Traders Tell about Nonpayment of Profit by Forex Broker EuroBondFX

The great Theodore Dreiser once noticed that the way down has few stops. Unfortunately, most inexperienced beginners at Forex market “go down such path”, and, as a result, few manage to stop before real fall in abyss. The reason of it is not only a trader’s psychology, but also that of a “kitchen”, to be more specific, all kinds of intrigues, which DC prepares for traders.

The "Market Leader" has on numerous occasions told about dishonest and crafty DCs, which guarantee steep way down to their clients and even pushing them into abyss. Interesting that for some time the situation has managed to stabilize right after publication of a series of articles with disclosure of dishonest companies and traders. This is easy to explain. The fear of “kitchens” to be disclosed has probably gone up, as well as the first ever winning trial of Masterforex-V Academy against company InstaForex company, which has dared not to pay profit to its clients. The initiative of adopting the law on implementation of a state regulator has also played its not insignificant role.

It would seem that everything will now be without fraud, but no such luck… This time a company “EuroBondFX” has made its mark; if to believe in words of one participant of Masterforex-V Academy forum, for over three months it has refused not only to pay profit to its clients, but also to return a deposit. Because of such coming signal, the “Market Leader” together with experts of Masterforex-V Academy have tried to make head or tail of the reason of the new conflict.

Why does EuroBondFX not Return Money to its Clients?

A short time ago a message has come to the special branch of Masterforex-V Academy forum, which is known not only as the best European project of teaching Forex, but also as a passionate advocate of the interests of traders and investors; the message said that “EuroBondFX” company has not paid profits for over three months. However, there is “another shoe to drop”, for in addition to unpaid profits, the company does not return a deposit either. 

It is worth mentioning that in the message the author also names concrete sums of unreceived profit and deposit, which are far from small. The message has been met by the forum with high negative emotions towards “EuroBondFX”. Some forummers have thanked the author for such signal, as they were getting a closer look at the company in order to invest their own means into it, but after such a message their wish has disappeared once and forever. Others were puzzled by the fact that the author has kept his means on a permanent basis in one company, but not withdrew his deposit by parts. However, in general, no matter how the author of the message acted, the fact of nonpayment of profits and failure to return a deposit remains evident.

Expert Opinion: What do Experienced Traders Advise?

Evgeny Olkhovski, a leading financial market expert of Masterforex-V Academy, is certain that the web site of “EuroBondFX” company has information, which exposes it to the full extent; what is more, in several directions at the same time. “To start with, all legal norms and necessary legal documents, which regulate relations between the company and the client, are rather poorly worded. However, on the other hand, ‘EuroBondFX’ has done its best to make all disputable points, which will certainly arise, be handled only for the benefit of the company, without considering the client side,” says the expert. 

Olkhovski also admits that in the company has spelt out Trading Agreement that a client refuses from any protest concerning a trial in any place of registration. This means that despite the fact that we live in a democratic society, we still do not have an opportunity to use our rights and freedoms, for in any country of the world a person, disagreeing with a judgment of court, has full authority to protest it either in other trial of the same degree of jurisdiction or in international legal organizations. Whereas a spelt out by the broker client’s refusal from protest means only one thing: no matter what the court resolves, it will be handled for the benefit of the company, if there are any resolutions at all.

It is worth mentioning, that “EuroBondFX” itself clearly understands the fact that far from every client will want, or be able to, come to a court trial in “Anguilla”. Moreover, in most cases a travel to a hearing so far will cost much more than a simple refusal from a profit, or even from invested means. In spite of this, the company has decided to reinsure itself one more time; therefore, it has spelt out in the Agreement: “a client agrees to make no claims that such court trials are inconvenient as for the place, where they are held, or that they have no legal power for the Client”.

Despite the fact that this article of the Agreement contradicts democratic norms in every possible way and infringes clients’ rights and freedoms, it has been written in anyway. “The broker suggests traders to refuse from all their LEGAL RIGHTS, not to go against the company’s decision, and further, − accept nonpayment of profits as a fair act, what we see by the example of the person, who has written this message on Academy’s forum,” says Evgeny Olkhovski.

However, there are more hidden rocks in the agreement:

“A Client unconditionally and to the fullest extent, allowed by current law, refuses from immunity for himself or his profits and assets.” It turns out that a Client has no right to require anything from the company or lay claims to the court.

