Xforex.com issue - Resolved

Before opening an account with xforex.com an email was sent to them with the following question:

Hi,
I am interested in opening a forex account Please could you clarify your rules on trading around volatile times and scalping, some brokers remove these types of profits - what is your stance on this type of trading?
Thanks

Their reply was.....

Hi , our spreads are fixed so during volatile times they do not move. As for scalping when you open a position with us it must remain open for a minimum of 2 minutes then it’s free to do whatever you want with. Does this help?

So I deposited $1,000. A few months later I submitted a withdrawal request for $6000. I received the following email:

Your account has been blocked as of significant suspicion of fraud behavior.
After intensive checks which took place by our risk management specialists, we have found clear and proven indication for an essential amount of transactions in your account, which were issued at an exchange rate, that at the time of the transactions, was not the accurate rate of exchange for that said transaction.
Therefore, and in accordance with the terms of use, these transactions will be cancelled and you will be refunded for all deposits which took place to the said account


All my trades were placed at news time but honoured their 2 minute rule. Obviously that wasn't good enough for them. FPA members beware.

 

I emailed Xforex telling them I reported Bforex to FPA for exactly the same reasons, and will therefore be filing a complaint with FPA against them.

They replied with the following:

as you were explained before, your trading trend consistently violates the terms of use (we refer you to chapter 14.2).

Section 14.2 of their terms and conditions states the following:

14.2. Ultimass Global Holding Inc. reserves the right, provided a prior written notice to this effect has been sent to you, to cancel any Transaction that due to a System and/or human error, whether under the control of Ultimass Global Holding Inc. or not, has been execute at an exchange rate which at the time of the Transaction was not the indicative and/or accurate rate of exchange for that said transaction.

This is a another SCAM broker who will deleted all profitable trades by using systems errors as an excuse to prevent you from withdrawing profits.

It's strange how these "errors" only become apparant when you want to withdraw money months later. If these were genuine errors they should be corrected on the same day it occurs. Also, after each trade there is an online trade confirmation, this is a contractual agreements beteen the broker and the client indicating the price which has been executed and agreed. For all the executed trades, the price has never been disputed by the broker and should therefore be honoured.

 

It's usually a good idea to do some withdrawals early. The 2 big tests are:

1. Can you withdraw anything?

2. Can you still withdraw once you've pulled out all of your initial deposit?

Bad brokers, on the other hand, hope that if you make profits that you'll keep dumping more money into the account. Then, they can nail you later when you finally try to cash out some of your profits.

I hope you've also left a nice, shiny one star review for this so-called brokerage.

 

Resolved

I am pleased to say that Xforex and myself have amicably resolved this matter. Many thanks to FPA with their assistance in this matter.