My account was automatically traded by Fortfs
- Thread starter Jazzy9286
- Start date
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- fortfs.com
Right? We need to make them close down
Anatoly M
Private, 1st Class
- Messages
- 265
I think soon will court traders for this broker.
FPA Forums Team
Caution: Moderators at Work
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Mark Miller (FortFS)
FortFS Representative
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- 196
Dear Jazzy9286 and admins,
Thank you for inviting us to the thread.
As was stated numerous times in correspondence with Jazzy9286, we have nothing to do with the trades in question, his accusations are absurd and, of course, no proof of our involvement was presented. We will repeat our original answer:
The responsibility to keep the account credentials secure and confident fully lies on the client in accordance with Clause 4.2 of Client agreement and Clause 7.3 of Risk disclosure policy. We quote its content below:
4.2. Obligations of the Client:
4.2.5. To be aware of and be responsible for confidential information security provided to the Client from the Company as well as to assume any possible financial risks caused by the unauthorized tampering of the third parties as a result of hack actions.
(https://static.fortfs.com/download/client_agreement.pdf)
7. The Client accepts the clauses related to the technical risks:
7.3. Should any non-observation of equipment or communication channel usage regulation take place, as well as any disregard of recommendations related to confidentiality, the Client shall completely take responsibility for risks of any possible financial losses that occurred due to loss of a data confidentiality status that was received by the Client from the Company, and as a consequence passwords, account data and any other authorization and Client’s personal access data for his/her trading account and Trader’s room were received by any third parties.
(https://static.fortfs.com/download/risks_policy.pdf)
We have fully cooperated with Jazzy9286 and provided the complete server logs and all the information at our disposal relevant to the situation. However, given how easy it is to change IP address in modern world and the fact that the agreed upon obligations of the client to keep personal information secure obviously were not fulfilled, we see no grounds to compensate the trades.
Also, without any prejudice or accusations, we would like to add that this situation could set a precedent, according to which in future any dishonest client would be able to request a full compensation of losses from the broker without presenting any evidence, except for saying: “It wasn’t me”. Such precedent is a dangerous one. Trading on financial markets implies financial risks and every trader accepts these risks along with the responsibility to keep his data/passwords safe. We are sorry about Jazzy9286 suffering losses, but him going around spreading made-up accusations and insults does not do anybody good.
Sincerely yours,
FortFS
Thank you for inviting us to the thread.
As was stated numerous times in correspondence with Jazzy9286, we have nothing to do with the trades in question, his accusations are absurd and, of course, no proof of our involvement was presented. We will repeat our original answer:
The responsibility to keep the account credentials secure and confident fully lies on the client in accordance with Clause 4.2 of Client agreement and Clause 7.3 of Risk disclosure policy. We quote its content below:
4.2. Obligations of the Client:
4.2.5. To be aware of and be responsible for confidential information security provided to the Client from the Company as well as to assume any possible financial risks caused by the unauthorized tampering of the third parties as a result of hack actions.
(https://static.fortfs.com/download/client_agreement.pdf)
7. The Client accepts the clauses related to the technical risks:
7.3. Should any non-observation of equipment or communication channel usage regulation take place, as well as any disregard of recommendations related to confidentiality, the Client shall completely take responsibility for risks of any possible financial losses that occurred due to loss of a data confidentiality status that was received by the Client from the Company, and as a consequence passwords, account data and any other authorization and Client’s personal access data for his/her trading account and Trader’s room were received by any third parties.
(https://static.fortfs.com/download/risks_policy.pdf)
We have fully cooperated with Jazzy9286 and provided the complete server logs and all the information at our disposal relevant to the situation. However, given how easy it is to change IP address in modern world and the fact that the agreed upon obligations of the client to keep personal information secure obviously were not fulfilled, we see no grounds to compensate the trades.
Also, without any prejudice or accusations, we would like to add that this situation could set a precedent, according to which in future any dishonest client would be able to request a full compensation of losses from the broker without presenting any evidence, except for saying: “It wasn’t me”. Such precedent is a dangerous one. Trading on financial markets implies financial risks and every trader accepts these risks along with the responsibility to keep his data/passwords safe. We are sorry about Jazzy9286 suffering losses, but him going around spreading made-up accusations and insults does not do anybody good.
Sincerely yours,
FortFS
compu-forex
Master Sergeant
- Messages
- 253
Hi Mark,
Please can you advise if you were the counter party to those trades, or were they hedged with your liquidity provider.
Thanks
Please can you advise if you were the counter party to those trades, or were they hedged with your liquidity provider.