“The Company bears no responsibility before a Client for any loss, loss of profit, or loss of opportunities (due to possible market behaviour).” The enclosed in parentheses expression “due to possible market behaviour” immediately strikes one's eye. Judging from this, one can come to a conclusion that the company bears no responsibility for its own actions or losses, which may be sustained by a client due to market behaviour.

“The Company has a right to stop providing services to a Client any time, having reasonable grounds for this (preliminary notification of a Client is not necessary).” How can it be that a client is uninformed about the fact that a broker longer provides services to him? What is more, it turns out that a client of a broker company does not need to know on what “sufficient grounds” cooperation with him is stopped. “Nonsense of jurisdiction, I would say,” says the expert.

However, if to see into the matter, there appears the following: as soon as a client of a broker company starts getting income, the company immediately stops cooperating with him, at the same time, it does not inform the client about this. And for messages with requests, or even requirements to pay a profit and a deposit, the company had only one answer of this process being currently impossible due to “technical reasons”. Let us remind, that it was for the same reasons that in due time money could not be paid to clients of “Univell Broker”, Ikon Group, “Broco”, InstaForex, MF Global, PFGBest, “TradeFort”, and some others.

Could a Client Sort it Out on his Own?

EuroBondFX was formed in broker business, and it became known for its innovative activity in a computerized broker house.

At the same time, despite the conflict, “EuroBondFX” actively continues the advertising campaign of its bonuses, as if nothing happened. At the same time, one should keep in mind that bonuses are great and most effective means of attracting beginners into a company. Therefore, the main point for company is that they put their own money into an account, and then, most likely, there will happen the same story as with the author of the message on Academy’s forum.

In his Evgeny Olkhovski also added, “the trader has addressed regulators from other countries, including FSА (Тhe Financial Services Authority), but they cannot act in relation to companies, which do not have their licenses. Consequently, “EuroBondFX” seems to stay beyond reach. However, in fact, there exists what is stronger than any regulator or even court. What all “kitchens” are afraid of − publicity. For public information about fraudful actions of a broker, proved by concrete examples, hits “on the gall” − number of clients.”

How to Avoid a Similar Situation?

Despite the fact that Forex market is highly widespread, it still remains unregulated in some countries, although adoption of corresponding laws has already been initiated. Unfortunately, nobody can predict the time when there will be introduced state regulators of OTC market.

Evgeny Olkhovski is certain that as long as Forex market remains unregulated in some countries, and no trader there has a real protective base, acknowledged by law, from time to time there will appear similar messages about nonpayment of profits, failure to return deposits, and much more.

Nevertheless, it is possible to avoid a situation, which has happened to the author of the message on Academy’s forum. First of all, supposes our expert, one should thoroughly choose a broker. Such choice has to be based not on loud special offers, but on real terms, offered by the broker on termination of these offers. One should also know how to analyze agreements and read them between the lines. Naturally, such approach takes much time, and does not give full guarantee of safeguard of one’s means, but, after all, this is the only correct way in the modern world of legal realia. Furthermore, this way is rather difficult for beginners, as it is overloaded with intricate terminology and a great number of smallest nuances.

And in order to choose a truly reliable broker in the shortest time, one can use a monthly rating of Forex brokers from Masterforex-V Academy. It represents only the world’s best companies; besides, each of them has independent feedbacks from traders and financial analysts. This rating has been functioning for several years, during which it has managed to prove itself in the professional community of traders as most unbiased and effective. Owing to its structure (brokers are divided into three leagues, where TOP companies with best terms are represented in the premier league, whereas brokers, whose services are low quality or company that use “kitchen” – in the minor one), one can quickly orientate in the variety of Forex brokers and choose the company, which answers all demands of a trader.

The rating considers 23 criteria, which are independ from one another and include presence of licenses, feedbacks of traders, term of work at the market, trading terms, and much more, which allows depicting real state of things with maximal objectivity. Besides, Masterforex-V Academy rating regularly holds traders’ votes on various nominations; at the end of the year Best Forex Broker is always defined. Owing to the independent rating of Masterforex-V Academy many traders have managed to avoid the destiny of the author of the message about failure to return profit and deposit.

It is also worth mentioning that orienting on rating and recommendations of Academy’s professionals, many beginners now effectively work at Forex market and cooperate with truly serious companies, which are interested in profits of their clients. Therefore, in order to get truly good profit, but not loss, from work traders should understand that their successful work at Forex market to a large extent depends on choice of a Forex broker.