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Effects of Cyprus bailout deal on Cyprus-based Brokers

  • #41
  • Mar 19, 2013 2:41am Mar 19, 2013 2:41am
Ok, Ladies and gentlemen. I RECEIVED my withdrawal (2500 EUROS) from FxPro at 8:12 (European time) this morning (for as withdrawal requested late yesterday). And i want to point out, that it is NOT related to my previous post here as I received my funds while I was writing, before I posted ! It just has to be noted that I still have 3000 EUROS on my account to cover my positions. I could still be "taxed" because it is supposed to be related to amount in account on saturday, but I am rather confident about it.

In fact what I really was inquiring with support yesterday is if it would affect me less by closing my positions that are in loss. I actually have around 1500 EUROS floating losses, so I didn't want to pay on my account balance, but on my account equity, and wanted to close the trades and reopen them to have my balance = equity. It is at this moment that they assured me that FxPro customers wouldn't be affected and that there was ne need to do that.

To rsg10z: You asked for a wire transfer. If they only use their Barclays bank account to do outgoing wires, you could have to wait after the bank holiday (thursday), unless they can directly use a foreign bank account to wire you the funds ...
  • #42
  • Mar 19, 2013 2:56am Mar 19, 2013 2:56am
Quoting FiatFap
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.

I doesn't amuse me AT ALL to hear/read all this comments from people that don't understand anything but think they "know" ... If you try to really understand how all this works, you will understand that fractional reserve banking is nothing more than using LEVERAGE. Banks can do a lot more loans that the money they really have, it's true. And it works well and make them earn a lot of money when things go well. But banks still take HUGE losses when loans are NOT paid back (Leverage !). For banks LEVERAGE = Leverage on interests and leverage on unpaid loans (=bad risk/reward ratio)

The "funds" to garantee all deposits. What is that, the "funds" ??? Money printed on paper ? Sure, there is NOT such amount of paper money. But there ARE other debts existing to garantee ALL deposits on the other side (people with the engagement to pay back). Problem IS that a lot of this promises are STATES debts, and I agree that they probably never will be able to pay back. So our actual system became a HUGE ponzi scheme, that's true. It will collapse one day, but can continue for a while.

Fractional reserve banking isn't a problem. Fiat currency isn't "really" a problem. All money created has a debt on the other side. The "only" problem is the people who endebted themselves too much and will not pay back: mostly ("developped") COUNTRIES.

Anyway, I don't want to enter a debate on all this, let's stick to the topic here: CYPRUS. (If you want to talk about banks, fiat currencies and this stuff, please start a new thread on the forum)
  • #43
  • Mar 19, 2013 3:16am Mar 19, 2013 3:16am
To clarify, the amusement was this sentence: "have done a good job to protect cutomers by storing their funds in a reputable banking juridiction", there's no such thing. MfGlobal should be enough to realise they can make $1.6 Billion disappear in days and nobody even faces criminal charges.

The whole Cyprus thing boils my blood; i'm in the UK and we have toss-pot Osborne with his bullshit 'budget' tomorrow. More borrowing of funny money and they call it 'spending'. More deficit reduction, yet the debt increases...it's all just Orwellian news-speak as the instigation of serfdom goes full-tilt.

I'm afraid that Cyprus is just a test to gauge public response so they can prepare accordingly for when the shit really does hit the fan.
Politics is the womb in which war develops.
  • #44
  • Mar 19, 2013 3:42am Mar 19, 2013 3:42am
Quoting FiatFap
To clarify, the amusement was this sentence: "have done a good job to protect cutomers by storing their funds in a reputable banking juridiction", there's no such thing. MfGlobal should be enough to realise they can make $1.6 Billion disappear in days and nobody even faces criminal charges.

The whole Cyprus thing boils my blood; i'm in the UK and we have toss-pot Osborne with his bullshit 'budget' tomorrow. More borrowing of funny money and they call it 'spending'. More deficit reduction, yet the debt increases...it's all just Orwellian news-speak...
I undertand you and mostly agree with you. Talking about SWITZERLAND (FxPro talking about Credit Suisse), I still believe my sentence is correct. This coutry has a long history of reputable banking practices: What I mean by this is that it is "less likely" to not see your deposit again than by banking in some other juridictions (for example: Cyprus. What a bad joke).

The logic wants that if you give something to another person to store it, you CANNOT (at all !) be sure that this person will give it back to you when you ask for it. I don't know exactly what happened with MfGlobal, but absolutely *ANY* broker or bank can make the funds "disapear", honestly (unexpected loss, or problem) or dishonestly (just taking the money and run). The only real "protection" we have against this IS reputation: When an institution (broker, bank, country, whatever) would loose more by making funds disapear than by continue to do business and not loose his reputation. That's what all the "confidence" in finance is. And I still say Switzerland is a reputable juridiction and if FxPro stored funds of their customers there, they did a good job. The news are just telling us right now they DID the right thing (IF it is what they did). In fact, they already did the right thing if they just put the funds in ANY other country than Cyprus (about prosecution of bankers who commited a fault, ok with you)

About politics, I agree. Don't forget that, like actors, politicians are (well) paid to do what they do. If you think about it and are really honest with yourself, you will see that all this doesn't affect you personnally as much as it is widely believed. Even the Cyprus thing right now, it won't really affect me that much to have 10% more or less. So you can do the exact same thing as you can do with actors: Don't watch the movie !

