any legal proceedings yet against negative balance accountees? | Forex Factory

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any legal proceedings yet against negative balance accountees?

  • #1
  • First Post: Feb 12, 2015 2:29am Feb 12, 2015 2:29am
Alpari , Saxo and some other FX brokers have formally declared that they will chase back the negative balance.

FXCM will also do for 10% of the negative balance accountee.

But it seems that no legal proceedings have been formally launched.

any legal proceedings yet against negative balance accountees ???
  • #2
  • Feb 12, 2015 1:08pm Feb 12, 2015 1:08pm
The brokers will dare not sue for the negative balances...... because they will need to prove that the negative balances are accurate and fair. No court of law will allow a margin call to be executed - 30 minutes after a margin call. So, don't worry. We will never hear of any legal cases.
  • #3
  • Feb 12, 2015 8:36pm Feb 12, 2015 8:36pm
Quoting max888
The brokers will dare not sue for the negative balances...... because they will need to prove that the negative balances are accurate and fair. No court of law will allow a margin call to be executed - 30 minutes after a margin call. So, don't worry. We will never hear of any legal cases.
​Have you read broker's terms and conditions before signing? Of course will unlikely chase people themselves, they will just sell the debt to collectors where it is possible. Before they can sell it there is a process, they will send a few letters and warnings and so on. But at some time it will happen. I think in half a year time.
Wookey
  • #4
  • Feb 13, 2015 1:01am Feb 13, 2015 1:01am
Quoting vinshunlee
Alpari , Saxo and some other FX brokers have formally declared that they will chase back the negative balance. FXCM will also do for 10% of the negative balance accountee. But it seems that no legal proceedings have been formally launched. any legal proceedings yet against negative balance accountees ???
Nah, these are just rumors. Are you a client of mentioned brokerages? I'm almost sure their T&S contains the provision about losses which are exceeded clients margin. They'll be taken over by broker, thus client balance should be returned to 0.

This excerpt from HF clears out any doubts about legal proceedings in case of unprecedented losses:
Quote
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 equity account becomes negative. This is especially true during market gaps or volatile periods. HotForex will not hold traders responsible for deficit balances in this scenario, but clients should be aware that all funds on deposit...
  • #5
  • Last Post: Feb 13, 2015 2:03am Feb 13, 2015 2:03am
Quoting wookey
{quote} ​Have you read broker's terms and conditions before signing? Of course will unlikely chase people themselves, they will just sell the debt to collectors where it is possible. Before they can sell it there is a process, they will send a few letters and warnings and so on. But at some time it will happen. I think in half a year time.
I agree with u that the legal proceedings will be surely carried out, but not at once.

Anyway, I expect that such legal cases will help to clarify some ambiguous FX practise.
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