This is a discussion with Gilad, a former agent at Easy-Forex.
Gilad: I switched in one day. I left Easy-Forex and the next day I landed in Matach-24. It was in late November, very close to the end of November (2006)
Dan: OK. Now, why did you leave?
Gilad: Listen, before I need to tell you that my history in the Forex market I started at Matach 24, and after I moved to Easy-Forex. In Easy-Forex I found a worm home, like in Match 24. I found an excellent home, with talented people, with good people. We said goodbye with hugging and kissing. Only, in the morning meetings I was one that could not stop my stomach pains. In every meeting I brought up this story of net deposit, how we are rewarded. The method in Easy-Forex was somewhat devastating. It was even scary….Everyone in Easy-Forex was rewarded according to the net deposit. That is, a client that deposit $100,000 you receive at the end of the month a fee for the deposit. If the client withdraw the $100,000 you needed to return the fee.
Dan: What was the fee?
Gilad: Employees, such as Ran (Cohen) received 1.5%. This was in addition to salary, car and pension. Now if the 100,000$ were withdrawn the agent returned the fee. Now if the customer lost 50,000$ and withdraw $50,000 the agent returned 1.5% on the $50,000 he withdrawn. If the client lost all the $100,000 the 1.5% were secured in his pocket. If the client deposit 100,000$ and made $50,000 and withdrawn all the $150,000 the agent needed to return 1.5% on the $100,000 he deposit and 1.5% on the $50,000 he withdrawn.
Dan: What?
Gilad: This means they were working only on erasing (accounts). They work on erasing money. …. I remember, one day a devil smile appear on my face when a client lost 35,000$ in 15 minutes. At that minute I know I had a beautiful salary. Now we worked there only on erasing accounts. A person is erased I got my bonus, a person makes profit and withdraw, I pay 1.5%. On everything he withdraw I pay the company (Easy-Forex)
Dan: Listen, it's much worse than what you are saying. It means that if he made profit you need to pay Easy-Forex because he made profit.
Gilad: Totally, totally. I told you this also before. I don’t know if you understood.
Dan: No this. No, No.
Gilad: If a customer put 100 and makes 100, and withdraw all the 200, I paid 1.5% on the 100 he deposit (and withdraw) and additional 1.5% on the 100 he made and withdraw. I was in overdraft. …
Gilad: Now we had moral issues. Ran and I use to drink coffee together and we are buddies. And there were consulting between the people. How this method is made of. Everyone was bitter. And I spoke in the meetings. Eventually, Ofer Komem (1) when he used to come from abroad, and Moti Rivlin (2), we use to site and discuss, and I use to bring this issue and said it’s a problematic issue. Ofer said, according to him, eventually this is the most rewarding method, because the statistics is such that 90% lose, so eventually I will get my 1.5% on most of the money my customer's deposit, and for most of the time this is the most rewarding method.
Dan: You know
Gilad: I asked them to give me less percentage…
Dan: No, no, no. It's not true what you are saying. I'll tell you why. Something is bothering me here. If this method is correct, why charge the 1.5% also when clients make profit? It's vicious beyond. If you say that 90% lose then don't charge you agents the 1.5% when they make profit.
Gilad: I agree with you
Dan: He contradicts himself.
Gilad: I agree with you. It's to make the sin twice.
Dan: It means. What does it mean? It means that he is trying to educate you to make the customer lose.
Gilad: Listen, you will not hear this… This is not something they said up-front. These are things that we never … they use to silence us. No one talked about this. These are things we use to talk about in private. What I, Ran and additional good people there with conscience. We talked about this that we will do our job such that the client will make profit. What will happen eventually, God knows. But lets us try to keep some…
Dan: How?
Gilad: I want to tell you
Dan: But how? Explain to me. How?
Gilad: I want to tell you, Dan
Dan: From what you say, you lose you pants. You will need to pay from the salary they pay you. If the client makes profit you will need to pay on what he profits. You'll need to pay back to Easy-Forex?
Gilad: Dan, I’m exaggerating, when I say 4 people. I am exaggerating. Listen, the nature of a person, and this is the second thing. I saw people with clients that made money for many months. They use to give him such bad service. Answer unpleasantly… There was a way of life in the company, a way of life… when a client was making profit they use to shout, the son of a bitch, move away form here. The guy is making profit, he is destroying my account. He is destroying my salary. Fly from here, go to a different company. They gave him bad service to force him to move to a different company because it was on their expenses. This is a terrible thing. Now, at the end, it didn't matter what happened. I could not…. I, in the last Yom Kippur, and after talking to Rafi, I couldn't. This thing bothered me for a year or so. I don't know how I survived there one year or so. Only because of my conscience. It was a good home, a warm home, a place that paid and paid a lot. I would like to tell you my net deposit was 10%, because I was independent agent… …
This is only part of the discussion.
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(1) Ofer Komem is the CEO of Easy-Forex international
(2) Moti Rivlin is a partner at Easy-Forex and was the CEO of Easy-Forex Israel in 2006
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