HWZ Forums

Login Register FAQ Mark Forums Read

[Help] Issues with FX CFD Provider!

Like Tree2Likes
Reply
 
LinkBack Thread Tools
Old 05-10-2019, 09:27 AM   #1
Greater Supremacy Member
 
strangerjun's Avatar
 
Join Date: Mar 2008
Posts: 85,950
[Help] Issues with FX CFD Provider!

Was trading with one of the brokers and these happened:

-My open positions which were at an overall loss were forced closed due to technical error on their platform not due to insufficient margin whatsoever
- The loss was realized, initially, the losses came up to be 6 figures erroneously
- There was no communication from them when such outage occurred leaving me distressed (seeing 6 figures losses and entire account wiped out)
- During the outage, I couldn't trade at all and the market would have moved during the disruption
- After that, positions were reopened and I was puzzled on new positions opened. Before that, there was a complete blank on the platform because my positions were liquidated. I was confused and did not know what to do (should I trade normally or wait for further advice from the broker?)
- The broker later clarified that due to a technical error, they eventually rectified the mistakes and reopened the positions at the same price at the point when they were closed. Losses were adjusted to the actual amount



The broker told me it is materially the same had the positions were to left open versus it was liquidated.

Please advise the recourse.

__________________
以铜为镜,可以正衣冠;以史为镜,可以知兴替;以人为镜,可以明得失。
strangerjun is offline   Reply With Quote
Old 05-10-2019, 09:46 AM   #2
Arch-Supremacy Member
 
MikeDirnt78's Avatar
 
Join Date: Jun 2002
Posts: 18,896
Why not just name the FX provider?

Maybe someone can advise further.
__________________
Eat | Live | Punk Rock | Save | Invest | Finance | Fitness | Pixel | Tech | DIY
MikeDirnt78 is offline   Reply With Quote
Old 05-10-2019, 10:25 AM   #3
Junior Member
 
Join Date: May 2004
Posts: 81
Is this due to the tightening of fx trading margin requirements to 20:1, as prescribed by MAS?
tsipacse is offline   Reply With Quote
Old 05-10-2019, 10:46 AM   #4
Greater Supremacy Member
 
strangerjun's Avatar
 
Join Date: Mar 2008
Posts: 85,950
Why not just name the FX provider?

Maybe someone can advise further.
at this point, I don't want to reveal their identity yet. Hoping the dispute can be settled satisfactorily.

Last edited by strangerjun; 05-10-2019 at 05:47 PM..
strangerjun is offline   Reply With Quote
Old 05-10-2019, 10:47 AM   #5
Greater Supremacy Member
 
strangerjun's Avatar
 
Join Date: Mar 2008
Posts: 85,950
Is this due to the tightening of fx trading margin requirements to 20:1, as prescribed by MAS?
8 Oct then kick in

__________________
以铜为镜,可以正衣冠;以史为镜,可以知兴替;以人为镜,可以明得失。
strangerjun is offline   Reply With Quote
Old 05-10-2019, 01:02 PM   #6
Arch-Supremacy Member
 
havetheveryfun's Avatar
 
Join Date: Jul 2010
Posts: 17,228
8 Oct then kick in

7 oct......
havetheveryfun is offline   Reply With Quote
Old 05-10-2019, 01:21 PM   #7
Senior Member
 
Join Date: Jul 2018
Posts: 1,396
Was trading with one of the brokers and these happened:

-My open positions which were at an overall loss were forced closed due to technical error on their platform not due to insufficient margin whatsoever
- The loss was realized, initially, the losses came up to be 6 figures erroneously
- There was no communication from them when such outage occurred leaving me distressed (seeing 6 figures losses and entire account wiped out)
- During the outage, I couldn't trade at all and the market would have moved during the disruption
- After that, positions were reopened and I was puzzled on new positions opened. Before that, there was a complete blank on the platform because my positions were liquidated. I was confused and did not know what to do (should I trade normally or wait for further advice from the broker?)
- The broker later clarified that due to a technical error, they eventually rectified the mistakes and reopened the positions at the same price at the point when they were closed. Losses were adjusted to the actual amount



The broker told me it is materially the same had the positions were to left open versus it was liquidated.

Please advise the recourse.

I would think that the opening docs you signed would have covered platform outage problems and you would have little recourse

Were you intending to close your positions during that outage period and therefore missed a profit opportunity?

