Still waiting for the evidence (a copy for an email sent twice to clients to notify them about the possibility of increasing spreads according to the market situation).
I am not ready to vote yet because I do NOT believe we have seen all of the evidence, and this is very important.
I think it is too early to just vote and wrap this up.
It is possible for a company to focus on a grey area and receive the benefit of the doubt, as a couple of posters seem to be leaning towards. At the same time, AFB is really deflecting attention from what needs to be the true focus of this inquiry - that of deliberate deception, and thus a scam practice designed to extract account money from clients who are vulnerable.
Yes, M1refaat does seem to have ignored sound money management, but HE is not on trial here for unsound money management. In fact, while that was foolish for sure, it does not excuse Arab Financial Brokers from altering spread without adequate notice.
If, as DrmOOdy says, they had altered spread twice previously, why didn't they place this information CLEARLY on their website? Why had they NOT altered their website to reflect a change of policy - that they DO in fact alter spread? What would have happened to any new client who signed up immediately before the spread was floated "according to their corresponding markets and liquidity providers"?
You see, AFB have NOT shown that they didn't deliberately mislead or deceive.
I am also waiting to see the date and contents of two emails the company say they sent to clients warning of the spread widening on a specific pair, on a specific date for a specific time. I believe that what DrmOOdy is doing is playing on sentiment here, and really needs to get serious about facts and more facts here.
In effect, DrmOOdy is setting a smoke screen to conceal the true issue - that of widening the spread at an opportune moment, to take the money from the client.
THAT is what happened, and THAT was the result of the action of AFB.
DrmOOdy is still NOT addressing the issue:
Did AFB notify clients of the change of spread policy? Can we please see a copy of the email sent to all clients, as stated? This will place the issue beyond doubt.
Again, I am asserting that AFB have changed the goal posts after the ball has been kicked. You can NOT trust a broker who says one thing and does another.
Period.
To my way of thinking, anything that is designed to give a broker an unfair advantage over a client, without the knowledge of the client, is a scam.
If AFB are seriously expecting to be let off the charges here, then they should give a undertaking to permanently remove ALL reference to fixed spreads, and offer some form of compensation to M1refaat for what has occurred.
This is a difficult case for me, and I am loathe to vote "not guilty" simply because of the poor money management skills of M1refaat.
On the other hand, I am not yet willing to vote "guilty" because I have yet to hear a better defense from Arab Financial Brokers. This is critical to the case.
While these words remain on their website, I am leaning towards "Guilty":
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
There is no ambiguity about that statement.
It is very specific - they promise NOT to change spreads.
And then they did.
Having those words on their FAQ section, implies that they are willing to absorb both the plus and the minus side of spread volatility, and this deceives a client into thinking that spread is indeed solid.
If I can not see this email within 24 hours, I will be voting "Guilty". You can not be "half-guilty" and AFB is certainly already looking dodgy for having the misleading statements about "fixed spread" STILL on their FAQ list.
I take this issue very seriously, because not only is the outcome likely to affect the client, it can affect the broker as well. We need ALL the facts please.