Traders Trust - Scam?

kubek

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I've been trading with TT for couple of months and were very happy with the service they provided. I turned my account from 3k USD to over 20k USD. Everything were great until the EURUSD big movement on 30.11.2011, 13:00 GMT.

My EA started trading short with big lots and tight SL - over 25 lots total opened, from 0.01 to around 2.6 each trade. What was my surprise when the price went straight thru my SL and then much higher. I tried to close the trades manually but was getting off-quotes all the time. Margin call didnt work as well. I had floating loss of over 25.000 USD (account balance around 20.000). Finally, after 15 minutes all the trades were closed, with over 60 pips slippage, leaving my account with something around 2-2,5k USD.I contacted my two friends, who are trading similar EA's and they had exactly same problem - trades closed afrer 15 minutes. The difference is that they were trading microlots!

I spoke with Traders Trust support for two weeks and they say it's not their fault - those the real markets condition they say.

First they claimed that there was no liquidity at that moment and the trades were closed at the first availble price. They couldnt even close 0.01 lot trade and it took them 15 minutes? Come on :)

Then I asked why didnt my Margin Call work. I had total almost 30 lots opened, which 1:200 leverage it gives over 17000 USD margin. They stop at 80% of the margin, so I should have around 14000 usd left. TT's explanation:
"According to the feedback from the MT4 specialist team, we can confirm that the during the spike, the price movement was so dramatic that stop out level had been exceeded and because of the fact that the order still needed to be closed, they were closed at the next available price."

We do have the higher level of stop-out that protects the clients and generally, it works perfectly, but as you know, during such conditions that rarely occur, there are scenarios where accounts do go into negative." I always thought that you can go into negative account balance only when you are left with opened trades on the weekend and there is a big gap. Well, it turns out you need only a bit bigger and unexpected movement on most liquid market to wipe out your account. Last couple of months there were many bigger and more dramatic spikes on much less liquid markets (USD/JPY during Asian session) and 4 times bigger spike on EUR/CHF (which is at least couple times less liquid market than EUR/USD). In none of above I had any problems with opening/closing trades.

Their Terms of Business say:
"If the Account Equity falls below the margin requirement, the trading platform will trigger an order to close all open positions. When positions have been over-leveraged or trading losses are incurred to the point that insufficient equity exists to maintain current open positions, a margin call will result, and open positions must be liquidated." This clearly didnt happen to me and I guess it was a violation of the agreement.

Another interesting thing from their explanations: "Also, during this time, due to the rapid movement, there was an issue with displaying that the orders were closed on the platform, when they were already closed. At this time, you tried to close the orders manually and received the off-quotes. As you can see, the reason for the off-quotes you had experienced were because the orders had already been closed by the system."

That is funny because I thought exaclty the same. But afrer restarting and reconeccting my platforms on two seperate computers it turned out not to be true. The trades were opened any time and I was unable to do anything with them. If the trades were closed by the system earlier, the Metatrader history would show, that they were closed on let's say 13:00 or 13:01. Instead it shows 13:15 (and a price from that minute) , exactly the moment that everything went back to normal.

That's my story. In couple of minutes I lost everything that I worked for during last 6 months, over 18000 USD and then 1500 USD more (because of no margin my previous trades got Margin Called - which suddenly started working!) The worst thing is that they claim that everyting is fine and that's the real market conditions. They refuse to acknowledge my missed Stop Loss and Margin Call, instead they offered me a gift - either an iPhone and an Ipad or 1500 USD deposit into my account. I told them I will accept the cash bonus but that wont solve my problem.

Dear FPA community, please tell me what do you think about this situation. I also invited mr Nicolas from TT to join this thread, maybe this will change something. Of course I have every possible proof of what I just described - logs, screenshots, statements etc. I also contected CYSEC about their procedures, but I want to try with FPA first.
 
I recommend going ahead and asking Cysec for an opinion on this issue. Make sure to get screenshots of everything immediately.
 