Just change provider - no reason to continue to give them business. Sueing would result in more grief and legal cost without a guarantee of results.
DukeCS33 is offline   Reply With Quote
Old 05-10-2019, 05:43 PM   #8
Greater Supremacy Member
 
strangerjun's Avatar
 
Join Date: Mar 2008
Posts: 85,950
I would think that the opening docs you signed would have covered platform outage problems and you would have little recourse

Were you intending to close your positions during that outage period and therefore missed a profit opportunity?

Just change provider - no reason to continue to give them business. Sueing would result in more grief and legal cost without a guarantee of results.
I intend to leave them open. But they liquidated the positions and losses were realized. Broker say it is the same. Eg. Buy stock at $1 and market price is 50 cents, I lose 50 cents paper loss versus they close my $1 position, realizing the loss and reopen a new buy position at 50 cents.

I intend to go to fidrec to raise a dispute
strangerjun is offline   Reply With Quote
Old 05-10-2019, 05:45 PM   #9
Greater Supremacy Member
 
strangerjun's Avatar
 
Join Date: Mar 2008
Posts: 85,950
7 oct......
The incident happened in September.
strangerjun is offline   Reply With Quote
Old 05-10-2019, 06:43 PM   #10
Arch-Supremacy Member
 
MikeDirnt78's Avatar
 
Join Date: Jun 2002
Posts: 18,896
I intend to leave them open. But they liquidated the positions and losses were realized. Broker say it is the same. Eg. Buy stock at $1 and market price is 50 cents, I lose 50 cents paper loss versus they close my $1 position, realizing the loss and reopen a new buy position at 50 cents.

I intend to go to fidrec to raise a dispute
What are you going to dispute for if you don't suffer any loss?

Just liquidate your position and move your capital elsewhere.
__________________
Eat | Live | Punk Rock | Save | Invest | Finance | Fitness | Pixel | Tech | DIY
MikeDirnt78 is offline   Reply With Quote
Old 05-10-2019, 06:44 PM   #11
Arch-Supremacy Member
 
sanzhu's Avatar
 
Join Date: Nov 2005
Posts: 13,503
Ocbc bank?
sanzhu is offline   Reply With Quote
Old 05-10-2019, 06:45 PM   #12
Arch-Supremacy Member
 
MikeDirnt78's Avatar
 
Join Date: Jun 2002
Posts: 18,896
I assume the market value of your portfolio is the same before and after the error.

In other words, the error had no impact.
__________________
Eat | Live | Punk Rock | Save | Invest | Finance | Fitness | Pixel | Tech | DIY
MikeDirnt78 is offline   Reply With Quote
Old 05-10-2019, 08:35 PM   #13
Arch-Supremacy Member
 
havetheveryfun's Avatar
 
Join Date: Jul 2010
Posts: 17,228
I assume the market value of your portfolio is the same before and after the error.

In other words, the error had no impact.
no impact on value, but have impact on the trader psychologically ..

cos instead of unrealized loss, the positions now may show as a profit instead... thats what he is complaining about
strangerjun likes this.
havetheveryfun is offline   Reply With Quote
Old 07-10-2019, 09:44 AM   #14
Senior Member
 
Hot_Dog's Avatar
 
Join Date: Sep 2004
Posts: 702
Actually I encountered something similar, only one time, got my position report before the inccident, was trading a jpy pair, emailed and showed them that my account did not exceed the margin requirements.

Got a reply on the same day, issue resolved, all positions reverted back. Some times **** happens, but you need to know what you are doing, no half assing it
__________________
"those days of soya sauce with rice are cuming back, only cny can afford to add an egg" - uncle168
Hot_Dog is offline   Reply With Quote
Old 07-10-2019, 11:00 PM   #15
Greater Supremacy Member
 
strangerjun's Avatar
 
Join Date: Mar 2008
Posts: 85,950
Actually I encountered something similar, only one time, got my position report before the inccident, was trading a jpy pair, emailed and showed them that my account did not exceed the margin requirements.

Got a reply on the same day, issue resolved, all positions reverted back. Some times **** happens, but you need to know what you are doing, no half assing it
They "reinstated" the position back but at the price when it was closed due to technical fault.

Did they reopen at your opening price or the above?
__________________
以铜为镜,可以正衣冠;以史为镜,可以知兴替;以人为镜,可以明得失。
strangerjun is offline   Reply With Quote
Reply
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On