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  • #6,341
  • Jan 21, 2015 11:59pm Jan 21, 2015 11:59pm
Quoting shrike
{quote} The madness will never stop
  • #6,342
  • Jan 22, 2015 12:12am Jan 22, 2015 12:12am
http://www.scmp.com/business/compani...-fxcm-fortunes

'Many businesses might sue customers who refuse to pay up. Not FXCM. The prospectus goes on to describe what, in hindsight, might seem like a weakness in the brokerage's business plans: "Our policy is generally not to seek to pursue claims for negative equity against our customers."
In other words, if customers run up big losses, FXCM will be on the hook.'
  • #6,343
  • Jan 22, 2015 1:42am Jan 22, 2015 1:42am
what happen with FXCM customer service chat?
i tried to ask them about my withdrawal, but i end up waiting for 20 minutes but with no reply from them.
i had make a withdraw request on last friday but up until now my money still on my trading account.
  • #6,344
  • Jan 22, 2015 2:58am Jan 22, 2015 2:58am
Good bye FXCM

I'm moving away from it. The MArgin requirement is just sick.

Anyone knows of a good broker with low Marging requirement for everything ? or at least for Gold ?
COT: The precious data ignored
  • #6,345
  • Jan 22, 2015 3:00am Jan 22, 2015 3:00am
Quoting azlann1981
what happen with FXCM customer service chat? i tried to ask them about my withdrawal, but i end up waiting for 20 minutes but with no reply from them. i had make a withdraw request on last friday but up until now my money still on my trading account.

Put in in a second withdraw request. I did 3 just to get my point across. Money is safely in my account since Tuesday
Chasing The Dream...
  • #6,346
  • Jan 22, 2015 3:05am Jan 22, 2015 3:05am
Quoting Sekhbet
{quote} Put in in a second withdraw request. I did 3 just to get my point across. Money is safely in my account since Tuesday

am i missing something whats happened to this thread is so active?
  • #6,347
  • Jan 22, 2015 3:07am Jan 22, 2015 3:07am
Quoting nAVIN2007
{quote} am i missing something whats happened to this thread is so active?
FXCM increased margin requirement 4x times more than before. It screws up most trades now.

If they don't put it back down, i'm changing broker for sure
COT: The precious data ignored
  • #6,348
  • Jan 22, 2015 3:08am Jan 22, 2015 3:08am
Quoting kuroro001
Good bye FXCM I'm moving away from it. The MArgin requirement is just sick. Anyone knows of a good broker with low Marging requirement for everything ? or at least for Gold ?
I'm in your same situation, if can be of help, what i've come across for now are the following:

Activtrades UK (way best spread i've ever seen so far, and 400x leverage on every instrument)
XTB uk (better spreads than fxcm, 200x leverage)
FXpro uk (not really great spreads, 400x leverage)

My advice to fxcm:
Abandon this new margins idea NOW, most of non-us clients will run away from you in a matter of days/weeks.
You may lower the leverage on chf pairs (as we know that snb love to interfere with the market), and the other illiquid pairs, but stop right there.
  • #6,349
  • Jan 22, 2015 3:08am Jan 22, 2015 3:08am
So FXCM took on a 280Mn loan at 17% interest, their shareholders have been shafted, Jefferies will sell the business in 3 years as per loan agreement and FXCM can't stop that, the Newco that was formed holding the loan and the underlying company, FXCM, is owned and controlled by Jefferies.

And now they increase their Margins, the majority of their customers are European/Asian, as with most brokers, so now they are put on the same tack as their US customers, while other brokers still offer the margins enjoyed by others.

I am not a fan of 200:1 margin, however from a business point of view and as a shareholder, FXCM have put themselves in a disadvantage over other Brokers that operate in Europe.

I sense that as most retail traders lose money, the fact that FXCM is an ECN is neither here nor there, those traders would probably rather trade with a Market Maker that will have no risk of going negative on their account.

Is this a PR disaster for FXCM? I think so, and most retailers, especially those in Europe and Asia will switch.


This would be the ideal time for a larger broker operating in Europe to focus on their advantages over FXCM and walk away with their customer base. Now it makes perfect sense for someone to buy Alpari and focus on Europe/Asia.


I am a late holder of shares in FXCM, having bought a few tranches on the blowup after the SNB, just an opportunist really, couldn't resist. Plenty were desperate to offload holdings, I got in cheap. If I were a long term shareholder in this company however I would be fuming right now.

