The Citi account I used to fund my Zecco Forex account is still open.
However, I am posting my adverse action for nine Citibank closure letters received in the mail dated 8/7/2009.
letters said: Citibank (South Dakota, N.A. Security Services P.O. Box 6063 Sioux Falls, SD 57117-6063
Your account has been closed to prevent further use...because of a security investigation involving your account. We now consider this investigation closed.All of the accounts were either (a) dormant cards or (b) ALREADY CLOSED cards from my first AOR in 2007. As mentioned, I still have one active Citi credit card in my possession with a $47k limit. I'm outlining a few key points regarding the remaining active card.
Transactions (rough figures): I had been making several purchases from the USMint ($20000). I also funded a couple of Zecco Forex accounts ($30000).
Possible triggers: On July 30, I requested $5000 from Zecco Forex via check back to my actively used Citi credit card. Instead of sending a check, Zecco Forex made a return of $5000 to the account (a return is different from a chargeback, I'm told).
My DW applied for a Citi credit card on 8/2/2009 (she had adverse action last September from them).
woodsley
Senior Member - 1K
posted: Aug. 10, 2009 @ 8:09p
I was trying to withdraw money since yesterday but couldn't do it. It kept saying "The page you are viewing is currently unavailable. Please try again later". Is this just me?
Still haven't gotten the bonus. Funded 7/27, traded 7/29 (and still have traded - about 20X roundtrip of the original deposit), called 8/4 and they said the bonus would post. It hasn't.
pyro123
Senior Member
posted: Aug. 11, 2009 @ 6:10p
Now we have to print, sign and fax a withdrawal form.
Its interest for sure, I see on the account summary under the interest column. Nice!
MikeR397 said: carefreeninja said: My balance in zecco forex has marginally gone up. Is Zecco paying me interest? Did anybody else also see this?Is there a money market sweep account option? I know with my brokerage accounts, there is, but you have to fill out a form to set it up. Definately worth looking into while my cash is in limbo with them.
abaliga said: Its interest for sure, I see on the account summary under the interest column. Nice!
MikeR397 said: carefreeninja said: My balance in zecco forex has marginally gone up. Is Zecco paying me interest? Did anybody else also see this?Is there a money market sweep account option? I know with my brokerage accounts, there is, but you have to fill out a form to set it up. Definately worth looking into while my cash is in limbo with them.Thanks. Its not much interest though. My $44,275 balance shows $7 of interest in about 3 weeks. I guess its better than nothing, who knows how long I have to wait to get my money out to avoid withdrawal to cc. I'm hoping 90 days.
Crazykole5 said: i'm kind of bummed I didn't use the reward points I gained before they went back down due to the chargeback...:'(It would have created negative CashBack if you did, and your future purchases would have suffered no CashBack, unless you planned on closing the card, and closing the card with a large negative CashBack could cause you to suffer AA, perhaps even blacklisting.
thinwallet4d
Senior Member
posted: Aug. 17, 2009 @ 7:43a
MikeR397 said: Crazykole5 said: i'm kind of bummed I didn't use the reward points I gained before they went back down due to the chargeback...:'(It would have created negative CashBack if you did, and your future purchases would have suffered no CashBack, unless you planned on closing the card, and closing the card with a large negative CashBack could cause you to suffer AA, perhaps even blacklisting.
Well he could just not use the card any more and use another CashBack card...
Email dated August 13th, 2009 from clamarz@NFA.Futures.org said/requested the following (My responses to his requestes are in BOLD):
email said: I have received your complaint and am in the process of reviewing it. I have a few questions regarding the complaint that will help me if you can answer.
1) How did you hear of Zecco Forex? Via an email *1 2) How did you first receive the Zecco Forex e-mail? from a friend *2 Did you open up a demo account and that’s how they got your e-mail address? I did open a demo account. I'm uncertain how they got my e-mail address *3
Additionally, can you please forward me the original email that was sent to you by Zecco Forex *4. Additionally, can you send me any correspondence that you may have had with Gain or Zecco Forex regarding the reason the promotion was not honored or why you did not qualify for the promotion *5.
Thanks,
Chris
Christopher Lamarz National Futures Association Staff Auditor, Compliance 300 South Riverside Plaza, Suite 1800 Chicago, IL 60606 Phone: (312) 781-1462 Fax: (312) 559-3473*1 ok. ok. The email was NOT directly from Gain/Zecco Forex. It was in the form of a PM notification.
