News of forex rating of brokers. It is widely known that up to 90% of traders and investors lose their money at forex and stock exchange. But are those dear 10% of successful traders, who earn money at forex market really having a dolce vita? Unfortunately, the hardships of this small layer of people, in the majority of cases, are known only to themselves, whereas the general public finds out about the facts only during another accident or scandal.
It is the same this time. The forum of Masterforex-V Trading Academy (it has officially been the best project of forex training in Europe three times in a row: in 2009, 2010, and 2011) has opened a new topic about another fact of non-payment of a profit to one of its students called “Ikon Group has not paid to a trader of Masterforex-V Academy. Suggest what shall the trader do?”. What are the facts and arguments of the parties, legal advisors, experts, friends of this trader, and Ikon Group DC itself?
How can a trader lose 19,969 dollars by trading in Ikon Group DC?
As a trader Sergei Nazarov informed to the “Market Leader”, he has earned the sum of 19,969 dollars in Ikon Group company, having risen the deposit from 4,150$ to 24,119$:
However, on July 27, 2011 the trader, student of Masterforex-V Academy, having opened the platform of Ikon Group, discovered to his surprise that the earned profit on his trading account No. 116221 is not already there.Then the amazed trader received a letter from technical support of IKON Group DC, which informed that his trading account in the DC had been deactivated and annulled. Why, you may ask? Because the trader is said to have used “the method of arbitrage transactions”. “What this method is, what I have been accused of, and why they have not given me the profit I still cannot understand”, Sergei told us. How could I “manipulate” forex market by trading Euro/dollar, pound/dollar, Australian dollar, and other forex currency pairs, which are popular among traders worldwide?
“Market Leader”: Sergei, have you addressed the client relations department of IKON Group to explain their position to you?
Sergei Nazarov: Yes, many times. I was sending them letters, calling by phone, but the staff of IKON Group remains silent. I remember that when I was opening a real account in this broker company, I was amazed by their attention: they were calling me, asking if there were any problems with transferring money to their account, saying to “address and call”. However, as soon as I have earned money at forex, Ikon Group has immediately not let me trade further, has annulled the account, and has not let me output the earned money.
“Where does the kindness of a forex broker disappear when a trader does not lose, but gains money at forex market from this broker?”, amazes Sergei. And most important – doesn’t the broker understand that I will not remain silent about this intolerable fact. The net “profit” of the DC will practically amount to about 7,000$. Is this money worth the reputation of IKON Group company?
Questions of “Market Leader” and Masterforex-V.org portals to the management of IKON Group company
On August 05, 2011 a letter was sent to the address of IKON Group broker company. It included the following questions with a request to answer to them by August 10 before materials appear on the web-site:
1. Is it true that an account No. 116221 has been opened in your broker company Ikon Group, and that Ikon Group has refused to pay a trader 19,969 dollars, which he had earned on this account (according to the data of your trading platform)? How can your decision not to give the profit be explained? Details are in the topic in traders’ forum.
2. As a reason for non-payment of profit your technical support has accused the trader of using “the method of arbitrage transactions”, hasn’t it? What kind of transactions are these? What is the particular “element of trader’s crime”? Please, give an example and a reference to the law, in which such transactions are banned. Are there any proofs of the trader’s guilt, and could you show them?
3. Your trader said that when he was opening a real account, your client relations department “showed mere kindness, more than once asked if there were any problems with transferring money to the account of Ikon Group”, etc. But as soon as the trader has earned money, and you have not paid the profit, it is already the second week that the trader receives no response from you. Is it true?
4. For a minute imagine yourself to be not a broker, but a trader (do you trade at the market?). Please say whether you would open an account in a broker company, which has firstly charged a profit to a trader on its trading platform, and then annulled it having provided no proof of the trader’s guilt and answering no requests of the trader for two weeks. Would you open an account in such company?
Response from Ikon Group broker company concerning non-payment of profit to the trader.
