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  • Alpari (UK) Important announcement - entered into insolvency

    From alpari.co.uk

    The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules.

LOL
omg!
  •  Guest
  • | IP XX.XXX.69.102
This is unbelievable!. Money going...and gone
  •  Guest
  • | IP X.X.55.138
Can anyone tell me what is this...
May Account balance reached from 1580 to 260, With all by open trades closed with loss..
I have maintained a margin level > 400%, How come they do like this...

I am a new trader, Please someone help me....
My god.... very sad news to traders.... more will come?!
  •  Guest
  • | IP XXX.XXX.118.33
Yeah it's devastating. I wonder how many more fx brokers will go insolvency......
Bye, Bye Alpari and May God Rest ur soul, Amen.
Master Your Setup, Master Your self. (NQoos)
Quoting Guest
Can anyone tell me what is this...
May Account balance reached from 1580 to 260, With all by open trades closed with loss..
I have maintained a margin level > 400%, How come they do like this...

I am a new trader, Please someone help me....
they went down the tube and will not recover but people should be covered by regulation
KEEP THIS THREAD CLEAN
wow I have a friend there with more then 50k euros capital ..... need to talk to him
https://www.youtube.com/watch?v=aXVlQJ8eFgE

adrenaline makes mes cold out here, I'm not sparing 1 minute of sleep reading these news, it's 5:15... I'm gonna collapse
Invest in alarm clocks
There will be a sweet revenge coming, someone will pay for the broken pots
Invest in alarm clocks
let's get out of this mess, push a secure pair usd/cad to 1.21. help me push up
Invest in alarm clocks
will we be able to get our money back?
  •  Guest
  • | IP XXX.XXX.204.230
Negative balance on client's accounts is not allowed by most brokers. For most it is a policy. They should have negotiated the same "no negative balance policy" with their liquidity provider before offering this type of policy to clients.... Now they have to absorb their clients losses....shit happens anyways. It is a lesson to be learned. Specially for those bucket shops like FXCM and Gain Captital.
My open trades that were 20k positive in eurusd just got closed. Platform frozen. Wonder if I will get my money back...
What's it all about? It's all about money.
Arr, try the link in the header..
What's it all about? It's all about money.
Fuck. That's why my orders have been closed. Greeaat.
  •  Guest
  • | IP XX.XX.158.197
as an index trader I can't see how forex pro's can get caught trading EURCHF. Fing amazing, that thing is pegged, man
So does this mean retail clients get what is left after bankruptcy and not what is in their accounts?
Who's next?
Forex rules
Quoting Guest
Can anyone tell me what is this...
May Account balance reached from 1580 to 260, With all by open trades closed with loss..
I have maintained a margin level > 400%, How come they do like this...

I am a new trader, Please someone help me....
There is no explanation. FX brokers, hedge funds, investment banks etc., they are over leveraged and act irresponsibly. They make massive errors in judgement, lose billions and not held personally accountable. They might lose their job, but they simply go to another firm once the smoke clears. Just be glad you are only out 1300 and not 130,000.
  •  Guest
  • | IP XXX.XX.210.253
Quoting dsb104
Who's next?
Everyone.
Quoting dsb104
Who's next?
FXCM me thinks...and many other smaller guys that we wont get to hear about.
Quoting EventHorizon
So does this mean retail clients get what is left after bankruptcy and not what is in their accounts?
if its regulated you should get your balance I would think but if not regulated broker loss is total
KEEP THIS THREAD CLEAN
  •  Guest
  • | IP X.X.55.138
Is this thing happened before....What you will get back...& When???
Ok... My position were closed... was on profit... just ordered a withdraw...

Does any one knows how it goes from here?
Will the withdraw be accomplished or what?
Quoting Innate
My open trades that were 20k positive in eurusd just got closed. Platform frozen. Wonder if I will get my money back...
I had some money in my account, all frozen, closed and not accessible. Help telephone lines are down nothing on their website???

Mother Fks!
Quoting Innate
My open trades that were 20k positive in eurusd just got closed. Platform frozen. Wonder if I will get my money back...
yes
customer funds still secured
Retail client funds continue to be segregated in accordance with FCA rules
"Retail client funds continue to be segregated in accordance with FCA rules. " Does this mean our balance is protected. Or will we just get the scrapes after the bankruptcy?
They mentioned in there official statement "Retail client funds continue to be segregated in accordance with FCA (Financial Conduct Authority UK) Rules. What is the policy FCA says for this type of conditions..?
  •  Guest
  • | IP XXX.XXX.197.248
what the hell is this what about other brokers...
"Any client funds should remain unaffected as the brokerage prepares to go out of busines"s - See more at: http://forexmagnates.com/alpari-uk-confirms-insolvency-procedure-client-funds-segregated-accounts/#sthash.1pGJXBmK.dpuf
Customer funds are not touched but It might take a long while to get your withdrawals though!
In the event of a Borker's liquidation, clients whose funds are held in segregated client bank accounts would have their share of the segregated money pool returned, minus the administrators’ costs in handling and distributing these funds.
Quoting lakhan
Customer funds are not touched but It might take a long while to get your withdrawals though!
Thanks. Better a wait than nothing.
Now I am going to withdraw my accounts from Alpari RUS while I still can. Just in case.
  •  Guest
  • | IP XXX.XXX.118.33
Withdraw while you can . You never know. I'm second guessing if I should even trade spot fx at all. How does commodity futures fare compare to spot fx, anyone
any news on other alpari companies RU US etc?
Can someone please tell me what i can do to get my money from alpari i have 16k with them..help!!
I wish you best! I just recently got my payout from the PFG Best robbery. Ended up with 30% of my account balance.

This will tell us if we should keep trading forex. If the guys who were positive lose everything then it's time to find another way to invest. Remember, if the broker goes insolvent and files bankruptcy then it doesn't matter how much you went positive. It could be a million dollars....you get a huge loss and a couple year wait.

They said a central bank could never go insolvent.....the word out there is that the ECB is next. I think it's time for hard assets.
Quoting cugir321
I wish you best! I just recently got my payout from the PFG Best robbery. Ended up with 30% of my account balance.

