Brokers chasing you for negative account balance | Page 25 | Forex Factory

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Brokers chasing you for negative account balance

  • #481
  • Feb 6, 2015 3:04pm Feb 6, 2015 3:04pm
Quoting Forexia
{quote} Yes now I see. Thanks for pointing that out. Well as long as they still "credit retail trading account to zero balance when a debit balance occured due to trading...", the traders should still be covered. If they do that, it goes without saying that the losses is limited to account size. If the loss is smaller than the account size, then there would be no need for them to credit any balance to zero. My personal take.
the new terms just says "FXCM aims.... " so this does not say they will set negative balance to zero... so in situations like CHF, they are not going to do it. So basically trader is taking the risk of more than the account size.
Think : Trade : Live Life
  • #482
  • Feb 6, 2015 5:14pm Feb 6, 2015 5:14pm
Quoting joshi90
IC Markets has decided to Cover for the Client Negative Losses from Swiss Franc Volatility. Please find the official Press release announcement made by IC Markets here: http://forexmagnates.com/ic-markets-...nc-volatility/
NOT True in my case.. They don't cover my negative balance and they took my money from other account without tell me. 
  • #483
  • Feb 6, 2015 8:20pm Feb 6, 2015 8:20pm
http://forexmagnates.com/ic-markets-...nc-volatility/

Reassuring decision.

I wonder though, now moving forward if a similar event were to occur whether brokers will be so forgiving as they could easily amend there PDS to not be so understanding, merely 'we warned you'.

Also I am concerned (maybe suspicious) now of how they will now recoup their (all brokers) losses.
My comments are not to be taken as trading advice, not a financial advisor
  • #484
  • Feb 6, 2015 10:42pm Feb 6, 2015 10:42pm
Quoting cescof
{quote} NOT True in my case.. They don't cover my negative balance and they took my money from other account without tell me.Â
If you have a negative balance in one account and enough money in the other then you don't have a negative balance. All brokers have the right to offset accounts. I don't think you are a very informed trader.
  • #485
  • Edited Feb 7, 2015 12:54am Feb 6, 2015 11:51pm | Edited Feb 7, 2015 12:54am
Quoting joshi90
{quote} If you have a negative balance in one account and enough money in the other then you don't have a negative balance. All brokers have the right to offset accounts. I don't think you are a very informed trader.
No I don't agree with IC Markets there. The funds in the accounts that cescof has with IC Markets still belongs to cescof and not to IC Markets. IC Markets is not allowed to move client's funds from one account to another without the client's permission. Just like if you have a loan and a savings account with the bank and you are defaulting on the loan but you have some cash in the savings account, the bank does NOT have the right to automatically take money out of the savings account and put it on your loan to repay it without your permission unless that savings account is set up as the collateral to that loan. As far as I understand, no accounts is set up as collateral to one another with any broker. Clients funds are supposed to be segregated and can only be used as margin to trading and cescof is NOT in any trades so IC Markets is not authorized to touch those funds.

If what cescof is saying is true, IC Markets is violating client funds protection guidelines and is committing unauthorized usage of clients funds big time. I don't know what IC Markets is doing.
Make your losses in demo. Earn your profits live.
  • #486
  • Edited Feb 7, 2015 12:23am Feb 6, 2015 11:56pm | Edited Feb 7, 2015 12:23am
Quoting cogs
http://forexmagnates.com/ic-markets-...nc-volatility/ Reassuring decision. I wonder though, now moving forward if a similar event were to occur whether brokers will be so forgiving as they could easily amend there PDS to not be so understanding, merely 'we warned you'. Also I am concerned (maybe suspicious) now of how they will now recoup their (all brokers) losses.
IC Markets wasn’t believed to have held large exposure to the Swiss franc. They added that the majority of their negative balance exposure was limited to three account holders.

- See more at: http://forexmagnates.com/ic-markets-....KX5jSDIV.dpuf

What????!!! Did you see that? The biggest negative balances were from THREE people? And IC Markets couldn't handle them and had to take THREE weeks to decide whether to forgive them or not? That is weird.
Make your losses in demo. Earn your profits live.
  • #487
  • Feb 7, 2015 12:29am Feb 7, 2015 12:29am
Yeah strange, not quite sure what was so different about those three accounts, maybe just the exposure?
My comments are not to be taken as trading advice, not a financial advisor
  • #488
  • Feb 7, 2015 12:40am Feb 7, 2015 12:40am
Quoting cogs
Yeah strange, not quite sure what was so different about those three accounts, maybe just the exposure?
Don't think the exposure is that big considering that they reduced leverage significantly since Dec. of last year and you can open an account with IC Markets for as low as $200 and you can trade in micro lot as small as $1K. How large of an exposure can you get on a $200 account balance, reduced leverage and micro lots??!!

