Liteforex scam, non-market price

[AdsCFT]

I will explain the bad experience I had with liteforex which resulted into losing my capital, this was either because of their irresponsibility, or the fact that they cheat and present non-market prices or both. On Friday 15.03 close, according to MT log, I had two main trades, one EURJPY sell and one USDJPY buy and my margin level was around 100%, two positions were in the opposite direction and with almost the same size. During the weekend, the euro drops heavily because cyprys news which resulted into a large gap of ~300 pips in opening of EURJPY and USDJPY. This was in favor of my EURJPY which its negative becomes positive but my USDJPY got more negative, but since the EURJPY drops more than USDJPY, because of the high drop in EURUSD, with Monday open prices, my margin level should have been larger than Friday close. But, some seconds after market open at 00:00:24 I got a margin call and both of my trades EURJPY and USDJPY closed into great loss. With one main difference, Liteforex closed my EURJPY with the Friday close price of 124.60 (in loss for me) while the price on Monday open was 121.70 (in profit for me). BUT, on the other hand, they closed my USDJPY with Monday open price (trades and log is shown in file 1).
These two trades made ~1600 euro of loss to me,

2013.03.18 00:00:24 '112631': stop out position [so: 6.87%, equity: 33.98, margin: 494.42, free: -460.44, balance: 1 876.40, credit: 0.00, floating: -1 842.42][sell 0.43 EURJPY 121.95556]
2013.03.18 00:00:24 '112631': position stop out triggered at 6.87% [sell 0.43 EURJPY 121.95556]
2013.03.18 00:00:24 : request from '112631' (close stop-out position buy 0.43 EURJPY at 124.60)
2013.03.18 00:00:24 : confirm for '112631' (close stop-out position buy 0.43 EURJPY at 124.60)
2013.03.18 00:00:24 '112631': deal performed [#5000139949 buy 0.43 EURJPY at 124.60]
2013.03.18 00:00:24 '112631': order performed buy 0.43 at 124.60 [#5000187453 buy 0.43 EURJPY at 124.60]

So, the main problem was that they considered Friday close price for my profiting EURJPY with around 300 pip difference with the market price. This gave me 1) wrong margin call in the beginning 2) wrong price close for EURJPY with large loss 3) because of the large loss implied from the closure of EURJPY with wrong price, my margin decreased and that made another margin call which resulted into the closure of my losing USDJPY too. All these trains of evens happened just because they considered non-market price for my EURJPY trade.
I first contacted them and asked them about the reason and why 24 seconds after market open, with that large gap which results into high vitality from the limit orders or stops, and they responded me that they didn’t had any new tick and quote before 00:00:24 and that is why they used the last tick they had from the Friday close. I insisted my claim and I sent them the tick chart from Bloomberg which they didn’t accepted (file 2). Then since it was almost impossible to believe for me that after 24 second of such gapping market, they didn’t have new tick and quote, I insisted to ask for more evidence. They sent me an excel (file 3), showing the ticks starting from 00:00:30 and they claim in their emails several times that the first tick was at 00:00:30 and since my trade was at 00:00:24, so they didn’t have new tick and quote to consider. I couldn’t believe either and I think they just send me that data after 00:00:30 to say that there was no new tick before but this excel table does not prove anything. Then I wrote a simple expert advisor in meta trader 5 which reads and prints the ticks in the log journal and I runned it with liteforx historical data and on their server. What I observed was that starting from very beginning of the market opening, the new ticks appear with new price and at 00:00:24 which they closed my margin call with Friday close price of 124.60, there were already many new ticks (file 4) which part of it is as follows (from down to up)

2013.03.18 00:00:24 121.73
2013.03.18 00:00:24 121.73
2013.03.18 00:00:24 121.73
2013.03.18 00:00:22 121.74
2013.03.18 00:00:22 121.74
2013.03.18 00:00:22 121.74
2013.03.18 00:00:21 121.73
2013.03.18 00:00:21 121.73
2013.03.18 00:00:21 121.73
2013.03.18 00:00:19 121.74
2013.03.18 00:00:19 121.74
2013.03.18 00:00:19 121.74
2013.03.18 00:00:18 121.73
2013.03.18 00:00:18 121.73
2013.03.18 00:00:18 121.73
2013.03.18 00:00:16 121.74
2013.03.18 00:00:16 121.74
2013.03.18 00:00:16 121.74
2013.03.18 00:00:15 121.75
2013.03.18 00:00:15 121.75
2013.03.18 00:00:15 121.75

I sent these evidences to them and told them that this is from YOUR server and can be checked by anyone, even with a demo account. But then continue to insist and reply that the first tick happened at 00:00:30 and we just accept evidence from our server (it was from their server in fact).
I do believe that either there was a problem in their system to put my trade with wrong price or they did it intentionally. In both cases they are lacking honesty or are acting as a real cheater. I think such a simple evidence of the first new ticks which can be checked from anyone should have not been denied and I feel that if a broker let himself to close the trades of the people with 300 pips difference with the market price, and don’t accept it afterwards, is a broker which should be definitely categorized as scam and let other people know not to fall into their tricks.
I asked the professional members of the FPA to consider this case and let me know their opinion.

