Please do not trust the FCA | Forex Factory

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Please do not trust the FCA

  • #1
  • First Post: Jan 28, 2015 10:17am Jan 28, 2015 10:17am
Hi guys

I am one of Alpari clients whose money was stuck in the account and at this moment no body talk to.Although I always put my faith on FCA regulation but this was a total balloon as well.
So please guys if you are considering for a UK forex broker just because they're regulated by FCA ,think twice.

MANY THANKS
  • #2
  • Jan 28, 2015 10:54am Jan 28, 2015 10:54am
looks like this Swiss thing really showed the reality of brokers... I mean come on is there a broker who would actually give a trader huge profits in case the trader makes them and withdraws?
  • #3
  • Jan 28, 2015 11:11am Jan 28, 2015 11:11am
Agreed.

Completely useless.

Reasons:

 

  1. No proper feedback to clients
  2. They regulate but with seemingly no powers over KPMG

Never Ever Give Up!
  • #4
  • Jan 28, 2015 11:38am Jan 28, 2015 11:38am
Quoting Vitez
looks like this Swiss thing really showed the reality of brokers... I mean come on is there a broker who would actually give a trader huge profits in case the trader makes them and withdraws?
Oanda and Tickmill haven't had any problems with me withdrawing my profits earned through the EUR/CHF crash. IronFX, though hasn't still processed my week old withdrawal request. IronFX is regulated by Cysec and FCA. Go figure.
  • #5
  • Jan 28, 2015 11:58am Jan 28, 2015 11:58am
Guys,

You do not understand how bankruptcy process is going. Your broker is in the administration all accounts are frozen. No FCA, no KPMG can release anything until there is court decision and the receiver collects all claims and calculates all assets. It is a lengthy process. PFG took 2 years to complete. The only hope for you is that there is a buyer who provides enough money. If bankruptcy finally starts it will take a lot of time.
Clearly, the irresponsible people who lost more than their deposit and now refuse to reimburse the broker created a huge problem for other traders. Because if they do not pay back other clients will have to absorb their loss. Irregularities mentioned by FCA are negative equity when the broker executed trades at one price but actual fill happened at different, worse price. That will take time to adjust for all traders who had EURCHF positions. Other brokers, like Saxo do it internally, but since Alpari is in the administration it has to be done by KPMG.
I hope those who have accounts get their funds back at some point. Alpari failed risk assessment and its owners will lose the company. FCA is not perfect, but it is not their job to mange risk for brokers. If funds were segregated properly and other regulation is followed there was nothing FCA could do to prevent this.
Wookey
  • #6
  • Jan 28, 2015 1:40pm Jan 28, 2015 1:40pm
fca is no better than Afghanistan. as long as broker is solvent, regulation is good. but when we really need regulations at time of insolvency at that time regulations are nothing more than rubber stamp.
  • #7
  • Feb 5, 2015 7:08am Feb 5, 2015 7:08am
Do you know the amount of customers who send complaints to fca? Everyday - hundreds, and after chf-situation - thousands. It's impossible to satisfy all, if you et a response from them - you're lucky!
I didn't suffer with my broker, but I approximately know how it works
  • #8
  • Feb 5, 2015 7:23am Feb 5, 2015 7:23am
FCA is there for the sake of Anti Money Laundering, Anti Terrorist Financing, keeping the client funds segregated, and that the brokers meet their Know Your Client obligations, as well as capital adequacy.

FCA has nothing to do with the administration.