*2 ok. ok. I consider all of you acquaintances but there is little difference.
*3 I am 99.9% certain they got my email address from the demo account.
*4 I forwarded a July 9th email from Jason Mannion which said the following:
Zecco said: I am attempting to reach you to answer any questions you might have about your Zecco Forex practice account and to tell you a little more about our trading packages and extensive forex trading resources. I also want to remind you that for a limited time you can earn up to $200 cash just by opening an account and trading with us.
I also included 2 subsequent responses to his $200 invitation which said the following:
I said: Unfortunately I am unable to click through to apply (on your Click here reference in your closing paragraph). Is that because the $200 promotion was only for Zecco clients which received the promo email invitation sent July 8th (your invitation below reads July 9th)?
Zecco said: If you are not able to access the application through the email, simply do so on the our website. There will be a promotional code at the end of the application. Enter, “cashad04” . This will allow you to receive the promotion.
*5 I cannot find the email which outlined the reason why I did not qualify for the $200.
Help.. I have been trying to withdraw my $ since last Thursday. They had me print a form and gave me a fax # which I just get a fast busy on my landline OR cell phone. Any advice?
They gave me 626 529 7070
cyberbobo
New Member
posted: Aug. 17, 2009 @ 11:03p
I had the same problem in faxing the withdrawal form. I talked to the CSR about this and they said it is ok to send in the form through email. I then scanned the form and attached it in email. It worked.
calwatch said: Still haven't gotten the bonus. Funded 7/27, traded 7/29 (and still have traded - about 20X roundtrip of the original deposit), called 8/4 and they said the bonus would post. It hasn't.
calwatch said: calwatch said: Still haven't gotten the bonus. Funded 7/27, traded 7/29 (and still have traded - about 20X roundtrip of the original deposit), called 8/4 and they said the bonus would post. It hasn't.
Just sent the email and they said 1-2 days. They credited it on the 20th as discussed.
onebigchub
New Member
posted: Aug. 28, 2009 @ 12:50p
I just called Zecco Forex today and while on the phone asked the rep the question so many people in this thread were curious about.
She said that usually during a withdraw that they'll send the money back to the credit card if it was funded within 45 days. After 45 days, she said, they'll give the option of a wire transfer or check.
...Ignore what options it gives in their online interface, because it seems pretty disorganized anyways.
onebigchub said: I just called Zecco Forex today and while on the phone asked the rep the question so many people in this thread were curious about.
She said that usually during a withdraw that they'll send the money back to the credit card if it was funded within 45 days. After 45 days, she said, they'll give the option of a wire transfer or check.
...Ignore what options it gives in their online interface, because it seems pretty disorganized anyways.Thanks, the only problem is I called them before with the same questions and was told 90 days, and even still they'll do CC return if they "deem is necessary" which means if you are not trading. No idea how much trading is needed. This is one of those stupid things I don't think we are going to get an answer to until some FWF folks have affirmative data to provide. I'm waiting on reports of success for returns by check first, as I have way too much $ in there to risk creating a negative balance on my cc.
MikeR397 said: Update request: Has a single person been able to withdraw money via check or wire yet? If so, how? Not me, other than for amounts in excess of the original deposit.
Placed 34 roundtrip trades (68 total), 20 mini-lots each of USD/JPY, over the past 2 weeks. They still split my withdrawal request in two: refund to CC, and excess by check. They don't even bother to send me any explanation by e-mail; I don't have to fax in my signature either.
Never got the bonus, still useful for closing out the rewards balance on sock-drawered CCs nonetheless.
rusmilinyet
Member
posted: Sep. 9, 2009 @ 8:15p
MikeR397 said: Update request: Has a single person been able to withdraw money via check or wire yet? If so, how?
I only received a paper check for my $4 profit. All credit card funding was put back on my original 3 cards.
Thanks. There has got to be a bright line time cutoff that we have not yet reached.
iamchuck
Happy Member
posted: Sep. 18, 2009 @ 9:12a
I called Zecco Forex who now say that prior to 6 months, the funds go back to the original funding source. After 6 months we can request an alternative method by wire or check. Its to the point I am just going to get the funds back by CC and call it good.
narshe14
Senior Member
posted: Sep. 18, 2009 @ 11:03a
MikeR397 said: Update request: Has a single person been able to withdraw money via check or wire yet? If so, how?
