ODL Markets
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Ivan Gekko
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Formal Complaints against ODL Securities to Financial Ombudsman Services , U.K
From : Jack Chan
Account No : KC 015
Account type : Spot gold
1) NATURE OF COMPLAINTS
Unauthorized closure of open positions on 19 Sept 2008 resulting in busting of my account
2) CAUSES
My open positions were closed by ODL using spreads of 200pips.
ODL has obstinately maintained that they have the right to increase their spreads to 200 pips at their complete whims and fancies, without warning whatsoever, to bust my account. They rationalize their rights by stating that as long as they feel the market is volatile and liquidity is tight, they can do so. In short, traders are at ODL’s complete mercy whether their positions will be closed or not, without warning or notification whatsoever to them!.
I am NOT questioning whether ODL have the right to do so.
What I am questioning is whether ODL, in exercising their right,
1) is ethical or is it malicious and not acting in the best interest of their clients
2) contravenes the requirements of the British Code of Advertising Practice & the IBA Code of Advertising Standards and Practices in terms of the following:
a) Legality
b) Decency
c) Clarity
d) Honesty
e) Truthfulness
3) contravenes the “Individually Agreed Terms Schedule” between ODL and their clients, which clearly states that the spread is “STANDARD” ,that is, not variable and subject to increase as high as 200 pips. HAD I KNEW THAT ODL HAD THE RIGHT TO INCREASE THEIR SPREADS TO 200 PIPS AT THEIR COMPLETE DISCRETION AND WITHOUT WARNING, I WOULD DEFINITEDLY NOT HAVE OPENED AN ACCOUNT WITH THEM!!!
4) is making false representations to induce traders to open accounts with them by making it public, in an easily accessible manner through their website, that the spreads for spot gold is 50 pips. Nowhere in their webpage was it stated that
ODL HAD THE RIGHT TO INCREASE THEIR SPREADS TO 200 PIPS AT THEIR COMPLETE DISCRETION AND WITHOUT WARNING. HAD I KNEW THAT, I WOULD DEFINITEDLY NOT HAVE OPENED AN ACCOUNT WITH THEM.
Instead , it was clearly stated it their webpage the following “ trade spot & forward FX on over 80 currency pairs, gold & silver on tight spreads & low margins”
In a table on the webpage, it was clearly shown that the spreads for spot gold was 50 pips
(Kindly refer to the notes below)
5) contravenes the spirit of the FSA of “always acting in the best interest of the clients”
Nowhere was it stated in their webpage or agreement that ODL always acted in their own best interest, which might NOT be the best interests of the client. , HAD I KNEW THAT, I WOULD DEFINITEDLY NOT HAVE OPENED AN ACCOUNT WITH ODL.
6) is making a false representation via ODL’s Head of Sales, Mr. Chris Laird, which stated clearly in an email reply to my query on huge slippage on 11 September 2008 that “it is a connection problem and we make the same quotes to all clients”
There was no mention whatsoever, although given the opportunity, of the following:
(i) ODL has the right to increase their spreads to as high as 200 pips
(ii) I have to top up my accounts due to the impending huge increase in spreads.
ODL HAD NEVER MADE KNOWN TO ME AT ANY TIME PRIOR TO BUSTING MY ACCOUNT THAT THEY CAN AND WILL INCREASE THE SPREADS TO 200 PIPS THAT COULD AFFECT MARGIN ADEQUACY!
7) is a malicious intention to bust my account, that is, tantamount to “selective prosecution”. My account history was purged immediately after busting my account. Was it a malicious attempt to erase evidence of fraudulent manipulations?
(I will email you the account history which I had luckily saved)
ODL’s justification of the huge increase in spreads due to market volatility and tight liquidity and that my account was busted due to a lack of margin were ludicrous, as indicated by the following:
a) Since 25 August 2008, I have not initiated any trades. On 17 Sept 2008, the market experienced extreme volatility WITH NO EFFECTS ON MY ACCOUNT BECAUSE OF ADEQUATE MARGIN. However, on 19 Sept 2008, ODL BUSTED MY ACCOUNT USING A 200 PIPS SPREAD, WITHOUT ANY WARNINGS WHATSOEVER!!!MY ACCOUNT WAS BUSTED DUE TO THE MALICIOUS INTENTION OF ODL, AND NOT BECAUSE OF A LACK OF MARGIN, AS ALLEGED BY THEM.