This will tell us if we should keep trading forex. If the guys who were positive lose everything then it's time to find another way to invest. Remember, if the broker goes insolvent then it doesn't matter how much you went positive. It could be a million dollars....you get a huge loss.

They said a central bank could never go insolvent.....the word out there is that the ECB is next. I think it's time for hard assets.

Were your funds held in segregated accounts at a bank?
(NYSE:FXCM) an online provider of forex trading and related services worldwide, announced today due to unprecedented volatility in EUR/CHF pair after the Swiss National Bank announcement this morning, clients experienced significant losses, generated negative equity balances owed to FXCM of approximately $225 million. As a result of these debit balances, the company may be in breach of some regulatory capital requirements. We are actively discussing alternatives to return our capital to levels prior to today's events and discussing the matter with our regulators. Disclosure Regarding Forward-Looking Statements Certain

http://www.forexfactory.com/news.php?do=news&id=521891
Quoting EventHorizon
Were your funds held in segregated accounts at a bank?
The commoditiy people got most of their money from what I saw...it took a long time for them to see their money......retail forex got the shaft. A judge decided who would get what. They weren't segregated like the commodity money. I wouldn't trust anything these days. If the loss is big enough....they'll do whatever they want and change the rules after the fact.

Either way...it's going to be a mess. I remember the night I went online and PFG was a silent screen. You couldn't do anything or get anyone on the phone.
Quoting lakhan
Customer funds are not touched but It might take a long while to get your withdrawals though!
How long would you say, mate?
If they go insolvent......I'd guess well over a year. I believe it took that long for the commodity people to get their money from PFG best. They were in a much better position then the forex people. We waited over 2 years. This is in the USA....the UK????

In the USA....if they go bankrupt. The odd's are great you can lose everything unless it's truely segregated.

I believe the only reason the PFG Best retail forex people got some money was because it was fraud by the owner. The regulatory commission let him get away with it for years. They were under a lot of pressure. I don't believe we would have got a cent if it was a true clean bankruptcy.

I didn't waste more then a couple days worrying about. I got mad from time to time and wrote congressmen and such but always let go of it quick and moved on.
Quoting Guest
Withdraw while you can . You never know. I'm second guessing if I should even trade spot fx at all. How does commodity futures fare compare to spot fx, anyone
The problem is that when these things happen you can't get through to them. Hopefully the broker isn't completely wiped out. Give up control of your money now.....it will make your life easier. If you get it back....throw a party!
  •  Guest
  • | IP X.XX.131.202
What do you mean by 'Retail client funds continue to be segregated in accordance with FCA rules'.
One pice of kind instruction for me and other Alpari UK folks, please?

Assuming we have our balances in segregated account, and assuming we realy have coverage by FCA:

How do we proceed?
Is it necessary to suit?
Is it necessary to subscribe as Alpari Client to the FCA or other entity?
Is there there any manual for this situations?

... or we just press the FORGET IT button and wait ? ... and don't suppose some one will knock on my door next year with my money...
For starters place a withdrawal request for your account balance.
  •  Guest
  • | IP XXX.XX.214.115
What happens to customers of Alpari with negative balance now? They have to pay money back to the broker??
Quoting Aussi
they went down the tube and will not recover but people should be covered by regulation
When the regulation cover all the amount i have 1000E , when this will happen?
Quoting barkie
For starters place a withdrawal request for your account balance.
You cant login
Quoting mazzara
One pice of kind instruction for me and other Alpari UK folks, please?

Assuming we have our balances in segregated account, and assuming we realy have coverage by FCA:

How do we proceed?
Is it necessary to suit?
Is it necessary to subscribe as Alpari Client to the FCA or other entity?
Is there there any manual for this situations?

... or we just press the FORGET IT button and wait ? ... and don't suppose some one will knock on my door next year with my money...
Quoting Berserker
I've just spoken to the FCA ( Financial Conduct Authority ). They were very helpful and have told me there is to be a press release on their site in the next couple of days - although hopefully today - regarding this matter. This is the place to watch - http://www.fca.org.uk/news You can contact the FCA using the following numbers: UK: 0300 500 0597 From abroad: +44 20 7066 1000 They told me they have been receiving a lot of calls about this today - as expected. Good luck everyone!
phone these people..
Quoting Guest
What happens to customers of Alpari with negative balance now? They have to pay money back to the broker??

yes i think but how is this even possible with a margin?
phone line is down, and cant login in account management system. what should i do?
Just made a withdrawal form Alpari Russia via netteller, just in case the go belly up. At least I got that out.

Who knows when I will see my Alpari UK money, if at all. Never mind the catastrophe of closing all my positions.

If Alpari Russia is still around in couple of months, might use them again.. but their accounts are not the best. Leverage changes on the weekends.
Quoting panhwar
phone line is down, and cant login in account management system. what should i do?
Just have to wait like all of us. See how the UK system fairs. It is the most protected system in the world.
Quoting Guest
What happens to customers of Alpari with negative balance now? They have to pay money back to the broker??

Yes. They will be pursued by the solvency admins.
Quoting nAVIN2007
yes i think but how is this even possible with a margin?
If you have a buy trade on say EURCHF, and over the weekend they made a huge announcement that affected currency. And on Monday it gapped hugely down. It would exceed your accounts margin and put you in negative balance, which must be re payed. Even a stop loss wouldn't save you as it would gap well below your stop loss. It says it all in the term and conditions.
Quoting EventHorizon
If you have a buy trade on say EURCHF, and over the weekend they made a huge announcement that affected currency. And on Monday it gapped hugely down. It would exceed your accounts margin and put you in negative balance, which must be re payed. Even a stop loss wouldn't save you as it would gap well below your stop loss. It says it all in the term and conditions.

yes u are correct..u think this happened with alpari? ..i cant understand how they are insolent unless the traded and lost..its crazy
  •  Guest
  • | IP XXX.XX.214.115
Quoting EventHorizon
If you have a buy trade on say EURCHF, and over the weekend they made a huge announcement that affected currency. And on Monday it gapped hugely down. It would exceed your accounts margin and put you in negative balance, which must be re payed. Even a stop loss wouldn't save you as it would gap well below your stop loss. It says it all in the term and conditions.
I have asked the customer service and they only said that not repaying the neg balance only makes you unable to use the account. They also stated that there is no interest applied on negative balance. No mention of solvency procedings
Quoting Guest
I have asked the customer service and they only said that not repaying the neg balance only makes you unable to use the account. They also stated that there is no interest applied on negative balance. No mention of solvency procedings

Maybe I am getting confused with the terminology. But the reason you get a financial check b4 they give you an account is so you can pay them back if your positions gap down to below more than you have in your balance.

