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  • #6,461
  • Jan 23, 2015 7:48am Jan 23, 2015 7:48am
i am wondering why fxcm did not announce any news about it

most of the firm had announced about they forgave the -ve balance of their account to gain their reputation

however, so far fxcm did not have any action about it, client is losing faith on it.

no matter which entity, fxcm uk, us, hk. if the client keep losing faith on fxcm, how could they repay the money by generating business?

anyone can think of what fxcm's management think of , and what is their plan
  • #6,462
  • Jan 23, 2015 8:00am Jan 23, 2015 8:00am
To my fellow trader friends based in Australia:

I recently logged an ASIC (Australian Securities & Investment Commission) claim and the progress is very positive. I couldn’t say much more about my case because it is confidential at the moment but I encourage everyone who suffered a negative balance on your account and is chased by your brokers to stand up and report to ASIC.
Don’t get scared by the contract you signed with your broker. Why? because government regulatory entities is on top of the contractual law in almost any country. ASIC looks way beyond the wordings of the contract. They look at numerous things such as how brokerage companies advertise and communicate to their clients, mismanagement of risk to protect their clients….etc. Brokers such as FXCM who advertised “It is their policy to credit retail trading accounts to a zero balance when debit balances occur as a result of trading on FX or CFDs” is clearly a breach of the ASIC regulatory law.
FXCM has no risk management at all. On the other hand, companies like forex.com (Gain Capital) did the right thing with their risk management in the past 12 months by implementing various protective measures.

So, how effective and powerful ASIC is? Please look at the following two articles and see how many FX brokage companies ASIC forced to close in the past year in Australia:
http://leaprate.com/2014/10/asic-tak...federal-court/
http://forexmagnates.com/asic-forces...try-crackdown/

These two articles tells us when we report a claim to ASIC, we should include every possible evidence we can provide because ASIC has a much broader view on how these brokage firms should be regulated. No evidence is too small. Provide everything from your emails, live chats, broker’s advertisement, news articles…….etc.

This is the web link to report to ASIC, let us all work together so we can make a change to protect our rights:
http://asic.gov.au/about-asic/contac...r-trading-etc/

I am not saying we traders shouldn’t bear the risk ourselves. But for account to go into deep negative territory, brokers who failed to have the protective measures in place needs to bear a lot of responsibilities as well.
  • #6,463
  • Jan 23, 2015 8:06am Jan 23, 2015 8:06am
Quoting rayzz
Neither FXCM or any of you so far mention about fxcm's Product Disclosure Statement. For fxcm not to mention it obvious, because in that (or those, since they have copies for each country, i.e, Aus, UK, and US) fxcm clearly and explicitly states that traders are not liable for negative balances. This is their PDS, not promotional videos or marketing campaign, but PDS! This is the link for Australia fxcm, http://www.forextrading.com.au/legal...re-statements/ I'll even copy the paragraphs from pg.29: {image} Any comment?
Very strong evidence, as clear as it gets. Based on this official document any sane person would think there is no chance there potentially will be a debt.

They don´t stand a chance.
  • #6,464
  • Edited 8:27am Jan 23, 2015 8:07am | Edited 8:27am
Quote
Neither FXCM or any of you so far mention about fxcm's Product Disclosure Statement.
​Interesting.

A clearer copy of page 29 - ref: #Post 6461
Attached Image (click to enlarge)
Click to Enlarge Name: FXCM - Losses 14.PNG Size: 119 KB
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #6,465
  • Jan 23, 2015 8:11am Jan 23, 2015 8:11am
Quoting sls19086
i am wondering why fxcm did not announce any news about it most of the firm had announced about they forgave the -ve balance of their account to gain their reputation however, so far fxcm did not have any action about it, client is losing faith on it. no matter which entity, fxcm uk, us, hk. if the client keep losing faith on fxcm, how could they repay the money by generating business? anyone can think of what fxcm's management think of , and what is their plan
I don't think FXCM is completely out of the woods yet.

The lawyers are like hungry vultures circling around.

I believe they saw an opportunity and they will go after it.

ECNs work as a intermediary between you and the LPs, so FXCM as a institution may still have a negative balance with some LPs.

The 300M they borrowed was supposedly to cover those negative balances but if the lawyers are around who knows what is really happening.

I believe they can still go broke and customers may have to deal with a future CLAW BACK situation.
So, you think you have rights? LOL
  • #6,466
  • Jan 23, 2015 8:40am Jan 23, 2015 8:40am
Thank you for this post. FXCM is a good company, they aren't sending the lawyers after any of you and I trust they will stick by their word, even if they are asking for voluntary help.