NO ONE IS SAFE AS ODL CAN BUST ANY ACCOUNTS BY INCREASING THEIR SPREADS TO WHATEVER FIGURES THEY WANT, AT THEIR COMPLETE WHIMS AND FANCIES, WITH NO WARNING WHATSOEVER TO TRADERS!!!
NO ONE WILL EVER KNOW WHEN AND BY HOW MUCH THE SPREADS WILL INCREASE.
HOW CAN ODL BE GRANTED A LICENCE TO STEAL THE PUBLIC (TRADERS)’S MONEY????!!!! WITH A MOVING SPREADS, HOW CAN TRADERS BE EXPECTED TO MANAGE THEIR RISKS AND TRADE????
ODL’s ACTION WAS TRULY GROSSLY UNFAIR AND CRIMINAL!!!!
ODL claimed that following the volatility on 17 Sept, they have the right to
increase the spreads, without warning, to whatever figures, within 48 hours. True enough on 19 Sept 2008, my account was busted with a spread increase of 300% or 4 times the standard spread.
WITH SUCH A HUGE INCREASE AND WITH 48 HOUS DURATION,
SURELY THERE’S STILL TIME, ALTHOUGH LIMITED,
TO WARN THE TRADERS OF THEIR INTENTION SO THAT TRADERS
CAN TAKE THE NECESSARY PRECAUTIONS. HOWEVER, NO SUCH
WARNINGS WERE FORTHCOMING!
HOW ARROGANT, SADIST AND MEGALOMANIAC CAN ONE BE????!!!!
I DO WONDER HOW MANY TRADERS HAVE BEEN CONNED BY
THEM!!! HOW MANY MORE LIVES SHOULD THEY TAKE BEFORE
SOMEONE STOPS THEM!!!!!!
THE MOST IRONICAL THING WAS THAT AFTER MY PERSISTENT
COMPLAINTS, THEY STARTED ISSUING WARNINGS OF SPREAD
INCREASE ON 10 OCTOBER 2008
I DO WONDER WAS THAT AN ADMISSION OF GUILT – THAT DEEP
DOWN INSIDE THEY KNEW THEY HAVE DONE SOMETHING
TERRIBLE; THAT THEY HAVE BROKEN THE SACRED CODE
BETWEEN BROKERS AND TRADERS – THAT OF MUTUAL TRUST
AND INTERESTS????!!!!!
b) I have been trading concurrently with other brokers and during the most severe market volatility and liquidity crunch, their spread always remain unchanged at 50 pips. These are genuine and professional brokers who stay true to their words through thick and thin. As such, using market volatility and tight liquidity to increase spread without warnings whatsoever to traders is PURE NONSENSE!!!
What appalls me was that ODL took more than 2 weeks to rationalize their ‘criminal” conduct!!!They even had to resort using a fall guy (someone who was serving his resignation notice period) to take the full responsibility as their reply was from this person and not from the Head of Compliance. This person even got the date of my complaint wrong (it should be 19 Sept, and not 11 Sept!) I was not able to get through to the Head of Compliance despite numerous attempts to do so!!!
If ODL needs to resort to dirty underhanded tactics to sustain their operations, I do not think ODL is fit to be a broker!!!
EFFECTS
1) I have lost USD 58,098.53.
(Kindly refer to the attached account history in the notes below. Kindly take note that this account history of mine was deleted the day following the busting of my account although my account was not closed!!!An attempt by ODL to erase fraudulent manipulations of clients’ accounts???!!!)
2) I had been deprived my rights to recover my trading positions and my liberty to trade was curtailed abruptly!!!
RECOMMENDATIONS
The BIG question:
Should ODL be allowed to continue cheating clients’ monies by busting their accounts through huge increase in spreads, at their complete whims and fancies and without warning whatsoever to their clients???!!!