All I can think of what happened was that institutional traders where holding huge EURCHF buys to get the positive interest rate, counting on the CHF peg. When the peg was dropped, the price must have gapped so far down to more that blow these traders accounts, leaving Alpari owing the banks.
how you talked with customer service? on which number? i cant get anyone on call. there is recoded voice message only.
If retail clients funds are held in segregated accounts, I don't think this money can be used to pay creditors. This is why I moved form IBFX to Alpari. Because with IBFX, even though your money is held in a bank account, it is pooled, not segregated, and CAN be used to pay off creditors if the broker goes broke. So hopefully we will be OK.
If everyone lost where did the money go?
Segregation of retail clients' funds

Under FCA client money rules, Alpari UK is required to segregate all retail client funds from our own funds. This means that we must take steps to ensure that the clients’ money is held in a separate account away from any accounts used to hold money belonging to the firm. The purpose of this separation is to prevent the use of client money by the firm for its own account at all times.
What is the Financial Services Compensation Scheme?

The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensator of last resort for customers of financial services companies.

In the unlikely event that Alpari UK is unable to meet its financial obligations, you can submit a claim to the FSCS. This scheme protects up to £50,000 per person.

The FSCS also protects the money in our segregated retail accounts. If a bank holding the funds you have deposited with Alpari UK goes into liquidation you will be able to claim up to £85,000 per person and per institution.

You can find out more from this booklet (PDF) or on the FSCS website.
Who can make a claim from FSCS (what is an eligible claimant)?

To be eligible for compensation you must have lost money because of your dealings with a regulated financial services firm. FSCS can pay compensation only for financial loss.

The FSCS rules which are made for them by the Financial Conduct Authority (FCA) tell the FSCS which types of claim qualify for compensation, and limit how much compensation they are allowed to pay.

Different rules and limits apply to different types of claims. The rules for FSCS form part of the FCA’s handbook. This is available on their website at fca.org.uk.

http://webcache.googleusercontent.com/search?q=cache:GoELq86GwPcJ:www.alpari.com/regulations+&cd=1&hl=en&ct=clnk&gl=au
Quoting nAVIN2007
yes i think but how is this even possible with a margin?
yes this happened to me once, market gapped way past my SL and gave me a small negative balance - I had to repay that was Alpari UK.

Same experience here, I opened a trade shortly after London opened this morning and they simply closed it out when they made decision...
Quoting plind
If everyone lost where did the money go?
To the banks who buy and sell Alpari and us the currency.
Quoting nAVIN2007
yes u are correct..u think this happened with alpari? ..i cant understand how they are insolent unless the traded and lost..its crazy
The clients lost a lot of money as many were long EURCHF, following the path of the SNB peg. Once the peg was removed, it pretty much turned all those positions into instant losers. There were a lot more people that were long EURCHF than those who were shorting it.
The market just gapped immensely on the announcement as liquidity simply just dried up, hence activating clients' SLs, and in most these were market orders.
Quoting plind
If everyone lost where did the money go?
The LPs that were quoting 1000 pip wide markets. All the LPs that had buy orders for EURCHF at around 0.75-0.80 level made a killing.
Whatever happened to the garuanteed stop/loss approach. Teaches us all a lesson .... never be too comfortable
  •  Guest
  • | IP XXX.XX.214.115
Quoting panhwar
how you talked with customer service? on which number? i cant get anyone on call. there is recoded voice message only.
I contacted them on their live chat service
Quoting plind
If everyone lost where did the money go?

Alpari obviously didn't balance its risk. If there were huge buy positions with EURCHF, these should have been balanced with equivalent sell positions. Because Alpari had more buy orders, the banks Alpari uses were loaning euros brought by CHF. When the euro dropped so much in relation the the CHF francs, those euros simply were worth 30% or more LESS than before. The money didn't really go anywhere, the value of the currency Alpari was exposed to crashed.
Quoting Cr463ad
Whatever happened to the garuanteed stop/loss approach. Teaches us all a lesson .... never be too comfortable
There is no such thing as a guaranteed SL unless the provider that offers it takes all the down risk by providing such functionality. The only true guaranteed SL in this scenario is a hedge on the options market, in this case buying put options at your desired SL price.
Quoting plind
If everyone lost where did the money go?
There are two side to every trade, I would suggest that the big winners would be larger funds and institutions that were holding hedged positions.
Quoting Guest
What happens to customers of Alpari with negative balance now? They have to pay money back to the broker??
They will be pursued by administrators now, although depending on terms of some of the accounts they won't bother with them all. The broker will accept the risk for some of the smaller accounts.
Quoting nAVIN2007
yes u are correct..u think this happened with alpari? ..i cant understand how they are insolent unless the traded and lost..its crazy
The trades were not the brokers accounts, they are clients trades being actioned by the broker, because of the sheer volume and speed of trades open and taking place extreme slippage occurred. If it was the brokers own trades it would be an entirely different scenario, the clients funds are quarantined from the brokers proprietary accounts.

It appears IG were the ones on the ball as they closed the clients trades first before their own. Still gives them a loss, but no where near as big as it would have been and with a chance to recoup.
Quoting Greeny
, the clients funds are quarantined from the brokers proprietary accounts.

.
Does quarantined mean safe from creditors? And retail clients will eventually get back their money?
  •  Guest
  • | IP XXX.XX.214.115
Quoting Greeny
They will be pursued by administrators now, although depending on terms of some of the accounts they won't bother with them all. The broker will accept the risk for some of the smaller accounts.
And how administrators will pursue thousands of small retail customers abroad? I think it would cost more for them in legal fees than the actual amt to be recoverd
Quoting Greeny
The trades were not the brokers accounts, they are clients trades being actioned by the broker, because of the sheer volume and speed of trades open and taking place extreme slippage occurred. If it was the brokers own trades it would be an entirely different scenario, the clients funds are quarantined from the brokers proprietary accounts.

