This type of story is old I know, but those who are unaware need to read the latest PDS statements from your MM.
I got a rude awakening from axitrader last week when they had a self confessed platform error which prevented me from closing out positions. I lost well over $10k,
with axitrader taking no responisbility what so ever.
It came back to their PDS with such statements like:
"As pointed out above, we are the market maker and contracts entered into with us are not traded on a licensed market. Accordingly, the protections associated with licensed markets are not available to individuals, corporations or other entities trading in our products."
"We outsource the operation of our online Trading Platform for dealings in Margin Contracts and CFDs
to a third party. Accordingly, we rely upon this third party to ensure the systems are updated and
maintained. But, there are operational risks associated with any trading platform and any disruption may
mean that you will be unable to trade in the product with us when desired. Accordingly, you may suffer a
loss as a result caused by a delay in our operational processes such as communications, computers,
computer networks, software or external events that cause delays in the execution and settlement of a
transaction. We do not accept or bear any liability whatsoever in relation to the operation of the
Trading Platform, except to the extent that it is caused by fraud or dishonesty on our part or on the part
of our employees, agents or representatives.
Finally, we reserve the right in unforeseen and extreme market situations to suspend the operation of our
Trading Platform or any part or section of it. In such an event, we may, at our sole discretion, and under
the Client Agreement, with our without notice, close-out your open contracts at prices we consider fair
and reasonable at such time."
"We repeat that we a market maker, not a broker. Accordingly, you will be trading financial products
directly with us, and not on any financial market. As a market maker, we set the prices that refer to, but
may not always be the same as, those in the Underlying Market. We will always act as a principal, not as an
agent, for our own benefit, in respect of all transactions with you."
"28. REMUNERATION AND OTHER BENEFITS RECEIVED BY OUR EMPLOYEES
Our employees who provide you with advice or transaction execution may receive remuneration for the
provision of these services. Our employees also receive salaries, performance-related bonuses and other
29. CLIENTS MAY BE TREATED DIFFERENTLY
We, in our absolute discretion may quote different prices, and charge Rollover Charges and other charges
at different rates, to different clients."
"10.14 Variation Margin
The variation Margin is an amount which we may call from you when a Position moves against you. Again,
this amount is determined by us in our discretion and is intended to protect us against unrealized losses
which you may have suffered. In some situations, we may refund variation Margin to you when a position
moves in your favour.
The variation Margin liability is incurred at the time of the occurrence of any movement in the market that
results in an unrealised loss, regardless as to when the call to pay is made by us on you."
There is plenty more like any PDS but these guys have some nasty a$$ covering statements.
Yes, I should have known better.