I shall let the Financial Ombudsman Services and the FSA decide on that (As the FOS,U.K, takes a long time to resolve the issue due to the number of cases they are handling, I sincerely hope FPA can act FAST , including bringing all victims together to bring a class action against ODL Securities!)
My recommendations are as follows:
1) Full refund of my losses.
2) Full disclosure by ODL of their rights to bust clients’ account through huge slippage (200 or more pips) at their whims and fancies and without warnings in the following:
a) Agreement with traders – The Individually Agreed Terms Schedule with ODL
b) Webpage – to prevent members of the public from malicious websites.
This will ensure that members of the public will not be conned by unscrupulous and unethical brokers such as ODL.
KINDLY UPHOLD JUSTICE AT ALL COSTS, WITHOUT FEAR OR FAVOR!
KINDLY ENSURE RESPONSIBILITY, ACCOUNTABILITY AND TRANSPARENCY PREVAILS SO AS TO CREATE A CLEAN AND JUST TRADING ENVIRONMENT!
I shall end by quoting the values, wisdom, integrity, tenacity and courage of the beloved former British Prime Minister Sir Winston Churchill:
“You ask, what is our aim? I can answer in one word. It is victory! Victory at all costs! Victory in spite of all terrors. Victory, however long and hard the road may be, for without victory there is no survival.”
(Dear Sir/Madam, kindly ensure the survival of traders!)
“Our task is not only to win the battle – but to win the war. After this battle in France abates its force, there will come the battle for our island – for all that Britain is, and all the Britain means. That will be the struggle. In that supreme emergency we shall not hesitate to take every step, even the most drastic, to call forth from our people the last ounce and the last inch of effort of which they are capable. The interests of property, the hours of labour, are nothing compared with the struggle of life and honour, for right and freedom, to which we have vowed ourselves.”
(Dear Sir/Madam, I implore you, to recognize the struggle of life and honour of traders and to uphold their right and freedom to trade, to which we have vowed ourselves)
Great Britain is GREAT because of her people. Do not allow some unscrupulous and unethical people disgrace the great British people and the great legacy left by the great statesman Sir Winston Churchill!!!
Thank You.
Yours sincerely,
Jack Chan
( KC 015 )
Note:
Below are the information from ODL's webpage:
Forex, Gold & Silver
Retail
Institutional
Partnerships
Open
Fund
Forms
Disclaimer & Risk Warning
Privacy Policy
Forex, Gold & Silver
Trade spot and forward FX on over 80 currency pairs, gold and silver on tight spreads and low margins. As an active client you can take advantage of ODL FX Tutor - your online educational programme making the forex market easier to understand.
More than just execution of trades... We are constantly striving to improve our product offer and service to our customers.
The ODLS Advantage
The FX, Gold & Silver Trading Platform.
Click here to find out why you should open an FX trading account with ODL.
Click here to find out more about our trading platform.
Advantages of Trading Forex
Interest Rollover
Click here to find out why you should consider trading FX
From : Jack Chan
Account No : KC 015
Account type : Spot gold
1) NATURE OF COMPLAINTS
Unauthorized closure of open positions on 19 Sept 2008 resulting in busting of my account
2) CAUSES
My open positions were closed by ODL using spreads of 200pips.
ODL has obstinately maintained that they have the right to increase their spreads to 200 pips at their complete whims and fancies, without warning whatsoever, to bust my account. They rationalize their rights by stating that as long as they feel the market is volatile and liquidity is tight, they can do so. In short, traders are at ODL’s complete mercy whether their positions will be closed or not, without warning or notification whatsoever to them!.
I am NOT questioning whether ODL have the right to do so.
What I am questioning is whether ODL, in exercising their right,
1) is ethical or is it malicious and not acting in the best interest of their clients
2) contravenes the requirements of the British Code of Advertising Practice & the IBA Code of Advertising Standards and Practices in terms of the following:
a) Legality
b) Decency
c) Clarity
d) Honesty
e) Truthfulness
3) contravenes the “Individually Agreed Terms Schedule” between ODL and their clients, which clearly states that the spread is “STANDARD” ,that is, not variable and subject to increase as high as 200 pips. HAD I KNEW THAT ODL HAD THE RIGHT TO INCREASE THEIR SPREADS TO 200 PIPS AT THEIR COMPLETE DISCRETION AND WITHOUT WARNING, I WOULD DEFINITEDLY NOT HAVE OPENED AN ACCOUNT WITH THEM!!!
