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  • #6,781
  • Jan 27, 2015 10:34pm Jan 27, 2015 10:34pm
Now I know...Blood sucking Vermin might be a little harsh here...but might not be...did you ever think of that?

Is it possible that there is actual information wrapped in my posts?



Let's look at the events de jour. (my play on The Day in French, being part of the key)

Ya see...rumor has it, that some of the French FXCM customers were getting phone calls about their negative balances, stating that they were going to be let off the hook.

HAPPY DAYS!!


WRONG!!

Ya see, on the same day we hear this, "Rumor", we also find get this tidbit of information:
Quote
An SEC 4-K form filing, revealed that former FXCM Inc Chief Dealer, Michael Romersa, has sold his last 363,807 shares on the 22nd of January in the aftermath of the release of the details of the agreement between FXCM and Leucadia.
Client Negative Balances Developments

Now, it's no secret that if you sold your FXCM stock 2 weeks ago, you'd be a lot happier than selling it today. But, if and when, (I lean towards when, more than if), it hits projected prices, it will be worth 25% of current, which is down 90% from a mere 2 weeks prior. $.60. Sixty Cents!!!

Given the wake of destruction caused by FXCM in rumors and having RIPPED PEOPLE OFF FROM OTHER ACCOUNTS, given the fact that they have pulled out the FORCED MAJEURE clause and given the fact that they have emailed customers "REQUESTING" that they clear up their outstanding balances, there really is nothing holding the stock price up...with exception to the fact that, they haven't actually gone forth with a real strong collection measure...there is still some question as to what may happen...

Well...when they can issue a press release, letting everybody off the hook, why is it that we just hear rumors?

Are these rumors a couple of family members who got let off the hook?
Are these just rumors from some stock pumpers that want to inflate the stock a little?
OR
Are we hearing about this because the last of the larger share holders at FXCM want to liquidate their stock above 60 cents as well?

(You know where I would place my bet)

So, let me ask you this...
Have you visited Jason Rogers profile?
Have you read that his name isn't really, Jason Rogers?
So, what is his name?
Could it possibly be Michael Romersa?
If not, could Jason just be another bag holder trying to get what he can out of his stock before the absolute collapse?

Yeah, I know...a fair amount of speculation.

But what makes more sense here...that FXCM is calling up every account to let them know they don't have to pay off their negative balance, or that these might just be rumors to keep the exodus on stock prices, so that these scum bags can liquidate their final shares before closing the doors?
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #6,782
  • Jan 28, 2015 1:26am Jan 28, 2015 1:26am
Quoting Jason Rogers
{quote} Hi Jjf38, You mentioned that you're looking at the same account on the same date, however, it's worth noting that margin requirements were recently increased. It's possible, the margin you see on one platform is from before the update, and the margin on the other platform is from after the update. Please log out and log back into both platforms to make sure you're viewing the latest margin information. If you still see a difference, please send me a private message with your account details, so I can investigate for you. Thanks, Jason

Please check your PM.
  • #6,783
  • Jan 28, 2015 8:05am Jan 28, 2015 8:05am
http://www.forexlive.com/blog/2015/0...tive-balances/

 

  1. Will adjust applicable client account statements in the next 24-48 hours
  2. Will be forgiving 90% of negative balances

We’ve been calling on FXCM to make a decision one way or another and they look to have taken the favourable option. You’ll note the “majority” part though and I’ll dig out what exactly that means for customers

FXCM state that institutional, high net worth and experienced traders “that maintain higher account balances” will be the ones to wear losses. Based on how it works in the UK, with investor classification, it basically means all retail traders are being let off.
FXCM CEO says;
“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”
Don’t know about “patience” or “loyalty” after this.
But that’s one broker out the crosshairs for now. Saxo and Alpari, among others, are still firmly lit up.

GBP/USD
  • #6,784
  • Edited 8:44am Jan 28, 2015 8:13am | Edited 8:44am
Quoting Deskpro
{quote} Hi ForexOracle - I am also with FXCM and found them decent but not sure now how safe they are and concerned about their lack of feedback on negative balances. Been looking at OANDA and quite like their platform but you mention their "tricks" - do you mind expanding on this because they are on my shortlist of possible alternatives
Quoting PhilouFX
I am still a bit puzzelled on how FXCM handled its negative A/C customers. Most brokers took a decision within hours/couple of days. I understand & respect the fact that FXCM was/is in a slightly different situation. But: - Last Friday, USA customers received a letter to repay the negative balances -
Quoting sls19086
May I ask anyone here have the latest news on the fxcm negative balance and the news of them )
Quoting deepak925
http://www.forexfactory.com/news.php?do=news&id=523743 FXCM may wipe out negative balances
Last week I mentioned I would let everyone know about negative balances once I had more information, and as promised here is the press release we just issued:

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, 2015 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


As a publicly traded company, please understand there are some things which I can't discuss until the information is ready for release on a wide basis so thanks for your patience. Those of you with a negative balance should be receiving an email today.

