Brokers chasing you for negative account balance | Page 16 | Forex Factory

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Brokers chasing you for negative account balance

  • #301
  • Jan 22, 2015 12:21am Jan 22, 2015 12:21am
https://ci6.googleusercontent.com/pr..._logo_only.png

n light of last Thursday’s extraordinary market events, we are forgiving all negative balances incurred by GFT Markets retail clients on 15 January, 2015 where permitted by regulation. Affected clients will be notified by email and we expect all credits to be completed and posted to clients’ trading accounts by 5pm ET on Thursday, 22 January, 2015.
Your continued trust and loyalty drive every decision we make. We will continue to challenge ourselves to provide you with the best tools and resources to help you succeed in the markets, along with the level of service and support you expect from a global market leader.
Thank you for trading with us.
GFT Markets

Good broker !!!
Trade Your P/L, Trade the Market. Manage your Risk.
  • #302
  • Jan 22, 2015 2:13am Jan 22, 2015 2:13am
If your broker is chasing you to pay off a negative balance in your account you would be a fool to pay it.
  • #303
  • Jan 22, 2015 2:27am Jan 22, 2015 2:27am
Quoting Mingary
If your broker is chasing you to pay off a negative balance in your account you would be a fool to pay it.
What makes you say that Mingary....

As far as I see, there is no protection for clients of FCA regulated firms other than on their positive account balances which need to be segregated.
  • #304
  • Jan 22, 2015 2:44am Jan 22, 2015 2:44am
Anyone managed to track down EBS charts and data for 15th Jan 09:30GMT to 09:40GMT?
  • #305
  • Jan 22, 2015 2:54am Jan 22, 2015 2:54am
As the leading reference price for USD/CHF, the recognised market low on EBS Market is 0.7360 for the trading day.
If you require additional information on price action please contact the EBS Customer Support team.
  • #306
  • Jan 22, 2015 3:22am Jan 22, 2015 3:22am
Quoting igeurchfloss
{quote} What makes you say that Mingary.... As far as I see, there is no protection for clients of FCA regulated firms other than on their positive account balances which need to be segregated.

I can't imagine the situation and feeling of all the bright eyes and bushy tails would be forex millionaires attracted by the "come on for a swim; the water is fine" slogan as perpetrated by the forex industry and forex marketeers who put on trade at 1:400 leverage and now owe the broker an enormous amount on top of what was lost in the account... and that was just their first trade...
Forex brokerage is insanely and obcenely profitable, no need to add insult to injury.
  • #307
  • Jan 22, 2015 8:23am Jan 22, 2015 8:23am
http://leaprate.com/2015/01/do-fxcm-...refuse-to-pay/

Quote
Clients with negative equity balances, if approached by FXCM, could simply state that they relied on FXCM’s policy and that they therefore reasonably expected that their losses could never exceed the amount of money they had on deposit.

As if it was as simple as that...
  • #308
  • Jan 22, 2015 11:29am Jan 22, 2015 11:29am
forexia, you are delusional... LP's stopped quoting? My quotes did not stop a second - spreads went up like 10-15 big figures, but hey that is the Market. And if you think someone else is to blame for your misfortune, blame the SNB as they were the one and only that created that mess and I am absolutely sure that prices fell down that further because of them - they needed a level to buy that will cover their 3 year losses of allowing you to take free money from their peg. And besides, no LP can give you a price that does not exist as below 1.0 there was no single buyer...vacuum..

And labeling people that try to argue your point "trolls" shows only your desperation to believe in your own mumblings.. 'cause no one else does..
  • #309
  • Jan 22, 2015 12:28pm Jan 22, 2015 12:28pm
Quoting Yellowdirt
Looks like this guy KNEW that this was going to happen about 7 years ago !!!!!! The first post is DEc. 2, 2008 There are 16 pages of comment on this. It is a strange link but just read what was said. http://www.godlikeproductions.com/fo...sage677266/pg1
K -wave or not, the writing was there on the wall for everyone to see. SNB has a bad reputation of fixing the currency and then breaking it. It was 1.5 back then, then 1.2 and trust me sooner or later they'll come back with a peg yet again.

There is a reason why people say those who do not understand history are doomed to folly.
  • #310
  • Jan 22, 2015 3:33pm Jan 22, 2015 3:33pm
In face of recent events... What you guys think about Oanda? Or Dukascopy? Do you really save that much using some "third category" (whatever you want it to mean) broker? Isn't that better to stick to proven brokers paying a bit more, but in exchange being shelled from such drastic scenarios?
  • #311
  • Jan 22, 2015 4:21pm Jan 22, 2015 4:21pm
Quoting paka
In face of recent events...
In face of recent events...

