Effects of Cyprus bailout deal on Cyprus-based Brokers | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

EA based on indicator which changes based on numbers of bars 0 replies

Trading Price Based Charts Instead of Time Based Charts 1 reply

Brokers based in Australia 63 replies

Are there any Australian based FOREX brokers using MT4? 2 replies

Price-based Vs. Pip-based 5 replies

Effects of Cyprus bailout deal on Cyprus-based Brokers

  • #21
  • Mar 17, 2013 4:34pm Mar 17, 2013 4:34pm
Quoting jeuro
..
ok, I think the tax is final... 6+- to 9,9% depending in amount of deposit is lost for investor in Cyprus banks.

But here is the question... does this % apply to deposits in forex brokers??? ... I read the tax is 6 something % for
deposits of less then 100 000 . It is like making a very bad trade

J.
Zerohedge/WSJ: "according to the WSJ, the deposit "tax" would be under 5% for deposits under €100K,
under 10% for deposits between €100 and €500K, and over 13% for deposits greater than half a million"

deposit in forex brokers? Well you still wire to a bank, right? Supposedly the FXbroker keeps your funds in
a segregated account. Where is this account? At a bank or what else could it be? Ask Corzine...

Very bad trade? Yes, but if you lose 6% of your balance in one trade that is YOUR mismanagement, you
can only blame yourself. In this case it is not YOU who caused the loss, it is the european banana republic
dictatorship confiscating your money.

S
  • #22
  • Mar 17, 2013 5:05pm Mar 17, 2013 5:05pm
Quoting Shaishen
Zerohedge/WSJ: " In this case it is not YOU who caused the loss, it is the european banana republic
dictatorship confiscating your money.
It isn't only Cyprus who is to blame here. Head's of IMF, EC and ECB have imposed those bailout conditions to Cyprus government.
It's take it or leave it deal and not accepting it would mean defaulting of their banking system in upcoming months. I have a bad feeling
that Cyprus is just a ginny pig to see if and how bank run will unfold. They're small economy, and any bank run can be easily countered
by ECB's capital infusions. On the other hand if this scenario uncontrollably unfolds in Italy or Spain European monetary union would be in big trouble.
  • #23
  • Mar 17, 2013 5:26pm Mar 17, 2013 5:26pm
Quoting Tom81
It isn't only Cyprus ....
On the other hand if this scenario uncontrollably unfolds in Italy or Spain European monetary union would be in big trouble.
EU definitely IS in big trouble and the "leadership" seems desperate. Cyprus should do an Icelander and
start over. The bail out thing will go on same as Greece. In a few months they will need another infusion
and then what? Increase the "tax" on bank deposits?
I think a lot of people with a savings balance in the pigs country banks are feeling very uncomfortable.

S
  • #24
  • Mar 17, 2013 6:14pm Mar 17, 2013 6:14pm
Anybody has idea how thing around cyprus will effect the XEMarkets client. It has connection with Barclays Bank Plc. of the UK.
  • #25
  • Mar 18, 2013 4:39am Mar 18, 2013 4:39am
Quoting Dad
http://www.businessinsider.com/cypru...ut-deal-2013-3 - effects on Forex and financial firms operating in Cyprus.
I will tell you.

If you have 25k or less with Cyprus broker, you will have either 6.5% or 3% (if latest suggestion is correct) deducted from your capital.

If you have 100k or more, you will be dedcut either 9.9% or 12.5% (if latest suggestion is correct) deducted from your capital.

All those that think EU regulation is strong and protected? Who is next country to be affected????

Scary...
  • #26
  • Mar 18, 2013 10:11am Mar 18, 2013 10:11am
Whether or not your broker is based in Cyprus is not the issue - the issue is which jurisdiction your broker deposits your money. FXPro are based in Cyprus but they have confirmed they do not hold your money in a Cypriot bank account.

If you have a Cyprus-based broker you need to find out where your money is held.
  • #27
  • Mar 18, 2013 10:24am Mar 18, 2013 10:24am
Quoting TheMaxx
Whether or not your broker is based in Cyprus is not the issue - the issue is which jurisdiction your broker deposits your money. FXPro are based in Cyprus but they have confirmed they do not hold your money in a Cypriot bank account.