The purpose of this post is to provide some information in relation to the previous posting by user: kubek. Please note and we are very happy to say that the client remains active with Traders Trust and we hope that our client decides to continue the relationship with us once this situation has been resolved.

On the trading date of 30.11.2011 the Eur/Usd initially spiked to 1.3504 (from 1.3297), before reaching 1.3532 due to the news that six central banks coordinated action to increase their capacity to provide liquidity support for the global financial system. Prior and during the spike, the client in question who is trading with an EA had placed several stop loss orders for selling Eur/Usd, the EA took more short positions during the event. As a result of the spike (over 200 pips) where Eur/Usd reached 1.3504, the client’s stop loss orders received slippage, as their prices were never traded. Slippage can be expected and is a common scenario when trading with a full STP broker. A small technical delay occurred in the MT4 update where positions in the client’s account seemed to be open while they were actually closed. All stop loss orders placed previously by the client’s EA were executed.

Our client then experienced Off-quotes due to the fact that the client’s EA was trying to close trades which were already closed at their respective stop loss orders. Whilst the scenario caused some confusion, the positive side of the event was that this slight delay had a beneficial effect on the client’s account, as all stop loss orders were executed at prices 20-100 pips lower than the Eur/Usd initial spike price of 1.3504.

Consequently, the account was stopped out at the correct level of 50% (which is the correct percentage level in accordance to the Company’s Business Terms and Conditions), while the margin call level of 80% serves as merely a warning that additional funds are needed in order to maintain existing open trades.

At this point we would like to take this opportunity to mention that we do appreciate all of our clients, and in particularly have the upmost respect for the client in question and we believe that a special relationship was built between the client and the Traders Trust staff with the client often referring to our broker as the best he has ever worked with and paying special tribute to the rewards that the company offers its lota clients. In fact, we would like to point out that since the client choose Traders Trust as his preferred forex broker, the client managed to increase his account’s balance by nearly six times his initial deposits without any problems or complaints. Furthermore, the client was allowed to use any trading method/strategy without imposing any restrictions from our side and at the same time the client received several cash bonuses exceeding the value of USD 5000. Naturally, the company would love the opportunity to continue rewarding our clients loyalty given the opportunity.

We regret that the event occurred, but at the same time such incidents can happen (although rarely) when clients trade using automated systems such as EA’s and are unable to monitor their trading positions and actions during volatile market conditions synonymous with forex markets.

TTCM Support
 
Hi all ForexPeaceArmy users

I had to take some time off due to family matters, but right now I'm back on top of things. I have to say that what TT support wrote wasnt true.


" EA was trying to close trades which were already closed at their respective stop loss orders" - the trades were closed 15 minutes later.

"Consequently, the account was stopped out at the correct level of 50%" another lie. During that 15 minutes period I had negative floating loss bigger then my account size - that was over -25k usd and my account size was about 20800. My account was left with 2000 USD. Is that 50% of the margin?

What is more - after promising me 1500 USD reward the TT representative stop answering my emails. Of course I didnt get that money, this was another lie from TT's side.


"the client managed to increase his account’s balance by nearly six times his initial deposits without any problems or complaints. Furthermore, the client was allowed to use any trading method/strategy without imposing any restrictions from our side" - is it my fault that I had succesful trades? Of course all of my profit was wiped out on that spike, and 100 pips slippage. I guess my profit was too high for TT to handle.

What is interesting - couple of days ago I had simmilar problem with Traders Trust - I couldnt close my two trades, Stop Loss didnt work again. This time I lost only around 100$. And you know what - they compensated me for that loss! I guess if you trade small lots you are safe, but in bigger cases TT will just ignore you.

Today I contacted Cysec, I'm also planning to contant FSA. I hope I can get some support form FPA on this one as well. Maybe someone from TT will respond here because I cant get in touch with them via e-mail.

regards
 
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