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Liteforex scam

Discussion in 'Scam Alerts' started by siau chi ong, Aug 17, 2012.

  1. siau chi ong

    siau chi ong Recruit

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    On 2012.07.30 i have traded with Lite forex with account 874548 for $500+$150bonus, and there's a point i think my trade is losing, hence i would like to rescue my trade by buying the opposite direction as my losing trade. I did check with the live chat operator Alexandr Viassov from Lite forex,to make sure if i open a buy position a day before, can i trade a sell position for same currency, and i was told i can do it, and double confirm if this hedging is allowed, and again the answer is Lite forex acclow hedging without restrictions, if deal's duration of orders is more than 2 minutes, and triple confirm is hedging is allowed even with a same currency pair, and got the answer 'Lite forex allow hedging without restrictions'. Hence i decided to open an opposite trade,which is different amount as well, because i would like to add on my trading amount. However the market turn another way and my account 874548 which initially losing now earning, so i request withdraw, and Lite forex said i tried to steal their 30% bonus by open opposite trade. I have checked with Lite forex operator that hedging is allowed, and a screenshot can prove it. I didn't steal the bonus and in fact, i lose $2300 in my opposite trade. Also, Lite is not canceling my order and profit only, they just took away my account from my profile and take my deposit straight, pretending that i never open the account and deposit. I don't get reply from them when i asked them to explain the situation. I highly suspect that's the trick that Liteforex scam away client deposit and profit.
     
  2. Pharaoh

    Pharaoh Colonel

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    Send an email to LiteForex inviting them to join the discussion in this thread.
     
  3. BigT1

    BigT1 Sergeant Major

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    Hello Siau Chi Ong,
    I initiated a Chat Dialogue with Lite forex Support on your behalf, when I found no mention of Regulatory Oversight on their website.
    http://www.liteforex.com/
    Here is the text:
    .
    "Me:
    Thank you. I would like to know where Lite Forex is headquartered and who regulates the firm?
    I see no link on your website.

    .
    Sergey Poturay
    .
    LiteForex Project is a brainchild of Straighthold Investment Group Inc. company, resident of Seychelles in accordance with the International Business Companies Act. Trading name LiteForex is registered in the United States Patent and Trademark Office. The owner of the project LiteForex is Straighthold Investment Group, Inc. Among the main lines of the business activity of Straighthold Investment Group, Inc. there are floatation of assets at Forex, stock markets, precious metals markets, futures markets and brokerage service extension.
    Our support staff is located in Russia.
    .
    Me:
    .
    OK, so you are not a registered entity under the NFA, FSA UK, or any other governmental agency other than a trademark office in the USA?
    .
    Sergey Poturay
    .
    If you are from USA, unfortunately we don't accept new USA customers. We are not licensed for US that's why we don't allow US clients to trade with us. LiteForex Project is a brainchild of Straighthold Investment Group Inc., which is regulated by Seychelles International Business Authority."

    .
    I think it is quite clear that you are doing business with a completely unregulated private business who is responsible to no one.
    This is a "Bucket Shop", a Bookmaker who are one step north of an organized criminal activity, who has placed itself beyond the reach of any client, or legal authority. They are not trading anything with anyone other than their own clients. They just make a mock market on indecies price action data, and trade with you or against you at their will; since they are the only counterparty to your offers to buy or sell anything.
    .
    As a result, anyone who out-trades the house by too much, will sooner or later become a victim. Firms like this often let you win a little to entice you to deposit more and trade more heavily; then they Sting you, and you are stripped of your entire pot. Whether you out-trade them or not, all eventually leave pennyless.
    .
    Anthony Ingrassia, CTA
    NFA ID#: 0278164
     
    #3 BigT1, Aug 20, 2012
    Last edited: Aug 21, 2012
  4. Shuvalov

    Shuvalov LiteForex Representative

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    Hello, siau chi ong!

    Your question is now engaged ours security department and the department of trading operations. You will be contacted by e-mail. Yesterday I saw your message and send it for approval. Thank you for pointing your account number.

    Dear, BigT1!

    LiteForex is a regulated STP broker. We are regulated by the Seychelles and RAFMM. Our company is on the market for seven years and has a well-deserved reputation as a reliable broker, traders from many countries are working with us. And there was not such a case that we did not pay honestly earned money. We will carefully investigate the situation.
     