But still, while choosing a broker, regulation matters. For a broker based out of banana republic it is much easier to do a hit and run. No one is going to look for the mobs. While in jurisdictions like the UK or EU, the directors can be jailed.
  • #9
  • Feb 5, 2015 8:37am Feb 5, 2015 8:37am
You cannot blame neither FCA nor Alpari, this is the consequence of the insecurity of leveraged trading systems due to high risk. I am trading over 12 years, and never trusted a broker to put all my capital in one place. It is strange to some people, but I use several brokers in parallel. This is the basic rock of stock trading: do not put all your eggs in one basket. The same rule applies to using brokers.
  • #10
  • Feb 5, 2015 3:20pm Feb 5, 2015 3:20pm
I used to based in Australia and now I live in the UK. I would rather trust the FCA with regulating my broker than ASIC in Oz. At least the FCA understand to a certain degree the market and they have enforced and even though its painful at least the clients funds are segregated and not sent to prime brokers for them to lose.
  • #11
  • Feb 6, 2015 10:39am Feb 6, 2015 10:39am
Actually, what is the chance to get back the money from Alpari?
  • #12
  • Feb 6, 2015 11:09am Feb 6, 2015 11:09am
Quoting MarcusChin
Actually, what is the chance to get back the money from Alpari?
What's strange with Alpari UK is that according to FCA regulations, all the segregated client funds are supposed to be returned immediately to customers and cannot be used as recoverable assets by the companies or any creditors. So I don't know WHY it's taking so long for Alpari UK's clients to receive their money. Nobody can touch that money so what's good to them when it's just sitting there? And WHY is FCA not be able to look into this? They are regulated by FCA, it should be superceding any Administration.
Make your losses in demo. Earn your profits live.
  • #13
  • Feb 6, 2015 12:05pm Feb 6, 2015 12:05pm
Quoting Forexia
{quote} What's strange with Alpari UK is that according to FCA regulations, all the segregated client funds are supposed to be returned immediately to customers and cannot be used as recoverable assets by the companies or any creditors. So I don't know WHY it's taking so long for Alpari UK's clients to receive their money. Nobody can touch that money so what's good to them when it's just sitting there? And WHY is FCA not be able to look into this? They are regulated by FCA, it should be superceding any Administration.
KPMG have been appointed by the FCA so they are following the FCA's lead regarding rules and regulations.

There are huge conflicts of interests in the rules and regulations made by the FCA which has allowed KPMG to do as they have done.
The issues arise when the FCA says that the administrators have to act in the best interests of both the clients and the creditors.
Long story short, if the funds were simply returned then a saleable asset which the creditors could benefit from would no longer exist to the creditors detriment. The clients funds are safe regardless of what happens, its just a matter of how long it will take to get them back.
This argument was debated between jizzyjay and eurasian pages 169 - 171 in Alpari.co.uk discussion thread.
  • #14
  • Feb 6, 2015 10:08pm Feb 6, 2015 10:08pm
Quoting jizzyjay
{quote} KPMG have been appointed by the FCA so they are following the FCA's lead regarding rules and regulations. There are huge conflicts of interests in the rules and regulations made by the FCA which has allowed KPMG to do as they have done. The issues arise when the FCA says that the administrators have to act in the best interests of both the clients and the creditors. Long story short, if the funds were simply returned then a saleable asset which the creditors could benefit from would no longer exist to the creditors detriment. The clients...
Ok I don't want to stir up the debate again then.

I am just amazed that a firm regulated by FCA can be so slow in giving clients back, client funds that's supposed to be segregated and untouchable by anybody. In any corporate bankruptcy order of payments, it's always "employees, suppliers, clients, creditors and lastly stockholders". It's business 101. Really puzzled WHY any FCA regulated company would take so long to give back clients' funds and the client funds are supposed to be segregated and are NOT part of recoverable assets that can be sold to meet creditor's demand. Basically those segregated clients funds don't even belong on balance sheets; they are just locked up in a vault waiting to be collected. Simple as that. Somebody just needs to go there, open up the lock and distribute the funds to all the clients on the records.

