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FPA member Edforex was trading with MoneyForex. His trading was going very well and he was a happy customer.
On October 13th, 2008, he tells us that he filled out a form to withdraw some of his profits. The next day, he couldn't login to his trading account. He sent an email to MoneyForex, and they told him that his account had violated their leverage policy and was suspended.
How this happened was that a normal account with MoneyForex has 200:1 leverage. When Edforex's account balance passed $100,000, Money Forex automatically "upgraded" him to a platinum account. According to a message he got from Moneyforex, platinum accounts have leverage set at 50:1.
The best thing MoneyForex could have done would have been to send him a congratulatory note. They then should have explained the limits on platinum level accounts and given him time to close any trades that pushed his margin over the limit. They didn't.
MoneyForex could have suspended his account and cancelled just enough trades placed after the margin change to keep him within the limits. They then could have warned him about the new limits and let him keep trading. They didn't.
Money Forex could have suspended his account and cancelled all trades placed after the margin change and then let him resume trading under the new limits. They didn't.
MoneyForex could have suspended his account, confiscated every cent he made over $100,000, closed his account and sent him his $100,000. They didn't.
Instead, MoneyForex told him his account was under review and he would not be able to access it in any way. Then they stopped answering his emails and phone calls.
After Edforex complained to the FPA, Investigations Lt. Tessa guided him through the standard procedure of sending complaints and questions to all the different email addresses they could find for MoneyForex. When Edforex could get no response for an extended time, Tessa emailed them directly. After a time, a deadline was set, reminders were sent, and MoneyForex would not respond. To either Tessa or Edforex.
Failure to return money to traders upon request is the primary definition of "Scam" for the members of the Forex Peace Army. Since MoneyForex refused to communicate about this issue, the FPA Scam Investigations Committee was left with no choice. By a unanimous vote, we find that the available evidence fully supports Edforex's complaint that MoneyForex is a scam.
We strongly recommend traders not to do business with this company. We recommend withdrawing any funds and closing account you may have with them. We recommend against opening any new accounts with them.
We hope that the owners of MoneyForex change their minds and decide to fix this situation. All they have to do to resolve the complaint is to give the money that legitimately belongs to Edforex back to him.
Official Scam Finding against MoneyForex
Edforex's Original Complaint
On October 13th, 2008, he tells us that he filled out a form to withdraw some of his profits. The next day, he couldn't login to his trading account. He sent an email to MoneyForex, and they told him that his account had violated their leverage policy and was suspended.
How this happened was that a normal account with MoneyForex has 200:1 leverage. When Edforex's account balance passed $100,000, Money Forex automatically "upgraded" him to a platinum account. According to a message he got from Moneyforex, platinum accounts have leverage set at 50:1.
The best thing MoneyForex could have done would have been to send him a congratulatory note. They then should have explained the limits on platinum level accounts and given him time to close any trades that pushed his margin over the limit. They didn't.
MoneyForex could have suspended his account and cancelled just enough trades placed after the margin change to keep him within the limits. They then could have warned him about the new limits and let him keep trading. They didn't.
Money Forex could have suspended his account and cancelled all trades placed after the margin change and then let him resume trading under the new limits. They didn't.
MoneyForex could have suspended his account, confiscated every cent he made over $100,000, closed his account and sent him his $100,000. They didn't.
Instead, MoneyForex told him his account was under review and he would not be able to access it in any way. Then they stopped answering his emails and phone calls.
After Edforex complained to the FPA, Investigations Lt. Tessa guided him through the standard procedure of sending complaints and questions to all the different email addresses they could find for MoneyForex. When Edforex could get no response for an extended time, Tessa emailed them directly. After a time, a deadline was set, reminders were sent, and MoneyForex would not respond. To either Tessa or Edforex.
Failure to return money to traders upon request is the primary definition of "Scam" for the members of the Forex Peace Army. Since MoneyForex refused to communicate about this issue, the FPA Scam Investigations Committee was left with no choice. By a unanimous vote, we find that the available evidence fully supports Edforex's complaint that MoneyForex is a scam.
We strongly recommend traders not to do business with this company. We recommend withdrawing any funds and closing account you may have with them. We recommend against opening any new accounts with them.
We hope that the owners of MoneyForex change their minds and decide to fix this situation. All they have to do to resolve the complaint is to give the money that legitimately belongs to Edforex back to him.
Official Scam Finding against MoneyForex
Edforex's Original Complaint
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