What do you think the position will be if you experienced extreme slippage that did not take you negative but wiped out your account. My stop was in place to limit risk at £50 on Eur/Chf but am down £4,500 do you think I can kiss that money goodbye?
Ignored
According to their website all accounts are monitored by "margin watcher". This means that in theory you can never lose more than you deposit. You should never go into negative equity. If they've fucked up and allowed this to happen, for what ever reason I would like to think that clients owe fxcm nothing. Surely it's fxcm that owes their liquidity providers? Any way, I don't fully understand. Perhaps someone could put me right. :-)
Goldfinch I understand what you are saying in relation to stops however effectively I only needed about £600 margin to open my position, however I had more on deposit. If I had only had the £600 on account not £4,500 then I would have gone into a negative balance and probably got away with not paying this back but as it is they have taken my money. Surely this is treating clients differently, either negative amounts need to be paid back or if not then how can they ask clients who did not go negative to cover their full loss when others get away with it.
{quote} According to their website all accounts are monitored by "margin watcher". This means that in theory you can never lose more than you deposit. You should never go into negative equity. If they've fucked up and allowed this to happen, for what ever reason I would like to think that clients owe fxcm nothing. Surely it's fxcm that owes their liquidity providers? Any way, I don't fully understand. Perhaps someone could put me right. :-)
Ignored
Correct it is FXCM who owes their LP/PB's, however if they do go out of business those negative accounts are prime assets to be recovered.
Joined Mar 2010
|
Status: Moved to futures
|477 Posts
I, for one, was on the winning side of yesterday's disaster. Contemplating whether or not to withdraw my funds. All sorts of buzz going around. I'm having no problems with my terminal or the MyFXCM logon. It's strange, aside from high spreads on CHF pairs, everything seems "business as usual". I say that loosely, lol.
Goldfinch I understand what you are saying in relation to stops however effectively I only needed about £600 margin to open my position, however I had more on deposit. If I had only had the £600 on account not £4,500 then I would have gone into a negative balance and probably got away with not paying this back but as it is they have taken my money. Surely this is treating clients differently, either negative amounts need to be paid back or if not then how can they ask clients who did not go negative to cover their full loss when others get away...
Ignored
Don't get me wrong, they will try to recover funds from those that went negative, in every T&C's it clearly says that you can lose more than you deposit. Of course it will be harder to recover some of those funds, a client in Asia will be a lot harder then one in Europe or North America.
IF the company keeps going, expect a phonecall from FXCM, if it gets sold, expect a phone call from the new owner and if the amount is large enough a letter from a solicitor in either case.
IF the company goes belly up, expect the debt to be sold and get phonecalls and letters from debt collection agencies, those debts from EU/US will command a premium while those from Asia will be sold for pennies on the dollar, however companies specialise in recovering these kinds of debts.
Alpari already has a statement out:
Quote
Disliked
Alpari's latest:
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 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.
