Yesterday, I came across some curious reviews, which contain detailed descriptions of swindling schemes invented by 24fx.com. After reading the reviews, I was staggered by audacity of the broker’s personnel and naiveté of their clients. Let me cite one of the claims that seems the most informative to me.
Hi! I’m Maxim.
I got hooked by this company in October 2014. Previously, they had been annoying me with phone calls. They proposed opening an account with them and making deals by their recommendations. I rejected it for long and finally gave up. On October 5, I deposited $500. My balance almost doubled in a few days. My broker introduced himself as Eduard.
Even novice traders are aware that to double a balance in a few days requires a highly aggressive trading strategy. It means that trading was carried out in big lots with a high risk per deal.
Then, they proposed trading on a commodity exchange, in particular to trade oil, gold, wheat etc. They explained it entails less risk and brings more revenue. In this case, I have to deposit more money, $4,000. I didn’t have such money and they came to terms with me. So we agreed on $2,000.
Trading oil and gold is considered to involve the highest risk. An intraday price can easily gyrate 500-700 pips. It’s possible to drain a deposit in a few hours without a sensible money management.
October 13. Suddenly, everything went wrong. They wasted a lot of my money with losing trades. In a day, losses were so huge that I abandoned hope. But I received a phone call from them. Victoria, a girl from the margin call department, told me that my deposit should be saved. In other words, she convinced me to add more money to recover from the drawdown. I had to borrow $500 to replenish my deposit.
Bravo Victoria! True fraudster! The most sensible solution is to cut losses. Instead, she wants to swindle as much as possible from clients. To force clients to trade on credit is out of the question. To increase leverage is the worst case scenario.
October 14. Soon, they made a winning trade. But later on the same day, everything happened again. My deposit was close to zero. Again they demanded $1,000 more from me in a harsh manner. I refused, but Victoria was bullying me. She shouted and said that I was a sissy. However, I put down the phone, unwilling to continue the dialogue. My account was drained in a few days. Now it is blocked. They do not answer my calls, their technical support also neglects my requests. The last trade was closed allegedly by a margin call. I noted that the close price at that moment did not coincide with the actual market price. Moreover, it differed a lot from the actual price. I came to a conclusion they were manipulating prices in the trading platform and did not provide money to a trading floor.
Looking at the statement, it is obvious that each of the trades could ruin the deposit amid such a trading approach.
It doesn’t matter whether prices on a trading platform coincided with actual ones. The thing is that such a trading approach will inevitably lead to a complete failure sooner or later.
It’s a pity that such “brokers” overshadow honest forex companies. As a result, swindlers generate negative popular sentiment about the forex market.