Formal Complaintsagainst ODL Securities
1) NATURE OFCOMPLAINTS
Unauthorized closure of open positions on 19 Septresulting in busting of my account
2) CAUSES
My open positions were closed by ODL using spreads of 200 pips.
ODL has obstinately maintained that they have the right toincrease their spreads to 200 pips at their complete whims and fancies, withoutwarning whatsoever, to bust my account. They rationalize their rights bystating that as long as they feel the market is volatile and liquidity is tight, they can do so.in short, traders are at ODLs complete mercy whether theirpositions will be closed or not, without warning or notification whatsoever tothem!
I am NOT questioning whether ODL have the right to do so.
What I am questioningis whether ODL, in exercising their right,
1) is ethical or is it malicious and not acting in the bestinterest of their clients
2) contravenes the requirements of the British Code ofAdvertising Practice & the IBA Code of Advertising Standards and Practicesin terms of the following: a) Legality
B) Decency c) Clarity
D) Honesty
E) Truthfulness
3) contravenes the Individually Agreed Terms Schedulebetween ODL and their clients, which clearly states that the spread is STANDARD, that is, not variable andsubject to increase as high as 200 pips. HAD I KNEW THAT ODL HAD THE RIGHT TO INCREASE THEIR SPREADS TO 200 PIPS ATTHEIR COMPLETE DISCRETION AND WITHOUT WARNING, I WOULD DEFINITEDLY NOT HAVEOPENED AN ACCOUNT WITH THEM!!!
4) is making false representations to induce traders to openaccounts with them by making it public, in an easily accessible manner throughtheir website, that the spreads for spot gold is 50 pips. Nowhere in their webpage was it stated that odl had the right to increasetheir spreads to 200 pips at their complete discretion and without warning. HADI KNEW THAT, I WOULD DEFINITEDLY NOT HAVE OPENED AN ACCOUNT WITH THEM.
Instead, it was clearly stated it their webpage thefollowing trade spot & forward FXon over 80 currency pairs, gold & silver on tight spreads & lowmarginsIn a table on thewebpage, it was clearly shown that the spreads for spot gold was 50 pips
5) contravenes the spirit of the FSA of always acting inthe best interest of the clients Nowhere was it statedin their webpage or agreement that ODL always acted in their own best interest, which might NOT be the best interests of the client, HAD I KNEW THAT, I WOULD DEFINITEDLY NOT HAVE OPENED AN ACCOUNT WITH ODL.
6) is making a false representation via ODLs Head of Sales, Mr. Chris Laird, which stated clearly in an email reply to my query on hugeslippage on 11 September that it is a connection problem and we make thesame quotes to all clients
There was no mention whatsoever, although given theopportunity, of the following:
(i) ODL has the right to increase their spreads to as highas 200 pips
(ii) I have to top up my accounts due to the impending hugeincrease in spreads.
ODL HAD NEVER MADEKNOWN TO ME AT ANY TIME PRIOR TO BUSTING MY ACCOUNT THAT THEY CAN AND WILLINCREASE THE SPREADS TO 200 PIPS THAT COULD AFFECT MARGIN ADEQUACY! 7) is a malicious intention to bust my account, that is, tantamount to selective prosecution. My account history was purgedimmediately after busting my account. Was it a malicious attempt to eraseevidence of fraudulent manipulations? ODLs justification of the huge increase in spreads due tomarket volatility and tight liquidity and that my account was busted due to alack of margin were ludicrous, as indicated by the following:
a) Since 25 August I have not initiated anytrades. On 17 Sept the market experienced extreme volatility WITH NO EFFECTS ON MY ACCOUNT BECAUSE OFADEQUATE MARGIN. However, on 19 Sept ODL BUSTED MY ACCOUNT USING A 200 PIPS SPREAD, WITHOUT ANY WARNINGS WHATSOEVER!!! MY ACCOUNT WAS BUSTEDDUE TO THE MALICIOUS INTENTION OF ODL, AND NOT BECAUSE OF A LACK OF MARGIN, ASALLEGED BY THEM.
No one is safe as odl can bust any accounts by increasimg their spreadsto whatever figures they want, at their complete whims and fancies, with nowarning whatsoever to traders!!! No one will ever know when and by how much the spreads will increase.
How can odl be granted a licence to steal the public (traders) smoney???!!! With a moving spreads, how can traders be expected to managetheir risks and trade???
ODLs ACTION WAS TRULY GROSSLY UNFAIR AND CRIMINAL!!!