I have to add also that the type of account I have with them is a fixed spread account, which the spread should be fixed always to 3 for these currencies. So, this effect can not happen because of the low liquidity or high spread of the market.

 

[jareer]

liteforex is a scam they took my money account number 187539

 

[Pharaoh]

Contact LiteForex's representative here in the forums (he pops up in some other threads about them in this folder). Ask him to please join the discussion here.

 

[AdsCFT]

Dear Pharaoh! Would it be possible that a Major member like you ask them to participate? I afraid lacking the presence of members like you will make them to respond the same as they do in the emails.

 

[AdsCFT]

Contact LiteForex's representative here in the forums (he pops up in some other threads about them in this folder). Ask him to please join the discussion here.

i invited Alexander.LiteForex

 

[Alexander.LiteForex]

Hello AdsCFT.
First of all , your position was closed not by margin call, it was closed automatically by server , it is called stop out.

Here are the records from the server:
2013.03.18 00:00:14 '112631': PrevBalance: 1876.40, PrevEquity 355.37, PrevMargin: 494.42, NewMargin: 644.42, NewFreeMargin: -289.05 This is the record about the state of account at the moment of the market closure
2013.03.18 00:00:14 '112631': not enough money for order [#5000187398 buy limit 0.30 EURUSD at 1.2930] This is the record about inability to activate the pending order (not enough funds)
2013.03.18 00:00:24 '112631': stop out position [so: 6.87%, equity: 33.98, margin: 494.42, free: -460.44, balance: 1 876.40, credit: 0.00, floating: -1 842.42][sell 0.43 EURJPY 121.95556] This is the record about the stop out generation (all current parameters of the account are indicated here)
2013.03.18 00:00:24 '112631': position stop out triggered at 6.87% [sell 0.43 EURJPY 121.95556] The stop out activation.
2013.03.18 00:00:24 : request from '112631' (close stop-out position buy 0.43 EURJPY at 124.60)(124.57 / 124.60) This is the record about the beginning of the order closure by stop out (the current market quote is indicated parenthetically)
2013.03.18 00:00:24 : confirm for '112631' (close stop-out position buy 0.43 EURJPY at 124.60)(124.57 / 124.60) The confirmation of the order closure by stop out
2013.03.18 00:00:24 '112631': deal performed [#5000139949 buy 0.43 EURJPY at 124.60] This is the record about the completion of the order closure by stop out (the current market quote is indicated parenthetically)
2013.03.18 00:00:24 '112631': order performed buy 0.43 at 124.60 [#5000187453 buy 0.43 EURJPY at 124.60] This is the record about the completion of the order closure by stop out

By the second order the corresponding records are the following:

2013.03.18 00:00:24 '112631': stop out position [so: 12.16%, equity: 33.98, margin: 279.42, free: -245.44, balance: 962.53, credit: 0.00, floating: -928.55][buy 0.42 USDJPY 96.30286]
2013.03.18 00:00:24 '112631': position stop out triggered at 12.16% [buy 0.42 USDJPY 96.30286]
2013.03.18 00:00:24 : request from '112631' (close stop-out position sell 0.42 USDJPY at 94.34)(94.34 / 94.37)
2013.03.18 00:00:24 : confirm for '112631' (close stop-out position sell 0.42 USDJPY at 94.34)(94.34 / 94.37)
2013.03.18 00:00:24 '112631': deal performed [#5000139950 sell 0.42 USDJPY at 94.34]

Therefore the checking of the state of account was conducted immediately after the market opening by the last price and only after this the quote 121.74 by EURJPY came with delay.
You should understand ,that if the qoute for EUR/JPY would be really 121.74, than you wouldnt be closed by stop out. I can provide you with screen shots showing that there were no ticks before 00:00:24. The things you are showing us are nit ticks from our server.

 

[AdsCFT]

Hello AdsCFT.
2013.03.18 00:00:24 '112631': stop out position [so: 6.87%, equity: 33.98, margin: 494.42, free: -460.44, balance: 1 876.40, credit: 0.00, floating: -1 842.42][sell 0.43 EURJPY

Therefore the checking of the state of account was conducted immediately after the market opening by the last price and only after this the quote 121.74 by EURJPY came with delay.
You should understand ,that if the qoute for EUR/JPY would be really 121.74, than you wouldnt be closed by stop out. I can provide you with screen shots showing that there were no ticks before 00:00:24. The things you are showing us are nit ticks from our server.

1) The stop call was not conducted immediately after the market open. According to the log which you also showed here, it happened 24 seconds after market open.

2) As you confirmed, according to market price of 121.74 my acound would not get stop call. All the issue is that whether there were new ticks before 00:00:24 or not for EURJPY thought there were new quote and price for USDJPY (because of this fact I got stop call that the friday price was used for EURJPY but monday price for USDJPY).