About Cyprus = test, yes, maybe. I agree too. But in this case, we should be more grateful than anything else, because it warns us ! So, like always, smart people will do what is needed, and all the other won't, but they will then cry, protest, and so on ... Just try to be part of smart people ...
  • #45
  • Edited 4:25am Mar 19, 2013 4:14am | Edited 4:25am
Quoting Mevo
Ok, Ladies and gentlemen. I RECEIVED my withdrawal (2500 EUROS) from FxPro at 8:12 (European time) this morning (for as withdrawal requested late yesterday). And i want to point out, that it is NOT related to my previous post here as I received my funds while I was writing, before I posted ! It just has to be noted that I still have 3000 EUROS on my account to cover my positions. I could still be "taxed" because it is supposed to be related to amount in account on saturday, but I am rather confident about it.

In fact what I really was inquiring...
you are correct that i asked for a wire transfer. What payment method did you use?

I did ask them in chat session yesterday and they clearly mentioned all withdrawals will be processed normally and they insist the money is not in Cyprus which mean wire transfer should be done normally if what they said was correct right?

I also asked Barclays regarding this situation and today they have answered. Look at what their answer is...i will post this in my next reply
  • #46
  • Mar 19, 2013 4:15am Mar 19, 2013 4:15am
this is the email from Barclays to me (I censored my name here. again sorry for privacy)

Quote
Dear Mr ****

Thank you for contacting Barclays regarding the situation in Cyprus.

All deposits subject to Cypriot banking rules, whether held at a local Cypriot bank or a Cypriot branch of a foreign bank are at this stage included in the proposed legislation.

We have been instructed by the Governor of the Central Bank of Cyprus to temporarily freeze all payments and transfers in Cyprus. To that end, we have temporarily frozen all bank accounts in Cyprus. This will be the case until we receive further details.

The situation is still unfolding, but we are working very closely with the necessary authorities to provide you with further clarity.

I trust I have answered all of your queries and hope you have a good day.

Kind Regards

Annette Barrett
  • #47
  • Mar 19, 2013 4:29am Mar 19, 2013 4:29am
so now it will be an interesting moment whether FXPro can pay me on time or not. They mentioned money is not in Cyprus and at the same time Barclays stated all bank transfers are temporarily freezed. If FXPro doesn't pay until Friday, it means they lied about the money situation outside Cyprus. If they do, it means they were honest about it.

Either way, I seriously want to see my money back at least next week
  • #48
  • Mar 19, 2013 4:55am Mar 19, 2013 4:55am
rsg10z: I saw you requested a wire transfer on the screenshot you uploaded. As mentionned in a previous post, I used MONEYBOOKERS as I deposited using moneybookers.

That a Barclays account in Cyprus will be subject to "tax" was logical. But as I told you, there could be a situation where funds are held at Credit Suisse outside Cyprus, but have to be sent to customers from their Cyprus account (maybe for "regulatory" reasons or any reason, maybe even fees on wire transfers). So maybe they have to wire funds that customer want to withdraw from outside Cyprus to Cyprus first, and then to customer. It has to be noted that it's only suppositions, I don't really know. But this could delay your withdrawal a little bit.

Anyway, just relax and wait for what happens. There is quite nothing you can do at this point. Maybe they will send you your funds directly from outside Cyprus, or you will have to wait until next week they can use their account in Cyprus again. It's just a matter of a few days. I think you will have your money. The fact that I received 2500 EUROS is a good point. And if it can reassure you, I still have more than 3000 EUROS on my FxPro account, and I'm not too worried. They seemed honest to me when they told me we won't be affected.

I was planning to close my account with FxPro soon, but I tell you what: If FxPro has been smarter than us on this point and secured our money, I will continue with them just to support them because of this.
  • #49
  • Mar 19, 2013 4:59am Mar 19, 2013 4:59am
yes thank you Mevo
  • #50
  • Mar 19, 2013 9:45am Mar 19, 2013 9:45am
Dear Members,

We would like to inform you that at FxPro, all of the withdrawals are processed immediately, and you would receive the funds, depending on the chosen method, within the standard timeframe mentioned on the website.

If you have requested a withdrawal using Wire Transfer, you can contact our Support and request a SWIFT confirmation of the transfer.

Kind regards,

FxPro Group
Trading CFDs involves significant risk of loss.
  • #51
  • Mar 19, 2013 9:46am Mar 19, 2013 9:46am
Dear Members,

With regards to the current situation, please be assured that the clients' funds of FxPro's customers are not affected whatsoever.

As part of our devotion to the security and excellence in customer service, the clients' funds are kept in segregated accounts with the Barclays UK and Credit Suisse Monaco, therefore, exempt from the Levy proposed by the government of Cyprus.

