IronFX Chinese Traders Storm Offices Demanding Money Back
The latest protest has reportedly erupted after a trader threatened an executive at knifepoint. IronFX: "Any purported 'complaints' are defamatory
In August 2014, a damning twenty-minute investigative TV report on the operations of IronFX suggested that Chinese affiliates of the global broker had not received due payments. Now it’s the Chinese traders’ turn to voice similar claims and take action.
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Several Chinese websites have reported two instances of heated protest in IronFX’s offices in Shanghai last week, culminating in a violent attempt to attack a company executive.
According to the website “waihuiTV,” a client burst into IronFX’s offices with a knife and threatened an executive to approve his withdrawal by the next day, else he would kill him. According to the report, the attacker did indeed receive his money back the following day.
This violent move sparked a second physical confrontation with protesters who have been claiming that their funds are held by the broker. “[The knife attacker’s success] is the main reason that all the other victims decided to protect their rights together,” one protester was quoted in the report.
The arena
Photos from the scene show that the situation was extremely tense, as traders stormed and vandalized the office and, according to the report, even physically attacked the manager.
Normal operations were disturbed as the protesters shattered some windows and took over the office to display their banners inside.
The event unfolded in the offices of Global Investment Holdings, one of the brands IronFX uses to onboard clients and affiliates in China.
Based on the brand’s website (www.ighgl.com) it seems Global is owned and operated directly by IronFX. Records indicate that the accounting department of IronFX Global Ltd. controls the domain of Global and the email associated with the website address is domains@ironfx.com.
Police Intervention
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Last week’s event ended after local police were called to the scene, as can be seen in photos, restoring order to IronFX’s office in Shanghai. In the report the traders state that if IronFX does not provide them with a reasonable solution to the withdrawal problem, they will continue to escalate their protest.
The last time a negative report came out against the broker, IronFX said they were very surprised by the false allegations and that their lawyers are taking the necessary legal steps against the TV station.
This time the Chinese customers went beyond just making accusations and evidently used violence – which suggests the broker may be forced to resort to legal measures again to protect its operations in China.
IronFX: “complaints are clearly defamatory”
IronFX has provided Forex Magnates with the following comment about the accusations:
“We have identified a group of Abusive Traders that employ an abusive trading strategy to manipulate our Promotions. This group has been placed under investigation for breach of our trading terms and pending this investigation we have put a limitation on all Promotions-related withdrawals from this abusive trading strategy as we are entitled to do.
We reiterate that we have received no complaints or other formal notification from CySEC or any other of our seven regulatory authorities about withdrawal delays. Please also note that all withdrawals are being processed in accordance with our obligations and in line with the normal industry processing times.
Any purported “complaints” are clearly defamatory and may be linked with the recent rumors about the company pursuing an IPO on the NYSE. They follow a line of rumors about our business practices directed against our success, none of which are true.
In its five-year history, IronFX Global has never received a formal notification or fine from any of the seven regulatory authorities to which it reports (CySEC, FCA, ASIC, FSP, FSB, CRFIN, UCRFIN). IronFX Global will continue taking the measures to which it is entitled to protect the legitimate interests of the company and the 450,000 clients who maintain active accounts with the company.”
The original report can be found in Chinese here.
Well that is interesting. So I guess you can say that things are not going good for them. And the best part is their answer: “Any purported “complaints” are clearly defamatory and may be linked with the recent rumors about the company pursuing an IPO on the NYSE.”
Seriously? What IPO are they talking about? And the best part, what sane underwriter will onboard them?
Well that is interesting. So I guess you can say that things are not going good for them. And the best part is their answer: “Any purported “complaints” are clearly defamatory and may be linked with the recent rumors about the company pursuing an IPO on the NYSE.”
Seriously? What IPO are they talking about? And the best part, what sane underwriter will onboard them?
We’ve seen this movie before.
Part of the risks of having offices in China
We’ve seen this movie before.
Part of the risks of having offices in China
How you want them to pay back if they send traders into space ?
How you want them to pay back if they send traders into space ?
regardless of the IPO that raised the problem immediately successful strategy, but that makes it interesting is how this kind of problem can happen?! there will be no fire can be detected if the previous absence of smoke
regardless of the IPO that raised the problem immediately successful strategy, but that makes it interesting is how this kind of problem can happen?! there will be no fire can be detected if the previous absence of smoke
‘Paying back’ is not part of the business-model.
‘Paying back’ is not part of the business-model.
“IronFX entraps investors and they are conscienceless. God forbids what they they are doing. Give back my hard-earned money!” –
Quite a catchy sign.
The message was so long they needed all the wronged clients to hold it!
