I was a victim of fraud committed by this company called XForex which I think it is located in Cyprus (www.xforex.com) as I lost my Capital $12,000. This company is attracting clients in by exaggerating the amount of profits they will gain through investing and trading with them. When the client deposits money in their account then they play dirty tricks to cause losses deliberately through many ways in order to steal the deposited money.
In addition, I would like to inform you that I found out a warning from investing with this company called Xforex issued by the AMF (Autorit des march?s financiers) as shown at the following link:
Here is another link for another document:
I also corresponded with the AMF (the French Financial Market Authority) to confirm about this warning and they replied to me as of the attached letter confirming that they issued a warning to all French Investors about dealing with this company.
I am writing to you becasue I believe you are the right one to investigate in this case and take whatever necessary actions against fraud practices of such companies. In addition, I am seeking your assistance and recommendation in how to return my money back in addition to warning other investors from dealing with Xforex because they are continuing their dirty tricks through false advertisements full of profits exaggeration (example of these advertisements are attached herewith). These ads were published in Arabic Language & I can offer the translation if you want.
The details of my Story with this Broker as follows:
1- First of all, Xforex Staff rushed me to register and open an account with them without considering the importance of reading and understanding the terms & conditions. They also lied about offering the demo account and about providing the professional expert who should guide me step by step and the evaluation prior to using the live account.
*Details Of This Point:
I visited Xforex web site as advised by my relative who traded with them and lost his money later on too because of some similar reasons. In the beginning, I placed my basic information at their website and then I was forwarded to the webpage where it has the terms and conditions and the advice to read it but I closed the webpage without surfing further because I was not fully convinced of this service. After one day I received a call from one of Xforex marketing team called Omar Abu Ataa. When I told him I am hesitated and afraid of losing my capital, he said it is a very profitable business and you shouldn't worry as we have all capabilities to make you a successful trader and he promised me to be given a special training and education using a Demo Account, the help of professional experts staff and evaluation prior to using the live account and he was pushing to convince me to complete my registration with them. As a result, he passed me through the activation process without showing or taking into consideration that the terms and conditions must be read and fully understood by the client. During the activation process I told him I can only trade with $5000 capital but he said try to make additional deposits now to take benefit from the 35% bonus and then you can withdraw it immediately, but don't tell to anyone that I gave you this advice!!!. Finally, I decided to deposit an initial capital of $10000. Then I received a call from the Account Manager Ms. Nisreen Abo Ahmd and she asked me to log in to my account. However, she made me do some trades through her advices and when I asked her "Is this a demo account we are working in or real?" she neglected the importance of this issue and said don't worry and when I repeated the question later on again she said it's live and no need for a demo account now. So, I was exposed to live trading immediately where I bore lots of loses.
2. The Account Manager gave many false and illegal trading advices which caused a major loss in addition to neglecting the need of using stop losses strategy by her.
*Details Of This Point:
Another major thing to complain about is the style of trading instructions, and advices I was receiving through the frequent daily calls of my Account Manager. I was requested by her to place mostly high value orders in rush basis with no understanding of the risky cases and their consequences. I believe that there should be only training by their staff in addition to analytical recommendations with warnings that it is my responsibility but not trading advices and that the losses I had as a result of their advices should be their responsibility not mines. However, although most of the trading advices were by telephone buy I have a proof by E-mail. I also sent a complain to her in this regard to take into consideration the type of advices she is asking me to follow.
On the other hand, not using Stop Losses strategy is a big mistake. The Account Manager was always neglecting the need of using Stop Losses Strategies although I requested this many times by telephone and through a previous complain I sent by E-Mail. Stop losses strategy is highly important especially for beginners like me, but she was always preventing me from using it through her trading advices.
3. Postponing and delaying withdrawals deliberately and pushing the client to change his decisions.
* Details Of This Point:
When I started to realize that this market is not suitable for me which happened after I bore $4000 losses, I decided to withdraw all my balance and on 9/06/2011, I made a withdrawal request of $10000. At that time my Account Manager called me trying to change my mind in order cancel the withdrawal request and I confirmed to her that I am sure of that as I found out that this market is not suitable for me. However, their staff postponed my withdrawal request and she called me again to insist in cancelling the withdrawal. I believe that this is an illegal practice from them. Do you think that they have the right to postpone this withdrawal in a way that they push their client to change his mind? Is this legal and can they justify their staff actions to be within the terms and conditions!!!. As a proof I can provide the withdrawals records and to see that my withdrawal of $10000 was rejected and another one was placed alternatively with an amount of $5000 because of the interference and violations of XFOREX.
4. Late Withdrawals procedures by Xforex leading to tragic consequences.
Details of This Point:
Late Withdrawals caused me further troubles by Xforex. I couldn't fix my margins by depositing additional amounts because of late withdrawals as I ran out of money. I had two withdrawals that were received so late in spite of many follow-ups. One of them was requested on 2/06/2011 and received only on 1/07/2011 approximately one month delay. The other one was requested on 11/06/2011 and received only on 22/06/2011. However, I ran out of margin on 20/06/2011 and absolutely if I was given my withdrawals on time; then I could keep my margin by making an additional deposit.
5- Bad support services and wrong recommendations.
* Details Of This Point:
- As a continuation to the previous point and when I couldn't fix my margin through deposits, I requested the urgent help of Xforex Support Team through the Live Chat and they told me your only solution to fix your margin is by depositing more money which I couldn't afford. I then thought of the case and I came with a conclusion that there was another solution that was missed up by their support team. I was having many EUR/USD and USD/EUR open positions and I could have fixed my margin simply by selling some here and there till I reach to an equivalent point. However, this was not advised by their support team.
- No low margins notices received although my account was classified as VIP and therefore, I believe I should be subjected to this advantage either by mobile or E-mail.
- My account was classified as VIP as my deposits reached to more than $10,000 but I was not awarded the services of the VIPs because I came to know that I should have been using another downloadable application with more benefits such as discounts in the spreads. I also came to know that my Account Manager has the experience for managing small accounts not VIPs