3) The ticks I sent you,

2013.03.18 00:00:24 121.73
2013.03.18 00:00:24 121.73
2013.03.18 00:00:24 121.73
2013.03.18 00:00:22 121.74
2013.03.18 00:00:22 121.74
2013.03.18 00:00:22 121.74
2013.03.18 00:00:21 121.73
2013.03.18 00:00:21 121.73
2013.03.18 00:00:21 121.73
2013.03.18 00:00:19 121.74
2013.03.18 00:00:19 121.74
2013.03.18 00:00:19 121.74
2013.03.18 00:00:18 121.73
2013.03.18 00:00:18 121.73
2013.03.18 00:00:18 121.73
2013.03.18 00:00:16 121.74
2013.03.18 00:00:16 121.74
2013.03.18 00:00:16 121.74
2013.03.18 00:00:15 121.75
2013.03.18 00:00:15 121.75
2013.03.18 00:00:15 121.75

ARE from your server. I extracted them by running an expert advisor which prints the ticks in the journal and then I runned it with the strategy tester with metatrader 5 of my liteforex live acount. What shows there is from your server. I think you can not just say that those are not from our server because it is a very clear fact that can be checked by any other third person and judge here. I can put my expert advisor and I kindly ask someone here run it for the mentioned period (even by opening a demo acount with liteforex) and time and let us know if he see these ticks or not. Of course he should be careful to run it with slow speed in order not to jump the ticks.

You can not deny a trivial fact that is still available on your server. I don't any other way to show those ticks to public unless someone here help me.

 

[AdsCFT]

I hope the experts in FPA can show me a way to prove this, but these ticks can be generated simply with a simle expert advisor on metatrader 5 with a demo or real liteforex account as the one I made:

#define VERSION "1.00 Build 1 (01 Fab 2011)"
#property version VERSION
#property description "Template of the Expert Advisor"
#property description "with multicurrency OnTick(string symbol) event handler"
#define SYMBOLS_TRADING "EURJPY"
#define CHART_EVENT_SYMBOL CHARTEVENT_TICK
#include <OnTick(string symbol).mqh>
#include [TR=""]
int OnInit()
{
bool setTimer=EventSetTimer(1);
//--- Add your code here...
return(0);
}
void OnTick(string symbol)
{

Print(SymbolInfoDouble("EURJPY",SYMBOL_BID));

}
void OnChartEvent(const int id, // event id
const long& lparam, // event param of long type
const double& dparam, // event param of double type
const string& sparam) // event param of string type
{
}

void OnDeinit(const int reason)
{
}


This should be run by strategy tester for the period 15.03 till 19.03 and in the beginnig put the speed to zero, and skipp it to 23:59:00 of 15.03. Then you should go manually step by step. In each step it gives you new ticks. Then you can see around 10 new ticks and quotes before 00:00:24 and already in 00:00:24 the price is 121.73.

This is such a simple fact and I hope someone here have the aim to really check it since it is not those cases which the problem is to break some strange rule of the broker. The proble is about the price which is available to ANYONE.

I am hopeful to get my money back, or even I might be wrong and someone can tell me why and how, but I think if this fact can be proven independentely this can help many other potential victims.

 

[AdsCFT]

I put the simple mql5 code which i used to extrac the ticks from the Liteforex serve here

#define VERSION "1.00 Build 1 (01 Fab 2011)"
#property version VERSION
#property description "Template of the Expert Advisor"
#property description "with multicurrency OnTick(string symbol) event handler"
#define SYMBOLS_TRADING "EURJPY"
#define CHART_EVENT_SYMBOL CHARTEVENT_TICK
#include <OnTick(string symbol).mqh>
#include [TR=""]
int OnInit()
{
bool setTimer=EventSetTimer(1);
//--- Add your code here...
return(0);
}
void OnTick(string symbol)
{

Print(SymbolInfoDouble("EURJPY",SYMBOL_BID));

}
void OnChartEvent(const int id, // event id
const long& lparam, // event param of long type
const double& dparam, // event param of double type
const string& sparam) // event param of string type
{
}

void OnDeinit(const int reason)
{
}



This should be compiled with metatrader 5 and runned on the strategy tester of liteforex meta trader 5. Then should be runned for the period 15.03...19.03 and in the beginig the speed should be put to zaro. Then I skipped to 23:59:00 of 15.03 and then i runned manually step by step from the strategy tester terminal. In the journal you can see the new ticks for each step. After 00:00:00, the new ticks come and as you can see, there are at least 10 ticks before 00:00:24 and at 00:00:24 the price is 121.73 according to their terminal and server.

This is something which can be checked easily and I kindely ask anyone who can check this with a liteforex demo or real account and make an independent confirmation of my claim. This case is about an issue which is accessible to anyone and so I really urge experts of FPA to investigate it since it might save some other potential victims. Or may be they can just tell me that i am wrong with an expert eye on the issue.

 

[athenafx]

Mr Alexander, can you provide a list of your liquidity providers ?

Can you provide the list of incoming bids and offers at market open ? (Time, Price, LP)

On the other hand, if you are a market maker, why didn't you start making the market at the open ?

By the way, If you received no bids/offers and If you didn't make the market, where did the real price come from at the time shown on the MT log ?

Furthermore, why did he get stopped out at the open instead of the close on friday ?