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SCAM MexExchange(AU) cancelled large amount of profits

Discussion in 'Scam Alerts' started by chitak, Oct 28, 2018.

  1. chitak

    chitak Sergeant

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    Hi all,

    I am posting about MexExchange(AU) here, I have another thread about MexGroup(BVI). I had accounts at both of these entities. It appears these firms are possibly operating as one entity while they are regulated by different jurisdictions, which in itself is very likely a violation of ASIC rules.

    So I got an email in September that a whole batch of trades is being cancelled by MEX AU, the total amount being EUR 11,766.77 on one account and USD 119.54, this happend on Sep 5th 2018. A few days later I received another email telling me they've concluded their investigation and they're cancelling a whole batch of trades and 'netting off' trades placed during a certain time to 0. I am attaching both emails I got from MEX.

    The trades cancelled are all on GBP pairs and were not very short, some were a few seconds while others were 16 minutes long. I trade during new releases so my trades are always like that, one base currency and I look for potential profits with many crosses, hence all the GBP trades.

    I waited this long to post my complaint as I wanted to take out all my money before filing the complaint, and I did not want to draw too much attention to my account so I don't risk them taking more of my hard earned money away.

    The interesting thing was that as soon as MEX AU cancelled those trades, MEX BVI cancelled almost all my profits going back 6 months. I attribute this to MEX BVI not being strictly regulated so they think they could do whatever they want and cancel profits as far back as they decide.

    Here is a link to my other scam alert against MEX BVI - https://www.forexpeacearmy.com/comm...al-scam-mexgroup-bvi-cancelled-profits.57815/

    I will be filing a complaint with ASIC if this does noe get resolved here

    I am attaching the emails I got from MEX and also the spreadsheets showing the trades cancelled.

    Recently I got an email from MEX asking me why I haven't been trading lately. Well... I didn't respond but I think it's obvious lol
     

    Attached Files:

    Jeremmy and oscarra like this.
  2. MEX Australia

    MEX Australia MEX Exchange Representative

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    Hi Alexander,

    We can’t address the BVI entity as we are a separate operation. However will gladly address all enquiries related to MEX Australia.
    Therefore we kindly refer you to our detailed reply with regards to this unfortunate situation.
    We think our reply is being missed here. So we thought it's best to repost our reply for your reference:

    "Hello MEX Traders,
    Our intention of this post is to honor the statement which our Sales Director posted in the ‘company profile’ section on FPA, by professionally responding and defending the upcoming reputation of MEX Exchange Australia.

    Therefore, we felt the need to chime in on this post as it only seems fair to elaborate with sincerity on the full scenario for public acknowledge.

    MEX Australia is constantly optimizing our infrastructure to improve the user experience for our clients and its disappointing to read unilateral statements on a very unfortunate infrastructure issue that we as firm experienced along with our clients via a 3rd party provider.

    As we use a significant amount of 3rd party services and technology, we like any business can experience issues from time to time.

    Due to an LP experiencing a significant ‘time’ delay in their price feed for all GBP pairs, MEX was notified that we would have all trades voided that were executed during the delay.
    This means ‘Trade Losses as well as Profits’. Unsurprisingly, traders are not requesting for their trade losses to be reinstated, nevertheless we provided ALL enquiring clients a significant amount of evidence for our clients to review. Such as tick data with price and ‘time’ stamps for all GBP pairs, bridge tickets from our bridge provider and separate tick data with no price delay for our valued traders to review for themselves.

    We are a price ‘taker’ as we are ‘taking’ the price from liquidity providers who are ‘making’ the price. Ultimately, our clients face us and we face our liquidity providers, evidently facilitating a very unfortunate ripple effect down the line.

    OTC FX pricing can be complicated at the best of times. So an easier analogy to use might be for example, say there is a Wholesale Car Dealer providing cars to a Retail Car Dealer who is then selling services/products to public consumers/end users.

    Now, if the Wholesaler Car Dealer had an issue/fault with their products that they provided to the Retail Car Dealer who was then selling those products to public consumers/end users, these faults or issues may not be noticed until it reaches the end user.

    Due to this fault the Wholesaler Car Dealer would then ‘recall’ those cars from the Retail Car Dealer who then ‘recalls them from the end user.

    Now some users may have been able to purchase the same ‘type’ or similar car from another retail shop without having that issue or fault as that Retail Shop was using a deferent Wholesaler.

    So in this this real life trading situation, the Wholesaler is the ‘Liquidity Provider’ the Retail Shop is ‘MEX Exchange’ and the end users are the ‘MT4 traders’. I know this analogy may not be an ‘exact’ comparison but it does provide more clarity and another side of the coin.

