Apparently all withdrawals from Refco FX are frozen until further notice, although clients can still trade (very useful as you can't windraw your profits anyway). How is this possible? Does CFTC allow that?
DislikedApparently all withdrawals from Refco FX are frozen until further notice, although clients can still trade (very useful as you can't windraw your profits anyway). How is this possible? Does CFTC allow that?Ignored
DislikedThats a little uneasy if they cant say "yes your funds are insured and safe"
They should be insured correct?
DislikedRefco going bankrupt? This is where I just sent my funds to open my account. I guess I should have shopped around a bit? Hows Oanda, I know their EUR/USD pip spread is 2 instead of 3.
DislikedI had an account with RefcoFx and closed it today, Oct. 18th. There was no problem at all, I withdrew all my money (they even transferred it directly to another broker as I instructed). So... things are far from clear.Ignored
DislikedI received an advertising email today from another FX Market Maker/Broker telling me that they have a special offer if I am opening my account with them and transfering my money from a RefcoFX/FXCM/ACM account.
Can you just believe it? The title of the email was: "RefcoFX, FXCM, and ACM clients - Don't sink with the Refco ship".
DislikedHeres some more info:
And ya insured, I thought if it was your money your acount that something would be backing it up? I know if the bank you have your money in gets robbed your funds are insured, is this a tottaly different kind of deal, should one constantly be pulling their money out of a FX account incase that their company goes bankrupt? I just dont understand how they could get away with taking everyones money .
RefcoFX]6: The Refco Group has instructed us (RefcoFX Associates LLC) to delay payments out of all Refco accounts until they sort out banking and internal matters. The only exceptions to this are RefcoFX Canada accounts.
RefcoFX]6: At this time, the information we have is that there are numerous potential purchasers who are interested in buying the futures division and other entities of the Refco Group. We anticipate that the proceeds will help expedite the repayment of customer funds to RefcoFX Associates LLC and that any freeze of their funds/accounts is temporary.
You:: will the platform change if another company takes over
RefcoFX]6: but probably notIgnored
DislikedHave you heard about the purchase of RefcoFX client base by FXCM and also the purchase of Refco's share in FXCM by itself? Drew Niv was on DailyFX and there's a dialog on there -- sounds encouraging.Ignored
DislikedThere is maybe something I am missing here but... let's say FXCM takes over Refco's customer funds, which means that you can withdraw immidiately. If you can withdraw immidiately that means that the cash is actually THERE, but then why can't you withdraw now, why is it frozen in the first place ?? This doesnt make sense.
Or, perhaps, the cash is NOT there meaning that FXCM will buy, i.e. cover with their money an X amount of the hole thus "buying back" Refco's share in FXCM. The risk for FXCM is not as high as it seems since most customers will probably not withdraw but trade themselves to zero anyway.
I am purely speculating here but either way, I think it's pretty scary.Ignored