Saxo Bank Revises The Price After Trade Execution Shocking FX Traders

A number of forex brokers went bankrupt on that fateful day. Many suffered losses in tune of millions. FXCM reported a loss of $225 million when the Swiss National Bank last month suddenly removed the Swiss franc peg with euro. Within a few minutes Swiss franc had appreciated around 41%. That day USDCHF fell 1869 pips and EURCHF fell 2297 pips in less than a minute.

Those traders who were long on USDCHF and EURCHF on that day saw there accounts blown.  But worse was still to come. Some brokers are trying to recover the loss that they suffered on that fateful from their clients by revising the price after the trade has  been executed. That was a Black Swan day. No one was expecting the Swiss National Bank to unpeg the Swiss franc from euro. Just one month back, SNB had issued a public statement that SNB will vigorously defend the franc euro peg. So everyone thought it was honky dory.But something out of the blue happened on that day. Something like this had never happened in the currency market in more than a decade.Take a hard look at the above screenshot posted here on our blog.

Using an online account with Copenhagen-based Saxo Bank A/S, Mr. Jaworski had bet the Swiss franc would fall. He closed his trade with a loss of €1,000 ($1,148). “I thought, ‘I’m not the winner, but it could be worse,’” said Mr. Jaworski. It was. That evening, Mr. Jaworski, 38 years old, checked his account again. Saxo had changed the price at which his trade was executed. He was out an additional €2,000. “This is two or three months’ wages; this is money that I don’t have,” he said.

Saxo Bank is trying to recover the losses that it suffered on that day by recalculating the price on the trades that have been already executed and closed. Now Mr. Jaworski was lucky he only had to pay an additional €2,000 over and above the loss he had suffered on that when the stop loss was hit. Mr Tay Lip Sing was not so lucky. His loss should have been only $900 but Saxo Bank recalculated the price and deducted $22,800 from his account.

Wagering about $25 for each $1 put up, Tay Lip Sing, a 44-year-old technology consultant in Singapore, bet the franc would fall against the dollar. He set an automatic limit, called a stop-loss order, to close his trade if losses got too large, according to Mr. Tay and account records reviewed by the Journal. The franc climbed 18% against the dollar soon after the central bank’s move.Mr. Tay said after the Swiss National Bank acted, he sighed in relief that he had set up the stop-loss order. His loss, he said, should have been about $900. But Saxo later told him the trade closing his position had been revised to a price well beyond the stop-loss order. Mr. Tay was out $22,800. The money was deducted from his Saxo account.

Talk about forex broker scams. Now it seems that Saxo Bank has been able to do these tricks with the clients on a regular basis. The above facts are now being reported by the Wall Street Journal now.Wall Street Journal is reporting what was already being reported by different forex broker review sites.

Just google Saxo Bank Scams and you come across many clients who have left their scam stories on different review sites. This has been happening at Saxo Bank on a regular basis. This is what one client says: Do not think they are a legitimate operation because they have a big name (big marketing budget…) and good online reviews (employees?). Saxo’s mission is to get your money, one way (fees) or the other (dirty tricks). Example: 2 weeks ago I lost 34000 USD because they send an email a couple of hours before market close stating that the margin requirement for a certain currency pair would be increased by 400% the next day. I called the office and they confirmed, so I had to close my position with a big loss. Later that evening I found out that the margin requirement would not be raised that high, which meant I did not had to close any position at all! I have all the evidence that they did wrong but still they are not willing to compensate me for their error. Stay away from Saxo, they cannot be trusted.

You can read more what former clients of Saxo Bank have written by visiting the above review site. Lesson learned choose your broker with lot of care!