4 September, AtoZForex.com, Lagos – TradeNext has been in the news lately for various reasons, one of which includes information of which the broker is in the process of returning retail client funds.
Following this, in the latest report that has reached AtoZ, it's indicates that the FCA-regulated TradeNext has decided to suspend its services to retail clients for now. The exact reason for this is unknown, but there is the suspicion that it may be related to losses incurred in connection with the SNB black Thursday event, which happened earlier in the year. Another reason is that it may have to do with an internal restructuring in the firm’s operations.
Poor April-June quarter performance
Apparently, the firm had quite a poor April-June quarter performance. Losses were incurred on some campaigns which did not work out. Also, the company seems to have been a victim of arbitraging practices by clients. The losses incurred in the Fiscal 2014 year totalled £1.1 million, considering the fact that TradeNext has a March 31 year-end.
In a separate case, it was recently learned that Jagjit Singh, the co-owner and Director of TradeNext got arrested in India. Based on charges of fraud surrounding another of his retail financial businesses, called Crown Credit Cooperative Society. According to the times of India, Police on Tuesday sealed a chit fund office Crown Credit Cooperative Society at Barnala and arrested eight persons associated with the firm. Triggering panic among several investors, who had invested their money in the company.
Stake holders expressed dismay
After the news of the event, several stake holders in the company have expressed dismay over the situation. A Bathinda resident, Kewal Singh said: “Offers of lucrative interest rates by the company had lured several investors into the trap during the past one year. Four cases were registered in Bathinda and two cases came to light in Barnala in one year,"
Barnala SSP Opinderjit Singh Ghumman said: "After the arrest of eight persons, I received more than a dozen calls from far off places on Wednesday. Many are complaining of being duped by the company. I have advised them to approach police at their respective places".
According to the report in the paper, the initial investigation and arrest led to the confession from the culprits. In these confessions, they claimed to be working with a London-based company, convinced that lots of earnings will be gained rapidly. However, the investigation of the case is currently still ongoing. Stay tuned with AtoZ for the latest news on TradeNext.
Update: TradeNext investigation involves UK embassy
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