First some details. I have been trading for some time using IG broker (and meta trader 4). I have made some nice profits and one day i came up with the idea of trying another broker, but this time probably a scammer one (broker: Portal Realm Limited / platform: meta trader 5)
So, I sent 2k to this new broker (i wanted to see if at some point i could withdraw money). The thing is, now I have a negative balance of -4k (bad trading decision from my side)
I could send them the money right now but if they are scammers, should i send it to them?
I just received from their “customer service” a Wechat message (chinese app) saying:
“Your account owes 4k, please pay it back in time”
“With regard to the notice of arrears , if the arrears are not paid within a week, the company will sue in laws and regulations and hope that the customers will pay off the arrears as soon as possible in order to create unnecesary trouble. Thank you for your cooperation”
The big question: Should i send them money? Can i be sued by a scammer broker if i don’t pay my negative balance?
Why when you use ig did you go to another broker? Why did you not ask on this community before you went with a random broker?
Anyway, I need more details. Send me the website of this firm where you signed up. Did they send you a contract or terms and conditions when you signed up?
Did you verify all your details when you signed up?
How did you go -ve balance? Was it your trade or someone elses? What country are you in?
Dont send them money till you answer my questions.
So i did quite well in another broker account (IG broker). Why I went to another broker? Well, I wanted to try to invest in one of this “shady brokers” and see if i could really withdraw money after some time.
In fact, I managed to make 8k but when I asked for a withdrawal of part of my profits they just told me that it was only possible to withdraw the entire amount (then i made the mistake of investing everything for a couple of days…)
They did not send any contract or terms and conditions
For registration they only asked for an ID picture and some other details such as address, email, bank account,…
I made a mistake on May 4 when i sold xauusd but the price in one second went up drastically and i didnt have stop loss (leverage 1:300). Then i got a negative balance…
Im in Germany.
The broker bank account is in Hungary and the account name “Blessed Europa”
Extra info
WeChat ID of “customer service”: wy860806wy
Well you might be in luck. So as hungry is in the eu it should be regulated by the European Securities and Markets Authority (ESMA) which covers the EU. Part of the regulation is protecting the public and having negative balance protection.
So, you should take pictures of their website. Then email back asking who are they regulated by as nowhere on the site does it say you can lose more than what you put in. So you’ve been missold. The risk of trading wasnt known to you and the website says funds are held in tier one banks. You can also ask for their regulatory number so you can contact the regulator if they are going to ask you to deposit more money. Lol and then also say can you have the brokers full name and address so you can give their personal details to ESMA as you should have negative protection for brokers based in eu. I think esma might protect you even just because you’re in Germany.
Just stick with that story all the way. Should be fine eventually. Ask to close the account.
Next time if you’re making money with another broker you dont need to sign up with a scam broker too. Take note of that. This is going back to basics but you need to learn to manage your risk. If you did, you wouldn’t risk all what you have. Good luck.
When I decide to move to another broker, negative balance protection is one of the first things I will ask about. Any loss makes me a bit sad, and I would be really devastated having not only a loss but a debt also
I was scammed by them, wish I would have seen your post. I’m the opposite, I made a ton onmy account and couldn’t get it without paying taxes in advance. Once I did they basically stopped responding.
Why did you want to try a “shady broker” to see if you could really withdraw money ?
Are you mad crazy ?
Do you put your hand in the fire to see if it’s hot ?
You deserve what you have got - an expensive lesson !
I guess you can forget about them and just relax. Reputable brokers like Hotforex offer negative balance protection in such cases so make sure next time you open account with a broker which offers this essential feature.