If you have a Cyprus-based broker you need to find out where your money is held.
When I made a deposit it was to a Cypriot bank
  • #28
  • Mar 18, 2013 10:42am Mar 18, 2013 10:42am
The real threat is if people in Spain and Italy decided that the same thing is gonna happen to their bank accounts, then you got a real problem. Some part of me is thinking that the higher ups are doing this on purpose to start some kind of crisis and then introduce some crazy new system in place. Before you can do radical reforms you need a real big problem/crisis.
  • #29
  • Mar 18, 2013 11:09am Mar 18, 2013 11:09am
Quoting TheMaxx
Whether or not your broker is based in Cyprus is not the issue - the issue is which jurisdiction your broker deposits your money. FXPro are based in Cyprus but they have confirmed they do not hold your money in a Cypriot bank account.

If you have a Cyprus-based broker you need to find out where your money is held.
FXPro bank account (when I made deposit) was Barclays. BUT this Barclays was their Cyprus branch and not UK one or something.

What do you think?
  • #30
  • Mar 18, 2013 11:21am Mar 18, 2013 11:21am
And here we go, procrastination until the end of week to drive sellers into EURUSD, so they can slam it up this weekend...

CYPRUS CENTRAL BANK SAYS BANKS TO BE CLOSED UNTIL THURSDAY: AP
Politics is the womb in which war develops.
  • #31
  • Mar 18, 2013 12:46pm Mar 18, 2013 12:46pm
I just chatted with FxPro and they assured me that client funds are not held in Cyprus but abroad ... It might be true, but not 100% sure. By they really assured me it was the case and that no FxPro customer will be affected by this "tax".

Maybe FxPro has been smart and received funds on a Cyprus bank account but were not leaving funds in Cyprus ?
  • #32
  • Mar 18, 2013 2:33pm Mar 18, 2013 2:33pm
Quoting Mevo
I just chatted with FxPro and they assured me that client funds are not held in Cyprus but abroad ... It might be true, but not 100% sure. By they really assured me it was the case and that no FxPro customer will be affected by this "tax".

Maybe FxPro has been smart and received funds on a Cyprus bank account but were not leaving funds in Cyprus ?
Easy to find out, ask for a withdrawal and see what happens. If true what they claim then the Cyprus bank
"holiday" till Thursday should not be an issue.

Here is some further speculation about the situation:

http://forexmagnates.com/uncertainty...n-the-balance/
  • #33
  • Mar 18, 2013 4:54pm Mar 18, 2013 4:54pm
Quoting Shaishen
Easy to find out, ask for a withdrawal and see what happens. If true what they claim then the Cyprus bank
"holiday" till Thursday should not be an issue.
I asked for a withdrawal of a portion of my account this afternoon.
I will update here with results. No money received yet, but it was just a few hours ago ...
  • #34
  • Mar 18, 2013 5:38pm Mar 18, 2013 5:38pm
Anyone with Alpari UK and They are saying their system crashed and I am not being able to access my account.
  • #35
  • Mar 18, 2013 6:32pm Mar 18, 2013 6:32pm
Anybody has an idea about alpari UK. Since Sunday opene I am not getting access to my open positions apparently they cant locate them either and investigating it as they did an upgrade on mt4. It has past 24 hours now srill the same issue and same answer from customer support.
  • #36
  • Edited 8:30pm Mar 18, 2013 8:11pm | Edited 8:30pm
Quoting Mevo
I just chatted with FxPro and they assured me that client funds are not held in Cyprus but abroad ... It might be true, but not 100% sure. By they really assured me it was the case and that no FxPro customer will be affected by this "tax".

Maybe FxPro has been smart and received funds on a Cyprus bank account but were not leaving funds in Cyprus ?