It appears IG were the ones on the ball as they closed the clients trades first before their own. Still gives them a loss, but no where near as big as it would have been and with a chance to recoup.
i see
what happen to them who had sell on this pair?
can anyone go to their office in london and get us news... as they have closed all other communication lines. if funds are segregated then whay are they not allowing wihthdrawl?
  •  Guest
  • | IP XXX.XXX.96.8
just forget about your money guys. Start saving again and open a new account. 0 stress.
Quoting panhwar
can anyone go to their office in london and get us news... as they have closed all other communication lines. if funds are segregated then whay are they not allowing wihthdrawl?
because someone needs to be appointed to clear the accounts first..
All I wanna know is will I be able to whitdraw my funds??And if YES, when?
Can someone give me an honest opinion?
how long will it take? any idea?
The forex markets are the wild wild west. Not many rules. PFG is a good example. The futures trades have received all or portions of their money back, but the forex customers haven't received one thin dime.
In PFG's case the lawsuits have commenced and will probably take another couple of years to find an end to the ordeal. PFG filed bankrupty on July 10, 2012 just to give you an idea of how long this stuff drags out. So far the U.S. futures traders have received 44 cents on the dollar.
Other countries may have laws protecting customers, but there will be quite a time lapse for everything to kick in.
Also keep in mind that this may be the first country to do such things as the Swiss have done. Volatility is and will continue to rise, you can count on that.

The other question that arises is, How many other counter parties just got hammered (think Lehman and 2008) and can't meet their obligations because their accounts just vaporized. They need the money today not a week or month from now. Just because it's insured doesn't mean a thing, the insurer may have the same problem.
  •  Guest
  • | IP XX.XX.146.136
What happened to Alpari is very unfortunate. In my own case, I sold the gbp/chf and the news event literally tripled the value of my very small account. The problem now is that, when can one withdraw money from the Alpari account ?
  •  Guest
  • | IP XXX.XXX.109.84
Yes, that is the main question,

When we can withdraw at least our positive balance?

Someone...please?
Unfortunately people, this is not going to resolve itself rapidly. There will be a number of announcements in the coming days I would think and appointment of managers/administrators. The process of analysing where they are at will take some time. I doubt very much if anyone will be withdrawing any of their funds in the near future. Given the somewhat "grey" rules regarding fx and the fact that we are in new territory here, my advice would be to move on, let the events unfold and get back to trading somewhere else if that is still your aim. There is a good chance you will have to see the whole event as a losing trade and put it behind you. I dare say we eill see a shake up of how things are done in the future so watch out for changing rules. Sorry there is no better news, but that is the markets. It's happened before and will happen again.
  •  Guest
  • | IP XXX.XXX.43.78
I just spoke to the FSCS - the UK organization that protects our money.
According to them, the best practice is to wait a few days and monitor their website, but they also said it is highly likely that any balance may be returned without claiming it through FSCS.
Quoting Sossos
The forex markets are the wild wild west. Not many rules. PFG is a good example. The futures trades have received all or portions of their money back, but the forex customers haven't received one thin dime.
In PFG's case the lawsuits have commenced and will probably take another couple of years to find an end to the ordeal. PFG filed bankrupty on July 10, 2012 just to give you an idea of how long this stuff drags out. So far the U.S. futures traders have received 44 cents on the dollar.
Other countries may have laws protecting customers, but...

You're wrong about the PFG Best forex customers. I got 30% back just within the last year or so. I accepted their offer of 30%.

You are right about the wild, wild, west. If a broker files bankruptcy then you have a very slim chance of getting anything....even if you took the right side and made a fortune. Good luck getting cashed out.
And you can't get anymore out than the 30%? If the class action suit against U.S. bank rules in the customers favor are you left out after accepting the offer? JP Morgan settled and futures just received another 7% along with the previous 37%
  •  Guest
  • | IP XXX.XXX.109.84
Hey guys, may this information will help you to minimize your losses...

I did a deposit to alpari using my neteller account in 13/01/2015 when also I did using my visa credit card.

So today I called to visa and ask then to cancel this operation...as probably neteller will not have way or have enough time to transfer to Alpari until today 16/01/2015 I beleive that is a correct way to proceed in cases you just deposited and not paid yet your credit card bill using neteller...

Of course i tried to call neteller but as usual they support was very week.

Just as reference I am talking about something around 1000USD...

I hope that idea can help the ones are in same situation as I was...

Good luck my friends,
Fucking terrific, got the email this morning, thanks Alpari you assholes!!!
LOL! They blame their clients, I love it!
Quoting Sossos
And you can't get anymore out than the 30%? If the class action suit against U.S. bank rules in the customers favor are you left out after accepting the offer? JP Morgan settled and futures just received another 7% along with the previous 37%
There are guys still waiting for the PFG money. I didn't have to take the 30%. They may not get anything by waiting. I doubt they'll get more then 50% of their bank. I talked to the attorney handling the bankruptcy....he doesn't give a crap. He gets his millions. He said you're lucky you got anything.
Quoting Guest
What happened to Alpari is very unfortunate. In my own case, I sold the gbp/chf and the news event literally tripled the value of my very small account. The problem now is that, when can one withdraw money from the Alpari account ?
That is the problem that traders do not realise. You can be on the right side.....if the broker gets slammed then you're out of luck.

I lost a couple thousand with the PFG Best bankruptcy. I don't use more then a couple hundred for a bank anymore. You cannot trust any of them. Banks or brokers. Forex.com has been very good for a couple years. They are saying they didn't get caught in the mess. Never believe any of them completely. they could change tomorrow. I like them but I'm skeptical. J.P. Morgan is Satan himself to me. Isn't it ironic that we all have our money held in their bank.

