Hi Everyone,
I came across the following Chinese articles regarding IronFX this morning.
Someone has kindly translated them into English as Google translate isn’t great with Chinese.
Some interesting stuff as I’m sure you’ll agree, if they operate like this in China would you trust them with your funds anywhere else?
Here are the original articles:
http://gold.hexun.com/2015-01-07/172…html?from=rss
And the translations:
Waihuitv:
IronFX encountered customer protest
Yesterday, website ‘waihuiTV’ received complaints from client ‘xiangshane’ towards IronFX. The fact that nowadays withdrawal is prohibited from IronFX leads to protest of clients. In order to obtain more details, we had interviewed client ‘xiangshane’.
According to the client, there was another client burst into IronFX’s office with a knife and went to the internal executive Peter. The client threatened Peter that if they would not approve his withdrawal by the next day, he will kill Peter. This client was successfully got his money back on the following day through this violent way. This is the main reason that all the other victims decided to protect their rights together.
This is why there was protest in front of IronFX’s office in Shanghai. However, the responses given by IronFX further stimulate the anger of their investors, they started to destroy the office and even beat the CEO. With this tough attitude of investors, they obviously state that if IronFX does not provide them with a reasonable solution, they will continue the protest even to a wider extension. In case the situation expanded, the consequences will be unpredictable and uncontrollable.
The following picture was sent from the complainant. The mess in the scene and the ground full of broken glass indicates the disastrous results. Because of the protest, IronFX cannot work normally nowadays and police had got involved.
Obviously, although the situation is quite bad now, IronFX is not so concerned. According to the complainant, IronFX worried most that clients will go to their Beijing office to protest. As we all known, Beijing is the capital so that whatever happens in Beijing will certainly gain lots of interests. IronFX becomes passive under this circumstance; the way things go is far beyond what they had imagined. Meanwhile, another news says that XM, which belongs to Trading Point Financial Group, announces that they are planning to purchase Chinese branch offices of IronFX.
The industry veteran hold the opinion that based on the purchase before, after the agreement, the original company will not accept any withdrawal requests within the agreed zone. Just like insurance, if a insurance company offer life business, it is not allowed to close down unless discrete or merge. However, it is also hard for clients to withdrawal through the new company so that ‘Merge’ becomes a legal way to embezzle client’s funds; the same as legally close down. Moreover, towards the previous news that IronFX is going to be listed, this industry veteran holds the attitude that probably the capital chain was broken and they come up with this idea to absorb more money.
Currently, the best way for IronFX would be to sell their ‘non-performing’ asset, from public opinion, the objective of listing of IronFX can be illustrated as their capital chain is broken and they need money urgently. The result and expectation run into opposite directions. Thus, XM may think that IronFX is in a very hard position now; to be purchased is the best option so that they announce purchase. Once this has been done, the global business of IronFX may be highly enhanced and also the valuation will be higher in the US IPO.
How shiny IronFX once was, in order to occupy the Chinese market, they take client’s money as foundation at all costs.
What is the future of IronFX? Continue to shine or being purchased? We are emotional about the awkward situation of IronFX now; we should more concern about the clients who were played by the bad brokers, what are their futures? In this way, the most important for a investor is to choose a regular, safe and reliable broker.
Gold.hexun:
IronFX prohibit “arbitrage”, leads clients into a trap
CNgold is reporting that IronFX formulate unfair clauses, prohibit the client from arbitrage, in case the client break these rules, all the bonus, profits and principals will be deducted. After this was announced, clients start protesting.
IronFX had always been castigated of hard to withdrawal, this time is even worse, arbitrage is prohibited, attempt on investor’s bonus, profit or even principal.
The original text is as follows:
The hard withdrawal issue of IronFX is getting worse; we investors cannot bear this anymore! Today we will expose part of the issue.
Several days ago, IronFX had published a new police regarding arbitrage: Since nowadays many clients are trading arbitrage, from now on, clients who trade like this will not be able to get commission, as well as bonus and principal.
IronFX had paid a lot of attention to this arbitrage prohibition. Business managers who have client doing arbitrage will be dismissed. The official attitude of IronFX towards declining our withdrawal is the declination of withdrawal has nothing to do with listing. IronFX holds the opinion that we misuse the bonus so that they must eliminate our profit and commission and get our accounts back to initial deposit amount. We have nothing to comment about this, every time there is an issue; they will blame either the business manager or us investors. I want to question IronFX; the bonus plan is regulated by whom? Who hired your employees? Why such a serious issue happened and you just fired 2 business personals and blame investors that we misuse the bonus plan that you had made? This is the most hot and ‘famous’ brokers on most Forex media websites, so untrustworthy and rascally!
As clients, and are considered arbitrage by IronFX, we feel really wronged. At the beginning, it was IronFX staff contacted us and taught us to trade in this way. IronFX regards us as making profit from illegal way and now they take individual (business manager) behavior has nothing to do with company as excuse to refuse to pay us the profit. Also, they declaimed that the situation is not a matter for them; they are not influenced at all. They will not change any polices, just leave us two options:
-
- If you want to continue trading with IronFX, you need to cancel the withdrawal requests and continue trading under the new policy
-
You will get your initial deposit but all the bonus and profit will be deducted
That’s why yesterday; clients experienced the same issue started protest in front of IronFX office. They also made a banner with the content ‘IronFX leads clients to a trap, they are conscienceless, intolerable, give our money back!’ However, we feel very disappointed and angry with IronFX’s response.
Before the protest, there had already been other protests in many other offices of IronFX (e.g. Shenyang), their business managers were afraid to go out for business which slows down the business of IronFX. However, IronFX did not learn from this which leads to violations between clients and IronFX CEO in Shanghai.
IronFX must give us a reasonable solution, otherwise with your tough attitude; you will either be investigated by police or kicked out of China by clients. No matter what background you have, with the leading of the new president of China, you will not be able to do anything!
Before, IronFX was planning to be listed in US IPO. It is reported that IronFX had take Barclays, UBS, Credit Suisse and other investment banks as their underwriters.