Jason
  • #6,785
  • Jan 28, 2015 8:15am Jan 28, 2015 8:15am
Quoting Jason Rogers
{quote} {quote} {quote} {quote} Last week I mentioned I would let everyone know about negative balances once I had more information, and as promised here is the press release we just issued: 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...
GBP/USD
  • #6,786
  • Jan 28, 2015 8:18am Jan 28, 2015 8:18am
Good on FXCM.
  • #6,787
  • Jan 28, 2015 8:43am Jan 28, 2015 8:43am
No !


It's not good on FXCM!. This is one absurdity after another. First there was always a clear deception by the form of advertising in place. There are plenty of posts and references to this in this thread and others. NO NEGATIVE BALANCES period!. That was the case plastered all over the place. The fact alone that this is even being discussed is absurd. FXCM placed a clause in their contract, which goes all the way against any advertised means. In case of OANDA the ( nice and great and lovable favorite, all bow to them ) that clause is Black on White in their contract, so guess what they really did not have any choice, so they did not do anything at all except honoring their contract.

In case of FXCM its much different, they in fact advertised one thing and sold another. I asked their manager about this, and have received no answer what so ever. I thought about posting the chat, but to sum it up its simple. We have no answer for you !

No this is not OK. Its not an honorable thing, not when you have adverts everywhere that there are NO NEGATIVE BALANCES. All you are doing is further destroying any value that this company had.

Where do you buy something for 100 dollars and then a week later you are told it is 200 ???? Where is that acceptable.

And now to business conduct. NO ITS NOT ACCEPTABLE JASON !!! that you send an email at 5.59 and then change the margin at 6 . It is not acceptable that you decide to remove the Smart Watcher at 4PM as of 3PM. It is not acceptable that you state that the effective margin will be raised as of 5pm and then you tell everyone ooops we did it at 3pm. None of this is acceptable !
  • #6,788
  • Jan 28, 2015 9:16am Jan 28, 2015 9:16am
And further still...

Why not keep an eye on the insider action based on this little prop up in price.
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Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #6,789
  • Jan 28, 2015 10:13am Jan 28, 2015 10:13am
Well now they are only one step closer to where they will end up and that's forgiving all clients..
  • #6,790
  • Jan 28, 2015 12:24pm Jan 28, 2015 12:24pm
FXCM's statement seems to mean they will go after clients ( any) that suffered losses high enough that might be worth for them to pursue. Not sure what number is their threshold but are retail mom and pop investors with a mid level net worth that suffered with a 100K+ negative loss subject to the request? Seems like its likely and this saga is then not then yet over. I don't think they can force the sale of a home to pay this debt so I foresee lawsuits and/or bankruptcies for some.
  • #6,791
  • Jan 28, 2015 12:51pm Jan 28, 2015 12:51pm
Quoting Jason Rogers
{quote} {quote} {quote} {quote} Last week I mentioned I would let everyone know about negative balances once I had more information, and as promised here is the press release we just issued: 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...
Hi Jason

What about those retail (smallish account) traders who had stops that were not executed but did not go into negative balance?

Thanks
  • #6,792
  • Jan 28, 2015 12:51pm Jan 28, 2015 12:51pm
Quoting euler123
FXCM's statement seems to mean they will go after clients ( any) that suffered losses high enough that might be worth for them to pursue. Not sure what number is their threshold but are retail mom and pop investors with a mid level net worth that suffered with a 100K+ negative loss subject to the request? Seems like its likely and this saga is then not then yet over. I don't think they can force the sale of a home to pay this debt so I foresee lawsuits and/or bankruptcies for some.
In reality, FXCMs 10% of the customers that they are going after, could just be the ones from the US.

FXCM US was the only one to seemingly suffer the major blow, so, FXCM on other locations might just be absorbing 100% of the losses, while FXCM US is the only one going after clients money.

Kinda like how only ALPARI UK went tits up, but Russia is still pegged as their flagship and is still in business...FXCM US might be the only ones collecting dough.

The press statement is ambiguous at best.

"Regular traders"??!?!?!?!?!?!?!?

Seriously?