Citibank had a great report out late last year detailing the make up of the average customer of retail Brokerage firm, showing that US customers are dying out, but Europea and Asian ones are growing, I'll see if I can find a link, it is a good read and shows the current state of the market well and clearly underlines my postition that a broker that switches to 50:1 margin will sign its own death warrant, unless the industry as a whole is forced to do the same by regulators.

FXCM have put themselves in a distinct disadvantage here.
A contrarian; I always disagree.
  • #6,350
  • Jan 22, 2015 3:12am Jan 22, 2015 3:12am
Quoting kuroro001
{quote} FXCM increased margin requirement 4x times more than before. It screws up most trades now. If they don't put it back down, i'm changing broker for sure
im sorry bro!! ..u have to leave that is madness..thatsjust another way to shaft the trader..these companies should invest in a better stop loss trigger system instead of increasing the margin..
  • #6,351
  • Jan 22, 2015 3:15am Jan 22, 2015 3:15am
Quoting goldfinch
So FXCM took on a 280Mn loan at 17% interest, their shareholders have been shafted, Jefferies will sell the business in 3 years as per loan agreement and FXCM can't stop that, the Newco that was formed holding the loan and the underlying company, FXCM, is owned and controlled by Jefferies. And now they increase their Margins, the majority of their customers are European/Asian, as with most brokers, so now they are put on the same tack as their US customers, while other brokers still offer the margins enjoyed by others. I am not a fan of 200:1 margin,...
u are a very smart man ..i can almost feel it over the internet
  • #6,352
  • Jan 22, 2015 3:15am Jan 22, 2015 3:15am
Quoting nAVIN2007
{quote} im sorry bro!! ..u have to leave that is madness..thatsjust another way to shaft the trader..these companies should invest in a better stop loss trigger system instead of increasing the margin..

That is the problem with an ECN, they can't their orders have long left their control. A Market Maker could however.

So it is time to weigh up the advantages from a different angle, as most retailers lose money, a MM may well be a better choice, for the 10% that do make money, an ECN would be better, however there won't be many left as the losing traders are the majority and they will vote with their feet.

The landscape will be formed by losing traders, they require a different style of broker than a winning trader would.


In short the guys with silly overleveraged trades last week will now ruin it for those that did well. Not a good time to be a retailer, your choice will be seriously curtailed.
A contrarian; I always disagree.
  • #6,353
  • Jan 22, 2015 3:17am Jan 22, 2015 3:17am
Does anyone have any problem with withdrawals?
  • #6,354
  • Jan 22, 2015 3:25am Jan 22, 2015 3:25am
Quoting spaceduck
{quote} I'm in your same situation, if can be of help, what i've come across for now are the following: Activtrades UK (way best spread i've ever seen so far, and 400x leverage on every instrument) XTB uk (better spreads than fxcm, 200x leverage) FXpro uk (not really great spreads, 400x leverage) My advice to fxcm: Abandon this new margins idea NOW, most of non-us clients will run away from you in a matter of days/weeks. You may lower the leverage on chf pairs (as we know that snb love to interfere with the market), and the other illiquid pairs,...
Thanks for the links mate.

But are these broker secure ? I don't want them to end up like Alpari. But i'll check, cheers
COT: The precious data ignored
  • #6,355
  • Jan 22, 2015 3:30am Jan 22, 2015 3:30am
Quoting goldfinch
Citibank had a great report out late last year detailing the make up of the average customer of retail Brokerage firm, showing that US customers are dying out, but Europea and Asian ones are growing, I'll see if I can find a link, it is a good read and shows the current state of the market well and clearly underlines my postition that a broker that switches to 50:1 margin will sign its own death warrant, unless the industry as a whole is forced to do the same by regulators. FXCM have put themselves in a distinct disadvantage here.
I think you mean this file. Someone posted earlier on other thread, sorry but I could not remember which thread and who so thats why I am posting as file . Credit goes to him/her for posting.
Attached File(s)
File Type: pdf Retail_FX.pdf   1.2 MB | 638 downloads
  • #6,356
  • Edited 3:58am Jan 22, 2015 3:34am | Edited 3:58am
Quoting Rockerzeus
{quote} I think you mean this file. Someone posted earlier on other thread, sorry but I could not remember which thread and who so thats why I am posting as file . Credit goes to him/her for posting. {image}

That is the one, on page 3 it says there are 4 million retail traders worldwide, only 150,000 live in the US. Retail FX in the US has been killed by regulation.


