www.aaafx.com cheating customers by using Margin Calls

pilotmaterial

Recruit
Messages
4
This broker have a policy of closing all open trades in ones account when the A/C goes into a Margin Call. I dont think this is fair as other brokers simply close the offending trades one at a time until the margin comes back into regular levels.
With the current situation in the FX market and huge volatility in an already very volatile market this works well into their favor closing trades and taking customer's money that should never have been closed in the first place.
This has caused many people including my self and another friend's account to lose a lot of money and my friend losing everything!

Anyone else ever had similar problems please feel free to comment on this
 

vincam

Sergeant
Messages
322
This is something you have to watch for, some brokers, even reputable ones will not discriminate on what trades to margin call, some or all. It is not generally good to use a margin call as a stop loss, you never really know for sure what will happen when you leave it to the broker's discretion on where to close your trades. This is not really a dishonest practice, if the broker chooses which trades to close they will invariably receive complaints that they were not closed in the manner that the trader wanted.
 

Pharaoh

Colonel
Messages
19,828
With all brokers, you need to carefully read the TOS carefully.

You also need to reduce your lot sizes and/or number of open positions. Don't give any broker a chance to widen the spread a little and margin call you.
 

f-man

4Xangels Representative
Messages
762
This is something you have to watch for, some brokers, even reputable ones will not discriminate on what trades to margin call, some or all. It is not generally good to use a margin call as a stop loss, you never really know for sure what will happen when you leave it to the broker's discretion on where to close your trades. This is not really a dishonest practice, if the broker chooses which trades to close they will invariably receive complaints that they were not closed in the manner that the trader wanted.
I completely agree with vincam. Proper money management is extremely important for surviving in Forex and you have to keep a safe distance from a possible margin call to keep your account healthy.
 
Top