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Wall Street Brokers withdrawal problem

Discussion in 'Scam Alerts' started by MikKi, Sep 6, 2010.

  1. MikKi

    MikKi Private

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    Hello,

    I was a client of WSBrokers for more than a year. Their services were just OK, however, I requested a withdrawal (my 3rd after 2 successful ones) on 09.08.2010. Today I still don't have my money.
    Here are the facts that are relevant to this:
    - I had an account with more than USD 11000 deposited
    - I did withdraw USD 550 and USD 4000 successfully
    - I requested the withdrawal of USD 2000 on August 9, 2010.
    - I was using Tradency but quit and switched to allowed EA
    - USD 2000 was deducted from my trading balance on 16.08.2010
    - I asked few times for the status of my withdrawal request
    - I never was given an exact time when it will be completed
    - I requested a proof of transfer (swift copy of transfer) more than 3 times
    - I did send quite a few emails regarding the withdrawal but never received useful information just that their bank has problems and it's not the broker's fault
    - I was denied to get the name of the bank and was asked for patience
    - I asked if they could complete the withdrawal through a different payment method (like MoneyBookers) but was informed that it will be done through bank wire

    Knowing all the above I'm starting to think that WSB is not a reliable broker. Some of their behaviour is just inconsistent - I don't beleive that a bank won't complete money transfers for 4 full weeks. They also claim that they are connected to more than 1 bank - I just can't imagine why aren't they using a different bank if one of them is faulty. All of them can't have the same problems for 4 weeks :) All of this is just weird and inconsistent.

    Be very careful with WSBrokers!
     
  2. NickB

    NickB Forex4Noobs Rep.

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    Big surprise they're not NFA registered. I contacted via live chat to ask the conversation went something like this. I used the name Tony

    ----------------------------------
    Jude: Hello welcome to WS brokers we are pleased you contacted us at WS brokers.
    Tony: Hi, I want to open an account but have a few questions to ask first.
    Tony: What country is WS Brokers based in?
    Jude: USA
    Tony: Are you fully US based?
    Jude: Yes.
    Tony: How long have you been in business and have you always been US based?
    Jude: We have been operating for 5 years out oft he US.
    Tony: Are you NFA or CFTC registered?
    Jude: No we are not but we are in the process of registering. Once we are registered we will post a notice on our website.
    Tony: If you have been a US based broker for 5 years you should already be registered. You are not allowed to operate in the US unregistered. So I will ask again if you're completely US based?

    At this point the chat disconnected.
    ----------------------------------

    It is no surprise they would not answer. It is likely that this is a bucket shop with a small US based office to take calls and create the pretence that they are US based. However, their client funds are likely held overseas and they probably clear overseas.

    What I would do is contact the NFA and CFTC. Tell them that this broker claimed to be US based when you signed up. Ask them what the best course of action would be.

    If you get a chance close the account and sign up with a real US based NFA registerd broker or a UK based FSA register broker. There are also other countries with strict regulations Australia, New Zealand, Switzerland, Canada, Japan.
     
    #2 NickB, Sep 6, 2010
    Last edited: Sep 6, 2010
  3. Pharaoh

    Pharaoh Colonel

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    I love all those brokers with virtual offices that claim to be somewhere they aren't.

    Never place money with a broker if you don't know where they REALLY are. Hopefully, you won't ever need to knock on their door, but it's nice to know where it is if the need ever arises.
     
  4. NickB

    NickB Forex4Noobs Rep.

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    You should try to find out what country they clear from. If you do we can give you some more information on who would be best to contact. Did you send the money via a bank money wire by chance? If you did what country is the bank you sent to located in?
     
  5. MikKi

    MikKi Private

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    I did my deposits using MoneyBookers. Unfortunately they won't complete withdrawals using e-currencies only bank wire. My previous withdrawals were sent from Hellenic Bank (Greece) if I'm not mistaken. I already wrote them an email asking about Wall Street Brokers but got no reply.
    If You can, please, tell me who should I contact. I just filed a complaint at NFA.

    Thank You all for Your help,
    MikKi
     
  6. NickB

    NickB Forex4Noobs Rep.

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    Ok withdrawals sent from Greece does not mean client funds are held in Greece. I have a feeling your funds are being held elsewhere. Perhaps in Cyprus? Either way I have found the Capital Market Commission of Greece the link is below (I ran it through Google translate as it is in Greek):

    Google Translate

    I highly doubt these people will be able to help you but you might want to try and contact them anyway. I believe your funds are probably being held in Cyprus.

