FOREX? Pepperstone? Please read before risking your savings

bejopi

I've had a very bad experience with Forex, using Broker, Pepperstone.com over a period of many months.

So much so, that I'm in the process of setting up a "Class/Collective Action claim" against them. I did have a one star review on Trustpilot, but as soon as I updated it with, Notice Of Class/Collective Action, my Trustpilot account was locked. Good old Trustpilot, as trustful as a bag of adders. They reposted it, with altered text, and then deleted it again.

If anyone wants to see my full review please look below, or hundreds of screen shots, please let me know.

The issues that I have suffered: Stop hunts, which got so frequent that in the end, I wouldn't use them. And then full trend reversals as soon as I place a trade. OK, what's wrong with that you just go the other way. And then price flips again. 

I went through Pepperstone’s complaints procedure. Complete waste of time, as they failed to comment on any of the “trades of concern”, that they wanted me to provide. They only said, that I could complain to the Ombudsman. Their initial investigation just asked for three out of hundreds of examples, and decided that “Pepperstone need not take any action” Whether or not Pepperstone is guilty or not of actual “Market Abuse” They are still knowingly and willingly supplying retail traders to a highly manipulated Forex. So at the very least they are in “Breach Of Duty Of Care” to their clients

TRUSTPILOT - Pepperstone review 14.03.2022 - 28.11.2022. This was posted 30/11/2022

First off, these are my opinions, my experiences. I can provide factual evidence, as in, screen shots, which will have my personal details removed.

End of review is an excerpt, (6. Key risks of trading) from Pepperstone’s PDS, (Product Disclosure Statement).

When I first started trading, I naively thought to somewhat increase the savings that I had made throughout my life. Did awful lot of learning, months and months. Did a lot of research on brokers, and after a lot of reading reviews, chose Pepperstone as the best bet.

I practiced trading on demo trading simulators. All a bit pointless. As it turns out, simulators, don’t react and reverse when you make a trade. No, why would they.

I have been enthusiastic in, learning all that I could about ”highly profitable setups”, levels, and fibs, and all the rest of it, ”Levels”, “Impulse waves”, “Pull-backs”, chart patterns, “W”s and “M”s. They also provide you with “Indicators”, for you to follow as well. So you can look at your e.g. “Stochastic indicator” to spot a reversal.

To be fair I did win a few of the early trades, but slowly and surely, the trades started to go against me. Experiencing trap after trap continuously. The trend isn't your friend after all. The second you back a strong trend or strong setup, instant reversal. Long, Short, doesn’t matter, 95% of trades reverse. Yes, I can understand price reversing for a short period, but a complete trend change nearly every time that I make a trade, is not consistent with the “risks” set out in Pepperstone’s PDS, (Product Disclosure Statement). Please see excerpt below.

For example: Had the risk statement said something like: “It is highly likely, as soon as you make a trade, the price trend, will more than likely reverse, and your Stop-Loss, will more than likely get hit. Resulting in, you losing your capital”. I don’t think that I would have got involved. Because it is highly unlikely that I would make any profit. I can now see, why so many traders don’t make it.

No, this is fraud, plain and simple, by blatant price manipulation, or as the FCA call it “Market Abuse”.

I thought, to take screen shots, of just about every trade that suspiciously reversed. I now have hundreds.

I remember complaining to the guy that Pepperstone assigned to look after me. I won’t mention his name. Such a nice chap, used to phone regularly, until the money went down, never to be heard again.

He said, “Can’t be anything to do with us because we don’t have a dealing desk. We are a Non-dealing desk broker”.

Yes, that may well be, however, I am dealing with you, and you, are at least complicit in, and with, the fraudulent actions and activities, either by yourselves or others.

I will make all of my 150++ screen shots that I have taken, available, for anyone, to have a look at if they wish.

Below is an excerpt from Pepperstone’s PDS, (Product Disclosure Statement).

