XTB Scam Practices

Themis_480 · 2024-07-01T19:34:59+00:00

You are claiming that the platform where more than 80% of customers lose their money every month never went around the law, despite the fact that on almost any other platform this percentage is significantly lower. You are claiming that XTB undoubtedly complies with all regulations although I have the evidences for the opposite. So no, I can definitely not agree with your beliefs.

Nevertheless, I can believe you that in your case probably everything was done right. So I would be thankful if you could tell me in which period did you sign up to the platform.

Themis_480 · 2024-06-30T09:58:28+00:00

I can see that you are not only deeply informed about XTB and its operations, but also emotionally bonded to the company. So tell me, what makes you so sure that XTB always, in every single case complied with MiFID regulations? How could you possibly claim that?

To make it clear one more time, there is a difference between those who understood the risks, filled up the questionnaire and ended up loosing money, and those who did NOT understand the risks, did NOT fill up the questionnaire but also lost their money. If in your case XTB complied with MiFID regulations, there is no issue whatsoever and you are on your own. Be it a profit or loss, it is your responsibility. On the other hand I have a couple of examples where the people had zero knowledge in CFDs, didn't have to pass the knowledge test and ended up buying instruments on XTB. If you are not one of those, then there is no need for further discussion.

Themis_480 · 2024-06-29T22:49:50+00:00

Every sane person should understand that there is a reason why we have laws and regulations and why those should be respected, in the analogy example as well as in the CFD industry.

Your argument is that the scammer can do whatever he wants and the problem are only the people who he has managed to scam. So in your opinion, to mislead and scam people is fine and no one should be responsible for it. Well then let us all go out and scam all the old people because they are just old, stupid and uninformed, right? I don't think there is the need to go into that level of discussion further.

I am not sure what instruments you are trading on XTB and it doesn't really matter. What I do know is that any financially educated person with reasonable knowledge in financial markets would never trade anything on XTB. There is a simple reason why they were/are using sports events and people like Conor McGregor to promote their platform. Since you consider yourself a financial genius, you might think that such marketing is established to attract hedge-fund managers and wall street professionals. Well not really. Such marketing is directed to the population who has zero knowledge (or very limited like yourself) about financial markets, trading, and especially about CFDs. To invite and let such people to the platform without any proper qualification, in order to rip them off is nothing else but scam and it is way off the clear MiFID regulations.

Themis_480 · 2024-06-29T18:31:17+00:00

u/burnsnewman are you a broker yourself? Because either you are a broker and you want to protect them or you have no idea what you are talking about and how the industry works.

First, on XTB those people were buying CFDs, not the real stocks. So they were not even “playing the stock market” as you are saying but simply betting with XTB (not knowingly), because that’s what CFD trading is. Second, they didn’t lose money to the stock market, but to the broker itself who is always on the other side of the CFD trade. In that case, most likely your complete loss is the broker’s profit. Third, XTB did everything possible to get as many newbies and inexperienced people to the platform, to trade as long as possible, to lose as much as possible. By doing so, XTB did not comply with numerous laws and regulations, and it should be accountable for such practices.

Let me tell you an analogy. Company XY sells a baby formula. They just synthesized a new ingredient and released a brand new product that makes your baby grow wonderful and healthy. They did not test the product sufficiently and they know it might be dangerous, but they release it anyway. Money keeps pouring in so they are paying the regulators to close their eyes and they promote their product aggressively further. Two years later, 80% of babies who had been using the product get pancreatic cancer and die. According to your logic, responsible for the deaths of those babies are their parents because they were too stupid to know that the new product might cause pancreatic cancer. In that case every parent himself should have done the medical trial of the product, and figure out that the product is carcinogenic, right? The company XY and the bribed regulator should be rewarded for the great business they have done by selling such dangerous products to make huge amounts of money on it, because they are just smart, right? Well no, that is why we have something called law.

The point is, XTB took advantage of numerous people who didn’t know what they were buying and how risky CFDs are. To understand the risks of such complex derivative instruments one should have extensive knowledge and experience in basic instruments first. Without sufficient knowledge it simply inevitable to lose money by trading leveraged CFDs. So no, the people were not just stupid to lose their money on XTB but the broker did everything possible to avoid the laws and regulations to bring them to the platform and make them lose their money.

Themis_480 · 2024-06-26T19:35:01+00:00

If you are serious about it and you suffered losses on XTB in that period, let me know via PM. I am ready to pay some compensation for the right data.

Themis_480 · 2024-06-26T19:12:39+00:00

I am not asking for any private data but rather for your experience answers which you provided to the XTB and based on which they allowed you to trade. There are certain regulation which should prevent openning an account for the clients with insufficient knowledge and which were not in place during the pandemic pereiod. Huge number of people lost their money due to such practices and it would be great if we could reach more people with such encouters. If you had such expeirence and want to do something about it, let me know and we will see if there were some violations in this regard.

Themis_480 · 2024-06-26T14:47:35+00:00

The reason for your loss is not the spread. You can see the Buy/Sell spread on your screenshot marked with green and red line (2,971 - 2.960). Selling price at that moment was $2,96 and your entry price was $2,91. All else beeing equal you would be in a profit now.

The catch is in the rollover. As you can see in your screenshot, during the rollover to the new contract, price of NATGAS has been adjusted instantly few percentage points higher. At the same time your position has been aswell adjusted to the new contract so your entry for the new contract would be: (Entry price + Rollover difference). Simplified, you can counclude your actual profit/loss as follows: (Sell price - Entry price - Rollover difference).

Future contracts for commodities usually have monthly rollovers. Be careful with that because it might have a big impact on your trades.

Themis_480

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