Broker Capital

Overall

THIS IS A SCAM. I lost $AU 130,000

Broker Capital (apparently) has no broker/traders giving specific trading recommendations/advice/instructions whatsoever and the advice and instructions were given to me were from employees of a third party firm, as I understand it, an Introducing Broker firm employed by Broker Capital to expand its Client base ONLY. Therefore the Introducing Broker acted in a capacity far beyond its remit and acted fraudulently. The people that I dealt with were rude and demanding.

I did understand and accept the risk disclaimer on its website but I had been conned to believe that these people were acting on behalf of Broker Capital and were expert traders.
I was told that the relevant employees of the Introducing Broker have had their employment terminated, which I understand at this stage, is the only action taken by Broker Capital therefore I am very surprised that a legal claim for damages have not been commenced by Broker Capital against the Introducing Broker.

The entire situation for me was a nightmare that began with a $5000 deposit which spiralled out of control with many more deposits as a result of severe margin difficulties arising from a number of trades in the wrong direction with no stop loss, forcing me to make deposits up to 121000 and finally ending in the account being margined out. I was, all of the time, given the incentive to add funds by being given $42000 in bonuses. From my discussion with Ana that Broker Capital do not give bonuses so I assume that it was the Introducing Broker making these. I had an account of about $203000 comprised of my funds of $121000, $42000 in bonuses and early profits of about $40000.

I will give 2 examples of the trades that I was instructed to make:

One trader instructed me to buy volume 7 of silver right at the previous week’s high when I was warning him of a reversal but he demanded that I take the trade. He could not have picked the high any better. Then he rang a few hours later and told me to double up to buy 7 more. By now I was approaching my first margin call.

 Another trader did the same in buying wheat, assuming that a gap would close. I told him that momentum was strongly down but again he demanded that I take the trade. A third trader leveraged up on wheat long, gold, SP500 and WTI to finish my account but not before I needing to add more funds to my account to lift the margin level. In fact I had recommended to this trader that I close all trades whilst I had over 100,000 in equity but they were adamant that the trades would come out in profit. This was because they risked losing the $42000 they had deposited into my account. I wished that I had of acted.

In total, I had spent $21000 savings and borrowed $100,000. I am now in big trouble with the Australian Tax Office for using funds from my pension account which may result in a hefty fine or raising my tax rate from 15 to 40%. I also had a guy shouting abuse down the phone last week saying the firm’s reputation was at stake and demanding that I raise my margin level.