That just reminds me how important it is to always download the most recent statements from the broker. Because what if the broker decides to destroy all records of their client funds? Your statements would be the only proof you can show to FCA to get your money back. You never know what kind of games those companies can play in those times.
Make your losses in demo. Earn your profits live.
  • #15
  • Feb 7, 2015 2:15am Feb 7, 2015 2:15am
Quoting Forexia
{quote} Ok I don't want to stir up the debate again then. I am just amazed that a firm regulated by FCA can be so slow in giving clients back, client funds that's supposed to be segregated and untouchable by anybody. In any corporate bankruptcy order of payments, it's always "employees, suppliers, clients, creditors and lastly stockholders". It's business 101. Really puzzled WHY any FCA regulated company would take so long to give back clients' funds and the client funds are supposed to be segregated and are NOT part of recoverable assets that can...
Not at all. Stir it up by all means. I may have missed something
The segregated funds cannot be used to pay creditors but by law KPMG have to follow certain processes set by the FCA.
As I say there are huge contradictions in the FCA rules and regulations which ultimately cause problems regarding conflicts of interests.
What is strange for me is they know the problems yet fail to address them promptly.
Also you mentioned about downloading your statements from your broker. Check to see whether the statements have an E&OE disclaimer on them. If they have then they are pretty much useless as proof of funds as the broker can turn round and say they are wrong leaving the client with no concrete evidence that what he says is correct.
This whole process im going through with Alpari has shown me so many truths about financial institutions and how they are legally allowed through poor regulation by the FCA to get away with daylight robbery at any time they please.
  • #16
  • Feb 7, 2015 2:20am Feb 7, 2015 2:20am
Don't be panic and follow the Alpari.co.uk discussion topic for all info. This topic is useless. Peace
myfxbook: neoxis
  • #17
  • Feb 7, 2015 8:50pm Feb 7, 2015 8:50pm
Quoting jizzyjay
{quote} Not at all. Stir it up by all means. I may have missed something The segregated funds cannot be used to pay creditors but by law KPMG have to follow certain processes set by the FCA. As I say there are huge contradictions in the FCA rules and regulations which ultimately cause problems regarding conflicts of interests. What is strange for me is they know the problems yet fail to address them promptly. Also you mentioned about downloading your statements from your broker. Check to see whether the statements have an E&OE disclaimer on them....
Well you still have deposit confirmation that shows how much money you have deposited with the broker. The statement is just showing you the profit/loss that has impacted the amount that you have originally deposited that's all. They don't accept that? Well then they will have to go by the deposit slips then and if the trader has made any losses, then tough Alpari is gonna have to cough up everything that's shown on the deposit slip since the statement is useless. I understand the administrator needs to look after the creditors' interest as well but client funds is still untouchable. They can sell anything else just not client funds. So this is why I am so puzzled WHY they are delaying in giving back client funds that they cannot touch anyway UNLESS they are thinking of actually touching it??

Well definitely be monitoring this Alpari situation closely for us to see how our money is REALLY handled when s*** hits the fan, how effective those "segregation of clients" rules are.
Make your losses in demo. Earn your profits live.
  • #18
  • Feb 8, 2015 8:55am Feb 8, 2015 8:55am
Quoting Forexia
{quote} Well definitely be monitoring this Alpari situation closely for us to see how our money is REALLY handled when s*** hits the fan, how effective those "segregation of clients" rules are.
, the thing with hit the fan are hillarious.
Regarding segregation rules, some said rule been made to be broke.
being honest are kind of rare thing nowadays, I've got my account with several brokers company, not all of them are good one, they all had their own advantage, service quality, and off course vary regulation status with different country.
hope this swiss event well remembered, and many will learn many thing just like I do.
  • #19
  • Feb 8, 2015 9:14am Feb 8, 2015 9:14am
Quoting available
{quote} , the thing with hit the fan are hillarious. Regarding segregation rules, some said rule been made to be broke.
Yes indeed they are, even by big banks that's the liquidity "provider" that shows up on every single broker that we trade with:

Barclays fined £38m for putting clients' assets 'at risk' http://www.bbc.com/news/business-29323483

Yes the same bank that short-changed us during the CHF event:

In an extreme example (that affected at least two brokers), Barclays had filled EUR/CHF sell orders at 0.065 (no extra zero) while at the same time EBS was quoting its session low of 0.85. Technology providers that Forex Magnates spoke to corroborated with similar examples of their clients. Firms did state that Barclays and other banks ultimately did provide some price improvement, but often to levels below that of EBS’s low of the day

http://forexmagnates.com/banks-bucke...nc-volatility/

I guess bigger is DEFINITELY NOT better!
Make your losses in demo. Earn your profits live.
  • #20
  • Edited Oct 7, 2015 2:23am Oct 6, 2015 2:40pm | Edited Oct 7, 2015 2:23am
Compensation is via FSCS - Financial Services Compensation Scheme, not FCA.
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