ODLclaimed that following the volatility on 17 Sept, they have the right to
increasethe spreads, without warning, to whatever figures, within 48 hours. True
enough on19 Sept my account was busted with a spread increase of 300%
or 4times the standard spread. With such ahuge increase and
with 48 hous duration, surely theres still time,
although limited, to warn thetraders of their
intention so that traders can takethe necessary
precautions. However, no suchwarnings were
Forthcoming! How arrogant, sadist andmegalomaniac can one be???!!!
I do wonder how many traders have beenconned by
Them!!! How many more lives shouldthey take before someone stops them!!!
The most ironical thing was that after mypersistent complaints, they started issuingwarnings of spread
Increase on 10 october
i do wonder was that an admissionof guilt that deep
DOWN INSIDE THEY KNEW THEY HAVE DONESOMETHING TERRIBLE; THAT THEY HAVE BROKENTHE SACRED CODE BETWEEN BROKERS AND TRADERS THAT OF MUTUAL TRUST AND INTERESTS???!!! But why didnt they issued warnings before they increase the pips to200? The answer is obvious; if they did, they would have lost a goldenopportunity to steal my money! B) I have been trading concurrently with other brokersand during the most severe market volatility and liquidity crunch, their spreadalways remain unchanged at 50 pips. These are genuine and professional brokerswho stay true to their words through thick and thin. As such, using market volatility and tight liquidity to increase spreadwithout warnings whatsoever to traders is PURE NONSENSE!!!
What appalls me was that ODL took more than 2 weeks torationalize their criminal conduct!!! They even had to resort using a fall guy (someone who was serving his resignation notice period) to take the fullresponsibility as their reply was from this person and not from the Head of Compliance. This person even got the date of my complaint wrong (it should be 19 Sept, andnot 11 Sept!) I was not able to get through to the Head of Compliance despitenumerous attempts to do so!!!
If ODL needs toresort to dirty underhanded tactics to sustain their operations, I do not thinkODL is fit to be a broker!!! EFFECTS
1) I have lost USD58,098.53.
Kindly take note that this account history of mine was deleted the dayfollowing the busting of my account although my account was not closed!!! Anattempt by ODL to erase fraudulent manipulations of clients accounts???!!!
2) I had beendeprived my rights to recover my trading positions and my liberty to
trade was curtailed abruptly!!!
Recommendations
The BIG question: Should ODL be allowedto continue cheating clients monies by busting their accounts through hugeincrease in spreads, at their complete whims and fancies and without warningwhatsoever to their clients???!!! My recommendationsare as follows: 1) Full refund of my losses. 2) Full disclosure by ODL of their rights to bust clientsaccount through huge slippage
(200 or morepips) at their whims and fancies and without warnings in the following:
A) Agreementwith traders The Individually Agreed Terms Schedule with ODLb) Webpageto prevent members of the public from malicious websites.
This will ensurethat members of the public will not be conned by unscrupulous
and unethical brokerssuch as ODL.
Kindly uphold justiceat all costs, without fear or favour!
KINDLY ENSURERESPONSIBILITY, ACCOUNTABILITY AND TRANSPARENCY PREVAILS SO AS TO CREATE ACLEAN AND JUST TRADING ENVIRONMENT! I shall end by quoting the values, wisdom, integrity, tenacity and courage of the beloved former British Prime Minister Sir WinstonChurchill: You ask, what is ouraim? I can answer in one word. It is victory! Victory at all costs! Victory inspite of all terrors. Victory, however long and hard the road may be, forwithout victory there is no survival. (Dear Sir/Madam, kindly ensure the survival oftraders!) Our task is not onlyto win the battle but to win the war. After this battle in France abates its force, there will come thebattle for our island for all that Britainis, and all the Britainmeans. That will be the struggle.in that supreme emergency we shall nothesitate to take every step, even the most drastic, to call forth from ourpeople the last ounce and the last inch of effort of which they are capable. The interests of property, the hours of labour, are nothing compared with thestruggle of life and honour, for right and freedom, to which we have vowedourselves. (Dear Sir/Madam, Iimplore you, to recognize the struggleof life and honour of traders and to uphold their right and freedom to trade, to which we have vowed ourselves) Great Britain is GREAT because of her people. Do notallow some unscrupulous and unethical people disgrace the great British peopleand the great legacy left by the great statesman Sir Winston Churchill!!! Thank You. Yours sincerely, Jack ChanKuala LumpurMalaysia
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