Strange indeed...
Make your losses in demo. Earn your profits live.
  • #489
  • Feb 7, 2015 12:57am Feb 7, 2015 12:57am
Quoting cescof
{quote} NOT True in my case.. They don't cover my negative balance and they took my money from other account without tell me. 
Technically you never had a negative balance if you had a positive balance in another account, there would be no reason tofor them to write this off. All brokers that allow clients to have more than one trading account have the right of offset, basically they can move a positive balance from one account to cover a negative in the other. Nothing new here and it actually makes perfect sense, why would a broker let a client effectively steal from them by avoiding to pay a negative balance, they are not that stupid.
  • #490
  • Feb 7, 2015 12:59am Feb 7, 2015 12:59am
I should also note that I disagree with brokers writing off negative balances. If you were stupid enough to trade over the SNB event face the consequences.
  • #491
  • Feb 7, 2015 1:01am Feb 7, 2015 1:01am
Quoting buddy1
{quote} Technically you never had a negative balance if you had a positive balance in another account, there would be no reason tofor them to write this off. All brokers that allow clients to have more than one trading account have the right of offset, basically they can move a positive balance from one account to cover a negative in the other. Nothing new here and it actually makes perfect sense, why would a broker let a client effectively steal from them by avoiding to pay a negative balance, they are not that stupid.
except that positive balance in the other account is NOT the broker's. It's the client's!! If they want cescof to pay for the negative balance, they will have to demand for it but that positive balance is NOT automatic for the taking; it still belongs to cescof. It's up to cescof if he/she wants to use it to offset the negative balance but IC Markets has no right to force it.
Make your losses in demo. Earn your profits live.
  • #492
  • Feb 7, 2015 1:10am Feb 7, 2015 1:10am
Quoting buddy1
I should also note that I disagree with brokers writing off negative balances. If you were stupid enough to trade over the SNB event face the consequences.
Yeah they are writing off negative balances because they know those balances were created out of thin air from "adjusting" trades with non-existing prices that those liquidity "providers" and/or brokers have made up abusing the liquidity blackhole created by those liquidity stoppers. If all the trades were adjusted according to fair market prices, you will notice very few negative balance actually existed. Majority of the losses were covered by people's account balance. That's probably why the brokers decided to forgive them cuz they see they didn't lose much. They are not stupid!!

The only stupid ones are ones like Saxo Bank who thinks it can have its way by retroactively adjusting people's trades with made up prices to create negative balances. Well good luck dealing with the Danish FSA! They are going to need it!!
Make your losses in demo. Earn your profits live.
  • #493
  • Feb 7, 2015 1:12am Feb 7, 2015 1:12am
Quoting Forexia
{quote} Yeah they are writing off negative balances because they know those balances were created out of thin air from "adjusting" trades with non-existing prices that those liquidity "providers" and/or brokers have made up abusing the liquidity blackhole created by those liquidity stoppers. If all the trades were adjusted according to fair prices, you will notice very few negative balance actually existed. Majority of the losses were covered by people's account balance. That's probably why the brokers decided to forgive them...
I very much doubt this. Almost every single broker in the world had negative balances.
  • #494
  • Feb 7, 2015 1:14am Feb 7, 2015 1:14am
Quoting buddy1
{quote} I very much doubt this. Almost every single broker in the world had negative balances.
According to what prices? I agree there might be some that really existed because it could not be covered by the account balance but large majority of them?
Make your losses in demo. Earn your profits live.
  • #495
  • Feb 7, 2015 1:17am Feb 7, 2015 1:17am
Quoting Forexia
{quote} According to what prices? I agree there might be some that really existed because it could not be covered by the account balance but large majority of them?
Do you have an account? If so ask them for a trade recepit that should put an end to the story
  • #496
  • Feb 7, 2015 1:49am Feb 7, 2015 1:49am
Quoting buddy1
{quote} Do you have an account? If so ask them for a trade recepit that should put an end to the story
Really you can do that? I thought only Global Prime offers trade receipt? And on the trade receipt, what kind of information can you find there?
Make your losses in demo. Earn your profits live.
  • #497
  • Feb 7, 2015 2:01am Feb 7, 2015 2:01am
Quoting Forexia
{quote} Really you can do that? I thought only Global Prime offers trade receipt? And on the trade receipt, what kind of information can you find there?
All my brokers give me this info if i ask. Global prime has nothing special it's just a marketing spin.
  • #498
  • Feb 7, 2015 2:03am Feb 7, 2015 2:03am
Quoting Forexia
{quote} No I don't agree with IC Markets there. The funds in the accounts that cescof has with IC Markets still belongs to cescof and not to IC Markets. IC Markets is not allowed to move client's funds from one account to another without the client's permission. Just like if you have a loan and a savings account with the bank and you are defaulting on the loan but you have some cash in the savings account, the bank does NOT have the right to automatically take money out of the savings account and put it on your loan to repay it without your permission...
What I said it's true and I can prove it . they did money transfer and just 5hr after they a send me an email but what's happened if in the meantime my account went in margin call? And in mail before after the price adjustment I wrote them to tell me way an terms to recover my account without any answer. So if there's someone agree with this kind of customer care..... Well you are welcome in IC MARKETS.... for me it's a shame
  • #499
  • Feb 7, 2015 2:06am Feb 7, 2015 2:06am
Quoting buddy1
{quote} All my brokers give me this info if i ask. Global prime has nothing special it's just a marketing spin.
So what kind of information do you see on trade receipts?
Make your losses in demo. Earn your profits live.
  • #500
  • Feb 7, 2015 4:54am Feb 7, 2015 4:54am
Quoting cescof
{quote} What I said it's true and I can prove it . they did money transfer and just 5hr after they a send me an email but what's happened if in the meantime my account went in margin call? And in mail before after the price adjustment I wrote them to tell me way an terms to recover my account without any answer. So if there's someone agree with this kind of customer care..... Well you are welcome in IC MARKETS.... for me it's a shame
If they asked you to pay the negative balance and you didnt pay it they have the right to take money out of any of your other accounts and dont have to inform you as they have the right of offset. By not paying a negative balance you hace defaulted so they can sue you, technically you are stealing. many brokers are suing defaulters right now. I would consider yourself lucky as they could have sued you then you would really be screwed. Why didnt you pay the negative balance anyway? Were you trying to avoid it?
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