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GUILTY Case# 2012-056 | Kovacs Norbert vs fxopen.com

Discussion in 'Guilty Verdicts' started by Kovacs Norbert, Jun 27, 2012.

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Based on the available evidence, do you believe that fxopen.com is guilty?

Poll closed Jul 23, 2012.
  1. Guilty

    103 vote(s)
    82.4%
  2. Not Guilty

    22 vote(s)
    17.6%
  1. Kovacs Norbert

    Kovacs Norbert Private

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    Original FPA Traders Court Submission by Kovacs Norbert:

    I am submitting the case against: fxopen.com

    My Case is: On 05.16.2012, I made a profit of 43.405 USD trading on FXOPEN ECN platform. However, by end of the trading day, all my profit was removed from my account and from my account history. Nevertheless, I was carefull enough, so I made screenshots all of my trades, and I saved my trade logs as well.It is funny, they deleted all my profitable trades, yet they left behind the loosing ones. How ironic it is!

    See for more details and evidences here:

    http://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/20290-fxopen-scam-see-my-proofs.html

    Last but not least, that the very same day I got an email from Natalja Zaharova intoducing herself. ( read email below). She did not mention any technical problems, while supposedly the company had been having technical problems for 3 hours.

    -----------

    Sent: Wednesday, May 16, 2012 2:55 PM
    Subject: FXOpen - Your Account Manager

    Dear Sir,
    I would like to introduce myself as your account manager at FXOpen.

    Should you have any questions regarding your account (trading platforms, funding/withdrawals, internal transfers, etc.), please feel free to contact me directly.

    Best Regards,

    New thread in the Scam Alerts Folder:
    www.forexpeacearmy.com/forex-forum/scam-alerts-folder/20290-fxopen-scam-see-my-proofs.html

    Review is submitted by Kovacs Norbert on 06/19/12

    The company was first contacted about the issue on 05/17/12, the last contact was on 06/01/12

    Details: Natalia Zakharova <natalia.zakharova@fxopen.org>
    Natalia Zakharova <compliance@fxopen.com>

    1,

    From: Natalja Zaharova Natalia.Zakharova@fxopen.org
    To: Kovács Norbert
    Sent: Thursday, May 17, 2012 12:46 PM
    Subject: RE:

    Dear Norbert,
    We will investigate this and get back to you.
    Kind regards,
    Natalia Zakharova

    2,

    2012/6/4 <compliance@fxopen.com>

    Dear Mr. Kovacs,

    Please be advised,

    Currently your case is undergoing final revision. Once IT and Compliance Departments complete their audits we will contact you on email.

    You should expect to hear from us within next one or two days at the most.

    Kind Regards,
    FXOpen Team

    3,
    From: Compliance Dept
    Sent: Wednesday, June 06, 2012 3:09 PM
    Subject: FW: [338292/10879]

    Dear Mr. Kovacs,

    In reply to your enquiry, please be advised that due to the technical problems experienced by us on May 16, 2012, some trading orders were executed at the prices not existing on market at that period of time.
    The origin of these problems was that we had been receiving the erroneous prices from one of our Liquidity Providers (kindly note, that we are not in position to disclose the name of this LP due to the provisions of the NDA signed between us).
    All the trades, which had been executed at the fictitious prices, were voided as per Clause 6 of CUSTOMER AGREEMENT FOR ECN/STP ACCOUNTS.

    6. BUSTED TRADES.
    FXOpen shall have the right to annul and/or reverse any trades which are deemed untrue or opened at a fictitious price not existing on the market at the time of opening.

    Please find below the trading server logs regarding one of your trades executed on May 16, 2012 along with some remarks of ours:

    Open position:

    2012.05.16 18:17:56 '338292': market buy 20.00 EURUSD sl: 0.00000 tp: 0.00000 (1.27233 / 1.27234) – Client’s request BUY when ASK was at 1.27234

    2012.05.16 18:17:56 '23': request from '338292' (buy 20.00 EURUSD at 1.27234 sl: 0.00000 tp: 0.00000)
    2012.05.16 18:17:56 '23': confirm '338292' buy 20.00 EURUSD at 1.27171 sl: 0.00000 tp: 0.00000 (1.27233 / 1.27234)

    2012.05.16 18:17:56 '338292': order #2655625, buy 20.00 EURUSD at 1.27171 – Execution was made at 1.27171 , i.e. 63 pips better than current ASK 1.27234

    Close position:

    2012.05.16 18:18:07 '338292': close market order #2655625 (buy 20.00 EURUSD at 1.27171) (1.27220 / 1.27222)

    2012.05.16 18:18:07 '23': request from '338292' (close #2655625 buy 20.00 EURUSD at 1.27220)

    2012.05.16 18:18:07 '23': confirm '338292' close #2655625 buy 20.00 EURUSD at 1.27285 (1.27218 / 1.27220)
    2012.05.16 18:18:07 '338292': close order #2655625 (buy 20.00 EURUSD at 1.27171) at 1.27285 completed – Execution was made at 1.27285, i.e. 67 pips better than current BID 1.27218.

    Kindly see below an example of P&L calculation for the trade above:

    Account: 338292 Name: Norbert Kovacs Currency: USD 2012 May 16, 20:26
    Closed Transactions:
    Ticket Open Time Type Size Item Price S / L T / P Close Time Price Commission Taxes Swap Profit
    2655625 2012.05.16 18:17
    buy 20.00 eurusd 1.27171 0.00000 0.00000 2012.05.16 18:18
    1.27285 -127.17 0.00 1.27234 1.27220 -127.17 - 407.17
    Real P&L = (1.27220 – 1.27234)*20*100000 + (-127.17) = - 407.17

    As could be clearly seen from the example above, P&L of order No. 2655625 calculated on the real prices existing on the market at that period of time is minus $407.17 instead of positive $2,152.83.

