FX Broker Wins $460,000 Fight With Retired Bulgarian Teacher

Forex Capital Markets Ltd. won a London lawsuit over its right to revoke $460,000 worth of “abusive” currency and commodities trades placed by a retired Bulgarian teacher.

Daniela Shurbanova, who made a series of U.S. dollar and gold trades following the release of non-farm payroll data in 2013, acted as a “cipher for her husband” who was already barred from trading with the unit of Global Brokerage Inc., Judge David Waksman said in his ruling.

Shurbanova sued the brokerage accusing it of improperly voiding the transactions while FXCM countered that she and her family were sophisticated users of online currency trading who took part in abusive trading strategies.  

Shurbanova used a “very fast news feed to place trades and close them out at the height of any price discrepancy between FXCM’s ‘slow’ retail price feeds and ‘fast’ price feeds, which reflected the prevailing market,” the broker’s lawyers said at trial.

Shurbanova’s evidence at the trial in July was “inconsistent and implausible in a number of respects,” Waksman said in his ruling. She “plainly made false representations about her prior trading experience, and her personal financial position.”

Lawyers for Shurbanova or FXCM didn’t respond to requests for comment. The judge denied an application to appeal his decision.

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