Who the fuck has a trade account and only trips once a year and just happened to make that one trade the Black Swan...
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #6,793
  • Jan 28, 2015 12:52pm Jan 28, 2015 12:52pm
Quoting Deskpro
{quote} Hi Jason What about those retail (smallish account) traders who had stops that were not executed but did not go into negative balance? Thanks
Yer Beat!
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #6,794
  • Jan 28, 2015 1:15pm Jan 28, 2015 1:15pm
Quoting esprit
In case of OANDA the ( nice and great and lovable favorite, all bow to them ) that clause is Black on White in their contract, so guess what they really did not have any choice, so they did not do anything at all except honoring their contract.
Hi Esprit,

Yes, it is black and white as quoted directly from their risk disclosure: "BECAUSE OF THE LEVERAGE AND THE OTHER RISKS DISCLOSED HERE, YOU CAN RAPIDLY LOSE ALL OF THE FUNDS YOU DEPOSIT FOR SUCH TRADING AND YOU MAY LOSE MORE THAN YOU DEPOSIT."

Why do you think so many dealing desk brokers have issued statements that they made profits on the SNB announcement? It's easy for a market marker to forgive negative balances if a huge market gap wipes out their clients, because their dealing desk can profit from the losses on the other side of your trades. They’re just giving you back a fraction of what they made off you. If you pick your broker based on whether you think you're going to lose money, you'll be their best client.

But what if the market gapped the other way, 2000+ pips in favor of client trades due some central bank intervention or geopolitical event? Would these same market makers be willing or even able to pay out all their profitable clients if it meant taking a huge loss on the other side? And would you be as quick to forgive the broker owing you profits if they ended up with a hole in their capital.

FXCM offers traders No Dealing Desk (NDD) forex execution, because it removes such conflicts between us and our clients. We don't profit from your losses or lose from your profits. Instead we make money from your trading volume. Therefore, we want you to be profitable, so you can continue trading through us for years to come.

Quoting esprit
NO ITS NOT ACCEPTABLE JASON !!! that you send an email at 5.59 and then change the margin at 6 . It is not acceptable that you decide to remove the Smart Watcher at 4PM as of 3PM. It is not acceptable that you state that the effective margin will be raised as of 5pm and then you tell everyone ooops we did it at 3pm. None of this is acceptable !
While we would like to give as much time as possible, some actions require quick changes in order to manage risk. It's worth noting that FX prime brokers raised their margin requirements, even requiring institutional traders like hedge funds and HFTs to post higher margin. In addition, some regulators are increasing regulatory minimum margin requirements, as we saw from the NFA twice since the SNB move.

I know there have been some questions on if/when margin would be reduced, and I will update our thread once I have more information.
  • #6,795
  • Jan 28, 2015 1:28pm Jan 28, 2015 1:28pm
Quoting Jason Rogers
{quote} Hi Esprit, Yes, it is black and white as quoted directly from their risk disclosure: "BECAUSE OF THE LEVERAGE AND THE OTHER RISKS DISCLOSED HERE, YOU CAN RAPIDLY LOSE ALL OF THE FUNDS YOU DEPOSIT FOR SUCH TRADING AND YOU MAY LOSE MORE THAN YOU DEPOSIT." Why do you think so many dealing desk brokers have issued statements that they made profits on the SNB announcement? It's easy for a market marker to forgive negative balances if a huge market gap wipes out...
Wow, that's hilarious. IIRC, the NFA requires all regulated brokers to post their 'hedged position' ratio, and take a hit on their posted capital if their hedge ratio is low. And contrary to popular belief, running a b-book that large (as your purport) for somebody like GAIN or OANDA would mean wild swings in their revenue and in turn their posted capital. Neither of which are happening, which means its safe to say they, as they DISCLOSE ON THEIR WEBSITES, hedge the vast majority of their trades out. It's funny the NFA/FCA has fined you guys several times - I guess for being 'on the side of the client'?!? Asymmetrical slippage, anyone?

And, if memory serves me, doesn't FXCM own a controlling interest in LUCID that probably supplies a good portion of the liquidity on the FXCM platform?!

The truth probably is that OANDA had a much smaller imbalance on its CHF position and was able to take their loss and write it off as an advertising expense, and GAIN had the foresight to reduce leverage on the CHF crosses to mitigate their risk and came out better off.
  • #6,796
  • Edited 2:00pm Jan 28, 2015 1:43pm | Edited 2:00pm
Oanda Netdania, RTFX and a meanwhile stophunting scoundrel bucketshop which once used to be a decent fine broker.

Every pair is M1 EURAUD.
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RTFX and Netdania and had a low of 1.4195 and 1.418, the market maker had a low of 1.4185.

The scoundrel rougue bucketshop had a low of 1.4060 which is more than 100 pips lower than the MM.

And you keep telling me that everything's fine in NY right now?
  • #6,797
  • Jan 28, 2015 1:43pm Jan 28, 2015 1:43pm
@Jason Rogers: do I need to remind you of your own RISK DISCLOSURE that in black and white stated prior to the SNB decision:

Although the margin call feature is designed to close positions when account equity falls below the margin requirements, there may be instances when liquidity does not exist at the exact margin call rate. As a result, account equity can fall below margin requirements at the time orders are filled, even to the point where account equity becomes negative. This is especially true during market gaps or volatile periods. FXCM will not hold traders responsible for deficit balances in this scenario, but clients should be cognizant that all funds on deposit in an account are subject to loss. FXCM also recommends that traders use Stop orders to limit downside risk in lieu of using a margin call as a final stop.