    Please be informed that we have re-calculated P&L of all your orders executed at erroneous prices. In fact, this is the reason why there was a certain delay before we get back to you with our reply; it did take us some time to identify each and every trade made by you with our LP.
    The total re-calculated P&L of the orders was negative.

    Based on this, as well as with strict accordance with Clause 6 of CUSTOMER AGREEMENT FOR ECN/STP ACCOUNTS mentioned above and Clauses 8.6-8.7 of TERMS OF BUSINESS FOR ECN/STP ACCOUNTS, the Company made a decision to void and delete all the orders of yours executed at orders.
    Indemnification
    8.6. The Company may resolve all Disputes:
    a). By crediting/debiting the Customer's Trading Account;
    b). By re-opening erroneously closed positions;
    c). By deleting erroneously opened positions or placed orders.
    8.7. The Company has the right to choose the method of Dispute resolution at its sole discretion.
    We would like to emphasize the fact that the Company only voided your trades, thus having incurred the losses itself, in consideration of the nature of the problem and goodwill of the Company.
    Based on all of the above, we have to refuse you in satisfying of your complaint.
    If you have additional questions, please do not hesitate to contact us,

    Kind Regards,
    FXOpen Team

    Company representatives' emails:
    Natalia Zakharova <natalia.zakharova@fxopen.org>
    Natalia Zakharova <natalia.zakharova@fxopen.com>
    Fxopen Compliance <compliance@fxopen.com>

    Attached Files:

    1. FxOpen 2012-05-16-1.jpg
    2. FxOpen 2012-05-16-2-1.jpg
    3. FxOpen 2012-05-16-2-2.jpg
    4. FxOpen 2012-05-16-3-1.jpg
    5. FxOpen 2012-05-16-3-2.jpg

     
  2. Pharaoh

    Pharaoh Colonel

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    Unless FxOpen can improve their explanation of this issue, I see no reason not to move this to the Open Cases folder soon.
     
  3. Max

    Max Private, 1st Class

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    Trade on the CME!

    The usual thing for a broker that is not regulated by law. Do not believe these alleged ECN brokers with what some of the islands.
     
  4. Leunammj

    Leunammj Recruit

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    wow, i can understand your frustration, when you need to spend time justifying when you could be already spending more time making money.

    Haha, brokers should have backup database, no such thing as nothing. Are within logs.
     
  5. Miguel_Gomez

    Miguel_Gomez Recruit

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    FxOpen did something similar to me twice, and they always blame their liquidity provider. The first time they blew up my 40.000$ account by increasing the spread by more than 300 pips, thus leading to a Margin Call. I complained and they sort of put me back to my 10K$ initial deposit, but the profit was gone. The second time they produced a spike that erased my accumulated profit, blaming their "secret" LP, and back again to square one. I closed the account for good.
    So no wonder it happened again. The trick is, IMHO: in case you make some money, wait for the proper moment (rollover, weekend gap, news, whatever) when you have open positions, and then produce a "Liquidity Provider issue" that ends up in you loosing your profit. They are smart enough to let you keep your initial deposit, with a "take it or lose it all" proposition. Of course, you accept. Rinse and repeat.
    I am afraid I cannot recommend FxOpen at all.
     
  6. Haig Gocherian

    Haig Gocherian Private

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    Please excuse the ignorance, but where is this Broker FXOpen based, the origin of Country ?
     
  7. antonisk

    antonisk Private, 1st Class

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    Headquarters:Auckland, New Zealand
    Regional co-ordination office Cairo, Egypt

    do believe their running all operations mainly thou Egypt
     
  8. chaosscrem

    chaosscrem Corporal

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    I think its Egypt ot Tunisia
     
  9. res123

    res123 Banned

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    these type of brokers are there to gain on trader's loss as they are not regulated .and i don't see any fault on the part of FXopen ,fault is on the part of authorities which allow such parasites to thrive on the blood of their host .
     
  10. Joh

    Joh Sergeant Major

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    Oh man this one reeks - where on earth do these brokers come from - can't imagine they are registered/regulated.Wish you the best and thank you for warning us. That was my first reaction -
    Now that i have re read the thread I think i understand what went on with Kovac and like to add my experience: "i have an acc.with IBFX, some time ago and had some outstanding U/CHF trades -when i look at the platform i noticed they had dissapeared-it puzzled me as the charts did not show any great movement. When i looked at my closed trades session i had been paid out about $8000+, this was for very small trades - i knew this was a mistake a glitch somehow. I was about to contact ibfx and thank them for their generosity (joke) when they altered the platform and my outstanding trades re appeared. However it never occurred to me to claim that money - machines can make mistakes. If i understand it correctly the machine glitch occurred whilst Kovac was trading and Kovac took advantage of that - i have more then one platform and after trading 11 years Kovac may also have another platform and probably knew therefore there was a glitch - either way in couple of minutes he cashed in and then scanned his trades (why does he do that with all his trades?). The broker i assume is responsible for the glitch but is Kovac entitled to the proceeds of the misfortune of this brokers glitch?
     
    #10 Joh, Jul 2, 2012
    Last edited: Jul 16, 2012

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