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  • #1,781
  • Jan 16, 2015 7:53am Jan 16, 2015 7:53am
Quoting Cobra
This is completely confusing. I did not trade the chf at all yesterday. I did lose some money on the aud/jpy due to the volatility. My acc have a positive balance and I can still login and trade. I am not trading as I do not know where I stand with Alpari. Alpari's demo's and live acc servers are working just fine. Does this mean they are still in business or what? The website says that retail clients accounts are segregated and in line with the FCA. Retail client funds continue to be segregated in accordance with FCA rules. ??????
Alpari UK is bankrupt...

But the money of the clients are separated so you don't loose any money if your balance is positive of course
Buy at the Low, Sell at the High You make money by waiting not by trading.
  • #1,782
  • Jan 16, 2015 7:54am Jan 16, 2015 7:54am
Quoting Purec
{quote} How can i do that ? I wasn't in any trade either so my fund would be safe too . How can i get my money out ?
Not a clue at the moment but I suppose a first step is to call the FCA : http://www.fca.org.uk/news

Just so you're aware I don't think we'll be seeing our money for a while but we will get it. So long as it's £50,000 or less.
I operate with clear definite rules, if I break them I lose BIG!
  • #1,783
  • Jan 16, 2015 8:03am Jan 16, 2015 8:03am
Anyone please solve my confusion. How come a broker would go into insolvency? I am a newbie here, as far as I know, a broker is just a intermediaries who proceed those transactions right? The profit and loss should be deal by liquidity providers (banks). I saw someone write about leverage, does leverage have anything to do with this? Someone please give me an insight. I appreciate it. Thank you.
Not searching for unusual subject matter but making the commonplace unusual
  • #1,784
  • Jan 16, 2015 8:04am Jan 16, 2015 8:04am
Quoting Baltimore
{quote} I heard FXCM is a good one.
I hope you are joking. They are the next to go down. Their stock took a 90% hit over the last 24 hours.
  • #1,785
  • Jan 16, 2015 8:06am Jan 16, 2015 8:06am
Quoting vintex
Anyone please solve my confusion. How come a broker would go into insolvency? I am a newbie here, as far as I know, a broker is just a intermediaries who proceed those transactions right? The profit and loss should be deal by liquidity providers (banks). I saw someone write about leverage, does leverage have anything to do with this? Someone please give me an insight. I appreciate it. Thank you.
A broker goes into insolvency when a large amount of their customers had their long e/chf stopped out at such ridiculous low levels that they ended up with a negative balance in their accounts, once you total up the thousands of customers that lost a bucket load of money, the total net assets of the broker becomes less than their liabilities and as they can not get that money back from their customers quick enough, they end up going bust.
A contrarian; I always disagree.
  • #1,786
  • Jan 16, 2015 8:07am Jan 16, 2015 8:07am
people as long as the money are indeed into the separate bank account where clients funds should be... than the process is going to be quick.

i am not saying it will be a matter of day but weeks and few months upon accepting the credentials.

in fact it may be happen quicker in order to make the "life" of the liquidators easier (to get a clearer picture of all the assets and liabilities of the company)

its not a "typical" liquidation of a company.

the toughest is going to be for the employees and then the creditors who are "after us".

liquidators are probably (logically) going to hurry to finish with the clients in positive balance...get a good view of whats going...and they would want to finish ASAP this task in order to be able to sell the MAIN and most pricey asset of the company which is ...."us" (the clientele list) ....each minute (sort of speak) passing the list loses value
  • #1,787
  • Jan 16, 2015 8:08am Jan 16, 2015 8:08am
Quoting goldfinch
{quote} A broker goes into insolvency when a large amount of their customers had their long e/chf stopped out at such ridiculous low levels that they ended up with a negative balance in their accounts, once you total up the thousands of customers that lost a bucket load of money, the total net assets of the broker becomes less than their liabilities and as they can not get that money back from their customers quick enough, they end up going bust.
Well explained
  • #1,788
  • Jan 16, 2015 8:11am Jan 16, 2015 8:11am
I think in these situations they should force the directors to answer the phones, that way i can have a good old fashioned, cathartic yell at them
I operate with clear definite rules, if I break them I lose BIG!
  • #1,789
  • Jan 16, 2015 8:13am Jan 16, 2015 8:13am
Quoting Icannaesee
I think in these situations they should force the directors to answer the phones, that way i can have a good old fashioned, cathartic yell at them
Or go down to their offices and give them a piece of mind and a good kicking.
  • #1,790
  • Jan 16, 2015 8:15am Jan 16, 2015 8:15am
Quoting Baltimore
{quote} I heard FXCM is a good one.
How to opt out annoying user signatures ??
  • #1,791
  • Jan 16, 2015 8:16am Jan 16, 2015 8:16am
I wonder if we're going to see the 1:500 leverage options start to disappear.
I operate with clear definite rules, if I break them I lose BIG!
  • #1,792
  • Jan 16, 2015 8:30am Jan 16, 2015 8:30am
Quoting goldfinch
{quote} A broker goes into insolvency when a large amount of their customers had their long e/chf stopped out at such ridiculous low levels that they ended up with a negative balance in their accounts, once you total up the thousands of customers that lost a bucket load of money, the total net assets of the broker becomes less than their liabilities and as they can not get that money back from their customers quick enough, they end up going bust.
Normally we won't get negative balance in account right? I mean after we got margin calls, the account will close the trade itself? So in this case is the e/chf going down just in seconds that the account unable to catch up? Same goes to SL? The marker price breaks through SL level sharply until it fails to do what it should and the account end up being negative?
Not searching for unusual subject matter but making the commonplace unusual
  • #1,793
  • Jan 16, 2015 8:31am Jan 16, 2015 8:31am
Quoting KGP
people as long as the money are indeed into the separate bank account where clients funds should be... than the process is going to be quick. i am not saying it will be a matter of day but weeks and few months upon accepting the credentials. in fact it may be happen quicker in order to make the "life" of the liquidators easier (to get a clearer picture of all the assets and liabilities of the company) its not a "typical" liquidation of a company. the toughest is going to be for the employees and then the creditors who are "after us". liquidators...
Lets hope you are correct.
I have a large sum with them and just last week Lee Hawkins from Alpari assured me that my funds will be kept in a segregated account in accordance with the FCA's regulations.