  5. BigT1

    BigT1 Sergeant Major

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    Thank you LiteForex Representative Shuvalov for correcting my apparently erroneous assertion, and doing so politely.
    .
    Perhaps you should consider educating your support personnel in how to properly answer direct, clearly formed questions regarding your Regulator, and your Headquarters location.
    When responding here as a corporate entity, you should also publicly provide your true name, your corporate title, your mailing address, and direct contact information to you or your compliance department for FPA readers and members to record, reference, and utilize to make inquiries openly, privately, and not through your FPA alias, at anytime they may have a need to do so in the future.
    .
    http://www.liteforex.com/
    .
    I have revisited your website and located the one tiny black icon link on the top line of the website's Home Page labeled "RAFMM". I had not recognized that as the gateway to your regulatory information. Though very diminutive, it is apparently there; and so I must apologize for asseting previously it was not.
    .
    Had I been able to find "Regulation" clearly labeled in English on the English Home Page, I would not have contacted and been misguided by your support department, and thus my posting here to Mr. Ong would have been entirely different.
    .
    Since you state you are a true STP broker, we would also expect to find information about your Forex Liquidity Providers, which I cannot locate. Kindly discuss this subject here in detail and point us to that page on your site. I must refrain from retracting my concerns regarding your methods of interacting with client orders until you provide such; but stand ready to do so.
    .
    Meanwhile I hope Mr. Ong's situation is given correct treatment under your regulatory obligations; and ask each of you to provide updates on the speedy resolution of this complaint, to the best of your respective abilities. If this proves to have been an isolated situation or has been inaccurately reported, there should be no need to involve the Regulator; however, FPA stands ready to assist Mr. Ong with that process should that ultimately prove his only recourse.
    .
    For benefit of all, here is a link to the RAFMM website:
    http://www.raufr.org/participants.html
    .
    FYI, RAFMM is a non-commercial SRO (Self-Regulatory Organization) that is not a government arm, but rather an association of businesses that agree voluntarily to live up to certain agreed upon standards for membership. Complaints are handled by arbitration, but remember who is paying the dues to belong to this SRO and thus the salary of the arbitrator.
    Also, in general, taking a bonus account offen subjects the client to rules that give the broker extra powers to rescind claimed profits that would not be legal to do in a real money account. Read your terms carefully before accepting this kind of enticement, and doorway to difficulty.
    .
    Respectfully,
    Anthony Ingrassia
     
    #5 BigT1, Aug 21, 2012
    Last edited: Aug 21, 2012
  6. Shuvalov

    Shuvalov LiteForex Representative

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    Good morning, BigT1.

    I will certainly report your wish to Live chat and Support, however, none of our visitors had any problems with finding the right information. The icon of our regulator is at the top of the page, and it’s always visible. We are unable to add more links and buttons; this will overload the site with information. But I repeat again, it is strange that you have a problem with that.

    Very respectable companies make part of the RAFMM. Each case is thoroughly examined by the arbitration court. The decision in no way depends on the companies because the companies monitor the eligibility of the actions of their competitors. And as you mention, that is a noncommercial organization.

    Some of the information you have requested is a commercial secret and is not disclosed in order to maintain a competitive advantage.

    Mr. Siau Chi Ong is suspected in hunting of bonuses. The company has paid him back the full deposit amount a while ago. His accounts and profit only are blocked because of these suspicions, and were not taken anywhere, as Mr. Siau Chi Ong says. The case is under consideration and in the next few days he will receive an e-mail from the Security department, within a maximum of 1-2 days. We’re always glad to cooperate with conscientious traders but we are not happy when someone tries to fool us. And of course we’re unpleasant to see this display of aggression. If this person is really innocent, why did he start blackmailing the company on the forums? Any way, the whole deposit was returned to its owner.

    Our Security department is communicating directly with Mr. Siau Chi Ong.


    Sergei Shuvalov,
    Official representative of LiteForex group of companies
    e-mail: representative@liteforex.com
     
