Reply to Offensive Behavior bt Client
Hello All,
First of all I would like to point that HFX is a worldwide broker which enable her traders the best trading conditions in the market:
1. We do not have Limit & stop level limitations from the current market price. Trader may set a limit order with less than 1 pip from the market price!
2. We do not have any limitation for the time a trader must hold open position
3. We enable scalping
4. We enable EA’s from all kind
5. We have the best feed in the market
6. We provide a wide array of financial instruments to trade with.
Regarding the complaint of the trader, Mrs. Carla Maria Mingoti from Brasil:
We have a found a number of trades which in she took advantage to hack the system and is considered 100% as abusive and offensive behavior. This kind of behavior is kept only for professionals and not for the “Average Trader” in which she was able to identify the only 1 time frame in which HFX’s feed price was out of the market price! This is rarely happens but sometimes, has a result that HFX is working with a number of feed providers, there is a situation when all feed providers are restart their program at the same time and in a time frame of a few seconds, a professional trader can identify the opportunity to open position in an off market price, in order to generate a certain profit.
The trader cannot claim in any case that he is an innocent trader who is a victim in this case. This pattern of trading is kept only for professionals hackers! It is not an incident when the positions were opened exactly during midnight (00:00 MT4 server time).
We would like to make it perfectly clear that according to HFX’s policy, we have zero tolerance for fraud; we don’t want to deal with such traders. It is also written in the trading agreement:
“ABUSIVE OR OFFENSIVE BEHAVIOR
82. Abusive or offensive behavior will not be tolerated on Company’s Web-site or with any of our staff. Any violation of this policy will result in a suspension of your use of the services or such other action as may be reasonably required by Company to ensure compliance. In addition, you are not entitled to make untrue and/or malicious and/or damaging comments with regard to the Company operation in any media or forum.
FRAUDULENT ACTIVITIES AND PROHIBITED TRANSACTIONS
83. Company has a zero tolerance policy towards fraudulent activity. If, in Company’s sole determination, you are found to have attempted to defraud Company or any other Client of any of the services in any way, or if Company suspects you of fraudulent payment, including use of stolen credit cards, or any other fraudulent activity (including but not limited to any chargeback, or other reversal of a payment) or prohibited transaction (including but not limited to money laundering or account take over), Company reserves the right to suspend and/or close your Account and to share this information (together with your identity) with banks, credit card companies, and other such appropriate enforcement agencies.
84. We reserve the right to void and withhold any or all funds made by any person or group of persons where we have reasonable grounds to believe that said person or group of persons is acting or has acted in liaison in an attempt to defraud or damage Company and/or the services in any way.
85. In the interests of data protection and security you are expressly prohibited from posting information or contacting our Clients to offer or promote any offers, products or services without the express written permission of Company.”
Please find below a sample of one of the trades which emphasis the pattern of trading the trader used and is considered as abusive behavior:
Please find below an explanation for one of the abusive acts by the client:
The above transaction clearly illustrates our main claim, that it was not an innocent client that used to trade at our company, in good faith and without bias, but a sophisticated client taking advantage of a technology loophole in the trading system. The user has recognizes a time frame of few seconds in order to gain assured profit.
Please take a close look at one of his transaction as the client identifies that the EUR USD quote is off market, and execute a 5 lots position (500,000) which is being close after 15 seconds!!
Purple line – reflects the liquidity provider. One of our liquidity providers provided big spread and this was the reason for no market prices for a few seconds
Green line – the real market price at that time. Trader identifies that HFX’s current quote is off market and decides to make an attempt to defraud the system. We wonder why at this time, the trader decides to open a 5 lots position and not 0.5 or 1 lot like he usually trades. We would like to mark that this position opened at 00:01:13 (Server Time) at 1.35668 which is actually the bid price (below the green line)
Pink line- the market price the client sees at HFX’s trading platform. We would like to mark that this position opened at 00:01:13 (Server Time) at 1.35668 which is actually the bid price (below the green line as you may see in the chart). Just to make it simple, the client knows that if the platform will execute the trade, as soon as HFX’s quote will reflect the real market price, the position will be closed in the Take profit rate.
At the time of 00:01:13, the position was closed in the take profit rate the trader placed as he opened the trade.
We would like to make it perfectly clear that HFX’s feed reflects the market price during all trading time.
Only in a few times during the month, a major part of the liquidity providers of our feed provider making a system restart, all of them at the same time. At this part, due to technological failure, a professional “hacker”, who as an “abusive experience “in the online trading, will be able to identify this gap and defraud the system.
As we mentioned before, HFX has zero tolerance for fraud, we don’t want to deal with such traders and we made a decision not to work with this IB or his clients.
However, as an act of good will, and in order to resolve the issue, we have reimbursed the initial funds, both to the IB and to the client, although I might add, we didn’t have to do this.
Mark Polen - HFX
