GUILTY Case# 2011-073 | m1refaat vs www.afb.com.kw

[m1refaat]

Original FPA Traders Court Submission:

I am submitting the case against: www.afb.com.kw

My Case is: THE CASE Aganist
Name:Arab Financial Brokers
URL: http://www.afb.com.kw
Business: Forex
Address:Monther Building - AL Salhyah
Kuwait City - State of Kuwait
Regulatory:AFB a closed shareholding corporation registered under the Kuwait Commercial Law by the ministry of commerce and industry; Registration details through (www.kuwaitchamber.org.kw).
Although the company says that the spreads are fixed all times on the main page On its website and on the Frequently Asked Questions page they said/
(Hedging your position will turn your margin to zero on this pair)
(AFB doesn't increase its spreads in volatile market. offer our clients fixed spread policy).
BUT they change the spreads and they have done this before when I was trading USD/YEN pair and when I asked the customers service they said the margin change ONLY in the pair contain the YEN BUT when I was trading GBP/USD pair they changed the spreads and I lost all my balance and all my hedging closed!!
Because I had hedging positions and I lost all my balance $ 14944
And my balance became / $-39 that’s happened on 31-12-2010
And they said that they announced on their web site
About these increases in spreads that may happen and the customers should visit the website every time to know the changes??
Of Course I did not see any announcements and How they do the policy change without given A Proper NOTICE Period ??


My Name/ Mohamed Ashraf Refaat
Account / 3509

New thread in the Scam Alerts Folder:

• https://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/15148-report-afb-increase-spreads-when-hedging.html#post63137
  

Review is submitted by Mohamed Refaat on 05/07/11

The company was first contacted about the issue on 01/01/11 the last contact was on 01/06/11

Details: The Company replies via "DealingDesk" dealingdesk@afb.com.kw
and said they Announced on their web site
About these increases in spreads that may happen and the customers should visit the website every time to know the changes??
and sent me this link http://afb.com.kw/en/news?id=135699&type=AFB
without given any Notice Period!!

Company representatives' emails: BO SV <backofficesv@afb.com.kw>

 

[Pharaoh]

What you describe sounds terribly unfair. On the other hand, if a change of spreads is enough to trigger a margin call and they've already shown a propensity for unfixing their fixed spreads, you are trading far too heavily for your account balance.

Technically, most brokers do reserve the right to make changes by only announcing them on the website. Better brokers will also send email notices.

 

[m1refaat]

What Done NOT Cover THE FIXED SPREAD POLICY

1)IF We Read What they Say in their Web Site Main Page Will See /
Why Trade with AFB? :Fixed spreads as low as 1 pip
- Ability to Hedge (Islamic Investment, Forex Trading, Commodities Brokers, Oil Trading - AFB).
2)On FAQs Page (Islamic Investment, Forex Trading, Commodities Brokers, Oil Trading - AFB - FAQ) they say:
a)If I hedged my position on a certain pair, will my margin will be zero on this pair?
Yes! Hedging your position will turn your margin to zero on this pair.
b)Does the platform allow hedging?
Yes (hold both long and short positions of the same pair), full and partial hedging also allowed.
c)Do you increase your spreads in volatile market?
No! AFB doesn't increase its spreads in volatile market. We offer our clients fixed spread policy.

From All the Above information we will have a clear understanding that the spreads are fixed all times and the the Margin is Zero and there is NO Margin Call.
How they advertise about break there rules 5 minutes before changing the rules WHERE IS THE NOTES PERIOD?
And I did NOT Receive any Advertisements from them ABOUT THESE amendments !!!

 

[AsstModerator]

I've sent them a note and asked them to look at the public thread in Scam Alerts. Let's see if they respond.

 

[m1refaat]

Recently on 20th of September, the company sent two messages to my email in two languages to say that they opened a new Company which holds the name AFBFX Ltd. and the new founded company is regulated by the CySEC (Cyprus Securities and Exchange Commission) which complies with the European MIFID Law (Markets in Financial Instruments Directive) as well as registered in the FSA (Financial Services Authority) in UK.
Two messages in two languages to advertise the new company BUT when they change their rules
They send ZERO EMAILS!!!!

 

[Pharaoh]

Ask the new company what they intend to do about issues with the old company.

 

[m1refaat]

Two companies with different managements

I've asked Customer Care Department (live chat) in the old company,and they said :The original company AFB will still open and work.
but the Ownars opened a new company called AFB FX LTD.
each company has it's managements and each company works independently.
So the two companies have the same owners but with different managements.

 

[Ingot54]

afb.com.kw possible scam?

Does the old company still state on their website that their spreads are fixed?

Or did they remove these kinds of statements after they began to manipulate the spreads?
I couldn't find anywhere on their site today where fixed spreads are mentioned, but I did see here:

Islamic Investment, Forex Trading, Commodities Brokers, Oil Trading - AFB - Islamic Forex Trading

" ** All times and specifications above are subject of change without any prior notice "

Now I do not think that this is a very good disclaimer, really, but it is still there today.
Whether that item has always been there I have no way of knowing.

In passing, I would like to note that while the site operator is very keen to let the world know
that they are the only true Islamic broker (no swap) registered in Kuwait City, at the same time
they have no hesitation in stealing from a brother through un-notified spread-widening.

While this is the height of hypocrisy, and to be disdained by all true Muslims, it is by no means illegal.
It is well known that spreads widen during volatile periods. But if they still said at that time that they offer fixed
spreads during volatile times, then yes, you truly have been scammed!

If someone is going to steal from you, it might as well be someone you trust ... right?
Even if that thief is your brother Muslim?

Again, I have to wonder what the trader was hoping to gain through the use of afb - Arab Financial Brokers.

What was the attraction that led you to use these ruthless brokers?

I would not say so far, given the evidence, that they have scammed you - all they have done is
take advantage of you for not being vigilant, on the surface of it. Again, that depends on WHEN they
removed their "fixed spreads" statement from their site.

Can you be more specific about what was stated on the website at the time they widened the spreads?
I have by no means made up my mind about guilt, but I am beginning to form an opinion, based on the evidence so far.

If nothing else - never trust someone who says : "Trust me - I'm your brother!"
when you do not know them from a bar of soap!

 

[m1refaat]

All Rules are available on the Web Site and The Frequently Asked Questions page via this link Islamic Investment, Forex Trading, Commodities Brokers, Oil Trading - AFB - FAQ
including Fixed Spreads Policy and No maintenance margin Policy
these are some of the Frequently Asked Questions :
If I hedged my position on a certain pair, will my margin will be zero on this pair?
Yes! Hedging your position will turn your margin to zero on this pair.
What do you mean by "No maintenance margin" Policy?
Our no maintenance margin policy means that our clients can go below the margin requirements without AFB closing their positions .Throughout the week your positions can fluctuate without AFB taking action. We only require you to respect the margin requirements for accounts with amounts more than 500.000 $ by Friday evening. This no maintenance margin policy means that we do not give margin calls and we do not automatically close your positions if you go below the margin requirements of your positions. However, if your equity reaches zero you will be stopped out and your positions will be closed. The stop out will be executed when there is only less than 1% equity of the required margin left in the account.
Do you increase your spreads in volatile market?
No! AFB doesn't increase its spreads in volatile market. We offer our clients fixed spread policy
these are some examples from their web site Today.

 

[Pharaoh]

Just in case they decided to "fix" that FAQ, I've attached a screenshot of the page.