I think it is time for hard assets. Silver and gold. In your hand. In your house. It can go to zero and it's still yours.
WTF ! why do I see only Alpari going under ???
Quoting mzsp13
All I wanna know is will I be able to whitdraw my funds??And if YES, when?
Can someone give me an honest opinion?
Don't waste your energy. They will drag it out. Let go of it. The only people who win are the banks and the attorneys. Expect a year at minimum...if it's sooner...go to church and thank God. If this is a bankruptcy....expect nothing back.
Sorry guys... I really hate to see the pain this thing has caused. I still don't understand why they couldn't have at least given some kind of heads up, like "Next Wednesday we will be making a major announcement regarding policy change" or something.

Anyway, I wonder how many more brokers this could impact. Anyone else use MB Trading? As I've said elsewhere, I'm a newbie and so have very little to go by in the way of comparison, but I'm happy with them up to this point, and MB seems to be doing okay with this current mess so far.
  •  Guest
  • | IP XX.XX.49.82
this is so Fxxx up1 i cant believe this is happening again in 2015. One would think that parameters were put in place for this never to happen ever again.
I had £11 in my account, I want my money back please?
  •  Guest
  • | IP XX.XXX.190.165
Might be time to trade currency futures. These bucket shops will all blow up eventually
Good thing i left them and moved my money last month! and also never funded my FXCM account... Trading with a safe broker now! Thank GOD!!!!
  •  Guest
  • | IP XX.XXX.151.18
None of you should be comparing what happened in other countries to what has happened with Alpari in the UK. Alpari as with all regulated brokers in the UK had to have ALL its clients balances in a segregated account, away from its own funds completely for a good reason and that is, its out of the way of creditors or anyone else for that matter.

Anyone that had a buy in and were on the wrong side of it has obviously lost their money unless they were trading pennies on a seven figure account, Alpari have said they have had to go to insolvency because those traders that were on the wrong side of it have negative balances and that means someone has got to pay for it, and it will be Alpari they know they have to absorb the debt to the people they passed the trades on to because they haven't got a chance in hell of getting it back from the customers.

Alpari belong to the FSCS which is the same insurance that ALL the major banks belong to in the UK which PROTECTS you to a certain extent. As long as you have less than £85,000 in the account you are fine, protected by that guarantee which is on top of the guarantee that they have segregated funds. So stop panicking, wait it out and you will get your money.

The UK is not run in the same way as even the US in this respect, you don't need to go through insolvency proceedings and wait for years.
Quoting mazzara
WTF ! why do I see only Alpari going under ???
Depending on what trades were open in accounts some brokers would have made money. Two sides to every trade. I believe Gain/Forex.com, AXA and a few other retail brokers ended up in profit. The retail focused brokers are always going to be the ones worst hit in this scenario as retail traders don't tend to be hedged.
Welcome to the TRUE face of Dodd-Frank initiatives spanning the globe.

There is NOTHING among regulation to control brokers from extending booking relationships at risk into their own subordinate but separate LPs. The term "transparency" is undefined under US or UK law and accordingly brokers can make all kinds of spurious claims without being held accountable.

This only happens when a broker's extended his own liquidity outside of balanced risk taking the other side in one manner or another if even by proxy via LP, rather than cleanly hedging positions outward 1 to 1 to neutral counter-parties.

Traders need to understand that stops sold over the counter at risk are NOT guaranteed and despite regulation suggesting funds are segregated, when the broker's pockets get emptied and the position closes well beyond the stop, there is no way to recoup losses as technically their risk places them in regulation violation of carrying positions greater than they can support and even subject to huge compliance fines. One cannot get blood from a rock.

There really is no question that Dodd Frank and those in US or UK regulation were not FULLY aware of the ability of broker / LP integration to be capable of creating this kind of debacle and so the only resolution is that current compliance initiatives are a face lift facade which ultimately lures retail traders into a false sense of security.

In the end, the dying remains from failing brokerage are bought up by larger brokerage or more often today, competing banks. Who's in business with the banks? Regulation under government initiatives utilizing those banks.

Harsh compliance is not the solution but investors understanding due diligence and diversification MUST continue to rule the day if free enterprise can survive in this kind of setting. Otherwise traders will continue to dismiss the need to learn and apply REAL due diligence. This surely is not the first lesson of this kind learned but for those new in Forex it may well be if nobody encourages true learning and careful investment.

Hopefully SOME part of losses can be negotiated, but only time will tell how negotiations between brokers and compliance leaves this, if the door remains open to resume "business as usual" and the banks bail it out.
I lost my open trade (eurusd) in micro account and my market account can't open.

So for this case i lose all my deposit fund? And how about open trade tahe they close? Last i check my fund just any $5????!!

The alpari site can't access

I email the customer service in dubai but still not yet respond
Quoting Guest
None of you should be comparing what happened in other countries to what has happened with Alpari in the UK. Alpari as with all regulated brokers in the UK had to have ALL its clients balances in a segregated account, away from its own funds completely for a good reason and that is, its out of the way of creditors or anyone else for that matter.

Anyone that had a buy in and were on the wrong side of it has obviously lost their money unless they were trading pennies on a seven figure account, Alpari have said they have had to go to insolvency...
This should be a great lesson.....not as to what the rules state.....what they do to the rules....enforce them or break them because they can.
Quoting Terraforce1
Fucking terrific, got the email this morning, thanks Alpari you assholes!!!
Quoting Guest
None of you should be comparing what happened in other countries to what has happened with Alpari in the UK. Alpari as with all regulated brokers in the UK had to have ALL its clients balances in a segregated account, away from its own funds completely for a good reason and that is, its out of the way of creditors or anyone else for that matter.

Anyone that had a buy in and were on the wrong side of it has obviously lost their money unless they were trading pennies on a seven figure account, Alpari have said they have had to go to insolvency...
Thanks man. Yea, the UK has the highest financial regulation in the world. That's why I moved to them from IBFX. IBFX has segregated funds, but in their fine print says that in event of bankruptcy IBFX will use segregated funds, not so Alpari.
In the UK the FSCS guarantees your money if its below a certain figure.

