GUILTY Case# 2012-014 | Falmi Dorlo vs www.synergyfx.com.au

[ForexVerified]

Falmi, can you confirm the type of strategy you were using? Those trades on December 16th look like arbitrage trading to me. If you were purposefully abusing the data feed of the server with an arbitrage system, it would explain why they cancelled the orders and terminated your account. It would also explain how you could be executing orders off-market if their data feed was slightly slower than some other brokers' server (hence the arbitrage). As far as I'm aware, this would be the expected result at any brokerage firm, whether they're well-regulated or not.

Anytime I've seen $300 turn into $180,000 in just 1 day it's usually from an arbitrage system that abuses the broker's data feed and no broker can afford to allow that on live accounts...

Correct me if I'm wrong?

Scott

 

[Falmi Dorlo]

I did all trades manually without using robots, when I realized that the tendency to rise.
I do not understand in relation to date of Dec. 16.

Thanks

Falmi, can you confirm the type of strategy you were using? Those trades on December 16th look like arbitrage trading to me. If you were purposefully abusing the data feed of the server with an arbitrage system, it would explain why they cancelled the orders and terminated your account. It would also explain how you could be executing orders off-market if their data feed was slightly slower than some other brokers' server (hence the arbitrage). As far as I'm aware, this would be the expected result at any brokerage firm, whether they're well-regulated or not.

Anytime I've seen $300 turn into $180,000 in just 1 day it's usually from an arbitrage system that abuses the broker's data feed and no broker can afford to allow that on live accounts...

Correct me if I'm wrong?

Scott

 

[craig bryan]

Falmi,

You can lodge a complaint with the asic ........but do not hold your breath for a result their system is mired in red tape, & to be quite frank their remit is rather limited, mainly they control company registration.

 

[FXPulsator]

Hi Falmi,

Your trading style between 1st to 14th Dec & 16th Dec[has no stop orders, & high frequency scalping] alone is vastly different. It definitely looks like you deployed some arb algorithm, which smartly detected the delay in quotes for Synergy FX as compared to other brokers and hence such massive profits in just few hrs of the day.

Kindly note, nobody in the sane world would permit such trading strategy to get you undue advantage over other trading members. Even on exchanges, such accounts are immediately put under scanner and the broker[trading members] are asked to submit all the trading algorithm details[deployed by the clients] and at times it is banned immediately.

In the Forex world[which has no exchanges] especially in the ECN environment the ultimate market-makers [banks/institutions] are bound to cancel such orders as they are the prime decision authority. I do not see any immediate fault of Synergy FX here, except that they have been very liberal in offering their trading terms & conditions with ZERO stop policy & no restrictions on any trading strategies... however it seems they failed to understand that the same should be allowed/permitted by their PRIME brokers as well..

If prime broker has cancelled all the orders on 16th Dec, I do not see any fault of Synergy FX, except that they should modify their TOC.

IN FAIR WORLD SUCH STRATEGIES HAS NO PLACE.

Let me know, If I am wrong....

 

[Amin EL-HAKIM]

Although I'm not convinced at all that the obtained results can be obtained unless the broker's feed glitches are abused, the fact that the broker ignored the thread and the communication with the FPA will lead me to vote "guilty".

 

[Romeo]

The fact that they are ignoring everybody and everything is very negative. It makes everybody believe that they are guilty and they have nothing to say to support their behavior.

 

[Amin EL-HAKIM]

The fact that they are ignoring everybody and everything is very negative. It makes everybody believe that they are guilty and they have nothing to say to support their behavior.

True. I just chatted with their support and they don't want anything to do in this matter. I had to vote for the client's side.

 

[Pharaoh]

If specific trades violated SynergyFx's rules, then that should have been clearly and simply explained to the client. The profit/loss from those trades could have been deducted and the remaining account balance should have been undisturbed.

Instead, the whole account was blocked and the client was told that he'd been reported to the authorities. No copy of that report was provided to the client when he asked. Under those circumstances, I have to say Guilty.

 

[2stylsh]

The fact the broker refuses to defend its reputation after multiple contacts to explain its side of the story is worthy of guilty vote in itself. The traders is under no obligation to reveal thier trading style anymore than a broker is under obligation to reveal that they run books when they advertise no dealing desk/straight through processing/ecn etc, the end result is always the same no matter what the strategy. When a trader wins, brokers become bad sports and archive accounts, withold profits, increase spreads and slippage, threaten legal action the list goes on, and they were getting away with it 100% of the time before FPA stepped in to represent the battling traders of the world.

 

[Pharaoh]

I've seen some crazy things done by brokers, but telling a trader that he's been reported to the authorities and then refusing to give details is a depth of villainy that even many scam brokers would never go down to.