Guys,
I strongly recommend all traders to pull your funds out of FXCM even after the 300million rescue.
FXCM’s business is 100% concentrated in the forex business unlike other bigger diversified groups such as CitiFx and E*Trade. This means with the number of FX client’s flight out expected in the comings weeks and months out of concerns over whether and how long FXCM will be able to remain operational even in spite of the loan, which is not intended for operational costs, but rather to replenish negative equity balances and to restore it to SEC regulatory compliance. FXCM’S business will shrink considerably in the foreseeable future. Therefore for them to pay back 300 million in two years’ time becomes impossible. And guess who will be the next rescuer?
FXCM is just buying time, not solving their problem.
I strongly recommend all traders to pull your funds out of FXCM even after the 300million rescue.
FXCM’s business is 100% concentrated in the forex business unlike other bigger diversified groups such as CitiFx and E*Trade. This means with the number of FX client’s flight out expected in the comings weeks and months out of concerns over whether and how long FXCM will be able to remain operational even in spite of the loan, which is not intended for operational costs, but rather to replenish negative equity balances and to restore it to SEC regulatory compliance. FXCM’S business will shrink considerably in the foreseeable future. Therefore for them to pay back 300 million in two years’ time becomes impossible. And guess who will be the next rescuer?
FXCM is just buying time, not solving their problem.