Quoting rayzz
Neither FXCM or any of you so far mention about fxcm's Product Disclosure Statement. For fxcm not to mention it obvious, because in that (or those, since they have copies for each country, i.e, Aus, UK, and US) fxcm clearly and explicitly states that traders are not liable for negative balances. This is their PDS, not promotional videos or marketing campaign, but PDS! This is the link for Australia fxcm, http://www.forextrading.com.au/legal...re-statements/ I'll even copy the paragraphs from pg.29: {image} Any comment?
  • #6,467
  • Jan 23, 2015 9:02am Jan 23, 2015 9:02am
At the very least, this whole thing kinda puts the "broker trades against you and wins when you lose" thing for FXCM. The reality is, if your broker can just "forgive" tens, if not hundreds of millions in negative balances, it's probably because they made a sh*t ton of money off your account blowing up. FXCM obviously didn't experience that. *shrug*
  • #6,468
  • Jan 23, 2015 9:04am Jan 23, 2015 9:04am
Does all broker listed here is a market maker? are there any of them is ECN broker?

http://forexmagnates.com/covered-bro...ng-chf-crisis/
  • #6,469
  • Jan 23, 2015 9:08am Jan 23, 2015 9:08am
Quoting Bilstein
At the very least, this whole thing kinda puts the "broker trades against you and wins when you lose" thing for FXCM. The reality is, if your broker can just "forgive" tens, if not hundreds of millions in negative balances, it's probably because they made a sh*t ton of money off your account blowing up. FXCM obviously didn't experience that. *shrug*
Exactly. I posted that several days ago. Brokers such as forex.com and oanda, who everyone is now hailing as heroes have been deceptive for years. Forex.com actually came out the day after and said they made money. If 98% are long eur/chf and you win when they lose, well that's not rocket science. On the other hand, there are ecn's, who do not trade against their clients, who suffered minimal damage because they took measures to reduce/eliminate risk. Unfortunately, US citizens can't trade with any of them. FXCM clearly dropped the ball, as they are 1 of only 3 brokers who suffered a catastrophic loss.
  • #6,470
  • Jan 23, 2015 9:13am Jan 23, 2015 9:13am
Quoting gajebo
Does all broker listed here is a market maker? are there any of them is ECN broker? http://forexmagnates.com/covered-bro...ng-chf-crisis/
At a glance, Dukascopy. I have not gone through the list.
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #6,471
  • Jan 23, 2015 9:24am Jan 23, 2015 9:24am
Quoting Profit Daily
{quote} Exactly. I posted that several days ago. Brokers such as forex.com and oanda, who everyone is now hailing as heroes have been deceptive for years. Forex.com actually came out the day after and said they made money. If 98% are long eur/chf and you win when they lose, well that's not rocket science. On the other hand, there are ecn's, who do not trade against their clients, who suffered minimal damage because they took measures to reduce/eliminate risk. Unfortunately, US citizens can't trade with any of them. FXCM clearly dropped the ball,...
Yeah, if I were a broker and 98% of my clients were long the EURCHF during the crash and I was trading against them, I'd forgive their negative balances too. Forget the 10 million you owe me in negative balances, the 20 million I siphoned from your losses is enough to buy me dinner, lol.
  • #6,472
  • Edited 10:06am Jan 23, 2015 9:51am | Edited 10:06am
Quoting gajebo
Does all broker listed here is a market maker? are there any of them is ECN broker? http://forexmagnates.com/covered-bro...ng-chf-crisis/
ATC UK ECN (an IB for FXCM as far as I know)
FX Pro STP/ECN
Dukas ECN
Activ Trades STP
Darwinex STP (Liquidity from Lmax and the exact same spreads on Myfxbook)
Orbex ECN

Lots of the other brokers listed have ECN account options listed on their websites.
  • #6,473
  • Jan 23, 2015 10:52am Jan 23, 2015 10:52am
just wanna say my withdrawal hit my bank account!
i'm not contributing to this thread from now on.
unless it comes back to trading.
right now is more about people taking 101 law classes.
i'm simply not interested.
good luck to all!
good luck to fxcm & jason!
  • #6,474
  • Edited 11:59am Jan 23, 2015 10:58am | Edited 11:59am
FXCM - A Single Word Describes This New "Robber Bank Controlled" Broker, DESPICABLE!

http://leaprate.com/2015/01/fxcm-let...tive-balances/

This is what the firms that constitute the "Thieves of Wall Street" are all like. They are all alike. They laugh all the way to their banks 365 days a year when stealing from everyone else. But, come that single day they experience what it is like to lose, they cry like babies, and turn out their lawyers to be sure those that they have been stealing from right along pay these losses too!

Despicable!

But, having said this, remember I am now talking about a "FXCM" that is controlled by a vulture subsidiary of the Robber Banks themselves! The former "FXCM' made no move to take the money of retail traders. It is the new, "Bank Controlled" FXCM that has decided to do this. This is just another way the thieving Robber Banks steal from others. Have no doubts about this. They are all corrupt and greedy thieves! And they have their vulture subsidiaries always looking for opportunities to steal more by capitalizing on the difficulties of other companies!

-tah
  • #6,475
  • Edited 12:03pm Jan 23, 2015 11:22am | Edited 12:03pm
As for the False Regulators (NFA and CFTC)......

