FPA Scam Finding
We the members of the Scam Investigations Committee of the Forex Peace Army have deliberated on all the evidence available to us and have reached a conclusion. It is our opinion that...
HFX already had the attention of the FPA because of their actions in in the FPA's reviews and forums. Before they were set to SCAM, the rating was 1.3 stars. A company employee left 2 fake reviews while pretending to be a client and also made a post in the forums claiming to be a happy client.
There are 3 FPA Traders Court Guilty verdicts against HFX.
In Case 1, FPA member cmingoti reported that she had made an initial deposit of $1000 and had received a bonus of $500. She was told she had to trade 125 full lots to withdraw her funds. She did, and her account had been locked and HFX accused her of hacking the system for 1.5% of her trades. For this, all of her profits were compensated.
HFX's representative posted some information showing that a single trade was off-market. He did not provide clear answers to many direct questions.
In Case #2, FPA member Najeeb Bubayis reported that after depositing $100,000, an HFX employee trading the account wiped out most of his account balance. He also showed an email where an HFX employee claimed regulatory registrations that did not belong to the company.
HFX initially did not post in the forums. Najeeb reports filing a credit card chargeback with his bank to get his money. HFX's representative showed up after the Guilty verdict claiming that HFX had refunded the money.
In Case #3, FPA member turki reports he deposited a total of $20,000 and an HFX employee took control of trading the account while promising large profits.. Bad trades by the HFX employee reduced the account to $1400.
The issues we see are...
1. Accusing a client of hacking cheating on 1.5% of trades and supporting this serious allegation with a single example of a possible off-market trade. The penalty was confiscation of all profits. A hacking accusations is serious and should be backed by serious evidence.
2. HFX employees promising high returns while taking dangerous risks with client money. This resulted in 2 reports of losses of the bulk of the funds in trading accounts.
3. Company employees providing incomplete information. In one instance, the information also appears to be very misleading. In another, the report is of factually incorrect information being provided about regulation.
HFX's representative in cmingoti's case could not provide direct answers to questions. The representative in the 2 most recent cases claimed HFX.com had returned money to one client. The money appears to have only been returned because of a chargeback. Both representative accounts have now been banned.
Failure to return money legitimately owed to traders is the FPA's first definition of scam. For broker employees to mislead traders, placing dangerously large trades trades, and damaging a client accounts is the equally unethical.
Under these circumstances, the FPA has no choice but to declare that HFX.com is a scam broker. This ruling applies also to any other websites under the control of this company or its owners. We offer HFX the opportunity to have this scam finding lifted by meeting these requirements...
1. Process all overdue withdrawals. Add a 0.5% compound interest payment for each full month compensation for any withdrawal that been delayed more than 2 months since the initial request was made by the client.
2. End all trading of client accounts by HFX employees. Such trading may be resumed later if HFX is willing to train employees in risk management, has maximum drawdown specified in contracts, and will immediately compensate any client who experiences a drawdown in excess of the agreed percentage.
3. For any clients with accounts that had more than 20% drawdown due to the actions of HFX employees before the terms of item 2 are implemented, those clients should be compensated for any losses over 20% of the high water mark of the account.
4. Publicly post an apology to all of those who's cases resulted in FPA Traders Court guilty verdicts and resolve any remaining issues they have. This includes an honest public statement regarding how Najeeb Bubayis recovered his deposits.
5. Forbid employees from making unreasonable promises to encourage traders to deposit more money or from using any other high pressure tactics to encourage more deposits.
6. Send all employees who have any contact with clients or the public to training sessions on ethics and honesty.
7. Immediately fire any employee found to be abusing their position by misleading clients or making untruthful public statements.
8. Appoint a new representative to the FPA who will be able to respond to inquiries within a reasonable time. This person needs to be able to give complete and accurate responses.
HFX.com is hereby blacklisted by the Forex Peace Army. We urge traders not to do business with this company or with any company associated with it. For those who already have accounts there, we recommend that you attempt to withdraw all funds as quickly as possible. If you encounter any trouble getting a withdrawal processed within a reasonable amount of time, we recommend you file fraud complaints with the authorities.
Discussion Thread for this Scam Finding
FPA Traders Court Case 1
Original Complaint Thread for Case 1
FPA Traders Court Case 2
Original Complaint Thread for Case 2
FPA Traders Court Case 3
Original Complaint Thread for Case 3
FPA Review Page for HFX.com