'What is the Financial Services Compensation Scheme?
The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensator of last resort for customers of financial services companies.
In the unlikely event that Alpari UK is unable to meet its financial obligations, you can submit a claim to the FSCS. This scheme protects up to £50,000 per person.
The FSCS also protects the money in our segregated retail accounts. If a bank holding the funds you have deposited with Alpari UK goes into liquidation you will be able to claim up to £85,000 per person and per institution.'
(From Alpari website)



"Information regarding Alpari UK LImited

16th January 2015

The Financial Services Compensation Scheme (FSCS) is aware of the situation regarding Alpari UK Limited.

We are currently monitoring developments and will provide an update on our website as soon as we are in a position to do so. "
http://www.fscs.org.uk/news/2015/january/information-regarding-alpari-uk-limited/
Quoting Terraforce1
Fucking terrific, got the email this morning, thanks Alpari you assholes!!!
I didn't get an email, can you post it here? Thanks.
FXCM Said to Be in Talks With Jefferies for $200 Million Rescue

Why couldn't Alpari do something similar?
Quoting Guest
None of you should be comparing what happened in other countries to what has happened with Alpari in the UK. Alpari as with all regulated brokers in the UK had to have ALL its clients balances in a segregated account, away from its own funds completely for a good reason and that is, its out of the way of creditors or anyone else for that matter.

Anyone that had a buy in and were on the wrong side of it has obviously lost their money unless they were trading pennies on a seven figure account, Alpari have said they have had to go to insolvency...
Glad you trust them......There is a great lesson coming.....a lesson about trust. Whatever happens everyone will be able to take this lesson to the bank.
So early yet. Lets wait one or two days to clarify whats gonna be. Make withdraw and see......
NZ broker bust as well, but they CAN withdraw. NZ has way worse regulation than UK. We should be able to withdraw!!


Global brokers NZ" had also gone bust after swiss move, and customers may withdraw their balance immediately.
http://www.stuff.co.nz/business/industries/65125923/global-brokers-nz-goes-bust-after-swiss-move
This money must be held entirely separately to the company’s own funds – in other words, ‘client funds are segregated’. This is so that if the company itself goes bust, the money and assets owned by customers are not put at risk.

In the case of Alpari UK, the company specifically states that “retail client funds continue to be segregated in accordance with FCA rules.” In short, if you had money with the company, it should be safe (bar any investment/trading losses actually related to the Swiss move).

http://moneyweek.com/alpari-uk-what-happens-when-your-broker-goes-bust/
Alpari UK Insolvency Does Not Affect Other Alpari Companies

Dear Clients!

On January 15, 2015 the Swiss National Bank unexpectedly removed the upper boundary on CHF against EUR. These measures triggered a sharp rise of Switzerland’s franc and resulted in exceptional volatility in the Forex market. As a result many forex brokers faced financial problems. In particular on January 16, 2015 Alpari UK announced that it entered into insolvency.

The company can not meet the minimum capitalization requirements of the FCA (UK) any more. In the nearest future external control will be enabled and a program of financial recovery will start.

Alpari UK Insolvency Does Not Affect Other Alpari Companies

Alpari UK is a separate legal entity operating under the Alpari brand and its financial situation does not affect other Alpari companies.

In particular, Alpari Limited (Saint Vincent), Alpari Limited (Belize) and Alpari International Limited (Mauritius) have recently changed their margin requirements for EURCHF. Due to these measures these companies do not face any financial difficulties and provide their services in full.

Best Regards,
Alpari

Source: alpari-forex.com, "Alpari UK Insolvency Does Not Affect Other Alpari Companies "
This is what happened to those brokers who had Dealing Desks.
Winning is a Great Feeling!
Let's see whether further bankruptcies follow after the weekend.

If Alpari is the only bigger one who went bust, I fear they somehow took customer money and just try to disguise there fraud with the SNB caused volatility.

I think it is very suspicious that the worlds CHF short trader assembled at a few brokers.


I have/had there a account too, because I thought the FCA regulation is unique in the world. Until now the stop of communication could be the regular shut down procedure.......no idea
It was an expensive lesson for bucket shops, many of whom would be doing a moonlight flit shortly, lol
Quoting EventHorizon
This money must be held entirely separately to the company’s own funds – in other words, ‘client funds are segregated’. This is so that if the company itself goes bust, the money and assets owned by customers are not put at risk.

In the case of Alpari UK, the company specifically states that “retail client funds continue to be segregated in accordance with FCA rules.” In short, if you had money with the company, it should be safe (bar any investment/trading losses actually related to the Swiss move).

http://moneyweek.com/alpari-uk-what-...ker-goes-bust/...
This is all people need to know. Any other talk at this point is in opposition to what the fscs and fca have said privately to others.

We will just have to wait for instruction on what to do
Quoting Guest
Can anyone tell me what is this...
May Account balance reached from 1580 to 260, With all by open trades closed with loss..
I have maintained a margin level > 400%, How come they do like this...

I am a new trader, Please someone help me....
You should have discovered what a stop was all about. In fact you should have done a lot more learning. Sorry, but a very expensive lesson. I hope not devastating for you.
I have about 11k in Alpari UK, not worried really, just a pain that we will probably have to wait. Good things are on our side, Alpari UK got hammered a few years ago with complience issues, proof of address records etc, quite a large fine was imposed that hurt them.
So, I am pretty sure that they were squeeky clean after that incident.
The FCA covers upto £50k as mentioned earlier, however, the FCA also insists that clients funds are segregated so that the FCA does not have to resort to the UK Government paying out for customer losses! That fact makes me more confident that there should be no problem here, and not just wishful thinking.
Also doesnt matter if you are resident or not, the UK caused panic in the 2008 crisis by stating that it will guarantee ALL money held in UK accounts. That forced the rest of Europe and USA to some extent following suit, otherwise UK would be the only safe haven!
The only technical issue maybe that those that were in trades had some capital in use for trading outside of the segregated account, I really cannot speculate on that.
Seems to me that 500:1 leverage was the killer for this company, no way that Alpari could get that leverage with their LP's so a margin call for a broker!
Survive to fight another day
alpari uae branch is fine, and alpari russia branch is fine... traders registered in those offices can trade normally.
translated from arabic website, : Important Announcement

Published on Friday, 16/01/2015 - 12:00;

Recent events relating to the Swiss franc and caused by the SNB's unexpected decision to cancel the minimum price of the Swiss franc against the euro has led to the unprecedented volatility in the market and to a significant lack of liquidity. Resulting in significant losses for the majority of customers exceeded cash in their accounts. In the event that a customer can afford to lose, thus borne by the company. This led to the Alpari UK announcement today at 01/16/2015 bankruptcy. All individual clients funds remain separated according to the rules of financial control body in the United Kingdom.
Customer funds (content) By the rules of financial control body in the United Kingdom (FCA) and separated from the company's funds

We would like to know individual clients for the company Alpari UK that their deposits insured and the company has secured and separated from the company's money and that they will be able to submit requests to withdraw their deposits in the near future according to the rules of Financial Supervision Authority in the United Kingdom.

