Forex Broker Justforex Blocked All Accounts of An Introducing Broker for Agreement Violation

Brokersview learned that Mr Sang, an Introducing Broker (IB) in Vietnam, has complained against Forex Broker Justforex for blocking all his clients’ trading accounts. And the company explained that the suspension is due to the IB's fraudulent activities.

An Introducing Broker (IB) is essentially an agent which introduces new customers to a Forex brokerage. In return for sending custom to a brokerage, the Introducing Broker receives a fee, when it comes to Forex this is normally a certain share of the Spread or Commission charged by the brokerage.

Justforex Freezes Client Accounts

According to Mr Sang, he opened a personal trading account at Justforex to learn about Justforex's mechanism and features one year ago and then became an IB partner of the broker. After a year of working with Justforex, he became their master IB and fully understood JustForex’s IB mechanism thoroughly.

One day, Justforex informed Mr Sang that all of his clients’ accounts were disabled until they finished a investigation.

“We suspect that you are engaged in fraudulent activities. We will close your accounts and hold all of your balances to compensate for our losses. And that is final decision, this decision can not be changed," the broker said.

Mr Sang said that some of the clients are his personal relationships, relatives and close friends so he has to suffer from harmful mental and physical effects.

After that, Justforex requested all the clients a self-authentication and to hold a piece of paper with some text information on it such as name, current date, Justforex name along with the ID on it, and requested all transaction history information from the bank account and portals used for depositing and withdrawing at JustForex. And the company finally concluded that the IB and his clients were all cheating on its policy and informed that it would permanently disable these clients’ accounts.

Investors: Justforex violated fundamental principles in trading industry

Mr Sang thinks that Justforex violated many fundamental principles, include:

1. In their Client Agreement and Introducing Broker Agreement, Justforex does not specify whether to take all the customer's principal or only interest, or withhold both when the customer violates any conditions. But in the case, it took all the money including principal and interest.

2. Justforex hold all the clients’ money with just the single answer ”We need to investigate" and made them waiting without any information.

3. Justforex claimed that it incurred some losses as a result of fraudulent activities in which the clients’ accounts were involved with, so the clients’ money will be used for compensation. But it does not prove the losses and the cause - effect relationship between clients’ behaviors and the consequences it got.

4. Most of the clients were forced to withdraw in Euro although the currency of their account is US Dollar, which caused a 5-10% loss of the property due to a difference in exchange rate.

5. Active orders cause a 50% drawdown balance due to the disabled trading account.

Justforex: the IB conducts fraudulent activities

After the IB posted his experience, Justforex made a reply to the case and responded to the allegations above:

1. The IB abused Justforex’s trading conditions to generate enormous Introducing Broker commissions and violated a range of conditions of the Client Agreement and Introducing Broker Agreement. Such actions completely contradict the principles and standards of the financial, banking, and trading industries in general, and the rules of Justforex, in particular.

2. The group now blackmails the Justforex that they will degrade the Justforex's reputation by disseminating the information on online resources.

3. The IB claimed that some of the clients are his personal relationships and relatives, which thereby confirmed his violation of company policies. Introducing Broker Agreement clearly forbids it.

4. Justforex has disclosed some circumstances and shreds of evidence of the investigation. But in order to prevent further similar fraud cases, Justforex does not disclose the details and any specific information about the investigation.

Justforex is registered by FSA

Justforex is registered by the St Vincent & The Grenadines Financial Services Authority (FSA). However, Please note that SVG FSA is an independent and autonomous financial body that does not license brokerage activities and regulate forex trading. It means that if you have any problems in the transaction, FSA will not deal with your complaint.