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GUILTY: Case# 2011-030 | alaa.almalki vs www.ufxbank.com

Discussion in 'Guilty Verdicts' started by alaa.almalki, Mar 24, 2011.

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Based on the available evidence, do you believe that UFXBank is guilty?

Poll closed Apr 10, 2011.
  1. Guilty

    104 vote(s)
    97.2%
  2. Not Guilty

    3 vote(s)
    2.8%
  1. alaa.almalki

    alaa.almalki Recruit

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    Original FPA Traders Court Submission by alaa.almalki:

    I am submitting the case against: www.ufxbank.com

    My Case is: Hello
    I would like to tell you that on Thursday, 03/03/2011 I decided to close my account with this company, and of course that was not welcomed by my account manager who tried to stop me in various ways by convincing me to withdraw only a part of my account or open a final deal, so when I refuse these offers he rudely closed the phone call.
    After an hour of that, my former manager (Louay alhasri) re-call me trying to stop me from closing the account.
    with all of these attempts to prevent me from closing my account and getting my money back make me so worried, I became so depressed and confused because of the bad treatment I faced by the representative of the company.
    At the end, I was manipulated by Mr. Louay to open a last deal (Buy Silver), although I refused , but because of his determination and my mental state caused by the bad treatment of him made me agree to the deceit deal, (the spread of silver is 550 pips) which cost me $ 17150, the deal was opened by phone and Mr. Louay did not tell me that he used my full account of this transaction, so it closed in less than a minute after, losing everything in the account, It is clear that my account was not fit to open a transaction of this shape especially for a commodity such as silver, and for sure no honest account manager will recommend such a deal which obviously it was only to cause the loss of my money,
    All this happened only because I want to close my account

    Today i tried to login to my account but i found it close,
    my user name is: alaa950291

    I realy need your help to get my money back, and i know you will do your best to help me.

    THANK YOU FPA
    I appreciate your effort

    New thread in the Scam Alerts Folder:
    www.forexpeacearmy.com/forex-forum/scam-alerts-folder/14497-ufx-bank-still-scammers.html#post60302

    Review is submitted by alaa.almalki on 03/24/11

    The company was first contacted about the issue on 03/03/11, the last contact was on 03/17/11

    Details: The company didn't responds for any of my complaints

    Company representatives' emails:
    Luai Husari <luaih@ufxbank.com>
    Thomas <Thomas@ufxbank.com>
    <Thomasforex@hotmail.com>
    Customers support <cs@ufxbank.com>
    Support <support@UFXBank.com>
    Information <info@UFXBank.com>

    Attached Files:

    1. account statement1.jpg
    2. closed positions1.jpg

     
  2. Pharaoh

    Pharaoh Colonel

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    You agreed to let them perform a trade and they wiped you out instantly!?!
     
  3. Teodor Jackson

    Teodor Jackson Sergeant

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    How did they come to open that big position?
    I mean the trade size has to be clearly stated before opening.
    Were you aware of the position size?
    I don't mean the size against the account but the size itself - 250 000 troy ounces, $8 662 500 position size. Did I get it right?

    Do you know if they recorded that conversation?
    Did you note date and time? And the trade open time?

    Silver was trading sideways in narrow $33.9898-34.9425 range that day.
    It crossed the 34.65 level three or four times.
    Had the trade been 10 times smaller, you'd get on profit side in just 12 hours. Huge profits, the consolidation was just a pause ahead of the next breakout.
    But this trade was definitely oversized.

    I don't like this part about managers driving you to make the "last deal".
    Brokers (and not only brokers) usually try to convince customers to continue, but the "last deal" sounds very bad here.
     
    #3 Teodor Jackson, Mar 25, 2011
    Last edited: Mar 27, 2011
    1 person likes this.
  4. alaa.almalki

    alaa.almalki Recruit

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    After a long conversation with the account manager he told me that all i have to do is to perform this trade and once it is closed he will close my account and send the money immediately,
    And then it happend, they wiped me out instantly.
     
  5. alaa.almalki

    alaa.almalki Recruit

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    What i was aware about is in case of opening a trade with 250 for ounce it will cost me only $5000 if the trade hit the stoploss,
    I wasn't aware that they will use all my account in this trade, they moved the stoploss to a position which cost me all of my account,
    THEY DIDN'T TELL ME THAT.

    I don't know if they have arecord of that conversation.
    The date was in 03/03/2011
    I'm not sure what time was it exactly, but i think it was between 12:10p.m and 2:00p.m (GMT)
     
  6. alaa.almalki

    alaa.almalki Recruit

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    What i was aware about that in case of openeing a trade with 250 for ounce it'll cost me only $5000 in case it hit the stoploss.
    I wasn't aware that they'll use all of my account in this trade,they moved the stoploss to use the whole $17150.
    THEY DIDN'T TELL ME THAT.

    NO I don't know if they had recorded the conversation.
    It was in 03/03/2011,
    but I'm not sure about what time exactly it happend, but it was between 12:10 p.m to 2:00 p.m.
     
  7. Teodor Jackson

    Teodor Jackson Sergeant

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    The trade size resulted in $25/pip.
    $5000 would make just 200 pips SL which is just nothing in Silver: $34.65 - 0.0200 = $34.63 SL.
    That doesn't make any sense. Average spread is 500. 550 in this case.
    I guess they didn't set SL at all - it was just enough to let it go as the trade was greatly oversized.

    If they accepted the order over the phone, they should have some kind of proof they followed customer instructions.
    Otherwise you can claim compensation for unauthorized operations.

    I think we need the broker representative to explain this.

    Update: the trade "needed" 686 pips to wipe the account. I mean 4 digit pips.
    It was very easy for the broker to take it all.
    This was actually just 136 pips beyond 550 spread. 1 minute ATR is about 560!
    136 pips in Silver is like 1-2 pips in EURUSD. Just nothing compared to natural volatility.
     
    #7 Teodor Jackson, Mar 25, 2011
    Last edited: Mar 26, 2011
  8. alaa.almalki

    alaa.almalki Recruit

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    I deal not with silver before, it was the first time for me, so I didn't know how it will be.
    The deal has been opened on the recommendation and instructions of the account manager,
    He didn't tell me he used my whole amount,
    And I think my account wasn't suitable for this kind of trade.

    I wander if there is any broker will recommend such a trade for an account like mine??! (an honest one that is).
    I know for sure if I didn't want to close my account he will not insist to make that trade.
     
    #8 alaa.almalki, Mar 25, 2011
    Last edited: Mar 25, 2011
  9. Teodor Jackson

    Teodor Jackson Sergeant

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    The broker is located in Cyprus.
    Unfortunately it's not regulated.
    Cyprus is a part of European Community but Europe lacks institutions like CFTC.
    You can try here: https://econsumer.ftccomplaintassistant.gov/
    However Cyprus is not listed as a member. But maybe they could help you find right authority.

    Can you present longer trade history to show the trade is outstanding?
    What is your timezone by the way? I mean I'm trying to find it on a chart but have no idea what 12:10 PM actually is.
     
  10. Teodor Jackson

    Teodor Jackson Sergeant

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    It's not the first time they did the trick:
    http://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/8008-ufx-bank.html
    http://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/8426-scam-ufx-bank.html
    Looks like "final Silver trade" is their favorite "coup de grâce" when they can see they cannot make the customer keep with them any longer.

    On the positive side, one of victims found the broker is registered at NFA ID: 0400478
    BASIC Details

    You can file complaint there:
    File a Complaint
    I strongly recommend to do it.
     

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