WTS not paying

Discussion in 'Prop Firms' started by Srkisrle, May 13, 2016.

  1. Srkisrle


    Hello all. I realize that there are few similar posts here, but none of them recent, so I thought I would like to inform/ask for any recent info. Namely, WTS Canada is not paying me, nor my fellow group traders the money they owe us. We requested the account closure, and on March 29th they said it would be a couple of days, but as of today they are not paying, not answering to the e-mails, and just today I found a post from a member, Kang, that he had the same problem with them in October. Anyone has any updates on them, or recommendations? Thank you all.
  2. prc117f


    They probably took off with the money and ran. Hopefully you did not lose too much.
  3. 1245


    Report this to the regulators in Canada.
    dealmaker likes this.
  4. WTS is a Grand Cayman firm, so I highly doubt the Canadian regulators will be of any help. However, if they had offices there, then it's worth a shot.

    Here's the link for the Grand Cayman Monetary Authority, perhaps they can provide some guidance. My guess is the firm could be facing issues regarding compliance with FATCA, but that's JUST a guess.

  5. Well, this isn't very good. When you type in the name "World Trade Securities" in the search entity field on the Cayman Monetary Authority site, it will list the firm and reference code, BUT with the following disclaimer (emphasis in bold):

    "Please note that entities registered as Excluded Persons are exempted from the requirement to obtain a licence to conduct securities investment business as they conduct business exclusively with persons or institutions as set out in Schedule 4 of the SIBL and are therefore not regulated by the Authority."

    http://www.cimoney.com.ky/search/searchforentity.aspx?searchtext=Enter search term here...
  6. Srkisrle


    ScalperJoe, thank you so very much for taking your time to help me out. I have been with WTS since their very beginnings, don't even remember since when, more than 9 years. Never had any problems, until we tried to close our accounts. So, I guess I was very naive, or maybe lucky to lose 3 months of trading "only". What is MIND BOGGLING to me is that NO ONE regulates these entities. I always thought that they are ALL under some sort of institutional scrutiny, whether it is from the US regulators, Cayman or Sudan. But it seems that these people can do whatever they want legally. I understand if a prop firm, or any firm for that matter files for bankruptcy and doesn't pay its debts, it is the inherent risk of any business. But to be able to operate as usually, as if nothing was going on, owing money to the people, is, I repeat, mind boggling.

  7. Srkisle,

    Sure, no problem. And yes, it's "mind boggling" as you say, when a firm can operate as usually while owing money to people.

    Since you've been around awhile, perhaps you may recall quite recently that Nevis Trading was a sponsor here on ET. Nobody really made any negative posts, UNTIL a report came out by DAStrader that Nevis and a few other offshore firms were putting traders in demo accounts without their knowledge or consent, while keeping the traders' deposits. Then, the regulators made an official claim that Nevis was operating as an UNREGULATED entity in the Island of Nevis, go figure. You can search ET and you'll find the posts, and the links.

    Your theory is correct, nobody regulates these entities...UNLESS the entity itself is a regulated entity! If WTS Cayman was regulated, then you would probably have an avenue of recourse, which would at least impose some pressure on the owners to return your funds. Unfortunately, with a firm that has a listing in the Grand Caymans and is apparently exempt from regulation, I highly doubt there is much you can do, except to keep contacting the owners of the firm, if that's even possible.

    If you're familiar with Itrade2009's posts here on ET, then you'll know that he has been posting warnings for many years encouraging traders to do business ONLY with regulated entities.

    I guess in the end, any firm can cease operations and/or fail to return capital, regardless of whether they are regulated or not. It's a matter of doing business with whom you can trust, and hope for the best.
    Last edited: May 14, 2016
  8. 1245


    This is a recurring issue here on ET. When many traders are looking for a prop firm, where their funds are 1st loss, they seem to only care about commissions, other fees and profit split. There is not enough concern and due diligence with who you are going into to business with. This is just as important, as you can see.
    Clubber Lang likes this.
  9. 1245,

    Yes, that's true, conducting proper due diligence regarding the entity is more important than commissions and fees. However the OP was with them for "more than 9 years" and never had issues.

    His best approach now is to contact the securities regulators in Montreal. Upon further review, WTS had a clause for exemption in the Caymans, although it obtained the exemption because it claimed it was regulated in Canada.
  10. Srkisrle


    And also, I have to admit my mistake not performing due dilligence, at least not lately. Then again, assuming that they make a profit of (my wild guess) equivalent to 4-5% of any groups total deposit PER MONTH, even if unregulated, why killing the goose that laid the golden egg? Not only in this business, but in any other.
    #10     May 15, 2016