ODL Securities Limited - ODL Securities rip off traders' money by increasing their spreads at their whims and fancies without notice whatsoever.Forex spot gold spreads can increase to as high as 200 pips. London, Nationwide

Formal Complaints against ODL Securities

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 200 pips.

 

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 ODLs 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

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 ODLs 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?

ODLs 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 INCREASIMG 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????

 

ODLs 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 THERES 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????!!!!!

 

BUT WHY DIDNT THEY ISSUED WARNINGS BEFORE THEY INCREASE THE PIPS TO 200? THE ANSWER IS OBVIOUS; IF THEY DID , THEY WOULD HAVE LOST A GOLDEN OPPORTUNITY TO STEAL MY MONEY!

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 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???!!!

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 FAVOUR!

 

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

Kuala Lumpur

Malaysia