I have closed out all of my major trading accounts, 3 brokers and am only keeping a fist full of tiny play accounts.

Color me cynical, but I believe my best money to be made right now, is not losing my account.

When the smoke clears, it will be a little more obvious as to who is left standing...from there, the pickings should be a little easier.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #312
  • Jan 22, 2015 4:30pm Jan 22, 2015 4:30pm
In case FXCM comes calling, their no debit balance policy is plastered on many areas on their website. Statements that clients are limited to the loss of their deposit are made in their risk disclosures, forums by their administrators and user guides regardless if they are in the US, UK or anywhere else. I have made a collection of documents should they come calling that I can share with my attorney. I hope they come to they see the magnitude of their statements, learn from them and move on without reneging on their promise and harassing clients for negative balances which will be unlikely to hold up in any court. Furthermore, the sheer number of brokers ( many) that have already zeroed accounts whether or not they had a policy in place should make for a stronger case for FXCM to zero their clients accounts as they promised. Here is yet another document that lists their policy: http://support.fxcm.com/wp-content/d...User_Guide.pdf

I would advise FXCM clients to save these files ( and take screen shots) in case they disappear from their website.
  • #313
  • Jan 22, 2015 8:06pm Jan 22, 2015 8:06pm
Hi, Magix,
What do you think when the smoke clears ?

Quoting Magix
{quote} In face of recent events... I have closed out all of my major trading accounts, 3 brokers and am only keeping a fist full of tiny play accounts. Color me cynical, but I believe my best money to be made right now, is not losing my account. When the smoke clears, it will be a little more obvious as to who is left standing...from there, the pickings should be a little easier.
  • #314
  • Jan 22, 2015 8:11pm Jan 22, 2015 8:11pm
It appears that FXCM has started sending emails to clients with negative balances. They are claiming it was "force majeure" event. Guessing the true winners will be a bunch of lawyers!

"
Dear Client,
IMPORTANT NEWS
REGARDING YOUR FXCM TRADING ACCOUNTS
Please be advised that in order to offset negative balances you
currently hold in your FXCM account(s), FXCM has transferred funds from your
account(s) with a positive balance. The terms of your master trading agreement
entered into with FXCM, available online, provide
FXCM with these rights.
If after this transfer you still maintain a negative balance on
your account, you are requested to remit funds immediately. FXCM accepts
deposits by, debit card, bank wire and ACH electronic check. All options can be
accessed via our www.myfxcm.com
portal.
As you may already be aware, last week, the Swiss National Bank
(“SNB”) announced that they will no longer support a self-imposed floor on the
EUR/CHF exchange rate. Learn More
The SNB announcement, extreme price movements and the resulting
lack of liquidity were exceptional and unprecedented events causing many market
participants to incur trading losses. These events were unforeseen and beyond
the control of FXCM, constituting force majeure events.
Record of this transaction is available by generating a Combined
Account Statement and referencing the description “Offset Transfer from Account
to Account for Negative Balance”.
FXCM
thanks you for you cooperation and understanding.
"
  • #315
  • Jan 22, 2015 8:28pm Jan 22, 2015 8:28pm
Did you notice that there is a typo in their announcement?

"FXCM thanks you for you cooperation and understanding". Haha! No one is reviewing these? I posted this in another board"
Ok; its getting interesting now! No surprise FXCM used the only clause that they think might apply.

In reality, every corporation has a " force majeure event" clause but that implies to an event relating to an unforeseen Act of God or the like; not poor risk management! Why would a "force majeure event" only apply to FXCM and not to any of the other brokers that incidentally, zeroed accounts even though they may not have had a no debit policy such as FXCM? What judge would agree with that?

Good luck to all attorneys that will have a field day with this one. It seems that FXCM just made their matters a lot worse. Lets see how the shareholders respond in the market tomorrow."

By the way, I would not give these guys a penny based on principle! They clearly saw how one-sided their clients were leveraged and could have taken steps to mitigate the reaction to their bottom line. Shame of them to use the equivalent of an "Act of God" as an excuse for mismanagement.
  • #316
  • Jan 22, 2015 9:22pm Jan 22, 2015 9:22pm
Quoting william17
It appears that FXCM has started sending emails to clients with negative balances. They are claiming it was "force majeure" event. Guessing the true winners will be a bunch of lawyers! " Dear Client, IMPORTANT NEWS REGARDING YOUR FXCM TRADING ACCOUNTS Please be advised that in order to offset negative balances you currently hold in your FXCM account(s), FXCM has transferred funds from your account(s) with a positive balance. The terms of your master trading agreement entered into with FXCM, available online, provide FXCM with these rights. If after...
I took all my money out of FXCM.