    There really isn't much you can do until you find out where the money is held. You could try calling them and asking them? I mean you're a customer they might tell you. These guys do not seem very forthcoming though.

    Do you mind if I ask how much money you have with them?
     
  7. MikKi

    MikKi Private

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    Thanks for the tip, I'll try.
    Actually I lost all my remaining money on that account due to my fault (pshychology?) so all I have is the pending withdrawal which is USD 2000. It is not on my trading account nor it is anywhere else I can see.
     
  8. NickB

    NickB Forex4Noobs Rep.

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    I see, so you requested a withdrawal, and they took the money out of your trading account. Yet they never sent it to you? Well like I said, get info on the country in which they store client funds, then I can help you kick these guys arses.
     
  9. MikKi

    MikKi Private

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    Exactly. It was deducted from the trading account but not yet sent to me. And they admit this which is good but still I can't spend the promises in the shop :)
    I'm digging into the details more...
     
  10. MikKi

    MikKi Private

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    I had a chat with them in incognito. Here is the transcript. I was using the name Frank Brown. I found out that they might store funds in UK or in Cyprus but couldn't get it exactly. I don't understand many of the support's answers. Do You? It seems weird to me.

    -----
    Nick: Welcome to Wall Street Brokers'™ live chat service. I will be glad to answer your questions.
    Frank Brown: hello
    Nick: How may I help you?
    Frank Brown: I have a few questions before I open a new account
    Nick: Sure, go ahead.
    Frank Brown: which country do you keep customer funds?
    Nick: We have different banks to deal with.
    Nick: We have one in U.K. and one in Cyprus.
    Nick: Where are you located?
    Frank Brown: how do you deceide to which country do you put the funds?
    Frank Brown: I'm from the UK but am now abroad
    Nick: The client is free to decide where to deposit your money.
    Nick: Ok, you can deposit in the U.K. or Cyprus.
    Frank Brown: I can ask You where to put my money?
    Nick: When you open an account we will give you our bank details and then you can choose which bank do you prefer.
    Frank Brown: I see. And all my funds will be kept in the very same bank?
    Frank Brown: and my profits will be sent back there?
    Nick: Yes, Mr. Brown.
    Nick: You can withdraw your profits at anytime.
    Frank Brown: And what about e-currencies?
    Nick: What exactly?
    Frank Brown: If I saw it right you allow depositing through MoneyBookers, don't you?
    Nick: yes, we do.
    Nick: and we have Cash U.
    Frank Brown: if I use this kind of deposit where will my funds go?
    Nick: It will go to your moneybooker or cash u account and then you can use them.
    Nick: In moneybooker they will deposited in your account and you take them to your Visa.
    Frank Brown: You don't understand me
    Frank Brown: if I deposit using CashU where will you put that money?
    Nick: They will remain in Cash U.
    Frank Brown: And for MoneyBookers?
    Nick: The same.
    Frank Brown: so I will be trading using funds from a MoneyBookers account?
    Frank Brown: how is this possible?
    Nick: When you deposit your funds in our Moneybooker account, we will deposit them in your trading account.
    Frank Brown: ok, but as You said the funds will never leave MoneyBookers. If this is the case, how do You use it for trading?
    Nick: No, i don't mean that they will never leave the moneybooker acount. We fill transfer them to your trading account after you open it.
    Frank Brown: I don't get it. Which bank will you transfer the money? I understand that I will see it in my trading account. But where will those funds be kept?
    Nick: They will be kept in your trading account.
    Nick: Mr. Brown you said it yourself, this is e-banking.
    Frank Brown: OK, but the funds in an e-bank have a real value in some 'normal' bank account
    Frank Brown: will it be in UK or in Cyprus?
    Nick: yes, sure.
    Nick: it depends on your location.
    Frank Brown: ok, so I guess it would be UK, right?
    Nick: most probably.
    Frank Brown: what does it depend on?
    Nick: Sometimes it depends on your location, or the fastest bank in the transaction.
    Frank Brown: okay
    Frank Brown: I have to think it through
    Frank Brown: thanks for the help
    Nick: Finally, you can withdraw your funds at anytime or deposit in your account.
    Frank Brown: ok, good bye
    Nick: It was a pleasure talking to you. I hope I was able to assist you.
     

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