I have no personal trading experience with FXGEN because after my DD investigation I found huge number of scam reports on this company. Here is what Alan said:
Here is an email received from Rob Grespi who runs a popular forex signal provider called ???Kingforex??? (friend with Felix from forexbastards.com). Here is another solid proof of why the forex broker industry is filled with scammers and con artists. Always, and I do mean ALWAYS do your due diligence before you fall for the ???low pip spread??? bait these bucket shops use to lure you in and steal your money!
I am writing you today regarding a very serious situation that has happened to one of my KFS subscribers, and I am sure it will happen to others that have an account at www.Forexgen.com
Well I decided to make my own research and contacted ForexGen directly. Here is what I found out:
In a nutshell:
One of my subscribers decided to withdraw his money from Forexgen.com (his full and total right) for a total of $160,500, after several attempts he never received his money. .
Now we have a similar situation on a bigger scale; www.forexgen.com is refusing to return my subscriber his $160,500 or so. After he made me aware of it, I went on the war path and started to call every numbers that Forexgen.com had listed, not one of them answered. 2 of them had standard electronic greeting not mentioning I reached ???forexgen??? at all, the other numbers were bogus numbers or numbers of regular people accross the globe (I sadly even woke up some of them) that had no relationship with Forexgen.com at all. The N.Y. number that Forexgen has listed kept hanging up on me. Obviously, they were hiding as they knew what I was after.
Here how they cleverly stole his money:
They place an ???inhouse bogus cross sell trade??? on the EUR/USD at 1.4056 (trade # 33114 on 10/19/2007 at 7:10 am EST), for a very large lot amount, enough to suck in all his equity, then they closed the trade same minute at 1.4303.
Investigation of ForexGen
Mandy: How may I help you today?
Mark: Hello. I am new to forex and interested in trading at FXGen. Is your company regulated?
Mandy: Yes Sir
Mandy: ForexGen is a registered Norwegian company registered since 2001 in Norway with a corporate registration number 992183101 and registration information can be obtained by visiting this link: http://w2.brreg.no/kunngjoring/hent_en.jsp?kid=20080000027176&sokeverdi=992183101 which is the highest commercial authority in Norway.
Mark: Are you are ECN broker or a dealing desk?
Mandy: We have both dealing desk and No dealing desk accounts
Mark: What is the difference between such accounts?
Mandy: NDD account depends on the market condition ... the execution by the market price , the spreads are flexible ... also you can scalp and pip hunt without any limitations at all
Mandy: There is no restriction at all in the NDD account
Mandy: But as for the DD account you can't scalp or pip hunt
Mandy: Spreads are fixed
Mandy: You can have 1 pip spread for the 10 majors in the Pro account
Mark: Yes, I noticed your spread is very low comparing to other brokers. How can you keep such low spreads in the crisis times when other brokers increase spreads dramatically?
Mandy: ForexGen is an international broker with thousands of large clients including banks and financial institutions, where volume of the total equity is what affects our overall profitability. We are able to offer competitive terms due to our size and overall volume of liquidity.
Mark: When were you founded?
Mandy: And we have been in business since 2003
Mark: sounds good.. however yesterday I have read a lot of negative information about you on FPA. They claim you are scam and never pay the deposits back. I am very confused and frustrated now. Could you comment that information?
Mandy: Hear where Sir?
Mark: on Forex Peace Army
Mark: it is a website that writes reviews on brokers
Mandy: What is forex peace army , Sir ?
Mark: They show a lot of scam alerts on ForexGen here with a proof. Any comments?
Mandy: Is that some kind of authority?
Mandy: Or belong to any government or regulated body
Mark: I don't know. They make independent reviews I suppose..
Mandy: How do you make sure what they are writing is true or not?
Mark: I mean people (customers) are writing the reviews there. I see a lot of negative reviews. I am frustrated now.
Mandy: You mean that you can try saying ForexGen for example then writing your opinion about it
Mandy: Whether good or bad
Mandy: Is that right?
Mandy: Ok please try to write a comment
Mandy: Say that I tried ForexGen demo account and its good
Mandy: See will they post that or not , Mr Mark
Mark: I have no experience to write a comment. they have a moderator team that will not approve fake comment i suppose...
Mandy: If they posted that then we can start to believe they may be honest and post all opinions posted by traders
Mandy: If not then have serious indication
Mandy: That the word posted in this site is not posted by traders and may be posted by the site owner to drive attention for certain sites and attack other sites , Mr Mark
Mark: They are saying $160,000 were stolen from a trader by the name of Rashid
Mandy: It's not true Sir ... it's all claims
Mandy: In order to drive the attention to them
Mark: Your reply makes sense, however only your broker is listed a scam and all other 100 brokers have positive reviews :(
Mandy: We have a thousand of clients from all over the world Sir
Mandy: I can see that some brokers done some advertisements in this web site..
Mandy: Maybe this has something to do with this issue , Mr Mark
Mark: They also said your phone number are bogus and the office does not exist. Do you have an office or that is a lie?
Mandy: Of course we have you can visit our location there ...
Mandy: Tollbugata 17, 0152 Oslo,Norway
Mark: I dont see your office in google maps there. I see "Baltic Nordic B2B" on that address and few other companies.
Mandy: It's our address , Sir
Mandy: Tollbugata 17, 0152 Oslo,Norway
Mark: What is the phone number then?
Mark: ok thanks for replies... I will visit when I am in Norway next time. thank you!
Mandy: Have a nice day
Here is the bottom line:
3. I tried to call 004799494878 number in Norway 2 times during the working hours Norwegian time on Wednesday and both time got an answering machine said that "customer is not available or turned off the phone".
1. Scam warning on FPA that are fake as ForexGen claims. However FPA is a well known reliable resource and I doubt Felix would write fake investigations...
2. The mentioned address Tollbugata 17, 0152 Oslo,Norway was found on google maps however no "ForexGen" company is registered in Google under this address. Why is "an international broker with thousands of large clients" not listed even with google?
4. They claim the company is registered since 2001 and give the link which states the company was founded "(Stiftelsesdato means Foundation Date: 09.01.2008) The busines address (Forretningsadresse) Slottsgate 5 0153 OSLO does not match the address they told me.
5. They claim they are in business since 2003 however domain forexgen.com was created only in 2006. Creation Date: 2006-04-02 How could online broker be in business without a website?
6. if you look back to 2006 using web archive you can see that their old address USA Office: 9616 WATERFORD DRIVE, MANASSAS, VA 20110 does not match with the current one, even the country is different.
Enough said. Beware!