GUILTY Case# 2012-065 | fkayode vs www.fxup.me

[ruseneca]

Dear Kayode,

I'd like to welcome you in FXUP's blacklist. I'm enjoying my stay there. I hope you would also enjoy it.
It's not worth trading with FXUP. Didn't you know that before FXUP they were under other corporate name and scammed thousands of traders?!
During the last Christmas and New Year's celebrations, I was also scammed by them. Their imagination is awesome. As I read in this thread, they just accussed you of scamming the MT4 platform because you're using pending orders and trailing stops What amateurs!

READ!: Brokers exist in order to fullfil clients' orders. If I want to go long at 1.25055 on EUR/USD and close the order at 1.25105, the broker MUST fullfil my wish as I pay. They call this "scalping" or "pipsing". Whatever it is, this is my decision!!! If they fail to honour it, I just leave them!

DO NOT TRADE WITH FXUP.ME You will among the thousand scammed traders. Sorry for "screaming" but it is necessary to understand the importance of choosing the right broker for profitable trading. Not the right broker for unprofitable trading and scamming.

 

[mrgummo]

I wish the FPA were to create some kind of "oversight board". Brokerage firms (who were honest) would invite this board to mediate disputes, and the decisions of the board would be binding. If I saw a broker with the FPA "oversight board" endorsement, I would use them. Now, please, someone come up with a better name for this!

All the best,
Ron

 

[cokemon]

Sad to see these things go on. I learned a long time ago just to deal with the regulated brokers in WESTERN EUROPE, Canada the USA and Australia. Why play with these idiots? High Margins? High Margins will kill you anyhow. I am currently with an Australian broker with segregated funds. No worries.

I agree with you, Jonster51. In this day and age, with so much education available on the net, it is bewildering to see so many traders choosing these small, unregulated brokerages, domiciled in some less sophisticated financial regulated country.

Although it is not 100%, no doubt you are reducing the chances of being duped by a brokerage when you take note of where they are operating from. Insisting on a segregated account is also a very good idea, although this would be difficult when micro accounts are in use.

Most people seem oblivious to the way the typical brokerage thinks. A couple of years ago I picked this post up from a forum at LinkedIn which I think is very salient to understand why brokers are like they are. For confidentiality purposes I am withholding the name of the poster.


I am a consultant for several retail brokers and their clients. This thread shows both the correct assumption and the naivety of the retail FX space. As mentioned above, the real issue is LEVERAGE. No other asset class provides leverage at this level and retail traders use it to shoot for the fences and burn through their accounts.

Brokerages know that a deposit placed with them using the full 100:1 leverage on average will be lost in 6 months. Current CFTC/NFA regulations of 50:1 just means that it will take a year. This does not only mean that you lost your deposit in trading. It also means that your broker now has your deposit. This fact cannot be lost on any trader (or broker for that matter). What this means is that brokers will view your deposit as theirs to keep and you are essentially borrowing your money from them for 6-12 months (on average of course).

This does not mean that most traders are bad traders either, just that they haven’t grasped the concept of leverage. Most EA's are profitable over the long term when leverage is reduced to acceptable market practice (4:1). The overall pressure exerted by claims in the FX retail space of superior returns leads participants to over use the leverage. While this may provide superior returns, it also gets you to your acceptable loss a whole lot quicker.

The role of spread also comes into play. If you are trading frequently, then you going to want tighter spreads and you should seek out a liquidity solution that will provide DMA access with superior execution.

 

[Denny W]

Guilty guilty guilty!

 

[PistolDave]

Just another scamming broker.

Think about all the other hundreds -- or thousands -- of other traders that get scammed by these crooks.

Most people who get cheated never tell anyone about it. Most are too embarrassed to mention it in public. Even worse, they don't even know about FPA or other sites that make it public.

Let's keep putting the pressure on these cheating brokers.

Dave

 

[greatwest1]

Hi , I contacted this forex group...
I would like them to be reported, but what legal group can you report them to ?? at this time ??

 

[Pharaoh]

If you've been scammed, the first things to do are:

1. Start a new thread in the Scam Alerts Folder.

2. Leave them a 1 star review.

That gets everyone looking at the company and can lead to helpful suggestions about which (if any) regulators might be effective.