That clearly shows that the retail trade with 50:1 and no hedging plus FIFO has killed the retail market there. Now cue FXCM margin changes, they are not going to last very long if there are other options available to retailers. Let's be honest here, the first requirement of most small traders with 500 dollars in his account is leverage.


FXCM shot themselves in the foot, I fully expect them to be sold very soon as Jefferies will look at the same things I am looking at, they will come to the same conclusions. As per the loan agreement and the Newco setup, they can sell it anytime they like, they will still get their money back as they are first in line, they own and control Newco. They gave them the 280Mn last week they needed, there is nothing stopping them selling next week and cashing out.

As FXCM has gotten scared, pretty obvious noting their margin changes, they won't survive. Their smaller clients will vote with their feet.

On the other hand, maybe they don't want small traders anymore, a trader with a 500k balance, doesn't care about 200:1. Is FXCM shaping up to become a broker tailored to larger customers? Could they survive that way? This could well prove to be a gamble that won't pay of. They won't lose their US customers and they can probably hang on to their larger EU/Asian customers, but would that be enough to survive as a business?

If they announce next week products and services tailored to larger customers we will know what their new strategy is going to be. Killing the margin will, in my opinion, only lead to small non-US customers leaving and they have to come up with something to survive as a business.


Lets get some opinions of customers here, now that they are 50:1 in Europe and Asia, would you as a non-US customer stay with them?
A contrarian; I always disagree.
  • #6,357
  • Jan 22, 2015 4:03am Jan 22, 2015 4:03am
Quoting goldfinch
{quote} Lets get some opinions of customers here, now that they are 50:1 in Europe and Asia, would you as a non-US customer stay with them?
I would stay with them with 50:1. In saying that I am not happy to stay with a broker that looks unstable and possibly sold within the next few months.

The choices for regulated UK ecn brokers are just as slim as they are for US traders now, with FXCM looking shaky and Alpari gone. There is a big void for someone to set up a decent UK regulated broker with good trading conditions and resources.
  • #6,358
  • Jan 22, 2015 4:10am Jan 22, 2015 4:10am
Quoting Kayolix
Does anyone have any problem with withdrawals?
yes i do...
i submitted withdraw request last friday and up until now still pending..
  • #6,359
  • Jan 22, 2015 4:12am Jan 22, 2015 4:12am
Quoting mitch77
{quote} I would stay with them with 50:1. In saying that I am not happy to stay with a broker that looks unstable and possibly sold within the next few months. The choices for regulated UK ecn brokers are just as slim as they are for US traders now, with FXCM looking shaky and Alpari gone. There is a big void for someone to set up a decent UK regulated broker with good trading conditions and resources.

Jefferies can't sell it now, it only has a market cap of 105Mn, that won't cover the interest of the loan, let alone the capital, they need a share price of 10-12 dollars before they can pull the trigger.

Their policies won't do anything to lift that share price, can't wait for their next quarterly report to see how many customers they managed to hang on to.

You are right though, choice among brokers is becoming very limited indeed for smaller traders. This would make a sale of Alpari to an EU entity very appealing, they could dominate the European and Asian markets if they are UK regulated and still offer 200:1 margin and are a true ECN.

I sense you are staying purely because there is no alternative?

Quoting azlann1981
{quote} yes i do... i submitted withdraw request last friday and up until now still pending..

Any CHF trades that need looking at before they process that withdrawal request?
A contrarian; I always disagree.
  • #6,360
  • Edited 6:17am Jan 22, 2015 4:26am | Edited 6:17am
Quoting kuroro001
Good bye FXCM I'm moving away from it. The MArgin requirement is just sick. Anyone knows of a good broker with low Marging requirement for everything ? or at least for Gold ?
Attached Image (click to enlarge)
Click to Enlarge Name: FXCM - Losses 10.PNG Size: 20 KB

Exceptional margine requirement: Sensable protection.

Normal available margines: 1:300, 1:200 & 1:100.

Quote
But are these broker secure ? I don't want them to end up like Alpari. But i'll check, cheers
Secure ? In this instance, yes.
Attached Image
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