Suit alleges Easy Forex rewards brokers for client losses

Easy Forex: The plaintiff is a client who lost heavily; we don't want to judge him harshly.

A lawsuit has been filed against online foreign currency brokerage Easy Forex by one of its customers, alleging that the company paid its brokers incentives when investors lost money and fined them if they made a profit.

Easy Forex said in response that the customer had lost heavily, and it did not want to judge him harshly. It added that as part of its compliance with international standards, it warns customers, both orally and in its literature, of the risks inherent in foreign currency trading. "All the allegations will be clarified in court," it said.

The claim followed a report on Channel 10 in which an Easy Forex broker was heard saying, "I had this evil grin on my face one day, when a client lost $35,000 in a quarter of an hour. A guy gets wiped out - I get my commission. A guy comes up a winner and turns a profit - I pay."

Published by Globes [online], Israel business news - www.globes.co.il - on November 19, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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