6. Key risks of trading
Margin FX
Contracts and
CFDs
Not trading on a formal
exchange
6.1 Trading with us is different to trading on a formal exchange. Unlike the Australian Securities Exchange and other exchanges, there’s no clearing
house for Margin FX Contracts and CFDs, and the performance of a CFD and/or Margin FX Contract by us isn’t “guaranteed” by an exchange or clearing house.
6.2 You’re also not buying the Underlying Asset (like a share or the currency), you’re investing in an interest in that Underlying Asset.
Suitability risk
6.3 The products that we offer are high risk and can be complex to understand. It’s critical that you consider your own current circumstances to make sure that these products are suitable for
you. If you don’t understand the key features and risks of the products that we offer, you should seek independent financial advice before you start trading with us.
Volatility risk
6.4 Margin FX and CFDs are derivatives. Derivative markets generally can be highly volatile (i.e. they move up and down in value quite quickly) so the risk that you’ll incur losses when you trade
in derivatives Contracts can be substantial. 6.5 High volatility means the markets can be very difficult to predict. This means that you shouldn’t consider any Contract offered by us or any other financial services provider to be a
“safe” trade.
6.6 If the market moves against you, you can find yourself in a position where the money you have on deposit in your Account isn’t enough to maintain your Contract, and you’ll be required to immediately deposit additional money as Margin to keep your Contract Open i.e. to “top up” your Account. If you don’t pay the additional money when we require you to, and your Margin drops below 50% of the Margin required to maintain your current Open Contracts, we are required to Close-Out your Contracts.

masonic

A study by the U.S. Securities and Exchange Commission of forex traders found 70% of traders lose money in a given quarter on average, and traders typically lose 100% of their money within 12 months. If that isn't enough to put people off, I don't know what is.

https://www.sec.gov/comments/s7-30-11/s73011-10.pdf

eskbanker

masonic said:

A study by the U.S. Securities and Exchange Commission of forex traders found 70% of traders lose money every quarter on average, and traders typically lose 100% of their money within 12 months. If that isn't enough to put people off, I don't know what is.

Pepperstone's figures, as shown on a prominent header on their website, are even worse:

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.9% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

I imagine that most of those who lose out remain convinced that the company has ripped them off....

adindas

“ ..... Pepperstone need not take any action”

Hard to lose money is not it ?? What about if a person was on the winning side using 100x leverage??

Forex Trading is one of riskiest trading out there. One of the main problem is that it is difficult to do a fundamental analysis like people could do with trading a stock. Let alone for those who are doing Forex trading without a good knowledge of technical analysis. It is simply gambling with the odd is not on your favour.

When you are swing trading a stock which is undervalued, much below fair value, even you are making a loss in a very short term, you have a good chance to get your initial investment back and / or even to making a profit.

Albermarle

OP,
This is probably not the correct forum for your post/situation.
This forum is about Saving and Investing and only occasionally touches on trading/gambling, usually to warn people off.

InvesterJones

Albermarle said:

 and only occasionally touches on trading/gambling, usually to warn people off.

I'd put the OPs experience in that category

Eyeful

You go to a website that at the very top of the page mentions, bets, complex instruments, high risk of losing money and even states that 80.9% of retail investor accounts lose money with this provider.

I think the majority of the public reading this, would think that if they continued to use this website they would be gambling. They would be highly unlikely to make any profit and result in them losing their capital.

So bejopi, why did you not think you would be in 80.9% that lost money and stay away?

Albermarle

roksat said:

I'm sorry you faced such a problem and I hope you will succeed in trading soon.
And it is great that you decided to share your experience as I'm going to try Forex trading. Thanks!
I'm thinking about using one of the online platforms. I read that AvaTrade, IQ Option, Quotex, and Deriv MT5 are considered to be the best. Did anyone use them and what was your experience?

Suggest you reread the posts on this thread,

EthicsGradient

bejopi said:

I'm in the process of setting up a "Class/Collective Action claim" against them.

Is posting here something your solicitor suggested? If not, I'd suggest you check with them. Public accusations of "fraud, plain and simple", are not always a good idea, when you already hope to be in court, unless a legal professional has decided they are the way forward.

artyboy

EthicsGradient said:

bejopi said:

I'm in the process of setting up a "Class/Collective Action claim" against them.

Is posting here something your solicitor suggested? If not, I'd suggest you check with them. Public accusations of "fraud, plain and simple", are not always a good idea, when you already hope to be in court, unless a legal professional has decided they are the way forward.

OP hasn't logged in since their first post on the 2nd July. I rather fear you are wasting your breath...