Update Request #2: Has anyone tried to withdraw after 90 days and been able to get a check or wire? A CSR was quoted earlier saying the cut-off was 90 days instead of 180.
I appreciate your interest in getting an answer. Trust me, I want one too.
However, this thread started July 8th (72 days ago) and I am willing to bet most readers of this thread had not funded prior to July 8th with the exception of those from an older thread.
dealMonger12 said: hook it up.. rsbridges1@gmail.com
sent!
kenfeyl
Member
posted: Sep. 22, 2009 @ 9:10a
Doesn't surprise me. Usually six months is the limit for chargebacks. So this has effectively become a 4% six-month CD. Still not a bad deal.
iamchuck
Happy Member
posted: Sep. 22, 2009 @ 9:14a
iamchuck said: I called Zecco Forex who now say that prior to 6 months, the funds go back to the original funding source. After 6 months we can request an alternative method by wire or check. Its to the point I am just going to get the funds back by CC and call it good.
When I tried to withdrawal I go this email from Zecco Forex/Gain Capital: "I am contacting you at the request of our financial operations department, in regards to the recent withdrawal request you submitted. Unfortunately, we are unable to process it since you are allowed to withdraw promotion bonus only in 3 months since you made a first trade."
Looks like that is what is required per the T&C on the first page, and the email, I just forgot about it. So may this be a reminder to others! I asked again about the 6 months to a different representative. The person are Gain confirmed that it is prior to 6 months the funds go back to the original funding source. Good luck to those who are waiting a little longer (90 days).
@kenfeyl, yep still not a bad deal, but I wish I had tried to cash out sooner due to other obligations of mine.
JTFH said: ...just cash out the rewards, get the negative rewards balance (via chargeback/return) and abandon the card.I am planning a variation of JTFH's suggestion. My goal (like most others here) is to get the Zecco balance converted to cash. Instead of abandoning the card, however, I am going to try to find NOW accounts which accept CC funding thereby avoiding negative rewards/huge credit balance on rewards CC.
Below is a variation of my planned dance. I currently have a 40,000 balance on my rewards credit card (from Zecco funding). I need to 1st eliminate the balance to free up credit line for the NOW account(s).
Starting day (09/29/09) numbers are: Rewards CC balance = (40,000) Zecco Balance = 120,000
09/30/09 request 40,000 via check/wire from Zecco 10/01/09 Zecco sends 40,000 back to Rewards CC
Starting day (10/02/09) numbers are: Rewards CC balance = 0 Zecco Balance = 80,000 10/02/09 open new 40,000 checking account(1) with CC funding option
10/03/09 request 40,000 via check/wire from Zecco 10/04/09 Zecco sends 40,000 back to Rewards CC 10/05/09 open new 40,000 checking account(2) with CC funding option
10/06/09 request 40,000 via check/wire from Zecco 10/07/09 Zecco sends 40,000 back to Rewards CC 10/08/09 open new 40,000 checking account(3) with CC funding option 10/08/09 bill pay 40,000 from checking account(1) to CC
Ending day (10/09/09) numbers are: Rewards CC balance = 0---{checking account(3) balance is canceled by bill payment} Zecco balance = 0 checking account(1) balance = 0 checking account(2) balance = 40,000 checking account(3) balance = 40,000
EDIT: 2009-09-23 09:24 removed reference to Commonwealth-like option
If anyone still hasn't participated you could make up to $1000 through Zecco Forex. The catch? 100 round trip, standard lot trades - in other words, $20,000,000 - in trade activity from now until November 13.
With a 3 pip spread, you are looking at roughly $6,000 in "commissions" (markup) over that $20,000,000 of trading ($10,000,000 round trip). If someone actually wants to learn Forex and has paper traded for a while, this might be a good start, though, and could juice one's profits.
I requested a withdrawal via wire. I received an email indicating funds will be sent back to originating card. My correspondence with the GAIN Capital agent regarding treatment of returned funds follows. Bottom line: Closing your credit card or waiting 6 months with extensive trading are the two options for getting CASH funds returned to you.
Q:What could I have done differently to avoid having the funds returned to my credit card?
GAIN Capital said: Unfortunately, we are always obligated to return funds back to the original funding source as per our Anti-Money Laundering policy. So, any time you fund with a credit or debit card, we must return funds to that card.
