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XM ( Trading Point Holdings Ltd ) removed profits generated from legal news trading

Discussion in 'Scam Alerts' started by stevetrade, Jan 12, 2015.

  1. stevetrade

    stevetrade Recruit

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    On 8th January 2015 I received the below email from XM. I was not arbitrage trading but using a sophisticated news feed and trigger system to trade news events, something that is completely legal and which my trade history will support. I asked XM to provide proof of their accusations on several occasions and advised them that I would take action if they did not provide proof - a proof that I know will obviously not exist as I was trading legitimately. I accuse XM of unfairly removing my profits and plan to report them to the authorities as well for investigation. I advise staying away from this broker.
    Best regards Steve


    Dear Mr. XXXXXXXXX,

    Following a thorough investigation of your trading account(s) by our Compliance Department, we hereby would like to inform you that, based on a detailed review of the trading activity in your account(s), we have concluded that the transactions carried out in your account(s) between 01.10.2014 and 15.12.2014 were aimed at exploiting price latency arbitrage opportunities on our Company’s trading platform and at taking advantage of the internet delays which do not reflect the market rates at the time your trades were executed.

    Pursuant to Clauses 53.2 and 53.3 of the Company’s Terms and Conditions, to which you agreed when you opened your account(s) with our Company, we are, therefore, entitled, under these circumstances, to revoke the transactions initiated in your account(s), insofar as they relied on such price latency arbitrage opportunities and make the necessary and corresponding corrections and adjustments in your account(s) at our Company’s sole discretion. Accordingly, you will not be compensated for the profit of GBP 2505.53 resulting from the transactions in your account(s) that we have determined as resulting from the above-mentioned price latency arbitrage opportunities, since the transactions in your account(s) that gave rise to such profits are revoked/cancelled and any profits initially shown in your account(s) as a result of such transactions can, therefore, not be considered as legitimately made on your behalf.

    Accordingly in line with the foregoing, we hereby regret to have to inform you:

    - that your account(s) with our Company will be definitely closed with immediate effect;

    - that, pursuant to Clauses 53.2 and 53.3 of the Company’s Terms and Conditions, transaction(s), which relied on price latency arbitrage opportunities are definitely revoked/cancelled; and

    - that, as a result, we shall not be making any further payments and/or reimbursements to you.

    This letter is official. It speaks for itself that it is sent to you without prejudice to any rights and/or remedies our Company may have in relation to this matter, now or in the future.

    Sincerely,
     
  2. Pharaoh

    Pharaoh Colonel

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    Send an invitation to XM.com to come and join this discussion thread.
     
  3. alexx71

    alexx71 Recruit

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    It is becoming frustrating see how many companies try every possible tricks to steal money. We know they freeze platform, increase the slippage in an inconsiderate way, and now.....there's a new style that we see increase a lot in the last days : They accuse traders to do latency arbitrage !
    Now... if you put a point in the contract that is very vague and accuse you to make arbitrage JUST BECAUSE ANOTHER BROKER HAS A DIFFERENT PRICE so the broker has the freedom to cancel ANY trades WHENEVER they want ! Why ? Because it is implicit in the nature of forex that is OTC and so decentralized that prices are different from broker to broker, especially when there's volatility like in the case of fundamental news.
    I think they simply ABUSE of that clause to keep for them our money!
     
  4. alexx71

    alexx71 Recruit

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  5. veri5

    veri5 Corporal

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    its unethical bucketshop feature, especially Cyprus, we need to warn everyone and attract regulator's attention, in US its prohibited to steal this way, and responsible persons would face criminal penalties....
     
  6. FxMaster

    FxMaster Lt. Colonel

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    Two steps that you must follow.

    1st - Invite them via email (Send email to every possible address).

    2nd - Go to there website and invite them to here via Live Chat.

    Best Of Luck
     
  7. XM

    XM XM.com Representative

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    Dear stevetrade,

    It has been brought ot our attention that the transactions carried out in your account clearly reflect a technological trading pattern that was aimed at exploiting price latency opportunities on XM’s trading platform; this was achieved through the use of artificial intelligence software that took advantage of sudden fluctuations in prices on XM’s platform.

    Our Compliance Department is currently reviewing your official complaint and will provide you with the company's final response.

    Kind regards,
    Andrey - Official Representative of XM (Trading Point of Financial Instruments Ltd.)
     
  8. stevetrade

    stevetrade Recruit

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    Hi,
    I use a news feed and trigger system. The trades in question all occurred at news events with medium to high deviation.

    Here's a couple of pages of the trade history that is being disputed along with the news release that the trades were triggered on. It's fairly apparent when you cross reference back to the release that there was a sizeable deviation on the news.

    http://c2n.me/3aqv48Q.png
    Image ad575-clip-132kb.png

    The burden of proof is on you. I expect the investigation into my complaint to be open and show proof that every single contested trade from 01.10.2014 to 15.12.2014 was using arbitrage and not news trading.

    Best regards Steve
     
  9. veri5

    veri5 Corporal

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    so, where is the money? already spent? all forex trading consists of price latencies and artificial intelligence, why reputable brokers doesn't have such problems? maybe because they invest in appropriate tech and have long term business plan? ahhh, these bucketshop businessmen never stop to wonder me, its just question of time when regulators will stop this....
     
  10. Pharaoh

    Pharaoh Colonel

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    Hey XM Rep! If someone does use news trading software that connects to a fast news release data feed, it that considered to be ok or not?
     

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