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Need Help: Urgent Broker Problem (Phillip Capital: NT Brokerage, Edge Clear)
in 2018, there was a cyber security breach in their email system and a customer lost $1mm via a fraudulent wire transfer.
Other than that and this current fiasco, I don't know what other incidents exist with PC. This fiasco will of course make PC safer as they will have to, as before, harden against such occurrences. Other FCMs who haven't had these problems does not necessarily mean they won't. They simply may not have been 'tested' by such a baptism by fire.
Can you help answer these questions from other members on NexusFi?
Multiple posters (Pg 2 & 7) saying the've experienced similar issues in the past (obviously not to this scale). Plus a simple Google search will show you that Phillip Capital was just recently fined for a data breach.
I'm sure Ninjatrader is perfectly fine, but it's not for me anymore.
In the case of NinjaTrader Brokerage, they are an introducing broker who accepts orders and uses either Dorman or Phillip Capital to clear customer trades and hold their customer funds in segregation. Soon, with the acquisition of Transact (FCM), NinjaTrader will become an FCM.
I had contacted NT on 02/4/21 about incorrect account balances and mismatched fills.
But I now see that this here is the real issue. I was trading on 02/5/21, and at 11:31 AM something in my account changed. I wanted to make sure that I was flat when I was supposed to be flat. So, at 11: 45 AM, I emailed NT and asked, “Am I flat?” They responded: “Your account looks to be flat with no working orders.”
Well, I woke up 02/8/21, and I was short two MNQ for a loss of $265. I called NT and asked if they saw that open short. They said, “Yes.” I asked if I could or should close it, and they said, “Yes, close it and ask for a $265 refund.”
Here is the really scary part. I started going through the NT logs that I export and screen capture. On 02/5/21, they injected those two sell orders into my TIME-STAMPED executions log, but they hid it from my open-positions log. Messing with a timed-stamped trading log must be a criminal offense. That is not reconciliation. That is creating a fake time-stamp for an order that I did not place that day (maybe never).
I was right there, and I could have closed out that position immediately at breakeven. But they hid it from me, and they hid it from NT. I doubt NT would have told me that I was flat if that is not what they saw.
However, based on my conversations with NT, I am not sure that they are qualified or really interested in “being my advocate and ensure you are not financially impacted.” I don’t sense that they fully grasp the issues involved. This has moved far beyond mistakes and fixing mistakes.
How people fix their mistakes is the issue. Messing with time stamps is surely illegal. Hiding positions from me can’t be legal. (They inserted the orders, so they know I have a position.) I have documented all the proof I need to present my case, and I created a paper trail, a recorded phone call trail, screenshots, etc.
I post my analysis for others in my situation, so they may see what happened to them more clearly. In my case, they would be very foolish not to admit the mistake is on their side and refund my money.
I do not think what was experienced before is "the same" as this. Also, a data breach is not at all similar to what happened here. It can certainly be very serious, but it isn't at all the same as this.
I do not mean to defend Phillip. I just hadn't heard of this happening before.
Phillip Capital and Interactive Brokers are both FCM's. But IBKR for example (Interactive Brokers) targets retail customers directly, while Phillip Capital doesn't. That isn't a distinction that really matters when you are talking about who is an FCM or an IB/IIB however.
@NT Brokerage is an IB (Introducing Broker) and clears via Phillip Capital, and Dorman I believe (and perhaps others).
Also it should be noted that @NT Brokerage just acquired TransAct (Infinity Brokers) and has publicly stated they are preparing to become an FCM themselves, so they will be able to clear their own customers and not need Phillip or Dorman.
This news item about NinjaTrader purchasing Transact Futures, the owner of Infinity Brokers, and planning to operate its own FCM, was flagged by sakisf in another thread:
I thought it was interesting and important enough to raise the visibility since …
That was my observation too. The position wasn't real but the close position orders were real.
Further more the resulting positions; of the close action; were not visible on the platform. I discovered them by actually disconnecting and reconnecting back to the feed and then had to close that position at a loss. ( I so wish it was the opposite )
I hope in future NT Brokerage places a separate system to track our trades/account and not solely rely on the FCM's system to do their part.
There are no instances of the opposite. There are no winning trades placed in accounts that people can close for winners. Have you heard one person say that they had a winning trade placed in their account, and they closed it for a profit???? No. In contrast, NT says that they will be backed up for weeks with people who have had losing trades placed in their accounts.
The trade is only placed into the account once it’s negative. Phillips keeps the profits from all of the winning errors, and traders keep the losses from the losing errors. That’s how it’s working so far.
