Oanda's action: is it acceptable or cheating?
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I have a simple question for the forum members:
Can Oanda show that you have enough free margin in Oanda's MT4 platform and then execute a margin Closeout based on the fact that they have a different number for "Free Margin" in their own FxTrade platform?
I always trade in MT4 and it clearly shows the Balance, Equity, Margin, Free Margin and Margin level. When Oanda executed Margin Closeout in my account it was displaying the Margin level as about 125% but according to Oanda's rule they are suppose to execute a Margin Closeout at 50% Margin level.
I contacted Oanda and they replied me:
"The MT4 software ("Software") is developed by MetaQuotes Software Corporation, which is a third party separate from OANDA Corporation and its affiliated companies ("OANDA"). We have always recommended the client to use FxTrade platform to check all the "account summary" information."
Does this mean that Oanda has the right to show wrong Margin, Free Margin and Margin levels in MT4?
I requested them for a refund but they declined.
About two weeks before this incident Oanda sent an email that they will increase the Margin requirement for some currency pairs. I started the trades before that increase happened. After they increased the margin requirement, it was not displayed in my MT4 platform. It continuously displayed the same Margin, Free Margin and Margin level in MT4 for several days, so naturally I believed that my trades are not effected by any new margin requirements. Oanda failed to display the updated Margin, Free Margin and Margin level for my trades in MT4. If they displayed the correct Margin, Free Margin and Margin level in MT4 then I could easily add more funds from my other accounts or I could also reduce my exposure to avoid the margin closeout. But, I could not take any action to avoid Margin Closeout ONLY because in MT4 Oanda was displaying that I have sufficient Free Margin and my Margin level was more than 125%.
Isn't it the Broker's responsibility to make sure that ALL their approved platforms are displaying correct information?
Do you think that it is possible to check Oanda's own FxTrade platform every now and then to make sure that MT4 is displaying the correct margin information or not?
Can I file a complain against Oanda to the Monetary Authority of Singapore where Oanda is registered?
Please suggest.