4) is making false representations to induce traders to open accounts with them by making it public, in an easily accessible manner through their website, that the spreads for spot gold is 50 pips. Nowhere in their webpage was it stated that
ODL HAD THE RIGHT TO INCREASE THEIR SPREADS TO 200 PIPS AT THEIR COMPLETE DISCRETION AND WITHOUT WARNING. HAD I KNEW THAT, I WOULD DEFINITEDLY NOT HAVE OPENED AN ACCOUNT WITH THEM.
Instead , it was clearly stated it their webpage the following “ trade spot & forward FX on over 80 currency pairs, gold & silver on tight spreads & low margins”
In a table on the webpage, it was clearly shown that the spreads for spot gold was 50 pips
(Kindly refer to the notes below)
5) contravenes the spirit of the FSA of “always acting in the best interest of the clients”
Nowhere was it stated in their webpage or agreement that ODL always acted in their own best interest, which might NOT be the best interests of the client. , HAD I KNEW THAT, I WOULD DEFINITEDLY NOT HAVE OPENED AN ACCOUNT WITH ODL.
6) is making a false representation via ODL’s Head of Sales, Mr. Chris Laird, which stated clearly in an email reply to my query on huge slippage on 11 September 2008 that “it is a connection problem and we make the same quotes to all clients”
There was no mention whatsoever, although given the opportunity, of the following:
(i) ODL has the right to increase their spreads to as high as 200 pips
(ii) I have to top up my accounts due to the impending huge increase in spreads.
ODL HAD NEVER MADE KNOWN TO ME AT ANY TIME PRIOR TO BUSTING MY ACCOUNT THAT THEY CAN AND WILL INCREASE THE SPREADS TO 200 PIPS THAT COULD AFFECT MARGIN ADEQUACY!
7) is a malicious intention to bust my account, that is, tantamount to “selective prosecution”. My account history was purged immediately after busting my account. Was it a malicious attempt to erase evidence of fraudulent manipulations?
(I will email you the account history which I had luckily saved)
ODL’s justification of the huge increase in spreads due to market volatility and tight liquidity and that my account was busted due to a lack of margin were ludicrous, as indicated by the following:
a) Since 25 August 2008, I have not initiated any trades. On 17 Sept 2008, the market experienced extreme volatility WITH NO EFFECTS ON MY ACCOUNT BECAUSE OF ADEQUATE MARGIN. However, on 19 Sept 2008, ODL BUSTED MY ACCOUNT USING A 200 PIPS SPREAD, WITHOUT ANY WARNINGS WHATSOEVER!!!MY ACCOUNT WAS BUSTED DUE TO THE MALICIOUS INTENTION OF ODL, AND NOT BECAUSE OF A LACK OF MARGIN, AS ALLEGED BY THEM.
NO ONE IS SAFE AS ODL CAN BUST ANY ACCOUNTS BY INCREASING THEIR SPREADS TO WHATEVER FIGURES THEY WANT, AT THEIR COMPLETE WHIMS AND FANCIES, WITH NO WARNING WHATSOEVER TO TRADERS!!!
NO ONE WILL EVER KNOW WHEN AND BY HOW MUCH THE SPREADS WILL INCREASE.
HOW CAN ODL BE GRANTED A LICENCE TO STEAL THE PUBLIC (TRADERS)’S MONEY????!!!! WITH A MOVING SPREADS, HOW CAN TRADERS BE EXPECTED TO MANAGE THEIR RISKS AND TRADE????
ODL’s ACTION WAS TRULY GROSSLY UNFAIR AND CRIMINAL!!!!
ODL claimed that following the volatility on 17 Sept, they have the right to
increase the spreads, without warning, to whatever figures, within 48 hours. True enough on 19 Sept 2008, my account was busted with a spread increase of 300% or 4 times the standard spread.
