Equiti Seychelles Faces Client Outcry: $7,077 Withheld for Unjust Improper Trading Accusations, No Prior Warning

Equiti Brokerage (Seychelles) Limited, a Seychelles branch of multi-asset broker Equiti, has faced a lengthy client complaint highlighting significant frustration and dissatisfaction. The client stated, “My journey with this brokerage has been marked by significant challenges, questionable practices, and a troubling lack of communication that I believe potential clients should be acutely aware of.”

Equiti Seychelles faces four allegations in the client's complaint

The incident began when Equiti Seychelles withheld $7,077.81 from the client’s account balance, citing detected abnormal behavior under the review and labeling it as improper trading.

“Unjust Accusations of Improper Trading”

The client from Portugal alleged that he faced unexpected accusations of “improper trading” from Equiti Seychelles, with no prior warning or evidence provided. According to the client, he executed 2,352 trades at the broker and found it deeply troubling that the broker took drastic action without adequate justification.

“Lack of Contract Documentation”

As shown in the above email, Equiti Seychelles made the decision based on the Terms and Conditions they claimed signed by the client. However, the client said he has never received or signed any agreement outlining the terms and conditions governing his trading activities since his dealing with Equiti Seychelles. 

The client alleged that this lack of transparency raises serious concerns about Equiti Seychelles's legitimacy and ethics, making it difficult for him to trust the broker and understand their relationship's framework.

“Sudden Invasive Timing of Actions”

The client found Equiti's timing of withholding funds perplexing, as invasive measures regarding his account were only taken suddenly after three months of trading. He highlighted the broker’s delay in addressing perceived issues and the lack of communication, especially within a financial investment context.

“Repeated Delays in Accessing Funds”

The client further alleged repeated, unexplained delays in accessing his funds. His several withdrawals have been pending, causing significant frustration.

Client Demands Accountability and Cautions Potential Investors

The client said he cannot accept Equiti Seychelles’ actions taken against his account, which have jeopardized his investments. He expressed disillusionment with the brokerage's practices and urged others to be cautious, emphasizing the need for transparency, effective communication, and fair treatment from brokers. Through sharing his experience, the client wanted to warn others of the potential risks associated with Equiti Brokerage (Seychelles) Limited. “While Equiti Brokerage may present itself as a reputable option, my firsthand experience suggests otherwise,” he said.

Limited Investor Protection Under Seychelles Licensing

Equiti Brokerage (Seychelles) Limited holds a license (SD064) from the Financial Services Authority (FSA) of Seychelles to operate as a Securities Dealers Broker. However, the level of investor protection under this offshore regulation is lower, posing additional risks for traders engaging with such brokers.

Offshore jurisdictions like Seychelles often have less stringent regulatory standards and oversight, which can result in higher risks for investors as they don't provide the same rigorous scrutiny and enforcement as more reputable authorities.

Bottomline

The situation with Equiti Seychelles highlights concerns around transparency, communication, and proper justification for actions taken against client accounts. The client's experience may suggest the necessity for the company to ensure clear terms and fair treatment to maintain client trust and integrity within the trading community.