Thanks
Mark Miller (FortFS)
FortFS Representative
- Messages
- 196
Dear compu-forex,
All clients’ orders are processed and executed within the FortFS-Bridge system and then transferred to our liquidity providers (we have a number of them). However, we are not sure how the orders processing/execution process is exactly relevant to this case. Essentially, this case is either about a trader failing to keep his account credentials secure or some manipulation scheme with trader trying to get the broker to compensate these trading losses. In both cases, we do not see real grounds for compensation for the reasons mentioned in our previous message. We hope that this answers your question.
compu-forex
Master Sergeant
- Messages
- 253
Hi Mark,
I understand your point of view. I think that all of us having more information is a useful thing.
I was the victim of a similar event by a broker, funnily enough, from the same part of the world where Fort FS is registered. I have actually traded with FortFS in the past and had no issue. I am trying to build up my own understanding of how these events can happen.
As you have highlighted, one possible way is for the access details to be compromised, or the trader is engaged in some type of arbitrage attempt. There is of course another possible narrative and this is an opportunity for you to explain how(technically) FortFS did not benefit financially from the sequence of trades under discussion here.
Please let me know if my understanding is correct......your system needs to balance trade execution with trade routing. I imagine that, ideally, every single trade would be routed to your LP's and you would wait for a confirmation before executing the trade. Presumably this takes too long and can compromise trade execution for the client with consequent unhappiness. That would imply that in order to enhance the trade execution, the broker will temporarily become the counterparty to trades. I understand this is why brokers do not like certain types of high speed trading strategies as it leaves them exposed to the trade outcome without being able to route the trades to your LP in time.
When a trade is opened and closed straight away, where does the money go(the spread cost)? Is that trade still routed to your LP, or is it processed within your bridge system. In other words, the money that leaves the traders account.......is it in your account, or that of your liquidity providers?
I understand your point of view. I think that all of us having more information is a useful thing.
I was the victim of a similar event by a broker, funnily enough, from the same part of the world where Fort FS is registered. I have actually traded with FortFS in the past and had no issue. I am trying to build up my own understanding of how these events can happen.
As you have highlighted, one possible way is for the access details to be compromised, or the trader is engaged in some type of arbitrage attempt. There is of course another possible narrative and this is an opportunity for you to explain how(technically) FortFS did not benefit financially from the sequence of trades under discussion here.
Please let me know if my understanding is correct......your system needs to balance trade execution with trade routing. I imagine that, ideally, every single trade would be routed to your LP's and you would wait for a confirmation before executing the trade. Presumably this takes too long and can compromise trade execution for the client with consequent unhappiness. That would imply that in order to enhance the trade execution, the broker will temporarily become the counterparty to trades. I understand this is why brokers do not like certain types of high speed trading strategies as it leaves them exposed to the trade outcome without being able to route the trades to your LP in time.
When a trade is opened and closed straight away, where does the money go(the spread cost)? Is that trade still routed to your LP, or is it processed within your bridge system. In other words, the money that leaves the traders account.......is it in your account, or that of your liquidity providers?
4evermaat
2nd Lieutenant
- Messages
- 2,709
It is absolutely relevant. Because it is a situation where the client says the broker open positions intentionally without the client permission and forced losses on the client. The broker is saying that it was not them who traded their account, but someone hacked the client account (or otherwise obtained the login trading credentials) and traded it. You can certainly help your side of the story by proving that it was actually traded through to real LPs. Because the fact that you are located in SVG does not help your reputation.
Now why the OP decided to deposit a significant amount with a broker who is in the St Vincent and the Grenadines, who has openly admitted that they do not regulate forex at all. On their old page: svgfsa.com/warn.html (new page here)
and now it seems they updated their website, and the warnings are broken up among several pages, the most recent ones here:
http://svgfsa.com/alert-1-of-2018-f...ading-or-brokerage-or-binary-options-trading/
http://svgfsa.com/alert-2-of-2018-foreign-exchange-forex-trading-and-cryptocurrency-offerings/
A relevant screenshot
The real question is why would you as a broker pick/continue in a jurisdiction to advertise forex trading where the financial regulator has put out several warnings that they do not regulate forex trading. There is a case study of a different broker on regulator website that shows what kind of wording is used to make a broker appear they are regulated in a particular jurisdiction.
And to @Jazzy9286 @Anatomy M @SergeySergey1975 @TradefortMY @quyquan @Fenihanifah and anyone else reading this far, why would you put any significant amount into an unregulated broker and you don't know the people behind it? It doesn't excuse the broker from scamming you, but it does significantly reduce your chances of getting money back should something adverse happen.
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