So we would like to make it clear at the moment that the Financial Supervisory Authority (FCA) the proceedings inside the offices of Alpari UK to examine the financial records of the company and the customer will submit the results in the near future, and bring you any updates.
  •  Guest
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This is the latest from the Alpari site:

Important announcement

The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. Retail client funds continue to be segregated in accordance with FCA rules. For the avoidance of any doubt and notwithstanding previous announcements by the company, Alpari (UK) Limited has not entered a formal insolvency process. The board of directors are urgently considering all options including a sale and are liaising closely with the FCA. We hope to make a further announcement shortly.
Well, how to interpret the new statement on the homepage?

No formal insolvency?

Are the looking for a white knight?
just for the records below the current statement on Alpari's website

----
Important announcement

The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. Retail client funds continue to be segregated in accordance with FCA rules. For the avoidance of any doubt and notwithstanding previous announcements by the company, Alpari (UK) Limited has not entered a formal insolvency process. The board of directors are urgently considering all options including a sale and are liaising closely with the FCA. We hope to make a further announcement shortly.
and very contrasting to above, a statement from Oanda I received as account holder on same day, not that I want to rub salt into wounds....

---
Dear xxx,

Early on January 15, 2015, the Swiss National Bank (SNB) sent global financial markets into turmoil with a surprise move to eliminate its three-year-old cap on the franc (CHF).

In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA remained true to its 14-year legacy of transparency, integrity and fairness to our clients. OANDA did not re-quote or amend any CHF cross client trades. We even took the further step of forgiving all negative client balances that were caused when clients could not close out their positions fast enough (where permitted by regulations).

As a very well capitalized broker, we are proud to report that it is business as usual at OANDA: client trading, deposits and withdrawals are processing normally.

OANDA is proud of its strong reputation for fairness and integrity. We thank our customers for their continued loyalty and welcome new traders who want to experience outstanding service and execution.

Specific questions about individual fxTrade accounts will be addressed by our Client Experience team via http://www.oanda.com/corp/contact/.

Thank you for trading with OANDA,

signature

Ed
President and CEO, OANDA Corporation
Quoting Spekulant
Well, how to interpret the new statement on the homepage?

No formal insolvency?

Are the looking for a white knight?
No formal insolvency means that Alpari is sold to a competitor either (because a client base of several hundred thousand clients is valuable). Or Alpari has an investor who gives the money to accommodate the daily business again can. That sounds very good! I was absolutely satisfied with Alpari in the past!
Quoting 2046
and very contrasting to above, a statement from Oanda I received as account holder on same day, not that I want to rub salt into wounds....

---
Dear xxx,

Early on January 15, 2015, the Swiss National Bank (SNB) sent global financial markets into turmoil with a surprise move to eliminate its three-year-old cap on the franc (CHF).

In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA...
Quoting 2046
and very contrasting to above, a statement from Oanda I received as account holder on same day, not that I want to rub salt into wounds....

---
Dear xxx,

Early on January 15, 2015, the Swiss National Bank (SNB) sent global financial markets into turmoil with a surprise move to eliminate its three-year-old cap on the franc (CHF).

In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA...
I have not seen Oanda providing ECN accounts, you are comparing apples to oranges.
I'm impressed with this statement. They seem to be trust worthy. You sure do find out who they are when the crap hits the fan.


Quoting 2046
and very contrasting to above, a statement from Oanda I received as account holder on same day, not that I want to rub salt into wounds....

---
Dear xxx,

Early on January 15, 2015, the Swiss National Bank (SNB) sent global financial markets into turmoil with a surprise move to eliminate its three-year-old cap on the franc (CHF).

In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA...
Quoting CyprusTrader
I have about 11k in Alpari UK, not worried really, just a pain that we will probably have to wait. Good things are on our side, Alpari UK got hammered a few years ago with complience issues, proof of address records etc, quite a large fine was imposed that hurt them.
So, I am pretty sure that they were squeeky clean after that incident.
The FCA covers upto £50k as mentioned earlier, however, the FCA also insists that clients funds are segregated so that the FCA does not have to resort to the UK Government paying out for customer losses! That fact...
man, would you consider trading with them again if they survive from this ?
Quoting Terraforce1
Fucking terrific, got the email this morning, thanks Alpari you assholes!!!
Don't blame Alpari UK, you retard! read your User Agreement, and be a real trader who accepts losses.
Quoting whtangpi
man, would you consider trading with them again if they survive from this ?
Yes, not Alpari UK's fault. Welcome to market forces and capitalism! If people don't like it, then go and be a librarian, or a priest :-)
As the Royal Librarian at Glastonbury Abbey, I quite enjoy Forex trading in my spare time! God has greatly blessed me so far, which has allowed me to fund the purchase of flat-screens and laptops for all our monks.
Quoting Spekulant
Well, how to interpret the new statement on the homepage?

No formal insolvency?

