GUILTY Case# 2011-084 | QASSIM KERAIB vs www.ufxmarkets.com
- Thread starter QASSIM KERAIB
- Start date
dbrawner
Private, 1st Class
- Messages
- 49
This case should be highlighted as a classic example of how NOT to get started trading. My apologies and sympathy to the claimant as I think the broker is scamming him... but new traders should take a lesson from this case...
First, NEVER, under any circumstances, fund a trading account with credit, be that a bank loan, credit cards, or other borrowed funds. Always trade with funds you can walk away from.
Second, FOREX brokers are independent market makers (unlike futures brokers). That means trades, time and sales, and "depth of market" data from one broker cannot be reliably compared to any other. In FOREX trading you are playing directly against the house (your broker), not the overall market per se.
Which leads to #3, ALWAYS investigate thoroughly any broker you intend to deal with. How, check this forum or go to Financial Data for FCMs - CFTC and check for a broker's financial position (looking for excess capital greater than requirement, you can choose the relative amount or ratio). These would be safe, regulated brokers with strong financial balance sheets and little to gain from scamming customers.
The claimant teaches new traders the importance on one other crucial lesson... ALWAYS use stop losses! His $5,000 loss would have undoubtedly been an account blowout without the Stop Loss.
I've been trading markets since 1984 and in my opinion, FOREX is one of the more difficult markets to trade successfully on a consistent basis. The shorter the time frame, the harder it is to maintain consistency.
All that being said, lessons learned and all, I believe from the evidence presented (and lack of response from the defendant) that the broker in question is guilty of scamming the claimant.
First, NEVER, under any circumstances, fund a trading account with credit, be that a bank loan, credit cards, or other borrowed funds. Always trade with funds you can walk away from.
Second, FOREX brokers are independent market makers (unlike futures brokers). That means trades, time and sales, and "depth of market" data from one broker cannot be reliably compared to any other. In FOREX trading you are playing directly against the house (your broker), not the overall market per se.
Which leads to #3, ALWAYS investigate thoroughly any broker you intend to deal with. How, check this forum or go to Financial Data for FCMs - CFTC and check for a broker's financial position (looking for excess capital greater than requirement, you can choose the relative amount or ratio). These would be safe, regulated brokers with strong financial balance sheets and little to gain from scamming customers.
The claimant teaches new traders the importance on one other crucial lesson... ALWAYS use stop losses! His $5,000 loss would have undoubtedly been an account blowout without the Stop Loss.
I've been trading markets since 1984 and in my opinion, FOREX is one of the more difficult markets to trade successfully on a consistent basis. The shorter the time frame, the harder it is to maintain consistency.
All that being said, lessons learned and all, I believe from the evidence presented (and lack of response from the defendant) that the broker in question is guilty of scamming the claimant.
PistolDave
Corporal
- Messages
- 105
I couldn't have said it better myself. 
I don't think the broker will return the funds. I'm voting guilty.
I don't think the broker will return the funds. I'm voting guilty.
FreddyFX
Sergeant
- Messages
- 510
Reason I think too many of us are not really interested in giving a verdict on some of the cases presented here in FPA is:
Most of the cases involve "traders" that do business with shady brokers in their very beginning.
Just deal with the well known ones around and there is hardly any problem, and if there is.....they can easily be resolved.
Most of the cases involve "traders" that do business with shady brokers in their very beginning.
Just deal with the well known ones around and there is hardly any problem, and if there is.....they can easily be resolved.
lewismorrow
Recruit
- Messages
- 9
I agree that you should be careful to not make any more trades, and definitely notify your credit card issuers that there may be a problem with the charges on the cards. This will initiate and note in your file with the credit cards that there is suspicious activity on the cards and will make it easier to file a fraud claim if that becomes necessary. A valid fraud claim can make it very hard for them to accept deposits through those cards again, even from someone else. If you end up filing a claim against them for reimbursement, be sure to let the credit card companies know that that broker is a known scam location and suggest that the card companies black ball them.
ArielKorber
Private, 1st Class
- Messages
- 61
Visa chargeback
The One advantage of using a visa card is the option of a visa chargeback where delivery of product/ service has not materialised:
Chargebacks & Dispute Resolution | Merchants | Visa USA
The One advantage of using a visa card is the option of a visa chargeback where delivery of product/ service has not materialised:
Chargebacks & Dispute Resolution | Merchants | Visa USA
ewan_savage
Private, 1st Class
- Messages
- 40
Yup, pretty well summed up. Guilty for sure.