I wonder how long will it take them to contact us and give us some idea of how they will go about with the refunding process.
Never Ever Give Up!
  • #1,794
  • Jan 16, 2015 8:36am Jan 16, 2015 8:36am
Is it safe to open a new account with a different broker or should I wait? I want to get back to trading as soon as possible.
I was very happy with Alpari UK, do you have any suggestions of other good brokers?
  • #1,795
  • Jan 16, 2015 8:37am Jan 16, 2015 8:37am
Quoting Cobra
{quote} Lets hope you are correct. I have a large sum with them and just last week Lee Hawkins from Alpari assured me that my funds will be kept in a segregated account in accordance with the FCA's regulations. I wonder how long will it take them to contact us and give us some idea of how they will go about with the refunding process.
i hope myself as well...

the issue lies with the company/people who are going to take over the liquidation process, how they will act, how swift and how well in the best interest of the company in question going under this process (alpari) and everyone concerned/involved directly or indirectly with the company (clients/providers/workers/etc)....

so if they act well and work along with the authorities in question we are going to be "done" quick....


NOTE: "clientwise" i am talking about those with a positive balance, i dont know what process will be "followed" for the ones in red
  • #1,796
  • Jan 16, 2015 8:39am Jan 16, 2015 8:39am
Quoting vintex
{quote} Normally we won't get negative balance in account right? I mean after we got margin calls, the account will close the trade itself? So in this case is the e/chf going down just in seconds that the account unable to catch up? Same goes to SL? The marker price breaks through SL level sharply until it fails to do what it should and the account end up being negative?
If you were long E/chf at say 1.20 and you had a stop at 1.18, now if the next available price was 0.74 then your stop would hit at 0.74 and not at 1.18, that is how so many ended up losing their account and how brokers go bust. If the broker is an ECN then that 0.74 gets hit with on of their PB's so they owe to money to that PB, as a matter of fact the PB will hold trading capital for that broker so they get paid right away.

Now the broker has a problem, their PB took the money and the customer that put the trade on has a negative balance in his account of say 20,000 dollars, there is no way that the broker is going to get paid and they already lost the funds to their PB so they are bust.

That's why regulators require brokers to hold a certain amount of capital on hand, however the drop was so violent and there were so many short the Franc that the brokers ran out of cash in about 3 minutes.
A contrarian; I always disagree.
  • #1,797
  • Jan 16, 2015 8:44am Jan 16, 2015 8:44am
Not wanting to be pessimistic (and I have funds with Alpari as well) but what does it matter if the clients accounts are in a different bank account?


Surely if and only if the administrator sees this account as an asset of Alpari then it will be used to pay of the creditors (liquidity providers). Do you think most big businesses only have 1 bank acct?? I have 5 and I'm a person for gods sake!!! so if alpari have 1 or 50 bank accts I suspect it will be irrelevant and only the view of the administrator will be the deciding factor...


Let it be said I have no experience in this field but am long enough in the tooth to be sceptical. In other ventures I have also had financial guarantees even backed by governments that have come to naught and cost me in excess of 50K

BBCMicro
  • #1,798
  • Jan 16, 2015 8:47am Jan 16, 2015 8:47am
Quoting goldfinch
{quote} If you were long E/chf at say 1.20 and you had a stop at 1.18, now if the next available price was 0.74 then your stop would hit at 0.74 and not at 1.18, that is how so many ended up losing their account and how brokers go bust. If the broker is an ECN then that 0.74 gets hit with on of their PB's so they owe to money to that PB, as a matter of fact the PB will hold trading capital for that broker so they get paid right away. Now the broker has a problem, their PB took the money and the customer that put the trade on has a negative balance...
thx for your clear explanations

so if the broker "ran out of cash" - are the segregated funds affected ? ie are the segregated funds protected at all times based on capital ratios etc ?
  • #1,799
  • Jan 16, 2015 8:48am Jan 16, 2015 8:48am
I have a question about price beeing unavilible, Is that a reaction to no banks want to fill that order?
  • #1,800
  • Jan 16, 2015 8:48am Jan 16, 2015 8:48am
Quoting goldfinch
{quote} If you were long E/chf at say 1.20 and you had a stop at 1.18, now if the next available price was 0.74 then your stop would hit at 0.74 and not at 1.18, that is how so many ended up losing their account and how brokers go bust. If the broker is an ECN then that 0.74 gets hit with on of their PB's so they owe to money to that PB, as a matter of fact the PB will hold trading capital for that broker so they get paid right away. Now the broker has a problem, their PB took the money and the customer that put the trade on has a negative balance...
Well see the thing is, if you sort of KNEW for certain that 1.2 was going to hold, could you not then have put a BUY order right above it, SL right below and sort of bet your whole account? Now obviously that didnt work, but isnt it a impossible situation if it WOULD work? Isnt it sort of a safe buy and you could make near infinite wins on it?
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