WITH SUCH A HUGE INCREASE AND WITH 48 HOUS DURATION,
SURELY THERE’S STILL TIME, ALTHOUGH LIMITED,
TO WARN THE TRADERS OF THEIR INTENTION SO THAT TRADERS
CAN TAKE THE NECESSARY PRECAUTIONS. HOWEVER, NO SUCH
WARNINGS WERE FORTHCOMING!
HOW ARROGANT, SADIST AND MEGALOMANIAC CAN ONE BE????!!!!
I DO WONDER HOW MANY TRADERS HAVE BEEN CONNED BY
THEM!!! HOW MANY MORE LIVES SHOULD THEY TAKE BEFORE
SOMEONE STOPS THEM!!!!!!
THE MOST IRONICAL THING WAS THAT AFTER MY PERSISTENT
COMPLAINTS, THEY STARTED ISSUING WARNINGS OF SPREAD
INCREASE ON 10 OCTOBER 2008
I DO WONDER WAS THAT AN ADMISSION OF GUILT – THAT DEEP
DOWN INSIDE THEY KNEW THEY HAVE DONE SOMETHING
TERRIBLE; THAT THEY HAVE BROKEN THE SACRED CODE
BETWEEN BROKERS AND TRADERS – THAT OF MUTUAL TRUST
AND INTERESTS????!!!!!
b) I have been trading concurrently with other brokers and during the most severe market volatility and liquidity crunch, their spread always remain unchanged at 50 pips. These are genuine and professional brokers who stay true to their words through thick and thin. As such, using market volatility and tight liquidity to increase spread without warnings whatsoever to traders is PURE NONSENSE!!!
What appalls me was that ODL took more than 2 weeks to rationalize their ‘criminal” conduct!!!They even had to resort using a fall guy (someone who was serving his resignation notice period) to take the full responsibility as their reply was from this person and not from the Head of Compliance. This person even got the date of my complaint wrong (it should be 19 Sept, and not 11 Sept!) I was not able to get through to the Head of Compliance despite numerous attempts to do so!!!
If ODL needs to resort to dirty underhanded tactics to sustain their operations, I do not think ODL is fit to be a broker!!!
EFFECTS
1) I have lost USD 58,098.53.
(Kindly refer to the attached account history in the notes below. Kindly take note that this account history of mine was deleted the day following the busting of my account although my account was not closed!!!An attempt by ODL to erase fraudulent manipulations of clients’ accounts???!!!)
2) I had been deprived my rights to recover my trading positions and my liberty to trade was curtailed abruptly!!!
RECOMMENDATIONS
The BIG question:
Should ODL be allowed to continue cheating clients’ monies by busting their accounts through huge increase in spreads, at their complete whims and fancies and without warning whatsoever to their clients???!!!
I shall let the Financial Ombudsman Services and the FSA decide on that (As the FOS,U.K, takes a long time to resolve the issue due to the number of cases they are handling, I sincerely hope FPA can act FAST , including bringing all victims together to bring a class action against ODL Securities!)
My recommendations are as follows:
1) Full refund of my losses.
2) Full disclosure by ODL of their rights to bust clients’ account through huge slippage (200 or more pips) at their whims and fancies and without warnings in the following:
a) Agreement with traders – The Individually Agreed Terms Schedule with ODL
b) Webpage – to prevent members of the public from malicious websites.
This will ensure that members of the public will not be conned by unscrupulous and unethical brokers such as ODL.
KINDLY UPHOLD JUSTICE AT ALL COSTS, WITHOUT FEAR OR FAVOR!
KINDLY ENSURE RESPONSIBILITY, ACCOUNTABILITY AND TRANSPARENCY PREVAILS SO AS TO CREATE A CLEAN AND JUST TRADING ENVIRONMENT!
I shall end by quoting the values, wisdom, integrity, tenacity and courage of the beloved former British Prime Minister Sir Winston Churchill:
“You ask, what is our aim? I can answer in one word. It is victory! Victory at all costs! Victory in spite of all terrors. Victory, however long and hard the road may be, for without victory there is no survival.”
(Dear Sir/Madam, kindly ensure the survival of traders!)
