Brokers chasing you for negative account balance | Page 22 | Forex Factory

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  • #421
  • Jan 27, 2015 9:58am Jan 27, 2015 9:58am
I have not heard anything back from FXCM yet. I sent several inquiries the last two weeks. I expect my negative balance to be set to zero as they promise. If so, I am prepared to re-fund my account and resume trading. Otherwise, I will give the funds I would have invested to an anti-wall street attorney as a retainer to fight them on my behalf. My assumption is that if they do not hold to their policy, they will get thousands of legal inquiries they will need to respond to. However, I just can't see FXCM trying to scam their clients during their difficult times and stay truthful to their clients. I just wish they would make a statement already so us clients that were affected by this fiasco can get on with our lives.
  • #422
  • Jan 27, 2015 10:21am Jan 27, 2015 10:21am
Fxcm had developed a good reputation over the industry. 1 of their greatest selling point was no negaive balance policy. It have a lot of confident to trade with fxcm while I regard this as their competitive advantage.

So far they do not have any announcement about it. Before. The audot case only need 5 business to finish it investigation and 2 to 3 day to adjust the balance. However， since 15/1 nothing was heard from fxcm about this issue. Client is losing their confidence..especially the retail client.

No matter fxcm UK us aus france... We all want an answer. And I hope it will be a good one. I believe that many people couldn't repay the debt. Many person and famiily will go into bankruptcy because of what fxcm “promise” them
  • #423
  • Jan 27, 2015 12:02pm Jan 27, 2015 12:02pm
Quoting Kjyzai
Not with FXCM. It is FXCM's policy to credit accounts to a zero balance when debit balances occur as a result of trading. One of the greatest concerns traders have about leverage is that a sizable loss could result in owing money to their broker. At FXCM, your maximum risk of loss is limited by the amount in your account. All accounts are tracked by our "Margin Watcher" feature. With the Margin Watcher feature, if account equity falls below margin requirements, the FXCM Trading Station will trigger an order to close all open positions. Why FXCM...
Not sure if anyone answered you looked at 3 pages but no one did.

A broker can do all what you posted when there is a price to execute the trade, the thing is that if there is a GAP no one takes the other side and you can actually get a negative balance, is the only way and it happens, that is why CFD over Equities or Indexes offer less leverage because there is a bigger probability of a GAP.

So FXCM at the point they were had nothing in the risk management department to not loose money, what some brokers did was to lower the leverage months before because they asumen / thought / calculated that the SNB floor couldnt last for ever, so the leverage in that pair was 1:10 instead of 1:100, other brokers ask more margin or give you less leverage if you have a big account say over USD 50.000 or USD 100.000 that is also a risk management before an event happen.
  • #424
  • Jan 27, 2015 12:11pm Jan 27, 2015 12:11pm
Quoting alt11
Excuse me guys but, Don't tell me any broker actually passes any real order when you place an order. They bet that you'll just blow your account eventually, all they need to do is wait. So if no real order was actually passed, no real loss could have been incurred by retail traders. The proof is that some other brokers "forgive" the negative balance. Do you think they would forgive anything if they had actually lost anything? Already saying the there no "liquidity" to trigger stop losses is a big joke, since it's basically just a video game. Isn't...
Dude yo have half of the story right, the loss was pretty real.

Supe simple math, all brokers chose which orders to cover or which not (by their own risk management) why brokers went bankrupt was because of this, everyone was buying EURCHF at 1.20 because it always bounced there so there was "no way of loosing money by buying EURCHF at 1.20 or close) so as per FXCM or any other broker they knew the customers were going to make money the hedged them all (all on the long side, or the netting of short / long or just every trade).

Then came the SNB with an unexpected move took the floor there was no freaking price in the market, no one would buy you EURCHF, then because of the gap you had negative balance, as you loose and wont pay the broker, the broker has to pay the LP and if he doesnt have many he is broker, it is easy to go against a broker and it is not easy to go against 20.00 customers how have somewhere else to go and trade. If you search even Deustche Bank and Barclays lost money on this.

I'm not on the brokers side not on the customers side, but the money was lost, clients owe FXCM and FXCM owes to the LP who might also owe money to someone else. Where i live all brokers tell you that you can actually have a negative balance but wont be much, i know a friend who went negative for USD 1.000 broker didnt even care much to ask for the money.
  • #425
  • Jan 27, 2015 4:10pm Jan 27, 2015 4:10pm
http://forexmagnates.com/fxcm-inc-un...ient-funds-25/

"While there are reports that some clients are getting their negative balances cleared by FXCM’s team, this comes as no surprise in light of the company’s official position that it will be treating negative balance issues on a case by case basis.”

