Original FPA Traders Court Submission:
I am submitting the case against: www.colmexpro.com
My Case is: I traded with Colmex from the 11th of January 2017 until the 7th of September 2017 under account number 56022. I had been quite successful, making 9311.87 euro profit on a deposit of 17.000 euro. I noticed that in September the execution had deteriorated. As I trade around news events, this required me to withdraw my funds. And this is when the trouble started.
A week after the withdraw request I received a message that my account was under review by the compliance department. Then 2 weeks later I received an email containing questions if my account was managed by a third party and questions about the EA I was using. To this I replied the same day that I had traded on my own behalf all the time. As I trade with a profitable EA, I did not like sharing details of it with them either. Another 2 weeks had passed when they told me they had voided all my profits because they had concluded my account had been managed by a third party. After this only my deposit was returned to me.
They were never able to show any proof that my account was managed by a third party. They said that the IP from where the trades were placed was different from the IP where my home address is. I told them I used a vps. However, this is something completely different from having someone else managing my account. No one else but me has ever had access to my account.
Also they asked me to provide evidence that my account is not under management, only than they would reconsider their decision of revoking my profits. This is really the opposite of how you should do business. Unless they can prove undeniably that I was breaching any laws/conditions, they have no right to cancel all my profits. It’s quite ironic they were even threatening to report my case to several authorities as they have much more to lose in this case than I have.
New thread in the Scam Alerts Folder:
Review is submitted by hugo. on 09/25/17
The company was first contacted about the issue on 08/29/17 the last contact was on 12/31/17
Details: Below are the emails I received from Colmex regarding the issue. There was never a name of a company representative, only the general email address: support@colmexpro.com
10/11/2017
Please be advised that following the review of your trading account CFX56022, the Company has identified that you have enabled a third party to manage your account, without any prior notification.
The aforementioned activity comes under the definition of Portfolio Management of the Investment Services and Activities and Regulated Markets Law (“the Law”), the Law which governs Investment Firms in Cyprus.
In order to be compliant with the Law, the Company cannot allow the provision of the investment service of Portfolio Management to their clients, by a third party who is possibly violating the section 4 of the Law (provision of investment services without being authorised).
Therefore, the Company shall terminate the contractual relationship with immediate effect, in accordance with clause 14.4 of the Terms and Conditions for the Services Offered by the Company.
To this extent, the deposited funds to account CFX56022 shall be returned to the same venue from where the deposit was originated.
You shall receive further instructions (if any) with regards to the refund of the deposited funds and a confirmation of the funds being transferred to your personal bank account.
The Company shall reserve the right to refuse an account in your name in any future instances.
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
9/29/201
Further to the account review (CFX56022), please provide us the following information:
A. Have you opened an account with Colmex Pro Ltd following a Recommendation? If so, please name that person or entity.
B. Who is the person or entity that is responsible for opening and closing trades in your trading account held with Colmex Pro Ltd.?
C. Do you use trading strategies in your method of trading, such as Automatic Trading, Quote Latency Arbitrage etc?
D. Are you the only one trading in your account?
E. Are you being advised by another person?
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
10/11/2017
Please be advised that following the review of your trading account CFX56022, the Company has identified that you have enabled a third party to manage your account, without any prior notification.
The aforementioned activity comes under the definition of Portfolio Management of the Investment Services and Activities and Regulated Markets Law (“the Law”), the Law which governs Investment Firms in Cyprus.
In order to be compliant with the Law, the Company cannot allow the provision of the investment service of Portfolio Management to their clients, by a third party who is possibly violating the section 4 of the Law (provision of investment services without being authorised).
Therefore, the Company shall terminate the contractual relationship with immediate effect, in accordance with clause 14.4 of the Terms and Conditions for the Services Offered by the Company.
To this extent, the deposited funds to account CFX56022 shall be returned to the same venue from where the deposit was originated.
You shall receive further instructions (if any) with regards to the refund of the deposited funds and a confirmation of the funds being transferred to your personal bank account.
The Company shall reserve the right to refuse an account in your name in any future instances.
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
10/24/2017
Further to your complaint and would like to explain our reasoning of the decision we have taken.
During an internal investigation we have found that the trades made in your account perfectly match trades in accounts of a number of our clients, in terms of:
- Financial instrument traded
- Time of placing and closing the trade
- Volume of equity invested in the specific trade compared to the total equity
In addition, we have located the origin of instructions for placing and closing your trades as well as of the same clients being a similar IP address and location. Whereas according to the documentation provided during your registration you are not residing at that location.
This indicates, whether you are aware of it or not, that you have enabled a third party to manage your account, that comes under the definition of Portfolio Management. As we have explained in our previous email, the provision of Portfolio Management without authorisation is a breach of Law.
We might reconsider our decision if you can provide us with the Portfolio Management license of the third party which was trading on your behalf.
If you still disagree with our decision, please provide us with a reasonable explanation and evidence that the trades in your account were not done by a third party.
Please note that in case you fail to provide us with relevant proof, the Company shall consider reporting this incident to the national competent authority, the Cyprus Securities and Exchange Commission (‘CySEC’), for further investigation as well as to the national competent authorities of your county, as your portfolio management without authorisation is also violating the laws or regulations to which you are subject.
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
10/30/2017
Following your emails and explanations, please be advised that due to the suspicion of breach of the Law, we have been acting in accordance with sections 14.4 v and 14.6 of our terms and conditions.
Further to our inquiry, we, hereby, kindly request you to provide us the contact details of the EA that you have been using, so as to be able to assess this incident.
Thank you for your cooperation.