I can certainly sympathize with your situation; regrettably, financial regulations bind us to our present method of processing withdrawals.Q:I understand completely your company's position. However, I would like more information regarding your AML policy. Specifically: 1) is there a magic time line at which funds can no longer be returned to the originating credit card? 2) if the originating credit card is no longer active (i.e., closed by consumer), can Gain Capital still send the funds back to the card?
GAIN Capital said: Here are the answers to your questions: 1) If a withdrawal is submitted within 6 months of deposit, we must always return funds back to the credit / debit card. If the withdrawal is submitted beyond 6 months of deposit and there has been extensive trading activity on the account, we would be able to issue a check or a wire. 2) If the original funding card has been closed, we would be able to send funds by check or wire only if we are provided with a document from the bank / credit card company stating the account has been closed.
Also, please keep in mind that if you fund, for example, $1000 from a credit card – we can only return $1000 to that card. Any trading profits can be sent back by a different method.
...continued from above post. The return of funds to credit card is ssssssllllllooooooww...
Forex said: I am contacting you at the request of our financial operations department. As you have deposited more than $20,000, we require that you submit a copy of the front and back of your credit card (s) to verify that you are the card holder. These images are required for verification and security purposes due to the large amount of credit card exposure that is involved.NOTE:According to point 10 in this fraud checklist, this type of request is rare but not unheard of.
I asked about how the use of Citibank's virtual account number might impact the faxing of the source card:
I said: I used an internet feature from my issuing bank called "Virtual Account Number (VAN)" wherein a unique credit card number is created for a single transaction. These VAN's are usually used for internet purchases and effectively "roll-up" into the parent credit card.
Unfortunately, I am unable to provide copies of the front and back of these VAN's since they were used once and then destroyed.The Forex rep advised that the parent card is sufficient for proof of account ownership.
Forex also said: Once you have obtained these document(s), you may either fax it to us, or if you have the ability to scan and email, you may email it back to me at this address (mail to: FInitialLName@forex.com). If you do decide to fax the documents, please write your name, User ID and a short explanation on the document and fax to 1-908-731-0777. If you fax it, it is vital that you please send me an email to let me know that you have sent the documents, so that I know to find it and make sure the correct person in our accounting department received it.I have had to fax the front and back of my credit card to merchants in the past. As a security precaution, I black out the middle six digits prior to faxing (ie, 0000 0123 4560 0000). I suspect Forex will accept the card with the 6 middle digits missing also.
I'll post an update later...
ussrfw
Senior Member
posted: Oct. 6, 2009 @ 12:53a
You are the man! But didn't your rewards credit card get closed by the issuer? Usually this will happen very quickly, am I right?
jackcrawfish said: JTFH said: ...just cash out the rewards, get the negative rewards balance (via chargeback/return) and abandon the card.I am planning a variation of JTFH's suggestion. My goal (like most others here) is to get the Zecco balance converted to cash. Instead of abandoning the card, however, I am going to try to find NOW accounts which accept CC funding thereby avoiding negative rewards/huge credit balance on rewards CC.
Below is a variation of my planned dance. I currently have a 40,000 balance on my rewards credit card (from Zecco funding). I need to 1st eliminate the balance to free up credit line for the NOW account(s).
Starting day (09/29/09) numbers are: Rewards CC balance = (40,000) Zecco Balance = 120,000
09/30/09 request 40,000 via check/wire from Zecco 10/01/09 Zecco sends 40,000 back to Rewards CC
Starting day (10/02/09) numbers are: Rewards CC balance = 0 Zecco Balance = 80,000 10/02/09 open new 40,000 checking account(1) with CC funding option
10/03/09 request 40,000 via check/wire from Zecco 10/04/09 Zecco sends 40,000 back to Rewards CC 10/05/09 open new 40,000 checking account(2) with CC funding option
10/06/09 request 40,000 via check/wire from Zecco 10/07/09 Zecco sends 40,000 back to Rewards CC 10/08/09 open new 40,000 checking account(3) with CC funding option 10/08/09 bill pay 40,000 from checking account(1) to CC
Ending day (10/09/09) numbers are: Rewards CC balance = 0---{checking account(3) balance is canceled by bill payment} Zecco balance = 0 checking account(1) balance = 0 checking account(2) balance = 40,000 checking account(3) balance = 40,000
EDIT: 2009-09-23 09:24 removed reference to Commonwealth-like option
jackcrawfish said: 10/02/09 open new 40,000 checking account(1) with CC funding optionThis caught my curiosity. Where can you open a checking account that allows a CC deposit this large?