I would like to trade with them again in the future, but lets wait until the dust settles.

But even if I don't have any money with them I may be liable in the future.

Depending on the "real" amount of their losses they can still go broke and some astute lawyers can bend the lines and CLAW BACK on all customers.

Even on a guy like me that withdrew it all.
So, you think you have rights? LOL
  • #317
  • Jan 22, 2015 10:31pm Jan 22, 2015 10:31pm
well, apparently there are only very few brokers that are requesting negative balances, SAXO BANK and fxcm
both are in deep trouble, saxo having losses in excess of 200 mio usd, and going after clients that lost all what they have. Remember saxo was already having problem in 2012 when they started selling their assets. Not looking good for them.
  • #318
  • Jan 22, 2015 10:55pm Jan 22, 2015 10:55pm
Quoting euler123
Did you notice that there is a typo in their announcement? "FXCM thanks you for you cooperation and understanding". Haha! No one is reviewing these? I posted this in another board" Ok; its getting interesting now! No surprise FXCM used the only clause that they think might apply. In reality, every corporation has a " force majeure event" clause but that implies to an event relating to an unforeseen Act of God or the like; not poor risk management! Why would a "force majeure event" only apply to FXCM and not to any of the other brokers that incidentally,...
You are kidding me? FXCM is qualifying the SNB event as a "force majeur" event??!!!! You were absolutely correct. "Force majeur" event includes events that's more like Act of God. So they are equating SNB as God???!!

This is the Wikipedia`s definition of Force Majeur:

Force majeure (/ˌfɔrs/ fors, /ˌfɔərs mɑːˈʒɜr/ mah-zhur, or /məˈʒɜr/ mə-zhur; French pronunciation: ​[fɔʁs maʒœʁ]) — or vis major (Latin) — meaning "superior force", is also known as cas fortuit (French) or casus fortuitus(Latin) "chance occurrence, unavoidable accident".[1] It is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake, volcanic eruption, etc.), prevents one or both parties from fulfilling their obligations under the contract. In practice, most force majeure clauses do not excuse a party's non-performance entirely, but only suspends it for the duration of the force majeure.[2][3]
Force majeure is generally intended to include risks beyond the reasonable control of a party, incurred not as a product or result of the negligence or malfeasance of a party, which have a materially adverse effect on the ability of such party to perform its obligations,[4] as where non-performance is caused by the usual and natural consequences of external forces (for example, predicted rain stops an outdoor event), or where the intervening circumstances are specifically contemplated.

According to this however, this should absolve the traders from repaying the negative balances as this clause "essentially frees BOTH parties from liability or obligation" when the extraordinary event or circumstances are beyond the control of the parties. That means the traders' liability and obligations are freed as well. They can't just invoke this clause to apply to them unilaterally; this would apply to the traders as well.
Make your losses in demo. Earn your profits live.
  • #319
  • Jan 22, 2015 10:57pm Jan 22, 2015 10:57pm
Quoting Caa
well, apparently there are only very few brokers that are requesting negative balances, SAXO BANK and fxcm both are in deep trouble, saxo having losses in excess of 200 mio usd, and going after clients that lost all what they have. Remember saxo was already having problem in 2012 when they started selling their assets. Not looking good for them.
Yeah Saxo even deliberately went back and revised prices on already closed trades to widen the losses of traders. One trader incurred a $280K negative balance as a result of this practice. This broker needs to be shut down.

Here is the article:

http://firstadopter.tumblr.com/post/...to-its-clients
Make your losses in demo. Earn your profits live.
  • #320
  • Jan 22, 2015 11:09pm Jan 22, 2015 11:09pm
Quoting Forexia
{quote} Yeah Saxo even deliberately went back and revised prices on already closed trades to widen the losses of traders. One trader incurred a $280K negative balance as a result of this practice. This broker needs to be shut down. Here is the article: http://firstadopter.tumblr.com/post/...to-its-clients
Nearly every thread I open is spammed up with your crying.

Please, stfu.

It's not our fault you don't know what you're doing. Please stop subjecting us to your crap.
"Risk comes from not knowing what you're doing." - Warren Buffett
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