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RESOLVED Case# 2017-113 | chitak vs colmexpro.com

Discussion in 'Traders Court Resolved Cases' started by chitak, Nov 1, 2017.

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Based on the available evidence, do you believe that ColmexPro.com is Guilty?

Poll closed Nov 19, 2017.
  1. Guilty

    98 vote(s)
    98.0%
  2. Not guilty

    2 vote(s)
    2.0%
  1. chitak

    chitak Sergeant

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    Original FPA Traders Court Submission by chitak:

    I am submitting the case against: colmexpro.com

    My Case is: I traded with Colmex pro for about 10 months, beginning in Jan 2017, I do news trading using an EA. My colmex account # is CFX55807(for reference if colmex decides to show up here and make this right). Recently I requested to withdraw all my profits and funds(execution has become slow so I was unable to continue trading) which at the time was around 13,000 USD shortly after I submitted the request I was notified my account was under investigation and all withdrawals and trading is suspended until the investiagation is completed.
    My profits weren't all that big in terms of percentage gain about 30% over almost 1 year, it looks like they decided to cancel profits and cited a reason that honestly seems very silly.

    For a while I did not hear anything and all my emails were unanswered. Then one day I got an email asking some questions about my trading. I answered them, telling Colmex my trading system is news trading and I use an EA to trade news, also they asked if my account was managed by a third party which I said it wasn't, only I trade my account.

    About a week passed and Colmex informed me that my account's profits are being reversed and they sent back my deposit. The reason they said was because they say I used a money manager who is not licensed and that is in breach of their terms. Again I only trade my account, no one else has access. I informed them I use a VPS which probably is used by others but using a VPS should not be grounds for taking profits away.

    Here is a quote from the last of Colmex's emails "Following your emails and explanations, please be advised that due to the suspicion of breach of the Law, we have been acting in accordance with sections 14.4 v and 14.6 of our terms and conditions."

    They are saying they could review their decision if I prove a third party did not trade my account. Which I explained to them it didn't. I informed them of the VPS I use which is located in the UK, a large company as far as I know called icloudhosting.com. I do not want to reveal the name of the EA I use because it is very profitable as you can see from my profits, and with news trading once many people start using a broker or the same EA liquidity dries up and fills get bad.

    I never got anyone's name at colmex, their emails were always signed as support so I can't say much about who contacted me. All I have is the support email.

    New thread in the Scam Alerts Folder:
    RESOLVED - Colmex confiscated all profits

    Review is submitted by chitak on 10/23/17

    The company was first contacted about the issue on 09/19/17, the last contact was on 10/24/17

    Details: Here is one email from Colmex that pretty much sums up what they did and their explanation:

    Further to your complaint and would like to explain our reasoning of the decision we have taken.

    During an internal investigation we have found that the trades made in your account perfectly match trades in accounts of a number of our clients, in terms of:
    - Financial instrument traded
    - Time of placing and closing the trade
    - Volume of equity invested in the specific trade compared to the total equity

    In addition, we have located the origin of instructions for placing and closing your trades as well as of the same clients being a similar IP address and location. Whereas according to the documentation provided during your registration you are not residing at that location.

    This indicates, whether you are aware of it or not, that you have enabled a third party to manage your account, that comes under the definition of Portfolio Management. As we have explained in our previous email, the provision of Portfolio Management without authorisation is a breach of Law.

    We might reconsider our decision if you can provide us with the Portfolio Management license of the third party which was trading on your behalf.
    If you still disagree with our decision, please provide us with a reasonable explanation and evidence that the trades in your account were not done by a third party.

    Please note that in case you fail to provide us with relevant proof, the Company shall consider reporting this incident to the national competent authority, the Cyprus Securities and Exchange Commission (‘CySEC’), for further investigation as well as to the national competent authorities of your county, as portfolio management without authorisation is also violating the laws or regulations to which you are subject.

    Company representatives' emails:
    support <support@colmexpro.com>

    Attached Files:

    1. colmex.png
    2. colmex1.png

     
  2. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

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    Can you please invite Colmexpro to your thread in Scam Alerts. Email them, include the link to that thread, and ask them to join the discussion.

    What was the date they notified you about cancelling your trades?
     
    chitak likes this.
  3. chitak

    chitak Sergeant

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    Invited them already. They notified me on Sept 15th of the account review, and that they're terminating the contract and cancelling all profits on Oct 11th.
     
  4. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

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    I've just sent them the formal FPA invitation.

    Please post an update on Wednesday to let me know if you've heard anything new from them or not.
     
  5. chitak

    chitak Sergeant

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    Ok will update on Wednesday, haven't head anything from them since I sent them the invitation myself
     
  6. chitak

    chitak Sergeant

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    An update, have not heard from Colmex. I invited them to the scam alerts thread on Nov 2nd, but have not heard from them at all since the last communication from them which was Oct 30th. They're good at ignoring emails and write whenever they feel like it. Which is odd considering when I opened the account emails were responded to within 24 hours.
     
  7. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

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    Next week will be a busy week for votes. I'm moving this over to Open Cases now.
     
  8. L0STCTRL

    L0STCTRL Private, 1st Class

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    Will these people cease to exist? Plain Guilty, even dummies get that!
     
  9. chitak

    chitak Sergeant

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    I know some people might come here and ask why I would do business with this broker. I try to stick with regulated entities, and Colemx is regulated(CySec) and looked like a decent company, so I had no reason to be doubtful. I didn't find any scam warnings at the time of my account opening...

    Hopefully we label them as scam and they go out of business.
     
  10. Dragonslipper

    Dragonslipper Corporal

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    They are scammers .... a legit operation would be more than happy to enter a forum and present their evidence and reasoning for their actions.
     

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