending some broker any of your hard-earned money. Gainsy was declared to be a scam by the FPA back in 2015.

https://www.forexpeacearmy.com/forex-reviews/9821/www.gainsy.com

If you haven't already done it, submit a review for them.

Yup, point taken and I take responsibility for my mistake. It still doesn't change the fact that these guys need to be stopped.....and blaming traders is not the way to get that done.
 
Top