From the letter of Ikon Group: “I sincerely understand your desire to look objective; however, your current statements are in favour of the trader. Concerning your questions:
The trader was choosing the platform on his own and chose МТ; our company has no influence on trader’s choice and provides absolute freedom to the clients in this regard. Before starting the bids, one always ought to familiarize with the rules and find out about the platforms from support services. For example, we do not allow the use of arbitrage on МТ4. It is our rule and if a trader does not agree with it, this trader should enter another company, as by starting to trade he accepts our rules. But! we do allow the use of arbitrage on Prodigy and Viking platforms, and if a trader decides to use such strategies on these platforms, it is his right; in terms giving quotes of making orders our platforms considerably outdo МТ4. Unfortunately, traders do not listen to this and keep demanding МТ4.
We keep using МТ4, for this platform currently is most popular; however, we believe that you understand that we would be most excited if traders switched from МТ4 to our own platforms. МТ4 is not a bad platform, and we have no complaints to programmers, but it has a number of drawbacks, which you most probably are aware of.
Currently our company is actively investing in new technologies, and we are putting maximum effort in order to avoid a similar situation in future.
You should assess the situation objectively, look into all rules and conditions, and analyze everything. I urge you to approach to writing an article with maximum attention and remember that by laying out any article about our company, “Market Leader” magazine bears responsibility for its reliability. In case if the article does not depict reality and is not objective, our company is always ready to defend its reputation in court. I sincerely hope that it will not run to that, and that we will continue our communication in a constructive way. I will be glad to answer to any of your questions.
Regards, Administration of Ikon Group”.
How are the actions of IKON Group assessed by legal advisors and experts?
According to the assessment of a technical specialist and the creator of trading robots Yuriy Zaitsev (winner of the world championship of forex automatic trading), the work of forex advisor, which is used by Sergei, is based on moving average and stochastics; it has nothing to do with the method of arbitrage transactions. If it was different, the DC would have provided facts and proofs long ago.
Yevgeniy Olkhovskiy, one of the leading specialists concerning legal issues of trading in the USA and Canada, in his interview to “Market Leader” portal stated that the letter of IKON Group company provokes even more questions, which remain unanswered:
1. DC has provided no proof of “illegal trade” use, but the trader’s profit has been annulled.
2. The trader was trading for more than one day, and when he was suffering loses, the broker did not accuse him of “illegally held forex transactions” and did not return him money; as soon as the profit appears, the trade becomes “illegal”.
3. What does it have to do with “the drawbacks ofМТ4 trading platform”? Was it a trader but not a broker that bought МТ4 in order to provide forex trade to its traders? If МТ4 isnotperfect, according to the broker, why does Ikon Group continue to provide services to other traders by means of this trading platform? Are there any warranties that new traders will not experience the same situation with unpaid profit?
4. A trader, if he has decided to earn money at forex market, shall open a real trading account only in the recommended broker companies of the major league of rating of forex brokers, said Yevgeniy Olkhovskiy.
Legal advisor of Masterforex-V.org Vladimir Novikov, in his turn, supposes that there is an evident negligence of the company to the client, for it has provided no proofs of the use of the method of arbitrage by the advisor; moreover, the company refuses to have a dialogue with the trader. Consequently, the conclusion seems to be that this company, having made the use of the trading agreement, has unreasonably cancelled the trader’s transactions with the only purpose – not to pay the profit.
Reference to the problem with МТ4 platform is neither justified legally, for the company provides software for trading and is obliged to provide the adequate level of operation of its own software. According to Vladimir, there could be no problems with the platform. It is most likely that there were problems with the company’s server, but even in this case technical failures appeared at the side of the company, and the trader can bear no responsibility for the stability of the software, which is provided by the company.
From “Market Leader” portal: we did our best to approach the writing of article objectively. Therefore, we have brought for the readers’ consideration the opinions of the parties without our own comments and with a questionnaire of traders: who is right, a trader or a broker, which has annulled a profit, having provided no documents or proofs of “the trader’s illegal profit” that was received in his company.
The Editorial Board of “Market Leader” magazine, jointly with experts of Forex Academy and Masterforex-V Stock Exchange Trade, holds a questionnaire in the traders’ forum: what shall a trader do if a broker does not return a profit?
• to fight till the end by using all legal ways;
• to come to terms with the loss. Why to waste time?
• broker is right, isn’t it clear?
