Mr. XXX has lodged his complaint with Financial Commission on the following grounds:
The Client used trading account #XXXXX for trading operations on Forex and CFD market. Having no sufficient knowledge and experience of working on the financial market, the Client used the services of an investment consultant (Broker’s employee).
By the time of the incident several long and short positions (including locked positions) were opened on several financial instruments on the Client’s trading account:
– the total volume of short positions on Aluminum – 1.40 contracts,
– the total volume of long positions on Aluminum – 1.40 contracts,
– the volume of joint position on Aluminum – 0.00 contracts;
– the total volume of short positions on Palladium – 0.50 contracts,
– the total volume of long positions on Palladium – 1.00 contracts,
– the volume of joint long position on Palladium – 0.50 contracts;
– the total volume of short positions on Platinum – 0.50 contracts,
– the total volume of long positions on Platinum – 0.50 contracts,
– the volume of joint position on Platinum – 0.00 contracts;
– the total volume of short positions on Crude Oil – 0.50 contracts,
– the total volume of long positions on Crude Oil – 0.50 contracts,
– the volume of joint position on Crude Oil – 0.00 contracts;
– the total volume of short positions on USDRUB – 340000 units of currency,
– the total volume of long positions on USDRUB – 50,000 units of base currency,
– the volume of joint short position on USDRUB – 290000 units of base currency;
– the total volume of long positions on Gold – 0.10 contracts;
– the total volume of short positions on USDJPY – 20,000 units of base currency.
The incident on the Client’s account occurred on November 30, 2016, at 16:20 (server time). At the specified time new short position on USDRUB instrument was opened on the Client’s account:
Ticket Open Time Type Volume Item Price S / L T / P Close Time Price Swap Profit
XXXXXX 30.11.2016 16:20 sell 3.00 usdrub 63.4520 0.00 0.00 30.11.2016 16:20 65.4491 0.00 -9 154.14
The opening of the order # XXXXX led to a drop in margin level on the account below critical causing all Client’s opened positions to be forcibly liquidated by Stopout.
The Client claims that his deposit was lost due to deliberate actions was taken by the investment consultant. In support of his words, the Client cites the following arguments: an excessive number of opened positions, violation of elementary rules of fund management, trading instruments with a large spread, frequent use of position locking. The Client requires Broker to return his funds deposited to the trading account ($ 16,343). In support of his position, the Client provided account trading report, as well as audio recordings of telephone conversations with representatives of the Broker.
The Broker, in turn, does not see any grounds for the Client’s complaint and completely evades its responsibility for Client’s losses, as the Client was acquainted with all risks connected with trading on Forex market. Risk notification was presented to the Client in electronic form when opening a trading account.
In addition, according to the Broker, all transactions on the Client’s trading account were carried out either by the Client himself or by an investment consultant after receiving Client’s voice confirmations.
|Financial Commission Complaint||#ZZZ|
|Complaint Raising Date||Complaint Filing Date|
|Complaint Response: …
The decision for this complaint is based on the information provided by the Client and the Broker.
With the aim to investigate the incident, Dispute Resolution Committee of the Financial Commission closely examined documentary evidence provided by the parties to the dispute. Having analyzed the materials of the complaint, the Dispute Resolution Committee concluded:
7.1.The Company will not advise the Client about the merits of a particular Order or give him any form of investment advice and the Client acknowledges that the Services do not include the provision of investment advice in Financial Instruments or the Underlying Markets or Assets.The Client alone will decide how to handle his Client Account and place Orders and take relevant decisions based on his own judgment.
7.2. The Company will not be under any duty to provide the Client with any legal, tax or other advice relating to any Transaction. The Client may wish to seek independent advice before entering into a Transaction.
Risk Warning: Trading leveraged products such as CFD’s involves substantial risk of loss and may not be suitable for all investors. Trading such products is risky and you may lose all of your invested capital. Please click here to read full Risk Disclosure. Safekeeping and Brokerage services are provided by Company with license number XXX/YYY, address ZZZ. The Broker does not establish accounts to residents or passport holders of certain jurisdictions including Canada and USA.
Thus, based on the above information, the members of Dispute Resolution Committee of the Financial Commission came to the unanimous opinion that the financial results of transactions # XXXX and # YYYY should be recognized as incorrect and the transactions themselves canceled. The broker must compensate for the Customer’s losses in full ($ 9233.90).
This complaint was reviewed by the members of the Dispute Resolution Committee of the Financial Commission and was processed by the Head of the Committee Anatoly Bulanov.
|Ruled in Favor||Compensation|
|If you have any questions regarding this investigation, please send them to the following address email@example.com|
|I certify that all information was considered by the Dispute Resolution Committee of the Financial Commission and hereby confirm that the decision was made fairly, impartially and without interference. I am confident that the information provided in the document is true.|
Head of DRC