Assets of Forex Broker Seized After Trading Against A

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An Israeli court has ordered a seizure order against Forex Place  in a size of around $1.7 million for financial mismanagement in running a client’s account. The trader showed that the broker was trading against him and got a warrant to seize the broker’s assets. Here are more details.

Update: The courts cleared the company of any wrongdoings.

Israel’s Globes reports (Original in Hebrew, Google Translated) that a court in Tel Aviv ordered a seizure of 6.2 million Israeli shekels (around $1.7 million) for mismanaging the account of Majd Sheikh, that lives in northern Israel. Judge Hagai Brenner made his ruling already on Wednesday, but it was gagged in order to enable the client to start seizing the funds without disturbance.

According to the client, he was tempted to invest his money in Forex Place, understanding that the company makes money off of spreads. This was explained in October 2009,  at a meeting with the managers of the company’s Haifa branch, Ze’ev Hemed and Gal Segal.

According to the client, he then invested 5.4 million shekels (almost $1.5 million) and lost his money within three months. He later understood that the company is in “an extreme conflict of interests”.

He discovered that he was deceived – that Forex Place only selectively passes the orders to liquidity providers and actually counters every position that the client makes.

So, when Forex Place (4XP) plays against the client, the client’s losses are its profits.

The manager of Forex Place, Shalom Peretz said that the matter is taken care of by the legal department of the company.

Further reading: CFTC sues 14 forex brokers for operating without registration and/or trading against their clients.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

4 Comments

  1. old news…. court threw the lawsuit out the door. apparently the guy had no case or something…

  2. Pingback: ForexPlace Cleared of Charges in Preliminary Court Hearing | Forex Crunch

  3. Jayden Hamilton on

    Hello everyone,

    I’d like to update everyone about lawsuit. The asset seizure has been rejected and lawsuit is being dropped.

    I’m happy to say that investigations have found no wrong-doings on our side and that the issue is finally settled.

    I’d also like thank our traders who stayed with us regardless of this dishonest attempt to slander our name and integrity.

    Jayden Hamilton
    4XP Customer Relations Manager