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My problems with Liteforex

Discussion in 'Scam Alerts' started by PersTrader, Jun 27, 2018.

  1. PersTrader

    PersTrader Recruit

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    Hello

    I am a trader in Forex since 2011 and during this time i have worked with 22 to 23 brokers.

    when I was a beginner I was losting my money very much and I started to participate in courses and using viedo tutorals in internet.

    So long as you make losses in a broker you are a good client and they contact you very much and you receive lots of ad letters and the encourage you that you should deposit again.

    Definitely when you start to make profit in market and you are well exprienced at that time your dificulties with broker start. I was not excluded from this rule.

    I started to make profit in Forex in recent years and then the deficulties with LiteForex has been started.

    I decided to withdraw my profit which amounted to 1500$ at 26.01.2018 but my order was pending (not processed) till 01.02.2018 while according to the agreement this company should do the withdrawal requests within 3 days.

    https://www.liteforex.com/uploads/documents/pdf/terms-of-use-en.pdf

    5.1.3. Funds withdrawal is carried out within the period set individually for each payment system, from 1 to 3 working days.

    https://www.liteforex.com/trading/account-types/

    It is inserted on the website that Margin Call 100% & Stop Out 20% and margin call is described in the description part the same.

    https://www.liteforex.com/beginners/glossary/

    Margin Call - a message from a dealing centre to a trader saying that it is necessary to increase funds on marginal account.

    Any time your margin reach below 100%, the broker warn you to deposit your account or make it zero.

    I wrok with this company for several years and always I received warning emails when the Margin is under 100% and always my open positions are closed when Margin in under 20% (available on atached photoes) and this time nothig happened.

    This broker extended spread on indices 9 times and closed my two open positions (-720.2$-724.41$) on 02.02.2018 without any prior notice while I was sitting behind my pc and my Margin was very higher than 100%.

    I talked with broker via its online chat and I ask them why did this happened? They said you should send an email to trading@liteforex.com te receive reply. But they did not reply me and I sent several emails for them. Finally they replied and they said that the Company has the right to close the client's open position when Margin level is 100%.

    I showed to them via online chat and email that have right to close open position when the Margin level is under 20% and I will complain against you.

    Then they reply me and they said that they will return the loses related to these positions. I was sure that they will return the loses to my account and I can manage my account again.

    But they have not done that till this moment.

    Then I sent several emails to them and I asked them to correct my account so that I can manage my account but they didn't reply me and this caused I lost the whole of my account balance the amounted to 7940$.

    I was in vacation and I cannot contact them with telephone number which are inserted in the website.

    When I came back from vacation, I immediately sent an email, May 10, and I asked them to correct the situation but they haven't replied my till May 16. I called them by phone and they said they will handle the situation very soon and they said they will inform me regarding the result by email.

    They replied my several times but with different answers.

    First, they said that they told me I should send them email and after that they will returne those two positions.

    I took a photo from my email and I said them I have sent email for you but you have not do any things.

    then They replied me that this issue relate to several months ago and we cannot open those postions again.

    I replied them that according to the aggreement you can cancel them and return their amonts to my account.

    They replied that that was out of our hand and your posions are closed by liquidity provider, hence we cannot return them.

    They don't want to introduce this liquidity provider and determine which bank is it.

    Several days are needed to receive their reply and each time they send different reply.

    Their last reply is as follow:

    The Company has the right to close the client's open positions and your positions are closes in the following levels:

    76055212 margin level 99.26%

    76130724 margin level 94.22%

    https://www.liteforex.com/support/faq/

    4.27. Why has a transaction on my account been closed without any notice?

    Obviously there were not sufficient funds on the account to maintain the position opened. As soon as Margin level is equal to or less than 20% (50% or less for CENT accounts), the server will close an order automatically. Compulsory closure of the position is accompanied by the "stop out" notice in the log file. Compulsory closure of the position in case of Credit Stop Out is accompanied by corresponding notice in the server’s log file with the comment "cso". In case of several opened positions, the position with the highest floating losses will be closed first.



    This is for 4 months that they cannot resolve this problem.

    Liteforex is Scam
     
  2. PersTrader

    PersTrader Recruit

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    Warning!!!
    Liteforex it's a big Scam!
     
  3. FxMaster

    FxMaster Lt. Colonel

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    Invite the LiteForex Official, LiteForex.com Rep to this thread
     
  4. LiteForex Official

    LiteForex Official LiteForex.com Rep

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    Dear PersTrader,


    Orders 76055212, 76130724 were closed according to the Agreement on the quoting mechanism and conducting of trading operations, if the account current Margin Level is less than 100%.

    7. Compulsory closure of positions

    7.1. The Company has the right to close Client's open positions compulsorily without notice if the account current Margin Level is less than 100% of the margin necessary for maintaining open positions (Margin Call).

    Order 76055212 was closed, margin level 99.26%

    Order 6130724 was closed, margin level 94.22%

    Next, You sent a complaint about the closure of the above orders. You received a clear explanation of the reason for the closure of orders 76055212, 76130724 and were offered to solve the problem by reopening the order, because the trading instrument price had consolidated near to the position close level.

    Please, note that by the offer to reopen the orders closed by margin call, the Company expresses its loyalty to You, i.e. the Company has made concessions in order to solve the issue in the Client's (Your) favour.

    That is what distinguishes us from most other companies – we are completely client-friendly.

    The offer to restore the positions was sent to You at 12:59 (terminal time) on 05.02.2018; at that time, the FDAX index price was at 12712.0. Then, it was reasonable to reopen the orders, as the price had hardly changed.

    Next, the price significantly declined and the loss from the rest of the positions on Your account 374640 increased. After that, at 22:10 (terminal time) on 05.02.2018 all positions were closed (stop out) at the price of 12180.3(FDAX). It should be noted that if the above orders, closed by margin call had been reopened, it would have add 1 584.70 USD of loss. It would result in closure of all positions by stop out much earlier.

    In the period since 22:10 05.02.2018 till 06:00 06.02.2018 the price continued declining and was 5 000 points down. In this regard, Your confirmation to restore the two orders closed by margin call that You sent to the Company on 06.02.2018 at 14:01 could not have been implemented due to the following reasons:

    First, due to a significant change in the price after the reopening had been confirmed.

    Second, at the time of Your answer there was not sufficient funds on Your account to reopen these orders (there was 158.19 USD on Your account, while You must meet the margin requirements for orders of total volume of 2 lots (308.68$) to reopen these orders.

    In addition, the price at that time was below the close price of the above positions (buy FDAX), it means, there would be additional loss form these orders equal to 960.96 USD.

    To sum up, the Company has met all its obligations to You. Orders were closed according to the regulations; it was impossible and irrelevant to reopen the orders under those conditions and those prices.

    The Company is always ready to accommodate the clients; however, under the circumstances, we have to deny Your request to reopen/cancel the above positions.

    Best regards,
    representative of LiteForex
     
  5. 4evermaat

    4evermaat 2nd Lieutenant

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