For a long time, we have recognised the need to offer clients the highest levels of reassurance and protection for their funds. We remain confident that the measures we have taken put FxPro at the forefront of the global forex industry in placing the security of client funds at the core of our business.

Shall you require any further explanation, or have any questions, we will be happy to assist you.

Kind regards,

FxPro Group
Trading CFDs involves significant risk of loss.
  • #52
  • Mar 19, 2013 10:42am Mar 19, 2013 10:42am
Quoting FxPro Global
Dear Members,

With regards to the current situation, please be assured that the clients' funds of FxPro's customers are not affected whatsoever.

As part of our devotion to the security and excellence in customer service, the clients' funds are kept in segregated accounts with the Barclays UK and Credit Suisse Monaco, therefore, exempt from the Levy proposed by the government of Cyprus.

For a long time, we have recognised the need to offer clients the highest levels of reassurance and protection for their funds. We remain confident that...
Thanks for the post.

In spite of the funds being at foreign banks, can you clarify if you hold these funds at their Cypriot branches or directly at their UK head office?

All banks who are physically located in Cyprus, local and foreign (Barclays, HSBC, Credit Suisse….) will be subject to this tax.

Letter from Barclays:
“Dear Mr ****

Thank you for contacting Barclays regarding the situation in Cyprus.

All deposits subject to Cypriot banking rules, whether held at a local Cypriot bank or a Cypriot branch of a foreign bank are at this stage included in the proposed legislation.

We have been instructed by the Governor of the Central Bank of Cyprus to temporarily freeze all payments and transfers in Cyprus. To that end, we have temporarily frozen all bank accounts in Cyprus. This will be the case until we receive further details.

The situation is still unfolding, but we are working very closely with the necessary authorities to provide you with further clarity.

I trust I have answered all of your queries and hope you have a good day.

Kind Regards

Annette Barrett”
  • #53
  • Mar 19, 2013 10:55am Mar 19, 2013 10:55am
Dear High.Five,

The funds are held with the Barclays Bank IN the UK, and Credit Suisse in Monaco.

Shall you need any further clarifications, please do not hesitate to contact us.

Kind regards,

FxPro Group

Quoting High.Five
Thanks for the post.

In spite of the funds being at foreign banks, can you clarify if you hold these funds at their Cypriot branches or directly at their UK head office?

All banks who are physically located in Cyprus, local and foreign (Barclays, HSBC, Credit Suisse….) will be subject to this tax.

Letter from Barclays:
“Dear Mr ****

Thank you for contacting Barclays regarding the situation in Cyprus.

All deposits subject to Cypriot banking rules, whether held at a local Cypriot bank or a Cypriot branch of a foreign bank are at...
Trading CFDs involves significant risk of loss.
  • #54
  • Mar 19, 2013 11:39am Mar 19, 2013 11:39am
I don't think they will be effected.http://en.tradimo.com/news/Cyprus-fund-are-safe_39258/
  • #55
  • Mar 19, 2013 1:18pm Mar 19, 2013 1:18pm
Quoting Writer
I don't think they will be effected.http://en.tradimo.com/news/Cyprus-fund-are-safe_39258/
Thanks Writer.

However, to be honest as sturdy as the firms may appear to be, the core fact remains that FxPro, Etoro and Markets.com are all headquartered in Cyprus. Consequently, they are all regulated by Cypriot laws. Who knows what other restrictions the Cypriot government will impose?
I unlike you, wouldn't want to risk losing any my capital, especially through non trading related activities.
  • #56
  • Mar 20, 2013 1:23am Mar 20, 2013 1:23am
guys just want to update you that I have got my money from FXPro today. THe withdrawal process was so fast! It means they were honest about the money situation NOT in Cyprus. Thanks everyone!
  • #57
  • Mar 20, 2013 2:35am Mar 20, 2013 2:35am
Nice rsg10z ! A big thanks to FxPro for having planned to secure the funds out of Cyprus a while ago ...
  • #58
  • Mar 20, 2013 2:47am Mar 20, 2013 2:47am
Quoting rsg10z
guys just want to update you that I have got my money from FXPro today. THe withdrawal process was so fast! It means they were honest about the money situation NOT in Cyprus. Thanks everyone!
Nice one! Thanks for the update rsg10z
  • #59
  • Mar 20, 2013 4:11am Mar 20, 2013 4:11am
Dear High.Five,

Please note that we are are also located in the UK, at 13/14 Basinghall Street, City of London, EC2V 5BQ, and we fully regulated by the FSA, license number 509956.

Kind regards,

FxPro Group

Quoting High.Five
Thanks Writer.

However, to be honest as sturdy as the firms may appear to be, the core fact remains that FxPro, Etoro and Markets.com are all headquartered in Cyprus. Consequently, they are all regulated by Cypriot laws. Who knows what other restrictions the Cypriot government will impose?
I unlike you, wouldn't want to risk losing any my capital, especially through non trading related activities.
Trading CFDs involves significant risk of loss.
  • #60
  • Mar 20, 2013 2:04pm Mar 20, 2013 2:04pm
I love fxpro Thanks for secure our funds.
Trading is something special.
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