  7. BigT1

    BigT1 Sergeant Major

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    Hello again Mr. Sergei Shuvalov,
    Thank you for providing your full name and contact information; we seem to be making progress on openness (открытость).
    .
    It is understandable that you may not want to fully reveal your Liquidity Providers, but many other firms do indicate if they are linked to Integral, Currenex, CitiBank, FXCM, etc. Why can't you? If you are a true STP broker, don't you owe some indication as to just who are your counterparties?
    .
    It is not aggression you sense; rather vigilance, and the disinfecting light of oversight through public exploration that perhaps makes you somewhat uncomfortable.
    Outside of Russia we call that "Freedom of Speech". We can not help but notice Mr. Putin and friends currently jailing people for exercising the same.
    .
    With regard to the Regulator Access Icon, I was merely suggesting that rather than using the term "RAFMM". which many outside of Russia who use the English Language Page might not recognize, you might relabel it as "Regulator" or "Compliance", which is universally understood. This would not take any additional space, just make it better recognized.
    I am sorry I am the first and only person to ever report this difficulty; but from now on you cannot say none of your visitors have ever had a problem with that.
    On the "About the Company" Page there is no discussion of Compliance, Regulation, the Management team, Board of Directors, Headquarters Mailing Address, Corporate Governence or how to contact the Compliance Department; just junk about awards, reviews, and press. I continue to maintain that you have provided only the barest minimum; which constitutes obfuscation, on a website chock full of redundant Account Opening and Advertizing links. So please don't insult our intelligence with your assertion that you could not make your legal status information properly available.
    .
    Perhaps you could explain to me and our other members just how any client could "Fool" or "Cheat" your firm through "Bonus Hunting"?
    I am a professional, and yet do not see how that is possible. I am eager to understand that process because such "Bonus" accounts are not allowed under western regulation standards.
    It would help all other Bonus Account Users to understand just what criteria you apply to determine "Suspicious Behavior"?
    .
    Of course, we expect you will review Mr. Ong's case according to you client contract; but, simply deciding to return a client's initial deposit is not acceptable behavior, if his account balance was increased by legitimate trading activity. Returning a deposit; does not absolve you of responsibility to provide him his full Account Balance upon request.
    Surely you can choose whether or not you want to continue to do business with him, but not to retroactively, and arbitrarily alter or withhold his account balance and deny access to his funds.
    .
    Please explain how any trading activity can be considered illegitimate when it is executed by a trader (by manual or automated means) from within his own account??
    .
    I'm also concerned that you refer to your client posting a complaint publicly on a mission specific form like FPA, constitutes "Blackmail"!
    Everyone here is interested in the truth. We are mature enough to recognize when a complaint is legitimate or illegitimate.
    This discussion can help you and your firm as much as it can your client; all based on the facts made known from ALL sides. We know this process of receiving the views of all concerned, including your firm, takes time. We remain open minded; meanwhile, even LiteForex enjoys the very American standard of "Innocent Until Proven Guilty".
    .
    I urge both parties to please continue this dialogue with pertinent facts, as they are revealed.
    .
    Thank you,
    Anthony Ingrassia
     
    #7 BigT1, Aug 22, 2012
    Last edited: Aug 22, 2012
  8. Pharaoh

    Pharaoh Colonel

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    I am glad to see Siau Chi Ong's issue is being checked out by LiteForex.

    I have a question about this regulation. The raufr.org/participants.html website only shows 4 total members. One of them is not exactly held in high repute at the FPA. How is this any better than en.crofr.ru, which seems to also be some sort of voluntary club instead of a government regulator?

    I was under the impression that fcsm.ru was the real government financial regulator in Russia. Is LiteForex registered there?
     
  9. BigT1

    BigT1 Sergeant Major

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    Really Pharaoh? A real regulator in Russia? You poor boy; I feel like Liza Minelli in the movie "Arthur" consoling the forelorn bride Susan Johnson played by Jennifer Garner.
    If you haven't seen it, I suggest you couldn't invest two hours any better. Ditto for Shuvalov.
     
    #9 BigT1, Aug 23, 2012
    Last edited: Aug 23, 2012
  10. Shuvalov

    Shuvalov LiteForex Representative

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    I would not want you to continue this dialogue in this way. Let's not deviate from the subject and make mutual accusations. You're an adult and no fool, so why do you behave unprofessionally? I see only strange attacks that are not connected with this case. For some reason, you are totally changing conversation, but we are talking about Mr. Siau Chi Ong’s situation.

    You’re saying that you are a professional, that it’s not the first day you are on FPA and you still do not understand what Bonus Hunting is. You are either disingenuous or you’re not telling the truth deliberately. I hope it is not that (prove the contrary if I'm wrong).

    I repeat, no one has ever accused anybody. The investigation is being conducted, and of course if Mr. Siau Chi Ong’s innocence is proved, he will receive the full amount. The amount of the deposit has already been withdrawn because he has ordered this withdrawal.

    Our Security department is communicating directly with Mr. Siau Chi Ong. Please, do not make hasty conclusions without knowing the facts. We surely will investigate the issue.

    Of course we will consider your comments about the information on this site even though we have a lot of work now.

    Respectfully,
    Sergei Shuvalov
    Official representative of LiteForex group of companies
    e-mail: representative@liteforex.com
     

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