After doing my research actually i dont believe that. Well yeah they use barclays but a barclays in cyprus is still a cyprus bank. It is same thing if you use hsbc in africa then the money is still in africa. Well I dont know much about banking system but i think that's the way it is.... I have made a withdrawal request too. Lets see...
  • #37
  • Mar 19, 2013 1:13am Mar 19, 2013 1:13am
hey guys this is proof of my withdrawal request

http://oi49.tinypic.com/1q1mjl.jpg

as you can see there i have withdrawed all my money with FXPro here and the status is approved. Sorry i censored my full name just for privacy. Let's see whether i will receive the money or not. Will update it here
  • #38
  • Mar 19, 2013 1:59am Mar 19, 2013 1:59am
Quoting fowz304
Anybody has an idea about alpari UK. Since Sunday opene I am not getting access to my open positions apparently they cant locate them either and investigating it as they did an upgrade on mt4. It has past 24 hours now srill the same issue and same answer from customer support.
I don't know about Alpari, but some brokers had big troubles yesterday with MT4. I have an account with LMAX, and I was unable to connect to MT4 a large part of the day on monday. When I was able to connect, positions or pending orders were missing, sometime re-appearing, and disappearing again one hour later ... A total mess. LMAX support told me that MetaQuotes had problems with an upgrade they were doing during the week end. For LMAX, everything went back to normal on the monday evening, and all my positions/pending orders went OK on my account (no pending order was supposed to trigger, not sure if it would have been the case or not). I guess things will be resolved for Alpari too, and you will have to see with support for compensation then if SL/TP/Pending orders have not been triggered.

Try to see with support, or create a new thread on the forum about it, as here we are discussing of the Cyprus events.
  • #39
  • Mar 19, 2013 2:20am Mar 19, 2013 2:20am
Quoting rsg10z
After doing my research actually i dont believe that. Well yeah they use barclays but a barclays in cyprus is still a cyprus bank. It is same thing if you use hsbc in africa then the money is still in africa. Well I dont know much about banking system but i think that's the way it is.... I have made a withdrawal request too. Lets see...
You are right about Barclays, but they are advertising that they keep customer's funds with Barclays and Credit Suisse. It is possible that they use Barclays bank account in Cyprus with a little money to receive and send funds, but that they keep most of the funds with Credit Suisse. According to a quick research, Credit Suisse doesn't seem to have any branch in Cyprus, so this bank account is probably in Switzerland. In this case, they would have done a good job to protect cutomers by storing their funds in a reputable banking juridiction ...

There is no way to know for sure, we will know in a few days. But their support told me by chat that funds were abroad (not in Cyprus), that no FxPro customer would be affected, and I mostly believe them. And I'm pretty sure they don't lie about having a Credit Suisse account (they advertise it on their homepage), and this account is for quite sure NOT in Cyprus. Anyway, right now, we don't have the choice, but to wait and see ...

For now, I trust them, and will be more than happy if they did what they tell. I hope they will then move from Cyprus (would be the right thing to do after what happened), and I will be happy to continue to be a customer of FxPro. If they lied about this, they're done, and they know it, reason why I don't see them lying. They spent a lot of money to build the FxPro brand, are registered by FSA and ASIC, and can move to Australia, NZ or in the UK quite easily. They don't want to destroy all this. I feel the probability it's the truth that their customers won't be affected is pretty high.

I only asked for a withdrawal of half of my account, because I have oponed positions. I'm using MoneyBookers, and right now, my transaction history shows 'Not processed". I will upgrade here too.

What is weird is the upgrades of Cyprus events: Seems that they want to NOT touch to "small" accounts of less than 100K anymore, but would "tax" (steal !) more bigger accounts. In our case, IF (and only if) this affects us, we are now risking to pay MORE (instead of nothing) because Broker's accounts (with all customer's funds) could be "taxed" more ;( Could we claim after compensation from Investor Compensation Fund, as we had less than 100K and were supposed to be "protected" until that amount ? (problem is that they probably won't have the money to "compensate") Or would broker's account not be "taxed" ? Or brokers would be asked to "tax" accounts from their customers like a bank is asked to (and only take from customers with +100K) ? Again, we have to wait and see. Suprise !
  • #40
  • Mar 19, 2013 2:26am Mar 19, 2013 2:26am
Quote
In this case, they would have done a good job to protect cutomers by storing their funds in a reputable banking juridiction

It does amuse me reading stuff like this.

Banks create funny fiat ones and zeroes using fractional reserve banking.

If/when push comes to shove, no bank has the funds to guarantee all deposits...it's all an illusion of trust.
Politics is the womb in which war develops.
0 traders viewing now