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
Company representatives' emails: support <support@colmexpro.com>
I am submitting the case against: www.colmexpro.com
My Case is: I traded with Colmex from the 11th of January 2017 until the 7th of September 2017 under account number 56022. I had been quite successful, making 9311.87 euro profit on a deposit of 17.000 euro. I noticed that in September the execution had deteriorated. As I trade around news events, this required me to withdraw my funds. And this is when the trouble started.
A week after the withdraw request I received a message that my account was under review by the compliance department. Then 2 weeks later I received an email containing questions if my account was managed by a third party and questions about the EA I was using. To this I replied the same day that I had traded on my own behalf all the time. As I trade with a profitable EA, I did not like sharing details of it with them either. Another 2 weeks had passed when they told me they had voided all my profits because they had concluded my account had been managed by a third party. After this only my deposit was returned to me.
They were never able to show any proof that my account was managed by a third party. They said that the IP from where the trades were placed was different from the IP where my home address is. I told them I used a vps. However, this is something completely different from having someone else managing my account. No one else but me has ever had access to my account.
Also they asked me to provide evidence that my account is not under management, only than they would reconsider their decision of revoking my profits. This is really the opposite of how you should do business. Unless they can prove undeniably that I was breaching any laws/conditions, they have no right to cancel all my profits. It’s quite ironic they were even threatening to report my case to several authorities as they have much more to lose in this case than I have.
New thread in the Scam Alerts Folder:
Review is submitted by hugo. on 09/25/17
The company was first contacted about the issue on 08/29/17 the last contact was on 12/31/17
Details: Below are the emails I received from Colmex regarding the issue. There was never a name of a company representative, only the general email address: support@colmexpro.com
10/11/2017
Please be advised that following the review of your trading account CFX56022, the Company has identified that you have enabled a third party to manage your account, without any prior notification.
The aforementioned activity comes under the definition of Portfolio Management of the Investment Services and Activities and Regulated Markets Law (“the Law”), the Law which governs Investment Firms in Cyprus.
In order to be compliant with the Law, the Company cannot allow the provision of the investment service of Portfolio Management to their clients, by a third party who is possibly violating the section 4 of the Law (provision of investment services without being authorised).
Therefore, the Company shall terminate the contractual relationship with immediate effect, in accordance with clause 14.4 of the Terms and Conditions for the Services Offered by the Company.
To this extent, the deposited funds to account CFX56022 shall be returned to the same venue from where the deposit was originated.
You shall receive further instructions (if any) with regards to the refund of the deposited funds and a confirmation of the funds being transferred to your personal bank account.
The Company shall reserve the right to refuse an account in your name in any future instances.
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
9/29/201
Further to the account review (CFX56022), please provide us the following information:
A. Have you opened an account with Colmex Pro Ltd following a Recommendation? If so, please name that person or entity.
B. Who is the person or entity that is responsible for opening and closing trades in your trading account held with Colmex Pro Ltd.?
C. Do you use trading strategies in your method of trading, such as Automatic Trading, Quote Latency Arbitrage etc?
D. Are you the only one trading in your account?
E. Are you being advised by another person?
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
10/11/2017
Please be advised that following the review of your trading account CFX56022, the Company has identified that you have enabled a third party to manage your account, without any prior notification.
The aforementioned activity comes under the definition of Portfolio Management of the Investment Services and Activities and Regulated Markets Law (“the Law”), the Law which governs Investment Firms in Cyprus.
In order to be compliant with the Law, the Company cannot allow the provision of the investment service of Portfolio Management to their clients, by a third party who is possibly violating the section 4 of the Law (provision of investment services without being authorised).
Therefore, the Company shall terminate the contractual relationship with immediate effect, in accordance with clause 14.4 of the Terms and Conditions for the Services Offered by the Company.
To this extent, the deposited funds to account CFX56022 shall be returned to the same venue from where the deposit was originated.
You shall receive further instructions (if any) with regards to the refund of the deposited funds and a confirmation of the funds being transferred to your personal bank account.
The Company shall reserve the right to refuse an account in your name in any future instances.
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
10/24/2017
Further to your complaint and would like to explain our reasoning of the decision we have taken.
During an internal investigation we have found that the trades made in your account perfectly match trades in accounts of a number of our clients, in terms of:
- Financial instrument traded
- Time of placing and closing the trade
- Volume of equity invested in the specific trade compared to the total equity
In addition, we have located the origin of instructions for placing and closing your trades as well as of the same clients being a similar IP address and location. Whereas according to the documentation provided during your registration you are not residing at that location.
This indicates, whether you are aware of it or not, that you have enabled a third party to manage your account, that comes under the definition of Portfolio Management. As we have explained in our previous email, the provision of Portfolio Management without authorisation is a breach of Law.
We might reconsider our decision if you can provide us with the Portfolio Management license of the third party which was trading on your behalf.
If you still disagree with our decision, please provide us with a reasonable explanation and evidence that the trades in your account were not done by a third party.
Please note that in case you fail to provide us with relevant proof, the Company shall consider reporting this incident to the national competent authority, the Cyprus Securities and Exchange Commission (‘CySEC’), for further investigation as well as to the national competent authorities of your county, as your portfolio management without authorisation is also violating the laws or regulations to which you are subject.
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
10/30/2017
Following your emails and explanations, please be advised that due to the suspicion of breach of the Law, we have been acting in accordance with sections 14.4 v and 14.6 of our terms and conditions.
Further to our inquiry, we, hereby, kindly request you to provide us the contact details of the EA that you have been using, so as to be able to assess this incident.
Thank you for your cooperation.
For any further questions, please do not hesitate to contact us at support@colmexpro.com
Kind regards,
Colmex Pro Team
Company representatives' emails: support <support@colmexpro.com>
