1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

RESOLVED - XFOREX System Issue

Discussion in 'Resolved Issues' started by Skap, Aug 10, 2012.

  1. Skap

    Skap Private

    Joined:
    Aug 2, 2012
    Messages:
    13
    Likes Received:
    0
    The below issue has been resolved. The FPA team wrote to the compliance team at Xforex. The compliance team at Xforex have been prompt and professional in their deailings with me. We have reached a settlement of this, which I consider reasonable. Am waiting for them to credit this into my account. I will update when the credit is in my account

    Thank you to the Pharaoh, AsstModerator and the team at FPA for their help in reaching out to Xforex. The compliance team at Xforex has also informed me that they could be directly contacted as well at Compliance [Compliance@xforex.com] to resolve issues. The sense that I got was that they prefer to be contacted directly rather than through forums.

    I am relatively new to on-line FX brokers. Had an account in 2009 but never did anything with it until a few months ago. I have an account with Xforex (XForex Currency Trading). Can see that they are more expensive that many of the others.

    Their system crashed during the peak trading times after they heavily promote that trading during that time.

    This situation happened during the Draghi speech on August 2. During the Draghi speech on August 2, 2012, had two limit orders - long EUR (open at EUR 1.2380) and Short EUR (opened at 1.2300). As the speech was starting saw that the long position was triggered, right after that the system jammed up and the could not login to it. Mailed the account manager immediately and asked her what EUR was, she came back with 1.2283. Realising that both the limit order were executed, ask her to close the long position. She said that the dealing desk would call me but by the time dealing desk called me, EUR was 1.2196. Asked them about how will I get compensated for the difference, dealer did not understand, so in order to avoid further losses asked him to close the long position. There is an additional angle that the dealing desk closed the wrong position, they closed out the short position instead of the long position which I told them. The account manager assured me that she would sort it out and to trust her.

    During this time, I was able to log-on and saw the mistake of the dealing desk and closed the long position at 1.2205.

    Essentially, I could not login into the system when an important event was happening, might have caught the fall even earlier than 1.2283 but could not even get it at that rate as the system was still jammed. Basically lost 78 bps on this coz their system would not work. That is USD 3900 hole, which I am waiting for them to pay up.

    Have been getting nowhere with them for the past week. The old account manager have moved so have a new person. They keep saying that they agree that their system crashed and I should not have to suffer a loss for it but are refusing to pay up. The bizzare reasonsing that they have provided me that I should not have asked their dealing desk to close the position and EUR rebounded later. I had no way of knowing that EUR would rebound. At that point of time, I could see that the sentiment had changed and wanted to close it out to avoid further losses. Since their system was not working, I could not act on this, by the time their treasury called, there were further losses. See no reason, why I should have to bear the loss due to the crash of their system.

    The broker was heavily promoting trading during this news cycle so I had a reasonable expectation for the site to be working. In the previous weeks, they had the same problem but that was during a training session which was scheduled with the account manager so there was no real impact to me.
     
    #1 Skap, Aug 10, 2012
    Last edited: Aug 20, 2012
  2. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,674
    Likes Received:
    2,221
    Email XForex and tell them about this thread. Invite them to respond here. Promise that you will leave a followup letting people know how this situation was handled.

    In general, if there's a "one time" issue during a training session, you may want to either skip trading or keep positions to a bare minimum until the broker has proven that their system has become stable again.
     
  3. Skap

    Skap Private

    Joined:
    Aug 2, 2012
    Messages:
    13
    Likes Received:
    0
    Thank you so much for your guidance. Have mailed to Xforex about the thread and seeking their response

    "Dear Mike and Sharon,


    I have posted about my experience withe Xforex at Free Forex Trading Community With Forex Signals And Broker Reviews site. If you would like to respond, then the URL for that is http://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/21073-xforex-system-crash-scam.html. I intend to keep updating the forum about how the case is being handled by Xforex. You should also expect to hear from an adminstrator of the forum.


    Regards,


    Sonam"
     
  4. Skap

    Skap Private

    Joined:
    Aug 2, 2012
    Messages:
    13
    Likes Received:
    0
    Thanks Pharaoh for the advice. The warning sign was there when the system did not work during the training. Should have picked up on this.
     
  5. Skap

    Skap Private

    Joined:
    Aug 2, 2012
    Messages:
    13
    Likes Received:
    0
    I have informed them about this thread, invited them to respond and let them know that I will be updating the community on the outcomes. Hopefully we hear back from them. Many thanks for your attention
     
  6. compliance

    compliance XForex representative

    Joined:
    Mar 11, 2011
    Messages:
    5
    Likes Received:
    0
    Dear Sir

    First of all we would like to thank you for your email notification regarding your posting in the FPA.

    Please note that the correct procedure to file a complaint with XForex is to send an email at compliance@xforex.com with your username in order to be able to investigate and assist you with your problem.

    Nevertheless you shall receive an email from the compliance department of XForex as soon as possible.

    Thank you for your understanding and cooperation.

    Kind regards

    Compliance Department
     
  7. Skap

    Skap Private

    Joined:
    Aug 2, 2012
    Messages:
    13
    Likes Received:
    0
    Dear Sir,

    Thank you for pointing out the correct procedure for escalation to Xforex. I had been unable to find a suitable contact to escalate this matter from your web-site.

    I have been in correspondence with my account manager at Xforex from August 2. During this correspondence, indicated to them my intention of posting this matter with FPA and sought the comments of Xforex on my post. However, I failed to receive a response from Xforex regarding the posting.

    Look forward to receiving your email.
     
  8. Skap

    Skap Private

    Joined:
    Aug 2, 2012
    Messages:
    13
    Likes Received:
    0
    The Compliance team at Xforex has reached out to me to work out a resolution to this matter. I am in discussions with them and expect to see this resolved soon.
     
  9. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,674
    Likes Received:
    2,221
    That sounds like good news. Please post an update soon.
     
  10. Skap

    Skap Private

    Joined:
    Aug 2, 2012
    Messages:
    13
    Likes Received:
    0
    It is good news. I have reached a settlement with Xforex. They have offered me a settlement amount, which I have accepted. Am waiting for them to credit this into my account. I found the dealings with their compliance department prompt and professional.

    Would like to thank Pharaoh, AsstModerator and the team at FPA for their help. Thank you for the wonderful service that you provide to the trading community.
     

Share This Page