USGFX cheated client 26 Dec 2016 via widened spreads. Need help recovering loss, moving account.

forexengines

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22
Case Summary:
Our company renders professional Forex autotrading service to a chinese client which currently maintains a trading account with USGFX. Our robots started trading client's US$10k account on 19th Dec 2016. By the morning of 26th Dec 2016 we observed a suspicious, unbelievably wide spread of more than 1800 Pips!!! on the currency pair EURAUD ( image source: https://image-store.slidesharecdn.com/6719b9d3-1ae5-41d9-8419-9fc21ec8b95c-large.png ) and immediately published an updated on Linkedin ( source: http://www.linkedin.com/hp/update/6219082536266588160 ) with a request for USGFX' Administration to publicly explain what is happening. But till the moment of filing this Case, USGFX' Admin is silent!!!
Next, during the day of 26th December 2016 followed extremely suspicious widened spreads on additional four currency pairs: EUAUD; NZDCAD (image source: https://image-store.slidesharecdn.com/ade07a2c-16ef-41f5-9091-12721cbb7945-large.png ; details: http://www.linkedin.com/hp/update/6219084770278727680 ); EURNZD (image source: https://image-store.slidesharecdn.com/4ac0747d-8a9a-44c8-82b3-57d082160752-large.png ; details: http://www.linkedin.com/hp/update/6219172307642957824 ) ; regrettably, we were unable to capture screenshot of the 4th currency pair chart before Broker intervened.
What was happening in our client's account was dramatic, and if at least ten currency pairs all had widened spreads of aboved mentioned value, our client's account would have been destroyed, and our robots would have been blamed for the loss!!!
Further evidence to prove that our robots were working honestly was the closure of three open trades on "SELL AUDJPY" at loss of US$331.04 when our robots honestly secured profit on the trades at no less than 80 Pips Trailing Stop - as can be witnessed on this image: https://image-store.slidesharecdn.com/8850aaca-116e-4f17-a2f1-18fc660d378d-large.png ; and details : http://www.linkedin.com/hp/update/6219549543483129856
Regrettably, our attempts to talk to the responsible "Boss at USGFX" have yielded no fruits! The female manager who has been communicating with us claims that her Boss DOES NOT talk to anybody! And our warning to her that she is closing eyes over the vivid cheating USGFX does and that we shall file a Case today with Forex Peace Army to help our client get the US$331.04 loss paid by USGFX and his account protected henceforth could only meet the female manager's insults today that our robots are to blame!

Our Requests to Forex Peace Army:
1) Please take applicable measures to have USGFX promptly pay the US$331.04 loss to our client.
2) Please take applicable measures to have USGFX promptly move our client's account from their "Live Server 2" where all above described matter occured to "Live Server" (their first main global server) - where we did not observe such problems - considering that our robots also trade a few accounts on "Live Server". (It is important to remark here that USGFX claims that they cannot move our client's account to "Live Server" which is suspicious, considering that such operation can be easily done with all accounts held with "one Broker").

Client's account details will be provided on request to Forex Peace Army.

Many thanks for your kind attention.
 

Pharaoh

Colonel
Messages
19,964
Send the link to this thread to USGFX. Ask them to come here and explain the differences between Live Server and Live Server 2. Ask them to explain why they can't transfer an account between those 2 servers.
 

forexengines

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22
Send the link to this thread to USGFX. Ask them to come here and explain the differences between Live Server and Live Server 2. Ask them to explain why they can't transfer an account between those 2 servers.

We have just notified USGFX' Adminitration to visit this page and provide applicable explanations. Attached herein is a partial screenshot of the message just dispatched to USGFX with CC to our client.
 

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forexengines

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Dear All,

Happy New Year 2017!!!
Heartily Wishing All Forex Traders & Investors A Truly Successful New Year 2017 In Your Forex Investments.

This is a follow up message to further expose the "tricks" and "mysteries" behind USGFX' two live servers, namely: Live server 1 (correct name: USGFX-Live) and Live server 2 (correct name: USGFX-Live2) with four screenshots taken (at approximately two minutes interval) by us today 2nd January 2017 from a propperly functioning account (with current account balance: US$111 671.50, being traded by our robots) on the server USGFX-Live, and the problematic US$10k client's account (with current balance US$9 901.59) being held by USGFX on the server USGFX-Live2.

As can be seen from the attached screenshots, after approximately two minutes interval, we can see floating Profit/Loss on problematic account held on server USGFX-Live2 at same value of US$657.52 !!! ... which is a VIVID PROOF that either the server USGFX-Live2 is totally turned OFF or does not belong to USGFX at all !!!