“IronFX entraps investors and they are conscienceless. God forbids what they they are doing. Give back my hard-earned money!” –
Quite a catchy sign.
The message was so long they needed all the wronged clients to hold it!
I think that their operation is very much likePepperstone. They are both B book brokers taking a huge amount of risk against clients. Both are also trying to hide behind the IPO curtain claiming to be legitimte and transperant operations. The truth is that both are nothing but old school "bucketshops".
I think that their operation is very much likePepperstone. They are both B book brokers taking a huge amount of risk against clients. Both are also trying to hide behind the IPO curtain claiming to be legitimte and transperant operations. The truth is that both are nothing but old school "bucketshops".
@Paul very funny
— am curious to find out….what are these “that employ an abusive trading strategy”
@Paul very funny
— am curious to find out….what are these “that employ an abusive trading strategy”
>The truth is that both are nothing but old school “bucketshops”.
Absolutely. Giving bad name to this industry. Rumors are IronFX employees are no longer welcome at other brokers.
It’s a company ran in a mediocre and arrogant fashion and it’s destiny is quite clear to all who are aware.
>The truth is that both are nothing but old school “bucketshops”.
Absolutely. Giving bad name to this industry. Rumors are IronFX employees are no longer welcome at other brokers.
It’s a company ran in a mediocre and arrogant fashion and it’s destiny is quite clear to all who are aware.
@ avibe – the ones who employ an abusive trading strategy, are the one who are actually profitable, and don’t loose money 🙂
@ avibe – the ones who employ an abusive trading strategy, are the one who are actually profitable, and don’t loose money 🙂
@Christian
Same as FXCM, Alpari, Fxpro, Xemarkets, Easyforex and i could continue adding forever…
@Christian
Same as FXCM, Alpari, Fxpro, Xemarkets, Easyforex and i could continue adding forever…
Well atleast pepper and the ones Mike mentioned appear to be paying what is owed, since there are no angry customers/partners bashing in their front-door.
Well atleast pepper and the ones Mike mentioned appear to be paying what is owed, since there are no angry customers/partners bashing in their front-door.
Why bother paying back? Only cowards payback 🙂 not even IPO on NYSE boys. Hilarious.
Why bother paying back? Only cowards payback 🙂 not even IPO on NYSE boys. Hilarious.
On a serious note, however, the bitter fact is that these kind of things and brokers give the whole industry a very bad image. Way to go, Iron.
On a serious note, however, the bitter fact is that these kind of things and brokers give the whole industry a very bad image. Way to go, Iron.
@Andy
Most probably because they don’t have offices in China or because they are under cover.
FXTM at the latest expo rings a bell? Or is it random that in every China expo all participants are hiring multiple security guards for protection. See FXCM , XM and all the likes.
All the same .
@Andy
Most probably because they don’t have offices in China or because they are under cover.
FXTM at the latest expo rings a bell? Or is it random that in every China expo all participants are hiring multiple security guards for protection. See FXCM , XM and all the likes.
All the same .
Any industry that involves a possible of loss typically employs some sort of security personal to protect its assets and employees at expos or at their office. People tend to be rather emotional when they lose money similar to how a Casino has security everywhere so you wouldn’t think of doing any thing crazy while there or after losing. I have seen this happen often and sometimes its driven by one affiliate who makes all the noise after a dispute with the broker. Fact is no one knows much about this situation other then to say this happened and this… Read more »
Any industry that involves a possible of loss typically employs some sort of security personal to protect its assets and employees at expos or at their office. People tend to be rather emotional when they lose money similar to how a Casino has security everywhere so you wouldn’t think of doing any thing crazy while there or after losing. I have seen this happen often and sometimes its driven by one affiliate who makes all the noise after a dispute with the broker. Fact is no one knows much about this situation other then to say this happened and this… Read more »
@James – As far as I can understand from the article, question was not the clients loosing money, but Iron failing to pay back the clients their funds.
I guess Iron does not have the money, and all is spent on their huge unnecessary staff and offices, together with FC Barcelona. And the biggest question currently for me, are they passing the capital adequacy requirements, and if they have their clients’ funds segregated?
And most importantly, where all of their regulators, such as the FCA, CySEC and others are looking? It surely must ring a bell to them…
@James – As far as I can understand from the article, question was not the clients loosing money, but Iron failing to pay back the clients their funds.
I guess Iron does not have the money, and all is spent on their huge unnecessary staff and offices, together with FC Barcelona. And the biggest question currently for me, are they passing the capital adequacy requirements, and if they have their clients’ funds segregated?
