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I held this back until the vote was done. I was hoping that MidasGlobe would resolve DavidK's issue and fix the items below. Now that the vote is over, I want to share the information and ask your opinion.
The email discussions with Midas Globe included their representative claiming DavidK had violated the company's Terms of Service. The company's representative specifically mentioned some items in its terms of service which anyone thinking of doing business with MidasGlobe needs to know about.
First, they have a minimum trade volume on deposits. This applies even if there is no bonus. For every $100 deposited, 8 full lots needs to be traded. If a client deposits and does not reach this trade volume before trying to withdraw the deposit, the company can impose a penalty. I'm not aware of any other forex broker which has such a policy.
Second, they reserve the right to withhold profits if the company will suffer any fiscal, regulatory, or pecuniary disadvantage. This appears to mean that a legitimate complaint, to a regulator or in public may be used as a reason to withhold profits. If a client makes enough profit, I see nothing to stop MidasGlobe from deciding that sending the profits to the client would put the company at a fiscal or pecuniary disadvantage.
Normally, it takes 3 or 4 Traders Court guilty votes to result in an FPA scam label. In this case I find the policies of MidasGlobe to be extremely dangerous to traders, but the company has only had this one case opened against it.
What action should I take?
The email discussions with Midas Globe included their representative claiming DavidK had violated the company's Terms of Service. The company's representative specifically mentioned some items in its terms of service which anyone thinking of doing business with MidasGlobe needs to know about.
First, they have a minimum trade volume on deposits. This applies even if there is no bonus. For every $100 deposited, 8 full lots needs to be traded. If a client deposits and does not reach this trade volume before trying to withdraw the deposit, the company can impose a penalty. I'm not aware of any other forex broker which has such a policy.
Second, they reserve the right to withhold profits if the company will suffer any fiscal, regulatory, or pecuniary disadvantage. This appears to mean that a legitimate complaint, to a regulator or in public may be used as a reason to withhold profits. If a client makes enough profit, I see nothing to stop MidasGlobe from deciding that sending the profits to the client would put the company at a fiscal or pecuniary disadvantage.
Normally, it takes 3 or 4 Traders Court guilty votes to result in an FPA scam label. In this case I find the policies of MidasGlobe to be extremely dangerous to traders, but the company has only had this one case opened against it.
What action should I take?