We are calling on Forex Peace Army to handle this case properly, and have USGFX immediately pay the US$331.04 loss to our client and transfer his account to the server: USGFX-Live

Thank you.
 

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forexengines

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Further updates:

Eight hours later, attached two screenshots prove that there are no price movements in our client's problematic account being held by USGFX on the server "USGFX-Live2", while comparative account on server "USGFX-Live" is working normally.

So far, we have given enough proof that there are serious "tricks" and "mysteries" behind USGFX' two live servers, while this broker keeps total silence till this moment, except USGFX' female manager's Skype call to our office on 29th Dec 2016 with a request "not to make this matter public"!!!

But we cannot do otherwise, as the female manager is same person who insulted us and asserted that our robots are to blame for the US$331.04 loss! And if our client had lost his US$10k account on 26th Dec 2016 consequent to abnormally widened spreads which no specialist in the Forex industry would term as "normal", we would have heard the same accusation that our robots caused the heavy loss. This case is the only way we can prove transparency and reliability of our service. Now is turn for USGFX to publicly explain the difference between their two live servers.
 

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Pharaoh

Colonel
Messages
19,964
Make it plain to USGFX that you'll soon be closing down the accounts on Live Server if they don't want to discuss the issue with Live Server 2.
 

ray-fx

USGFX Representative
Messages
3
Hi FPA and forexengines,

HAPPY NEW YEAR 2017!!!
I apologize for such a late response as I have tried to contact you via the telephone last week but to no avail.
I am a business director of USGFX and would like to take this opportunity to go over this specific case with all of us here in the FPA.

First let us take a look at the set-up of USGFX.
Servers: London = Server 1 ; HK = Server 2
The two servers that exist in USGFX consists of having two different groupings of LP hooked onto the bridge on each server.
(more details can be provided privately via email or phone as to the setting and which LP)

Since these 2 servers are ran independently, it is not possible for USGFX to directly just change the accounts from Server 1 to Server 2 or vice versa, it is an independent entity.
Server 1 runs on a liquidity provider based in London, which it will follow the markets closing time of the LP in Europe.
Server 2 runs on a liquidity provider based in HK, which it will follow the market times of the Asia market.

**IMPORTANT NOTE**
During December 26, 2016 the opening and closing time of the 2 servers were different.
Please take a look at the attached file provided.

We do not blame your EA for the loses, as it is the natural market movement of the time.
Days before and after the Christmas Holiday and New Years Holiday it is normal for the markets to be very unstable, as a natural tendency the liquidity providers all will have unstable volatility in the spreads of all pairs, especially on the exotic and cross pairs.

Apart from it being the holidays, a major factor for the sudden hike in the spreads is due to the sudden change in the market.
The Change: European and the Americas LP/ Banks all were on holiday, data were all closed for half of the world, leaving only Asia as the open LP/ Banks to run the data, a sudden decrease in volume will always constitute to a drastic movement of the market.


So far is there any questions regarding this portion of the response?
If yes please let us know, as I can do my best to explain better.

Kind regards,
Raymond
 

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Pharaoh

Colonel
Messages
19,964
Seems to me that even if your servers were on different planets, moving an account from one to the other should still be possible. In a case like this, it would be a simple matter of closing the account on Server 2, sending a final statement, and then depositing the balance from the Server 2 account into a new account on Server 1.
 

forexengines

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Hello Raymond,

Thank you for your explanations.

May we take this opportunity to assert that your "Hong Kong based server 2" is a "GREAT RED MISTAKE" in the organization of USGFX' operations. Your HK based Server 2 is an often "dead server...during holidays"...that will give USGFX more headaches in the future!

Our case at the moment is a "small case". But if "a well-informed high net worth Forex investor" will lose a "high net worth amount" in similar circumstances, we are sure that USGFX will simply have to file for bankruptcy in order to settle that unfortunate client, who - we are sure - will take all necessary steps to get back her/his heavy losses!

We would advise that USGFX simply close down that "Hong Kong based Server 2" and keep only "London based Server 1" which carries "practical gloabl liquidity", and is reliable round-the-clock.

All the above being said, USGFX is responsible for immediate compensation of our client's US$331.04 loss, and we want this done today.

Next, as soon as our client's account equity is above balance, we shall close all open positions in his account and advise client to have his account immediately moved from Server 2 to Server 1, since this cannot be easily done by USGFX without touching open trades / transactions - also a mistery!!!
 
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