Well clearly it has not been the case since all the retail clients in France have been confirmed their negative balances to be reset to zero. I believe it is the same for German customers.

FXCM has no official position on such matter and doesn't work on a case by case basis.

The absence of official communication can only be explained by the risk to see both US and UK based clients disputing a difference of treatment based on clients location, which clearly looks like Unfair Business practices.

Regarding the validity of the Force Majeure, the chances of FXCM on this matter are very slim and one should always consider what falls under mere propaganda or legal rights.
  • #426
  • Jan 27, 2015 4:28pm Jan 27, 2015 4:28pm
Quoting RudiMar
Well clearly it has not been the case since all the retail clients in France have been confirmed their negative balances to be reset to zero. I believe it is the same for German customers.
Are you sure about this?Where did you get this info?
  • #427
  • Jan 27, 2015 4:33pm Jan 27, 2015 4:33pm
Quoting maokun
{quote} Are you sure about this?Where did you get this info?
Straight from FXCM's French forum: http://www.dailyfx.com/forex_forum/e...3-eur-chf.html

They all have been contacted privately (secretly?). And it all started yesterday.

As regards to the German clients. It is all there: http://www.dailyfx.com/forex_forum/f...-experten.html

I wonder why for US and UK clients there is no such threads on FXCM's websites where clients can discuss openly.
  • #428
  • Jan 27, 2015 11:51pm Jan 27, 2015 11:51pm
German's client is started to recover the negative balance, although i am not sure the overall amount of recovering the balance.

still no news of uk account client...

Quoting RudiMar
{quote} Straight from FXCM's French forum: http://www.dailyfx.com/forex_forum/e...3-eur-chf.html They all have been contacted privately (secretly?). And it all started yesterday. As regards to the German clients. It is all there: http://www.dailyfx.com/forex_forum/f...-experten.html I wonder why for US and UK clients there is no such threads on FXCM's websites where clients can discuss openly.
  • #429
  • Jan 28, 2015 3:57am Jan 28, 2015 3:57am
they will be doomed big time, if they are planning to let countries off the hook and to sue in other countries, this wont work out for them.
  • #430
  • Jan 28, 2015 8:40am Jan 28, 2015 8:40am

FXCM to Forgive Majority of Clients Who Incurred Negative Balances


NEW YORK, Jan. 28, 2015 (GLOBE NEWSWIRE) -- FXCM Inc. (NYSE:FXCM), announced today its decision to forgive approximately 90% of its clients who incurred negative balances in certain jurisdictions, on January 15, 2014 as a result of the Swiss National Bank announcement on that date. FXCM will notify the applicable clients and adjust applicable client account statements in the next 24-48 hours. "FXCM worked diligently to reach this decision and we are extremely appreciative of our clients for their patience and loyalty as we worked through this," said Drew Niv, CEO of FXCM.


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.


FXCM will also notify certain clients (such as institutional, high net worth, and experienced traders who generally maintain higher account balances) requesting payment of negative balances, pursuant to the terms of the FXCM master trading agreements. This group represents approximately 10% of clients who incurred negative balances which comprises over 60% of the total debit balances owed.


Read the full press release: http://ir.fxcm.com/releasedetail.cfm?ReleaseID=893269

  • #431
  • Jan 28, 2015 8:57am Jan 28, 2015 8:57am
Quoting sls19086
FXCM will also notify certain clients (such as institutional, high net worth, and experienced traders who generally maintain higher account balances) requesting payment of negative balances, pursuant to the terms of the FXCM master trading agreements. This group represents approximately 10% of clients who incurred negative balances which comprises over 60% of the total debit balances owed. Read the full press release: http://ir.fxcm.com/releasedetail.cfm?ReleaseID=893269

This is funny...

They won't bother trying to shake down the little guy, there's not point.

But, who would have ever thought this??

Quoting Magix
{quote} Even at this, as they are not a lending institution such as a bank or credit card, they wouldn't actually be able to just, run down you and your credit history...unless there is some other fine print in their contract stating that they can openly run a credit check on you... Meaning they will have to blindly Google that shit, and hope they don't have a lot of traders with common names...Smith, Jones..... After they are finished Gumshoeing...they need a fat enough cat to fry before this still becomes viable. Given the state of the...
Pshhhhhhhhhhhhhhhhhhhhh
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #432
  • Jan 28, 2015 9:03am Jan 28, 2015 9:03am
Any bets on the amount of insiders unloading into this bullshit PR?

