Complaint Against Equiti: Client Accuses Broker of Doing the Opposite of Its Words

To assess a broker’s trustworthiness, merely considering the promises they make during client solicitation is insufficient. The pivotal factor lies in the seamless withdrawal of funds. Regardless of favorable trading conditions prior to an investor joining the platform, if withdrawals encounter issues and profits fail to reach the investor, those initial promises become mere empty rhetoric.

Recently, a client expressed his dissatisfaction with Equiti, a financial services provider licensed by the UK's financial regulator, the FCA, and the Seychelles' Financial Services Authority, the FSA.

The customer explained that he opted to open an account with Equiti primarily due to the no-swap account recommended by the company’s business manager. He elaborated, ‘While I had a Forex trading account on other platforms, they lured me to join by presenting the low spreads, high leverage, and swap-free conditions.’

The customer reached out to the business manager to meticulously confirm details such as P/L, conditions for opening position conditions, and deposit & withdraw. Only after receiving an accurate response did he agree to open an account.

After sevral days of trading, the investor made a profit and submitted for withdrawal on March 7, aiming to withdraw the $2,819.7 in balance. However, Equiti rejected his request, stating that "Upom a review of your Account, we have identified some abnormal trading behavior that we consider to be abusive. In accordance with clause 3.3.2 and 3.3.3 of the Terms, we have revoked the swap ree status of your Account and will recover the un-accrued swaps on your Account in relation to the trades which we consider to be abusive, totaling to USD-$2,819.7".

The client requested that Equiti provide evidence and a detailed explanation of its allegations, while providing records of his communication with the business manager to demonstrate that he had not been briefed on the terms.

The investor challenged Equiti, arguing that the company had not fulfilled its obligation to explain the relevant terms to him, and that the company should be liable for any resulting losses: "I have reason to suspect that the marketing staff used the swap free trading account as a tool to intentionally deceive and mislead clients.

However, Equiti neglected to address his request and inquiry, and even refused his emails!

The client has now filed a complaint against Equiti with the Seychelles financial regulator, but has not yet received a response.

As a financial services provider, it is your responsibility to inform clients about the terms and risks associated with their chosen investment products. Ignoring customer complaints and failing to communicate when issues arise is an inappropriate approach.

Although regulatory licenses are crucial, a broker’s reputation is equally significant. When making investment decisions, it’s essential to engage in thorough and thoughtful analysis to minimize potential pitfalls and risks.