Are the looking for a white knight?
Under the FCA rules. a broker must have an amount of capital reserves over its working capital. This is not so for other countries. Alpari could be fine and not in negative capital and could continue if they were in another country. But because of the higher standards in UK they may not be allowed to continue to operate even if 'solvent'. This could be why the statement: "No formal insolvency" They may be still a viable broker but need to get their capital reserves back up to the amount that FCA demands. I think It would have been the FCA that made Alpari hit the breaks.
Quoting Taffy
Don't blame Alpari UK, you retard! read your User Agreement, and be a real trader who accepts losses.
As long as you are not a rep of the buchet shop, you must restrain yourself from making a nonsensical remark until its probe is finalized by FSA and NCA, lol
Quoting EventHorizon
Under the FCA rules. a broker must have an amount of capital reserves over its working capital. This is not so for other countries. Alpari could be fine and not in negative capital and could continue if they were in another country. But because of the higher standards in UK they may not be allowed to continue to operate even if 'solvent'. This could be why the statement: "No formal insolvency" They may be still a viable broker but need to get their capital reserves back up to the amount that FCA demands. I think It would have been the FCA that made...
Thanks for back ground information.
When I studied the FCA rules, for choosing a broker I was focused on customer money and insolcency and not business operations.

Hope they get the funding somewhere, I was pretty satisfied with Alpari in the past.....
http://forexmagnates.com/exclusive-alpari-uks-sale-imminent-suffering-45-mln-negative-client-balances/

Well, I think this are good news!
Quoting Spekulant
http://forexmagnates.com/exclusive-a...ient-balances/

Well, I think this are good news!
If the company taking over Alpari are gain capital, then I'm out.

Gain Capital own Forex.com, and have an awful reputation for messing with their customers.
Gain Capital is a US based company may the regulators will prefer an UK based company.
Wow, turn up for the books, FXCM was in deep s***, managed to get a bailout from another company, now getting aggresive and looking to aquire Alpari UK with it's client base with 100m funds. See http://forexmagnates.com/forex-industry-battles-eurchf-meltdown-real-time-updates/
Interesting list of Brokers, some did make a profit after the carnage.
So if this is correct, it may take a few days or so to sort out the sale of the company and get approval from the FCA, then I expect traders to be back online.
Not sure if I will stay with the company even so, definately stick with UK brokers for the extra protection of segregated funds.
I expect the complience standards to get even stricker now and bye bye to crazy leverage, not that I ever used more than 20:1 in practise anyway.
Survive to fight another day
  •  Guest
  • | IP XXX.XXX.28.74
Alpari uk will never Open again,some other company will take it or Alpari will refund.
  •  Guest
  • | IP XXX.XXX.114.79
got this on Alpari Uk website now


Special Administrators appointed to Alpari (UK) Ltd

Upon the application of the directors of Alpari (UK) Ltd, on Monday 19 January 2015, the High Court appointed Richard Heis, Samantha Bewick and Mark Firmin of KPMG LLP as joint special administrators of Alpari (UK) Ltd, under the Special Administration Regime (SAR). Alpari (UK) Ltd is a company incorporated in the UK.
Alpari (UK) Ltd applied for insolvency on Monday 19 January 2015 following the decision on Thursday 15 January 2015 by the Swiss National Bank to remove the informal peg to the euro at around 1.20 Swiss francs. The announcement by the SNB prompted volatility across the foreign exchange markets which saw the company and many of its clients make large losses. After a weekend spent in urgent discussions with various parties with a view to selling the company, these efforts were ultimately unsuccessful.
We have had a number of enquiries from interested parties in relation to the company's business. We will be speaking with these parties and others over the next few days, and hope to secure a deal to preserve the business and jobs as far as possible.

For all queries, please contact:
[email protected]

The administrators will endeavour to respond to your query as soon as possible.
More information and a FAQ here:
https://www.insolvency-kpmg.co.uk/case+KPMG+AF119D1101.html
Does any one have a clue on how to submit the claim?

Should I just email them or is there forms to be filled?
What claim?

If you are just a client with trading account you will be informed what, when and how you have to submit!

Source is the last mail and until now only mail I received from the administrators..
So they've made it clear that they are in no hurry to return our funds - Para 4 above says that they intend to write to those of us who are owed money setting out their proposals "within 8 weeks" !!!

If you have not already phoned the "hotline" (joke) on 0333 202 1397 then do so first thing every day - EVERY DAY. Raise hell. Demand to speak to the manager. Write formal letters of complaint to KPMG, the FCA, everyone, anyone, just make a total pain in the ass of yourself until they get their act together and get on with their jobs.

Remember, THEY OWE US MONEY, not the other way around, and none of this is our fault, so 8 weeks just to come up with a proposal is TOTALLY UNACCEPTABLE !

If you don't have the details (names, phone numbers, addresses etc) to contact then say so here on this thread and I will do my best to post them as and when I can (or I'm sure some other kind soul will assist :-)

I for one am not going to just sit here, out of the market with no trading funds while they sit on our money whilst taking home a huge pay cheque at the end of each month. If you feel the same then get on it.

Good luck, and don't forget to let us all know how you get on and what you found out.
So much for the segregated money huh? To me they are all crooks. They will never have your best interest in mind
  •  Guest
  • | IP XX.XXX.178.153
I was contacted for my 7 cents they owe me.
I kindly refused.
  •  Guest
  • | IP XX.XXX.178.153
Meaning: They are going through all these accounts now and contact you one by one. So be patient because it takes time. It's a lot of work I assume.
Quoting Guest
I was contacted for my 7 cents they owe me.
I kindly refused.
Can you tell me what number they used to call you?

I had a missed call today, don't know who it was.

I get contacted by premium callback spammers so don't want to call back unless they are the administrators
Quoting Guest
I was contacted for my 7 cents they owe me.
I kindly refused.
how they contacted you? emial or phon?
http://leaprate.com/2015/01/alpari-uk-confidential-information-memorandum-details-leaprate-exclusive/
So only getting back 51c in the dollar.
So much for the "safety" of segregated accounts. Luckily UK has the FSCS so we will get back all our money through them. traders in other regions should be aware that you can still loose half or more of your deposit even if in segregated accounts. I.E. Australia, Malta, New Zealand, USA has no insurance like the UK's FSCS.
Paying 500 bucks for each hour to KPMG and 3 genius, they want this pain last for ever and ever...it's a shame and everybody is just watching in London under the nose of authorities. Have you seen the spectacular system they developed? No? it's ridiculous.
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  • Posted: Jan 16, 2015 5:00am
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