Wikipedia said: The Japanese lyrics at the beginning of the song are as follows:
どうもありがとうミスターロボット (dōmo arigatō misutā robotto) また会う日まで (mata au hi made) どうもありがとうミスターロボット (dōmo arigatō misutā robotto) 秘密を知りたい (himitsu wo shiritai)
The lyrics translate into English as follows:
Thank you very much, Mr. Roboto Until the day (we) meet again Thank you very much, Mr. Roboto I want to know (your) secret Remember the chorus? (secret,secret.i gotta secret)
CLUE: search the archived FWF threads using the following phrase (no quotes around search): credit card funding purchase max
Does GAIN offer insurance protection on brokerage accounts?back to top Both GAIN and our clearing firm, Ridge Clearing & Outsourcing Solutions, Inc. are members of the Securities Investor Protection Corporation (SIPC), which protects securities and cash of the customers of its members up to a maximum of $500,000, of which $100,000 may be cash. More information about SIPC coverage is available at www.sipc.org.
Through our clearing firm we offer additional insurance through a group of London Underwriters (with Lloyd's of London Syndicates as the Lead Underwriter) to supplement SIPC protection. This additional insurance becomes available to customers in the event that SIPC limits are exhausted and will provide account protection for securities and cash up to an aggregate of $600 million. This is provided to pay amounts in addition to those returned in a SIPC liquidation. This additional insurance is limited to a combined return to any customer from a Trustee, SIPC and London Underwriters of $150 million, including cash of up to $2 million. We also offer FDIC insured bank sweeps that are insured up to at least $250,000 per depositor until December 31, 2009. On January 1, 2010, FDIC deposit insurance for all deposit accounts-except for certain retirement accounts-will return to at least $100,000 per depositor. Insurance coverage for certain retirement accounts, which include all IRA deposit accounts, was increased permanently to $250,000 per depositor in 2006.
I had some concerns about whether the SIPC protection extends to forex accounts held under Zecco Forex (Gain Capital Group, LLC). According to customer service, it does not.
I then tried to assess bankruptcy risk by finding out how well capitalized they are. According to the CFTC, they have, as of August, a bit over 60 million in excess capital beyond capital requirements. The data is available here: http://www.cftc.gov/marketreports/financialdataforfcms/index.htm
This made me feel a little better, but it still offers no protection against fraud. I asked customer service if Zecco Forex carries a surety bond and was told it does not. The representative seemed a bit confused, so I am not yet convinced this answer is accurate. I will probably try to reach someone who seems more knowledgeable over the next day or so. Here is the conversation:
You are now chatting with 'TJ'
you: Hello TJ. Does Zecco Forex have a surety bond?
TJ: Hello welcome to Customer Service. How may I assist you?
TJ: While Zecco Forex would not any instruments outside foreign currency or metals, you may refer to the Zecco Trading for more information:
you: I don't want to buy a surety bond. I want to know if Zecco Forex carries one to protect their clients.
you: I think it's also referred to as a Title 14 Fidelity Bond.
TJ: Zecco Forex does not carry such a bond.
you:
you: Thank you. Have a good day. Bye bye.
TJ: Thank you for visiting. Should you have further questions or comments please log on to chat, email, or call us at 1-866-567-0295 or internationally at 1-626-529-7078.
I am not sure I have the risk appetite to keep money in this account long enough to avoid a refund to a credit card.
narshe14
Senior Member
posted: Oct. 8, 2009 @ 11:22a
jackcrawfish said: Remember the classic Styx hit song Mr Roboto?
Wikipedia said: The Japanese lyrics at the beginning of the song are as follows:
どうもありがとうミスターロボット (dōmo arigatō misutā robotto) また会う日まで (mata au hi made) どうもありがとうミスターロボット (dōmo arigatō misutā robotto) 秘密を知りたい (himitsu wo shiritai)
The lyrics translate into English as follows:
Thank you very much, Mr. Roboto Until the day (we) meet again Thank you very much, Mr. Roboto I want to know (your) secret Remember the chorus? (secret,secret.i gotta secret)
CLUE: search the archived FWF threads using the following phrase (no quotes around search): credit card funding purchase max
CLUE2: R:6x3 GoddedBy:<>NightmareMoon
I think all advice on FWF should be structured in this way.
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