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Positions Emerge from Nowhere and Withdraw Issues: Indonesian IB Accusing IronFX of Fraud

2024-05-15 Brokersview

Positions Emerge from Nowhere and Withdraw Issues: Indonesian IB Accusing IronFX of Fraud

IronFX was once a popular Forex broker in the trading industry because of its attractive bonuses. However, it has now become a public enemy among traders due to the bonuses.

 

In 2015, IronFX seemingly escaped from China, but it never truly disappeared. It continues to appear in public and remains fixated on offering the same thing: bonuses.

 

The same story has been recounted repeatedly. An Indonesian introducing broker (IB) expressed concerns about IronFX, stating that some of clients faced withdrawal issues. Furthermore, hard-earned profits were eroded by inexplicable positions.

 

The introducing broker (IB) mentioned that the broker’s bonus campaign caught clients’ attention. According to the rules, clients could deposit $500 and receive $700, or deposit $1000 and get $1400. However, IronFX declined withdrawal requests submitted by those who earned profits, citing three reasons: bonuses were not allowed to be withdrawn, clients’ trading violated bonus terms and conditions, and non-compliant transactions were suspected.

 

IronFX refuses to withdraw

IronFX refuses to withdraw

 

Even more perplexing, many traders discovered that profits they had accumulated from each trade were inexplicably lost due to an unexplained “EUR/USD” position—one they never initiated. The transaction records unequivocally indicate that the executed price was ZERO!

 

 

Records show that profits are missing due to unexplainable position

Records show that profits are missing due to unexplainable position

Records show that profits are missing due to unexplainable position

 

The IB suspected that IronFX was conducting a scam by creating fictitious positions and withholding clients’ profits. Despite affected traders seeking assistance from Client Support, the broker failed to provide a satisfactory response.

 

IronFX did not comment on the issue.

 

Looking at the history: Start from bonus and end up absconding

From 2012 to 2013, IronFX surprised the industry with its invasive expands, with an even faster-expanding speed than well-known brokers. And the ‘bonus’ foster the ‘development’ of IronFX.

 

Providing bonuses to encourage deposits is a common promotional tactic in the brokerage industry. However, IronFx took this approach to an extreme. Their bonus offers escalated from 50% before 2013 to a whopping 100% afterward, pushing the boundaries of responsible broker practices.

 

In late 2014, IronFX’s 100% bonus tactic collapsed when the broker was unable to pay out for their aggressive bonus campaign. Global investors faced withdrawal problems, leading to failed negotiations. In response, Chinese investors took extreme measures, including vandalizing the broker’s office in Shanghai.

 

Initially, IronFX blamed the agents in China, despite the fact that the agents were close to the CEO. Notably, the broker managed to evade scrutiny during the investigation.

 

Up to this point, IronFX has not provided a satisfactory resolution for the funds issue. Ultimately, it was the investors who bore the entire loss.

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