Attached Image (click to enlarge)
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Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #433
  • Jan 28, 2015 10:04am Jan 28, 2015 10:04am
Axitrader added to this wall of shame.
  • #434
  • Jan 28, 2015 10:12am Jan 28, 2015 10:12am
Well now they are only one step closer to where they will end up and that's forgiving all clients..
  • #435
  • Jan 28, 2015 10:20am Jan 28, 2015 10:20am
Saxo still going after its client. FF member and Visitors; there is a group of 60+ members who all are in the same problem with saxo. Please contact me if you are in the same case and would like to join..

SAXO BANK
  • #436
  • Jan 28, 2015 11:15am Jan 28, 2015 11:15am
Quoting imedia
{quote} I am facing the same problem.. Representatives called me to clear a huge amount to cover the negative balance. Margin call and stop-out did not work. And this is what they state on their website: "Our no maintenance margin policy means that our clients can go below the margin requirements during the week without Swissquote closing their positions. Throughout the week your positions can fluctuate without Swissquote taking action. We only require you to respect the margin requirements before 23:00 CET (22:00 UK time) every evening. This no...
Quoting imedia
{quote} I am facing the same problem.. Representatives called me to clear a huge amount to cover the negative balance. Margin call and stop-out did not work. And this is what they state on their website: "Our no maintenance margin policy means that our clients can go below the margin requirements during the week without Swissquote closing their positions. Throughout the week your positions can fluctuate without Swissquote taking action. We only require you to respect the margin requirements before 23:00 CET (22:00 UK time) every evening. This no...

Totally agree with you.

Yesterday, on the 27th of January 2015 I received a registered mail from SWISSQUOTE; it was a demand for payment of my quite big negative balance. They say they would not charge any credit interest on my negative balance IF I cleared the amount by the 13th of February 2015.
So basically I had to see my account getting from a nicely profitable one to -100% in mere seconds and now they ask me to clear that amount within about one month after the SNB event? I also stated them my situation on the customer care section on their website by using the contact form in the same week as the SNB event was. I have not received any reply by today though.

Is any SWISSQUOTE customer here who is in the negative? What will you do?
What bugs me is that today I read news that FXCM will forgive the balances for most clients so I don't see why SWISSQUOTE even asks me to pay 100% myself.
  • #437
  • Jan 28, 2015 5:00pm Jan 28, 2015 5:00pm
Quoting icn
{quote} {quote} Totally agree with you. Yesterday, on the 27th of January 2015 I received a registered mail from SWISSQUOTE; it was a demand for payment of my quite big negative balance. They say they would not charge any credit interest on my negative balance IF I cleared the amount by the 13th of February 2015. So basically I had to see my account getting from a nicely profitable one to -100% in mere seconds and now they ask me to clear that amount within about one month after the SNB event? I also stated them my situation on the customer care...
Saxo is also still chasing negative balances. It would be like a heavy boomerang to them, the time will tell.
  • #438
  • Jan 28, 2015 6:27pm Jan 28, 2015 6:27pm
Quoting icn
{quote} {quote} Totally agree with you. Yesterday, on the 27th of January 2015 I received a registered mail from SWISSQUOTE; it was a demand for payment of my quite big negative balance. They say they would not charge any credit interest on my negative balance IF I cleared the amount by the 13th of February 2015. So basically I had to see my account getting from a nicely profitable one to -100% in mere seconds and now they ask me to clear that amount within about one month after the SNB event? I also stated them my situation on the customer care...
Hi dont just pay without a fight. You should go and get legal advice as soon as possible. Its a tough situation but you have to face it. Check with an attorney what your chances and options in such a case are. The wrong thing to do is just to pay without at least to ask for legal advice from professionals.
  • #439
  • Jan 28, 2015 8:12pm Jan 28, 2015 8:12pm
there is talk about FXCM crediting the small accts negative balances to 0. Only institutional and non retail traders wich account for 10% of accts worth 60% of FXCMs losses will be chassed for their neg balances
  • #440
  • Jan 29, 2015 4:33am Jan 29, 2015 4:33am
Quoting MetroFX
{quote} Dude yo have half of the story right, the loss was pretty real. Supe simple math, all brokers chose which orders to cover or which not (by their own risk management) why brokers went bankrupt was because of this, everyone was buying EURCHF at 1.20 because it always bounced there so there was "no way of loosing money by buying EURCHF at 1.20 or close) so as per FXCM or any other broker they knew the customers were going to make money the hedged them all (all on the long side, or the netting of short / long or just every trade).
Ok I get it. It makes sense that if they believed so much their customers might make money on their back, they hedged and got bitten.
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