And now, you are still going after 10% of your clients and let the others off the hook after almost 2 weeks of deliberation. If you were such an honest and outstanding company, you would have stated on Friday, january 16 that all negative balances would be credited to 0. Period. So, please, give me a break!
  • #6,798
  • Jan 28, 2015 1:47pm Jan 28, 2015 1:47pm
Quoting william17
@Jason Rogers: do I need to remind you of your own RISK DISCLOSURE that in black and white stated prior to the SNB decision: Although the margin call feature is designed to close positions when account equity falls below the margin requirements, there may be instances when liquidity does not exist at the exact margin call rate. As a result, account equity can fall below margin requirements at the time orders are filled, even to the point where account equity becomes negative. This is especially true during market gaps or volatile periods. FXCM will...
Ya beat me to it, William.

Black and white, is black and white...right?
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #6,799
  • Jan 28, 2015 2:16pm Jan 28, 2015 2:16pm
Quoting Pirotechnic
Asymmetrical slippage, anyone?
FXCM should have passed on positive slippage to our clients from the beginning. As part of our settlements with the CFTC and other regulators, we reimbursed traders for any positive slippage they should have received prior to 2010. That same year, we updated our execution system to pass on positive slippage to our clients whenever it's available.


FXCM LLC (our US-regulated entity) now provides daily trade reports to the NFA which monitors and supervises FXCM LLC's activity including information on the price where client orders are filled and the corresponding price where those orders are offset with our liquidity providers. All of FXCM's global trading entities including FXCM UK, FXCM Japan and FXCM Australia execute client rolling spot forex transactions as a riskless principal with FXCM LLC, so the same execution standards are applied for all FXCM clients worldwide.


Below are some highlights from a detailed study of FXCM's trade execution analyzing a total of 43,128,901 trades placed over a six month period from August 2013 to January 2014:

  1. 73% of all orders had no slippage.
  2. 15% of all orders received positive slippage. (AKA price improvements)
  3. 12% of all orders received negative slippage.
  4. Over 60% of all limit and limit entry orders received positive slippage.
  5. 53.32% of all stop and stop entry orders received negative slippage.


The same study showed that:

  1. Limit and limit entry orders are most likely to receive positive slippage
  2. Stop and stop entry orders are most likely to receive negative slippage
  3. The Market Range feature on Trading Station can help traders by limiting their negative slippage without limiting their positive slippage.


As a result of the changes we have made, FXCM is now one of the only firms in the industry to pass on positive slippage on all order types including market and limit orders. By contrast, some forex brokers will re-quote their clients rather than let them benefit from price improvements. There are no re-quotes with FXCM.


Quoting Pirotechnic
And, if memory serves me, doesn't FXCM own a controlling interest in LUCID that probably supplies a good portion of the liquidity on the FXCM platform?!
When FXCM acquired Lucid in the summer of 2012, we stated in the public presentation that Lucid won’t be a liquidity provider for retail clients on our No Dealing Desk (NDD) forex execution, and that’s still the case today: http://bit.ly/1hHWt4k

While Lucid makes markets for our institutional clients (FXCMPro.com), all forex trades placed by retail clients on our NDD execution (FXCM.com) are offset one-for-one with independent third-party liquidity providers. FXCM does not profit from the losses of our clients on the NDD model. Instead, we make our money from their trading volume.
  • #6,800
  • Jan 28, 2015 2:41pm Jan 28, 2015 2:41pm
Quoting Naddmer
Oanda Netdania, RTFX and a meanwhile stophunting scoundrel bucketshop which once used to be a decent fine broker. Every pair is M1 EURAUD. {image} {image} {image} {image} RTFX and Netdania and had a low of 1.4195 and 1.418, the market maker had a low of 1.4185. The scoundrel rougue bucketshop had a low of 1.4060 which is more than 100 pips lower than the MM. And you keep telling me that everything's fine in NY right now?
Hi Naddmer,

Thanks for sharing those charts. If you had a live trade the was stopped out by that spike, I encourage you to file a trade inquiry so the Trade Services Team can investigate what happened. If there was an error in our execution, we will make the appropriate correction to your account.

That said, I would like to address your concerns about our execution. If there were any doubts before, it should be pretty clear now that FXCM does not benefit when clients lose on our NDD model.

We don't hunt stops, because we have nothing to gain from you losing on a trade. We make money from your trading volume, not your losses. Furthermore, we will continue to offer our clients NDD execution.
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