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Liteforex Scam

Discussion in 'Scam Alerts' started by pahj, Oct 6, 2009.

  1. pahj

    pahj Private, 1st Class

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    I trade with liteforex but this guys have just proven to be nothing but scam.this brokers closed my positive hedged positions and caused my margin to go red. this caused me to loose my other positions one after the other because there was nothing i could do when the trend was against me. when i reported the incident to them , they said because i had a low margin i told them my margin was positive , they turned again that i closed the position myself which was not true, again they said it was closed by my EA. for sure i have never used EA before.again they are claiming someone else had access to my computer , which is not true because i was seating in front of my system when this happened. this time they are claiming that it was closed by my IP address. meanwhile they requested for my log which i sent to them when they were claiming that i closed the positions myself. three positions were closed at the same minute (this brokers are so slow and can give a lot of re quotes).and in my log. the time of closure is not there meaning that no such transaction happened in my system.
    up till they are still claiming right and have refused to settle peacefully. SO LET THIS BE A WARNING TO ALL WHO ARE IN BUSINESS WITH LITEFOREX
    Reply With Quote
     
  2. Gary500

    Gary500 Recruit

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    I'm on liteforex as well and almost the exact thing happened to me a few days ago. That's why I did a search on LF to find out whether they're a scam or not and came across this thread.

    A positive position of mine was also closed causing my negative position to create a margin call. If my positive position weren't mysteriously closed I would have been fine and not had a margin call-out. They still haven't given me a reason as to why my positive position was closed or what mysterious entity is responsible for it. All they giving me is jargon "Your position was closed due to reaching margin call" etc.. They can't produce any calculations.

    I heard there are some who are apparently happy with LF and haven't had any problems. But maybe it's a case of if you're starting to make too much profits (which I was making at the time) they have to find a way to bring you down.
     
    #2 Gary500, Mar 10, 2011
    Last edited: Mar 10, 2011
  3. Pharaoh

    Pharaoh Colonel

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    Did you guys get margin called while hedged? If so, there are several things than can cause this to happen.

    1. Yes, the broker make have scammed you.

    2. Swap may have eaten away at your available margin.

    3. Spread widening (especially around a major news event or a gap opening after a weekend) could have been enough to erase your available margin.

    Because of #2 and #3, never ever trust a hedged position to protect you from a margin call unless you've got a significant amount of margin available.
     
  4. f-man

    f-man 4Xangels Representative

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    Hedging so extreme sounds like a really dangerous strategy. You are offering yourself in the plate.

    Pharaoh, is there a way to prove that the trade was not closed by the customer?
     
  5. Pharaoh

    Pharaoh Colonel

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    Hedging does have some limited uses, but shouldn't be used as part of a standard day-to-day trading strategy.

    Proving broker misconduct in a case like this would take a little effort. You would need to see how much free margin there was, what the maximum spread was around the time the trades closed, and the close/open price in the event of a gap opening.

    If you had plenty of available margin, the spread didn't widen enough to damage you, and there was little or no gap, that would seem more than sufficient to show that the broker nailed you for no reason.
     
  6. naggie

    naggie Recruit

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    I made good profit trading with them. They deducted 40% of my account.

    Stay away from them.
     
  7. lfxsolution

    lfxsolution Recruit

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    Hello, Gary500

    We see, your report post is not complete yet. You still not tell us with clear about your account number or other screenshot here. You just telling what your felling, we see.

    It make us difficult to help you - to cross check the data then.

    We always to give our best service to all client on LiteForex of course. Thank you.

    Regards. :)
     

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