    Evidently, the decision our LP made was to void ALL trades that were executed within those time frames, which means a lot of trade losses as well as profits, conveniently clients don’t mention trade losses being voided.
    Traders were not negatively affected, remediation involves ‘netting off’ any trades placed it those timeframes to be ZERO, meaning no one will be better or worse off.

    MEX is a customer focused business, we are constantly striving to exceed our customer’s expectations, as a consequence of this unfortunate event we understand that some customer’s may feel that we have failed to meet their expectation and no one is more disappointed about this than us.
    However we assure the current and prospective clients of MEX that this focus has not, and will not change and MEX have taken the feedback and subsequent remediation of this situation with the seriousness it deserves.
    As far as individualized situations, we are more than happy to professionally discuss them outside of the forum in more detail.
    Best regards,

    MEX Exchange Australia"
     
  3. oscarra

    oscarra 2nd Lieutenant

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    We only see winning trades been cancelled , don’t understand the above car dealer speech, LP issues had long time been very questionable since in most cases it takes true courts to discover the deep truth , quite often regulators are also been misleaded…

    Thousands of trades voided and the company had not even advised ASIC , prior taking such actions as cancelling trades…:rolleyes:

    Wasting further time for a professional outcome, might just be useless

    https://financefeeds.com/new-austra...il&utm_term=0_666303b7c9-5e7af12144-191557681


    https://mexexchange.com/wp-content/uploads/2018/08/MEX-Product-Disclosure-Statement-PDS.pdf
     
    Anatoly M likes this.
  4. chitak

    chitak Sergeant

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    Thanks for that article. I will look into filing a complaint with that agency as well as the FOS, and a misconduct complaint directly with ASIC. For now I've asked MEX to give me the name of the LP and contact details so that I may get in touch with them and verify all that is being said is indeed true, and then to further examine the LP, whether or not they're regulated and whether or not MEX can pass on responsibily to the LP like they're doing.

    In any case what the above MEX rep said about the AU and BVI companies not being related I find highly doubtful. The way the cancellations took place, the AU entity cancelled my trades and right around the same time the BVI entity cancelled trades, I find it hard to beleive that this is coincidence.

    In any case we will get to the bottom of this soon with the help of the regulator. I sure hope large fines are applies on top of my full refund!!
     
  5. chitak

    chitak Sergeant

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    Dear MEX representative. Please refund all my losses as well as profits. I never said anything about only reinstating profits, I want all my trades that were cancelled to be back on my ledger and the profit/loss reinstated. I know my trades and I have more winning ones so what you're saying about not asking to refund losing trades sounds very silly and you're making fools of yourselves by even mentioning that.

    Fortunately for me ASIC is a very togh regulator and they will most likely order you to repay, I was just hoping you'd do it without going through the hassle of dealing with the regulator.

    There is still time to make this right. I will be filing a complaint next week.
     
  6. Anatoly M

    Anatoly M Corporal

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    another scammer is hiding behind LP
     
  7. chitak

    chitak Sergeant

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    Unofrtunately unscrupulous businesses are doing anything they can to put more money in their pockets.
     
  8. MEX Australia

    MEX Australia MEX Exchange Representative

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    Hello Alexander,

    In order for us to offer another layer of integrity and further support the authenticity of this unfortunate Liquidity Provider issue, we have provided two Live Account statements of traders that were involved who had trade ‘losses’ voided due to their trades being executed during the price delay. Due to client privacy and to adhere to our strict compliance obligation, we are required to blank out private account information.

    As clearly evidenced below you can see there has been no discrimination of trade size, profit or loss or anything else of the kind.

    Server Timeframe: GMT+3 on the 5th of September 2018:


    · 16:05:27 to 16:07:05

    · 16:18:05 to 16:18:10

    · 18:22:48 to 18:24:55


    (Please see trading statements attached)

    As previously stated in this forum and to all affected clients it was simply ALL GBP trades executed in the specified times frames were netted off to ZERO.

    Best regards,

    MEX Exchange Australia
     

    Attached Files:

  9. chitak

    chitak Sergeant

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    I am attaching a screenshot of quotes from a Bloomberg terminal for the time in question. This is probably the most reliable source of pricing, and the price is very consistent with the MEX price, nothing is off. Is Bloomberg also wrong?
     

    Attached Files:

  10. chitak

    chitak Sergeant

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    I've now sumitted my case agaist MEX with AFCA, the government body handling complaints in Australia. Will keep everyone posted on the outcome
     
    Anatoly M likes this.

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