HOTFOREX is a scam!!

dimitris20

Private
Messages
13
After opening and investing 1000$ with hotforex down the line few months later they send me an email
stating that i have to close all my positions at that time i was about -900$ on my positions or by May 16 they will close my accounts, due to i was a Canadian citizen, in resulting I had to withdraw the rest I had gain and close the positions with a lost of 900$ . After calling them they told me that Ontario securities had told them to close Canadian accounts (first that's a lie cause I called Ontario securities and reassured me that nothing of that happen ) second if it was true as they state its their fault that they failed to let me know before I invest...its a big scam I lost 900$ from closing the position ! be aware!

This is their statement:
Dear Client,

According to our internal records, you have been identified as being a resident of Canada.

HotForex has always been committed to being transparent and supportive of our clients. We monitor situations and make strategic decisions that we hope act in favor of our clients and we always look to provide the best service we can given the environment and constraints that we have to work in.

Unfortunately sometimes these decisions are taken out of our hands. It is for this reason that we are contacting you with an update about a strategic business decision we have made about the provision of our services to Canadian clients.

Even though HotForex does not have any offices and/or operations in Canada and does not engage in the solicitation of clients it was communicated to us that the Ontario Securities Commission does not allow us to offer our services on a cross-border basis to Canadian Clients. Therefore it is with great regret to inform you that HotForex will no longer be offering its services to new or existing Canadian based Clients.

We recognize the importance of this decision to you and we apologize for any inconvenience this development may cause you, regrettably it is a decision that we have no choice but to roll out.

In light of the above, by the 16th of May, 2014 and no later than 12 midnight server time all open positions and pending orders in your trading account with HotForex will need to be closed. Any positions left open will be closed at the prevailing market price at that time and all pending orders will be deleted.

Please note that the deadline may change if it is necessitated by our regulators.

Any accounts that have a zero balance and accounts with balances but no open trades as of this email being sent will be closed with immediate effect.

Once the accounts are closed, the funds will be cleared of any outstanding bonus and based on your withdrawal request sent to the original source of funds – in line with our anti-money laundering policy.

If you have any questions do not hesitate to contact us at support@hotforex.com.



Best regards,



The HotForex Management Team
 

Pharaoh

Colonel
Messages
19,729
Email support. Invite them to join this thread and provide more information on their issue with the Ontario Securities Commission.

Also, email a copy of the message you got to the OSC and ask them to write back about their position on whether or not they asked Hotforex to withdraw.
 

shogunfx

Sergeant
Messages
260
Before you invest real money did you provide them all the requested documents for fully activate your account. Did you see in Upload Documents section of your myHotForex account a picture like this ? I'm sure you don't provide them requested documents and start trading real money.

documents.png
 

ilearn2t

Sergeant Major
Messages
711
Hello dimitris20

How must time did HotForex notify you in advance (if any) before they removed Canada as "Country of Residence".

Good luck
Liz
 

FxMaster

Lt. Colonel
Messages
8,508
Hello dimitris20,

As Liz said did HotForex notify you in advance if yes than how long prior the position closing notification was sent ?
 

Master Yoda

Captain
Messages
2,929
I think you can claim for a "lost opportunity" to recover your loss and to demand your full $1000 back.
 

stevesmain

Sergeant
Messages
228
While it is true the Ontario security does have a requirement, like it is stated. I had an account closed with short notice years ago, not an HF acct.. My FXCM acct was moved recently too.

While we like to take things to the letter of law. In this case the policy is basically correct, company's need to be licensed in Ontario. If a company's legal dept. deems this applies then they may issue a requirement for their company to cancel canadian accts., unless they are willing to qualify themselves.

The requirement in Ontario is for company's to have a license to deal with their clients, considered investment. An out has been if the person has assets of 1 million then they are allowed to make their own investment decisions, yeh I think the bureaucracy is silly too. That is if a broker will allow that, it is not a given.

So the trader here may have misinterpreted that the commission acted towards HF. Were as in reality HF is acting on a long standing requirement by the OSC.

By the way the OSC also requires an insane margin requirement for those who wish to trade locally!
 
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dimitris20

Private
Messages
13
Hi,

I did contact Ontario securities , provide them with all the info , they advise me that 1st they never even heard this hotforex company before nor they never even call them to close Canadians accounts 2nd they told me that even if that happens, (which is impossible from their perspective cause hotforex is not in Canada) they can only control Ontario citizens and not quebec citizens which I am from , I even call quebec securities to find out more info, they address me to take legal actions as they told me the same thing in Ontario securities
 
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