And most importantly, where all of their regulators, such as the FCA, CySEC and others are looking? It surely must ring a bell to them…
regulators should follow US practice – oblige broker to pay what is owned to traders, no excuses and hiding under agreements, or these unethical bucketshops will continue reckless market making and hiding from obligations, there is no other solution, brokers should understand that forex trading is risky too ! as I remember there was case against Alpari US and was solved to trader’s favor, so this can be taken as historical fact. cannot maintain your tech in order, don’t have money, get out of this business, simple as that, no money no playing forex .
regulators should follow US practice – oblige broker to pay what is owned to traders, no excuses and hiding under agreements, or these unethical bucketshops will continue reckless market making and hiding from obligations, there is no other solution, brokers should understand that forex trading is risky too ! as I remember there was case against Alpari US and was solved to trader’s favor, so this can be taken as historical fact. cannot maintain your tech in order, don’t have money, get out of this business, simple as that, no money no playing forex .
Wonder why when fxcm is fined for 16 mln or any of the other retail bucketshops, such as alpari mentioned above, is fined – when the regulator has indeed proven wrongdoing rather than just rumors – none steps up to to demonstrate and all of a sudden everybody becomes emotional and sensitized demanding justice. Maybe this is the reason none takes the above comments seriously. An outsider who is following the posts and discussions on a daily basis can easily identify the biased attitude against certain situations while it also raises suspicion as to who might be behind. This is… Read more »
Wonder why when fxcm is fined for 16 mln or any of the other retail bucketshops, such as alpari mentioned above, is fined – when the regulator has indeed proven wrongdoing rather than just rumors – none steps up to to demonstrate and all of a sudden everybody becomes emotional and sensitized demanding justice. Maybe this is the reason none takes the above comments seriously. An outsider who is following the posts and discussions on a daily basis can easily identify the biased attitude against certain situations while it also raises suspicion as to who might be behind. This is… Read more »
interesting
interesting
what incentive does one have to trade with a broker like this? We have TEST accounts with brokers like XeM, Exness, etc.. (few $100 USD max). But larger funds, what reasons does one have to place their funds here? What advantage does it have over broker like MBTrading, FXCM, Global Prime, etc.
what incentive does one have to trade with a broker like this? We have TEST accounts with brokers like XeM, Exness, etc.. (few $100 USD max). But larger funds, what reasons does one have to place their funds here? What advantage does it have over broker like MBTrading, FXCM, Global Prime, etc.
I am a chinese trader, the thing is that not only one chinese trader who was rejected to withdraw but all chinese, many chinese website expose ironfx bad behavior. and right now, client will keep escalating this few days befor chinese new year, because many clients’ fund not belong to himself , but many her or his relatives, before chinese new year thay have to give money and interest back to them, otherwise, many family will have big problem
http://www.hj110.cn/news/3991.html
http://www.fxunion.com/news/2015/17440.html
http://www.ieforex.com/whjg/20150109/465337.html
http://whyhui.com/11606.html
http://www.cngold.com.cn/zjs/20150108d1897n36875085.html
http://www.ieforex.com/whjg/20150109/465337.html
I am a chinese trader, the thing is that not only one chinese trader who was rejected to withdraw but all chinese, many chinese website expose ironfx bad behavior. and right now, client will keep escalating this few days befor chinese new year, because many clients’ fund not belong to himself , but many her or his relatives, before chinese new year thay have to give money and interest back to them, otherwise, many family will have big problem
http://www.hj110.cn/news/3991.html
http://www.fxunion.com/news/2015/17440.html
http://www.ieforex.com/whjg/20150109/465337.html
http://whyhui.com/11606.html
http://www.cngold.com.cn/zjs/20150108d1897n36875085.html
http://www.ieforex.com/whjg/20150109/465337.html
Wow, “Lee” as for Bruce Lee – the “Chinese Trader”.
Absolutely no way this was posted by a competitor.
Wow, “Lee” as for Bruce Lee – the “Chinese Trader”.
Absolutely no way this was posted by a competitor.
@Lee,
Can you comment on what were the determining factors that cause a Chinese person to open account with IronFX vs a competitor forex broker?
What 3 brokers would you open an account (in China) to trade forex? Why?
@Lee,
Can you comment on what were the determining factors that cause a Chinese person to open account with IronFX vs a competitor forex broker?
What 3 brokers would you open an account (in China) to trade forex? Why?
Wow, no way “Jon” is related to “Bruce Lee”.
Let me guess, one of the 3 brokers will be the one you work for.
I think we are downgrading the discussion here.
Wow, no way “Jon” is related to “Bruce Lee”.
Let me guess, one of the 3 brokers will be the one you work for.
I think we are downgrading the discussion here.