Quoting RBlackburn
Sometimes it's hard to believe they're on the NYSE
Why? All the "Thieves of Wall Street" are on the NYSE!

Now, lets see if the false Regulators (NFA and CFTC) go after new "Robber Bank controlled" FXCM and any other USA brokers that breach contract stipulations that the broker will NOT go after negative account balances, as the new FXCM is doing. Personally, I doubt they will because they do not "regulate" for the benefit of retail traders. They "regulate" against retail traders for the benefit of the Robber Bank MMs. And so long as the Robber Bank MMs got their profits from all the losing retail trades, they won't give a damn what happens to the brokers.

And they for sure are not going to go after a new FXCM broker that the Robber Banks themselves now have a stake in!

It is all about making sure the "Big Boys" (corrupt Robber Banks) at the top of the financial food chain get their pound of flesh. Nothing else really matters.
  • #6,476
  • Jan 23, 2015 11:40am Jan 23, 2015 11:40am
Quoting traderathome
As for the False Regulators (NFA and CFTC)...... {quote} Why? All the "Thieves of Wall Street" are on the NYSE! Now, lets see if the false Regulators (NFA and CFTC) go after FXCM and any other USA brokers that breach contract stipulations that the broker will NOT go after negative account balances, as FXCM is doing. Personally, I doubt they will because they do not "regulate" for the benefit of retail traders. They "regulate" against retail traders for the benefit of the Robber Bank MMs. And so long as the Robber Bank MMs got their profits from all the losing retail trades, they won't give a damn what happens to the brokers. It is all about making sure the "Big Boys" at the top of the financial food chain get their pound of flesh. Nothing else really matters.

As someone else pointed out, FXCM didn't have enough to cover the losses while other big brokers did. Why? Because they weren't profiting from trader losses like some of the others were apparently. If they had been, they would have seen a huge windfall as all their clients went bust. Sure they make money on fees and commissions but let's get real, it's a company and it's out to make money. That's how the world works. For a broker, they really weren't making the killing you would expect if they were doing unethical things. The real question was were the (actually very small) fees built into the spread worth the service FXCM was providing? I sure think so. So before you throw FXCM in with some of the bucketshops which made a nice profit off of retail's pain this month, do some thinking.

And let's take a look at the facts right now. First off, FXCM is not "turn[ing] out their lawyers" on you. I wouldn't be sitting here writing this reply in their defense if they were. They did have an agreement that they would credit to zero and I expect them to uphold that promise. If and when they choose to ignore that promise, then you will have the right to be angry and I will be angry alongside with you, even though I do not hold any negative balances. What you have is a letter "requesting" funds. The company is in some pretty bad shape right now and I'm not surprised that they would send out a letter like this but that is a far cry from sicking lawyers on you and trying to seize your bank account and house. So let's stay rational here and not go off the deep end and smear FXCM unless the time comes that they do in fact renege on their agreement. I want to see this company survive because the US alternatives are awful, and it will survive and prosper again as long as they keep to their agreements even when things are rough.
  • #6,477
  • Jan 23, 2015 11:44am Jan 23, 2015 11:44am
Quoting Kanzler
{quote} As someone else pointed out, FXCM didn't have enough to cover the losses while other big brokers did. Why? Because they weren't profiting from trader losses like some of the others were apparently. If they had been, they would have seen a huge windfall as all their clients went bust. Sure they make money on fees and commissions but let's get real, it's a company and it's out to make money. That's how the world works. For a broker, they really weren't making the killing you would expect if they were doing unethical things. The real question...
Nice to see someone with their head on straight around here.
  • #6,478
  • Jan 23, 2015 11:47am Jan 23, 2015 11:47am
Quoting zznbrm
{quote} Nice to see someone with their head on straight around here.
Yep. Think it is time to move on, nothing unusual happened and perhaps think of buying FXCM stocks .
"I know one thing, that I know nothing." Sokrates
  • #6,479
  • Jan 23, 2015 11:48am Jan 23, 2015 11:48am
Quoting traderathome
As for the False Regulators (NFA and CFTC)...... {quote} Why? All the "Thieves of Wall Street" are on the NYSE! Now, lets see if the false Regulators (NFA and CFTC) go after FXCM and any other USA brokers that breach contract stipulations that the broker will NOT go after negative account balances, as FXCM is doing. Personally, I doubt they will because they do not "regulate" for the benefit of retail traders. They "regulate" against retail traders for the benefit of the Robber Bank MMs. And so long as the Robber Bank MMs got their profits from...

So true
  • #6,480
  • Jan 23, 2015 11:51am Jan 23, 2015 11:51am
Quoting Tom_D_Trader
{quote} Yep. Think it is time to move on, nothing unusual happened and perhaps think of buying FXCM stocks .
I was thinking the same thing when I saw it at almost a dollar in an article but it's gone up already some since then. The company is still a quality company, they've secured their short term future with the loan, and the worst that can really happen is they sell out to another firm this year in which case your shares are certainly not going to be worthless. Buy when people are freaking out, sell when they're giddy with greed.
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