What is the name of your state (only U.S. law)? New York
Hi,
I opened an account with FXCM managed accounts. When I opened the account, they had claimed very high returns for their accounts over the past 2 years and promised low drawdowns on the accounts with their risk management and hedging strategies. However, after I joined the program, I have suffered a drawdown on my account of more than 30-40% in less than 3 weeks. On further investigation, I realized the results they had shown on the site before I had joined the program were hypothetical (or experimental) and did not reflect the true performance on real accounts. After I joined the program, the web page was changed to remove the hypothetical results. Moreover, when I joined the program, the leverage ratio was 6:1 on the accounts. Now due to the drawdowns they have suffered, on some basis, they have decided to lower the leverage to 2:1 on the accounts. This makes it impossible for me to recover my losses as it reduces the profit/loss margin for future gains/losses. On inquiring about the decision to do so, I was told that it was an internal decision as their programs have failed and they have also changed the programs altogether.
This whole thing seems fraudulent to me on two major accounts. Firstly, they posted hypothetical (unreal) results on the accounts to attract investments. Secondly, lowering the leverage internally and changing programs without mutual consent makes it impossible for me to cover my losses and dooms my lost investment entirely.
I would like to know if I could file a case of fraud against them and claim my losses with additional damages in this case.
I would really appreciate your valuable legal advise on this matter.
Regards,
Sam
Hi,
I opened an account with FXCM managed accounts. When I opened the account, they had claimed very high returns for their accounts over the past 2 years and promised low drawdowns on the accounts with their risk management and hedging strategies. However, after I joined the program, I have suffered a drawdown on my account of more than 30-40% in less than 3 weeks. On further investigation, I realized the results they had shown on the site before I had joined the program were hypothetical (or experimental) and did not reflect the true performance on real accounts. After I joined the program, the web page was changed to remove the hypothetical results. Moreover, when I joined the program, the leverage ratio was 6:1 on the accounts. Now due to the drawdowns they have suffered, on some basis, they have decided to lower the leverage to 2:1 on the accounts. This makes it impossible for me to recover my losses as it reduces the profit/loss margin for future gains/losses. On inquiring about the decision to do so, I was told that it was an internal decision as their programs have failed and they have also changed the programs altogether.
This whole thing seems fraudulent to me on two major accounts. Firstly, they posted hypothetical (unreal) results on the accounts to attract investments. Secondly, lowering the leverage internally and changing programs without mutual consent makes it impossible for me to cover my losses and dooms my lost investment entirely.
I would like to know if I could file a case of fraud against them and claim my losses with additional damages in this case.
I would really appreciate your valuable legal advise on this matter.
Regards,
Sam
Last edited:
