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problem with Alpari UK - what do you think?

Discussion in 'Scam Alerts' started by kubek, May 26, 2010.

  1. kubek

    kubek Private

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    Hello everybody!

    I have a problem with Alpari UK. On 18 may I opened a long position on eur/chf (at 20:25 alpari's server time, price: 1.40050, SL 1.39900, 1 lot). It was closed on obvious bad tick 3 hours later (23:11) - price felt to 1.39242. Couple of minutes later I noticed it and checked the complaint procedure on Alpari UK webpage. It says:

    8.8. The Company may resolve all Disputes:
    (a) by crediting/debiting the Customer’s Trading Account: this correcting entry will have an explanatory narrative;
    (b) by reopening erroneously closed positions; or
    (c) by deleting erroneously opened positions or placed Orders.

    after reading that I sent an email:

    I'd like to file a complaint. My name is Jakub XXXXXX, account nr 400XX. My order (ticket 22831XXX) was closed on SL on 23:11. It was an obvious bad tick - over 80.0 pips spike. I have live accounts with couple of other brokers and noone had that tick. Please bring back my closed position.

    Next morning I checked, and there were no response. I went for a trip, and when I came back i noticed, that my SL was canceled, but my trade wasn't reopened. The price then was over 1.43. I checked my email and found this:

    ...
    Due to an incorrect price feed received from our liquidity providers last night, an erroneous spread occurred on EURCHF between 23:11 CET & 23:58 that was out of line with the market. As you mentioned below, this caused your position to hit its stop loss level
    ...

    So i wrote them back, that I asked for reopening, not canceling the trade. Here's the reply I got:

    In this sort of situation it is our policy to indemnify you for the loss made on the trade due to the pricing error rather than reopen the position. If we were to reopen the position and the trade had gone against you then I’m sure you would not expect to pay us for any loss suffered.

    I can only apologise for the original error.


    This made me a bit angry, so I decided to contact compliance department directly with this e-mail:

    As suggested, I am forwarding my complaint to complaint department.

    This is my first email, written couple of minutes after a bad tick closed my trade on SL

    "Hello

    I'd like to file a complaint. My name is Jakub XXXX, account nr 400XX. My order (ticket 2283XXXX) was closed on SL on 23:11. It was an obvious bad tick - over 80.0 pips spike. I have live accounts with couple of other brokers and noone had that tick. Please bring back my closed position."

    If you check your logs, you'll be able to find, that there were many spikes during that time, so I basicly didnt have a chance to re-open that trade on that night.

    In paragraph 8, your "Terms of Business" says:

    8.8. The Company may resolve all Disputes:
    (a) by crediting/debiting the Customer’s Trading Account: this correcting entry will have an explanatory narrative;
    (b) by reopening erroneously closed positions; or
    (c) by deleting erroneously opened positions or placed Orders.

    Before mailing my first complaint I've read that document. Notice please, that I clearly asked for re-opening the trade, not canceling it. Therefore, once again I am asking to bring back my trade with the price it was orignaly opened.

    "If we were to reopen the position and the trade had gone against you then I’m sure you would not expect to pay us for any loss suffered."

    I have to disagree with that. First of all, I placed that trade for a reason. Right after it was closed by mistake, I asked to reopen it, not anything else. This shows, that I knew what I was doing. Suggesting the fact, that if the price would go not in my direction I would ask againt to close the re-opened trade is kind of insulting to me. I really am a honest person.

    Looking forward to hearing from you, hope the compliance department will dig deeper into my case. This one is very important for me and I know I'm right.


    and the response from compliance department:

    As explained to you before, there was a price widening issue with our liquidity providers that affected the spread. Due to an incorrect price feed received from our liquidity providers, an erroneous spread occurred on EURCHF at 23:11 that was out of line with the market. As you mentioned, this caused your position to hit its stop loss level that you had set at 1.3990.



    Here is the price date for 18th May from 21:10:52 to 23:12:08. The price in yellow we have considered a bad price , but as you can see even though spreads went out 25-30 pips there is enough to suggest to us that there was no or very little liquidity at this time. This period of the evening is normally when banks roll over their positions and it is not uncommon for there to be wide pricing issues.


    (the chart wont copy and paste, co I'll attach it as image)


    According to our chart if we had reopened the position for you it would have been stopped out during the next minute anyway as highlighted in red hence on this occasion we saw it fit to indemnify your account for the resulting loss to sum of 150CHF and not reopen the position.


    So basicly, once they told me, that they had error quotes during almost whole hour, then they claim everything was ok. I checked 10 otrher brokers (live feed) and noone had a price below 1.4, not to mention 1.39900

    Sorry for the long thread, but I wanted to describe everything as clear as possible. Please advise what to do next. My target profit was 1.45, this is 5k USD - a lot of money for me.
     

    Attached Files:

  2. patokoruwa7177

    patokoruwa7177 Recruit

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    Problem with Alpari

    Hey Kubek,
    I think the best thing for you to do is to accept their trade adjustment and take the refund. Sometime, these brokers can be funny. It is now left with you whether to continue trading with them or not.

    This is my view.
     
  3. Pharaoh

    Pharaoh Colonel

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    It's simple. Their terms allow them to chose whether to reopen the trade or to cancel it. Anyone care to wager what they'd have done if your initial complaint had been read at a moment when the trade would have been negative?
    ;)
     
  4. kubek

    kubek Private

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    Well, I guess I dont have a chance fighting with them. Funny thing is, I had two accounts with almost 20k usd with them, for over two years, and they did something like this. As soon as I close my trades I am closing the accounts
     
  5. RahmanSL

    RahmanSL Major

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    I wager 1/100pip that they will apologies profusely and offer to make that trade into a positive position and throw in a bonus for the inconvenient.
    No?? : )
     
: alpari, alpari uk

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