Forexyard / Scam
I have opened an account with Forexyard and deposited 500$ on the 24th of February 2009. They told me that they are giving a free 500$ cash back to everyone who deposits 500$, though I didn’t need that for my trading strategy as I’m a long term trader and according to my risk management I trade only 0, 1 lots and this requires only 50$ margin so I can deposit only part of my trading capital to a broker and the rest of it I can keep in a bank where I receive a few per cents annually.
So in fact I didn’t need that cash back for trading but if a broker offers it why not take it. Well after a few days of analyzing the market and waiting for the entry point I opened my first position at 5:57:24 GMT 03/02/2009. At the end of the day market reached my target and I closed my position with a 282 pips profit (that’s 282$ with 0.1 lot trading). As forexyard is a young broker and isn’t regulated by any regulation body I decided to check them and withdraw the profit. The request should have been processed in 96 hours but in fact it was processed after more than 7 days. The account manager told me that the next time everything would be in time. I began to feel a little bit suspicious because of that long withdrawal process, so I decided to check them not only with one withdrawal as I thought at the beginning, but to withdraw every profit I would make until I could see that they pay more than I had deposited and in time. So after another month of waiting for a good entry point I made my second trade. In four days I closed my position with another 252$ profit. I want to pay your attention that I traded 0.1 lots and the used margin was only 50$ (see attachment), so there were another 950$ in free margin. Also the maximum the market went against me was 105 points (I opened my position at 1.4498 GBP/USD and the low for that day was 1.4393). So even at the worst point of the market I had 845$ of free margin (the point here is that as you can see I didn’t use their 500$ cash back).
So on 24.03.2009 I make a request for withdrawal of another 218$ (though I made 252$ I decided to withdraw only 218$ to have in total of two withdrawals my initial deposit of 500$, with the purpose of being able to check them the next time when withdrawing more then I have deposited). Well after the 96 hours had passed I contacted my account manager for asking why the withdraw hadn’t been processed. He promised that till the end of that day it would be processed. The next day he told me the same. And on the 31.04.2009 when I again contacted him through live chat he told me that there was a problem and connected me to his manager Daniel Wellington. Mr. Daniel told me that if I withdraw my initial deposit they would have to adjust my account for the cash back as it “is linked to the initial deposit”(quote from chat transcript). I said ok, I don’t care about the cash back as I don’t need it for my trading. So they removed from my account the 500$ cash back and sent me my 218$ on the 1st of April. After that conversation and the time I had to wait to get my money (8 days) I become even more suspicious about this broker, so I decided to make the next and the last checking step – to try to withdraw more then I have deposited. That should have proved whether they were a real broker or just a bucket shop. So I requested another withdraw but this time not through a credit card but through a bank wire. After 96 hours I contacted my account manager Pabel, who told me that it would be done till the end of the day. The next day he told me that I had requested a bank wire and they didn’t have my bank account number, and he advised me to make another request but for a credit card deposit, as that would be an easier and faster way to withdraw. I said ok, and made another withdrawal request. Also I asked him whether I would have to wait another 96 hours, for what he said that he would try to make it faster. Of course I waited another 96 hours and contacted Pabel again through live chat. He told me he wanted to call me for what I gave an affirmative answer. So he called me and told me that they cannot send me my money as I have made it with the help of their 500$ cash back )))) for what I explained him the situation and asked him to call to the line anybody from his top management. He told me that nobody was available and that his manager would call me the next day. The next day I received an email which said that his manager Mr. Daniel (quote) “will be in touch with you early next week regarding the withdrawal issue… we hope we can fix this problem in an amicable manner both parties.” (I have saved all the e-mails and chat transcripts from the very beginning of our relations, and also made tens of different screenshots after I began to feel suspicious). A month has already passed since I received that e-mail but nobody called me. I tried to contact Mr. Pabel and Mr. Daniel through live chat at least 5 times but they were never available. I sent them a few e-mails but also without any reply.
Well as we can see this broker in fact isn’t a broker but just a bucket shop, which if you make money sends you back your deposit and if you lose money then he earns money. So they are doing a business where they only earn money and their clients only lose money.
Well I spent 2 month analyzing markets and risking my hard earned money to make those 534$ and because of the broker I cannot receive it. I really hope that there is something FPA can do to, first of all, notify all the traders around the world about this broker, and for second, to help me to get my money to earn which I spent 2 months.