“Our task is not only to win the battle – but to win the war. After this battle in France abates its force, there will come the battle for our island – for all that Britain is, and all the Britain means. That will be the struggle. In that supreme emergency we shall not hesitate to take every step, even the most drastic, to call forth from our people the last ounce and the last inch of effort of which they are capable. The interests of property, the hours of labour, are nothing compared with the struggle of life and honour, for right and freedom, to which we have vowed ourselves.”
(Dear Sir/Madam, I implore you, to recognize the struggle of life and honour of traders and to uphold their right and freedom to trade, to which we have vowed ourselves)
Great Britain is GREAT because of her people. Do not allow some unscrupulous and unethical people disgrace the great British people and the great legacy left by the great statesman Sir Winston Churchill!!!
Thank You.
Yours sincerely,
Jack Chan
( KC 015 )
Note:
Below are the information from ODL's webpage:
Forex, Gold & Silver
Retail
Institutional
Partnerships
Open
Fund
Forms
Disclaimer & Risk Warning
Privacy Policy
Forex, Gold & Silver
Trade spot and forward FX on over 80 currency pairs, gold and silver on tight spreads and low margins. As an active client you can take advantage of ODL FX Tutor - your online educational programme making the forex market easier to understand.
More than just execution of trades... We are constantly striving to improve our product offer and service to our customers.
The ODLS Advantage
The FX, Gold & Silver Trading Platform.
Click here to find out why you should open an FX trading account with ODL.
Click here to find out more about our trading platform.
Advantages of Trading Forex
Interest Rollover
Click here to find out why you should consider trading FX
I pity the poor s0d at the FOS who has to read that. If you're trying to make a serious complaint, why can't you just stick to the facts rather than subjective rants. What on earth has Winston Churchill got to do with wide spot gold spreads?
If you're a professional trader, surely it's more effective to make a reasoned, well ordered, objective statement of fact rather than an emotive rant. I got bored half way through (and fed up of emphatic capitals). Would expect anyoen else to feel the same.
pocketaces303
Newbie
- Messages
- 7
- Likes
- 1
It's like something Homer Simpson would write
oildaytrader
Senior member
- Messages
- 2,806
- Likes
- 125
Wait till Metatrader5 is launched .It is unproven platform and it will come with so many bugs .In the begining it will damage reputation of brokers using new platforms which are untried and untested.
Eventually people will appreciate metatrader 4 ,easy and simple to use and it is a proven product which works
It is the best platform for automation for retail clients.I use many expert advisors on it for automation
I have an account with ODL .I have no complaints except limit orders are not available within 8 pips at present.I was informed today of coming changes on limit order distance, restrictions on scalping eliminated and introduction of Metatrader proactive trading.Sounds good
I was pleasantly surprised with their low spreads on cable of 2 pips ,usd/chf 2 pips and other liquid pairs.The execution was fast.
I am informed all trades go STP (straight through processing) as of monday.That will be brilliant!
Thanks
O D T
shatztrader
Member
- Messages
- 80
- Likes
- 1
Hi all
Just wonder if anyone else has this spike on USD/CAD last night on 1hr timeframe MT4 Odl Markets platform
(26/07).
Just wonder if anyone else has this spike on USD/CAD last night on 1hr timeframe MT4 Odl Markets platform
(26/07).
Transfered funds out of ODL after about 2 weeks of trading. The platform doesn't work well by design!
VoidInternational
Newbie
- Messages
- 5
- Likes
- 0
Well, I've been using them for 2 years now, and although the platform can be occasionally a bit glitchy (apparently there's another one in development) I've found them great to deal with. Friendly and professional on the phone, and extremely competitive spreads. Personally I like them, despite all the negativity in this thread (which seems to relate more to the FX business than the SB side of the business). My orders get filled and stops are bang on - no funny business. Admittedly I only trade in small sizes but I'm perfectly happy with their service.
Jack Hughes
Established member
- Messages
- 623
- Likes
- 25
Anyone know if ODL's SB platform shuts down at weekends?
Jack Hughes
Established member
- Messages
- 623
- Likes
- 25
