Easy Forex is one of the largest Middle Eastern brokers with its headquarters based in Cyprus. It is also the only Middle Eastern broker registered with the NFA. A few days ago it was slapped with a lawsuit by several former client who allegedly lost hundreds of thousands of dollars trading with the company.
Up till here there’s nothing particularly interesting as forex brokers are being sued all over the world by former client who lost money either on their own fault or because someone ‘helped’ them lose it. However the details of the case make it extremely interesting read.
One of the several plaintiffs called “D” claims to have lost around 500,000 NIS (~ $125,000) trading with the company. This “D” then didn’t give up like countless other traders and came up with a pretty wild plan of action: He joined Easy Forex as a regular employee, got to know how the system works and recorded multiple voice recording of company execs allegedly boasting company’s business practices. Talking about reality going beyond fiction… For instance, the lawsuit portrays Easy Forex as a company that allegedly will do anything in order to get client funds and even “will provide false investment advise and feed fictitious quotes into its trading feed”. There are many many more interesting quotes and voice recording of former employees admitting that Easy Forex feeds junk quotes into its feed in order to make clients lose money.
Click here in order to read the full article from an Israeli paper which broke the news: http://translate.google.com/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout=1&eotf=1&u=http://www.calcalist.co.il/markets/articles/0,7340,L-3408182,00.html&sl=iw&tl=en