Brokers chasing you for negative account balance

From a retail client perspective......credit is credit....no matter how it's wrapped up in fancy words.

Notice of formal demand for payment – read carefully

 

1. Saxo Bank A/S (hereafter “Saxo Bank”) refers to your transaction account at Saxo Bank (Account), which is governed i.a. by the terms of Saxo Bank's General Business Terms (Terms).
2. Unless stated otherwise in this notice, words which are defined in the Terms have the same meaning in this notice.
3. In accordance with the Terms, if a Client fails to provide any sums of money necessary to satisfy a margin requirement or other sum due under the Terms in respect of any transaction, Saxo Bank may reduce a Client's exposure by closing one or more of the Client's leveraged open positions with Saxo Bank without notice to the Client and apply any proceeds thereof to payment of any amounts due to Saxo Bank.
4. On 15 January 2015, due to adverse movements in the financial markets, Saxo Bank exercised its rights to close out all of your open positions. The Cash that was realised from closing out these positions was applied towards the amount owing on your Account.
5. As at 15 January 2015 end of day, there is an amount owing by you to Saxo Bank on your Account of xxxxxxxx
6. Saxo Bank demands payment by you of the amount of xxxxxxx by 4.00pm CET on Friday 23 January 2015.
7. If the above is not paid in full to Saxo Bank by 4.00 pm CET on Friday 23 January 2015, then Saxo Bank will take action to recover the money owed to it. The updated correct owed amount to Saxo Bank can always been seen on your online trading account.

Summary of amount demanded



Balance on Account IDxxxxxxxx as of 15 January 2015.



Note:

1. The amount demanded does not include other unpaid amounts owing to Saxo which may include principal, interest, costs, fees and other charges and other expenses. You will remain liable for that money.
2. Additionally there may be contingent and accruing liabilities for which provision will have to be made by you.

Saxo Bank reserves all rights.



Please contact us with any enquiries you have regarding this notice.
Initial Correction

hi silver777
do you know if they have to file a law suit in Denmark or in my country?
thx

Did they file one against you?

Where are you located at?

I'll give my two cents on litigation for you

Saxo Bank’s daily Forex volumes drop 37.5% MoM in Feb’15

http://leaprate.com/2015/03/saxo-ban...-mom-in-feb15/

Saxo Bank, the Danish company that combines the roles of a retail Forex broker and a bank, earlier today posted its operating metrics for February 2015, with results lagging behind the robust performance seen in the start of the new year.
Average daily Forex volumes at Saxo amounted to USD 9 billion in February 2015, which marks a decline of 37.5% against the result of USD 14.4 billion recorded in January 2015.
We have to note that January was a very solid month for Saxo in terms of trading activity, witnessing a 15% month-on-month rise in trading volumes against December 2014. So it is normal to see the monthly comparison somewhat tilted in favor of January. Then there is (of course) the psychological factor that comes into play every year, as the traditional January enthusiasm wanes.
Another reason for the drop is something we have been seeing across the retail Forex industry lately – the effect of the enhanced risk management policy, especially cutting leverage on certain instruments, on trading activity. In this respect, Saxo’s February metrics are in tune with what we witness across the broader retail Forex industry – lower February volumes.
Let’s mention a couple of other performance metrics and comparisons.

1. The average daily monthly volumes in February 2015 fell by 31% from the USD 13.2 billion mark reached in February 2014.
2. Monthly trading volumes for February 2015 were USD 179 billion, down by 40.7% month-on-month and down by 32.2% year-on-year.
3. On the brighter side, client deposits increased markedly. In February 2015 they amounted to USD 11.09 billion, up by nearly 6% from January levels and marking a marginal rise against the level recorded in December 2014.
4. In DKK currency terms, client deposits surged to record high in February 2015 , amounting to DKK 73.9 billion.
5. The count of new funded clients increased 24% for Jan-Feb 2015 compared to the same period last year. New funded clients have increased 34% for average of Jan-Feb 2015 compared to average of all 2014.

http://leaprate.com/wp-content/uploa...e-1024x663.jpg

.....and now Saxo looking to drop margins as they feel like that's whats causing the low volumes.

Surely they should consider that they are getting hugely negative publicity for leaving clients in the lurch with huge negative balances

Hi Caa,

Unfortunately I don't know anything about consumer protection laws in your home country. In general, if you are a retail trader, then the lawsuit must take place in your country. If your country is outside of the EU then a lawsuit will be very difficult and expensive for the broker. The broker may try to get a title against you in Danish court to have it enforced in your country, but if your country is outside the EU, it will still be very difficult and expensive to do.

Please don't take legal advice from anonymous persons on discussions forums, this includes me as well. If your negative balance is substantial, you should consult a lawyer in your home country to see what laws apply. You'll sleep much better having all of the information regarding your situation from a professional with relevant expertise.

Best of luck, hope it works out for you.

A lot of us still going through tough times with our brokers. I sincerely wish the best outcome for all. In the meantime, help raise the awareness. Up to 30seconds of your time. Sign the petition and leave a comment

https://www.change.org/p/tracey-mcde...ter_responsive

interestingly, a change in cash receipts through the UBS - considering the UBS FX is one of the largest dealer, you might see a connection. The following message . "We hereby inform you about important changes to the deposit options in favor of your trading account with IG Markets to simplify our bank for thepayment , we have decided the business relationship with UBS terminate Therefore, we will from April 1, 2015. not accept incoming payments more about our UBS account in favor of your trading account. To your IG trading account after this date to capitalize by bank transfer, please use alternative bank account. You can find an overview of this on "My Account> Payments> Payments> How do you can deposit ". Alternatively, you can find the data in the appendix of this email. Of course, there continue to capitalize on your trading account by credit card the way. If you prefer your money within Switzerland leave to, you have the possibility a trading account directly with IG to open bank SA in Geneva, which also belongs to the IG group. "

http://www.wallstreet-online.de/disk...fd-auf-eur-chf

What price did your broker exit your EURCHF long at?

Summary so far

1) IG @0.9250
2) FX Pro @ Average was 1.11
3) CMC @ 1.00684 (after requote from 1.1898!)
4) Swissquote @ 1.06
5) Activtrades @ 1.10
6) FXFlat @ 1.044
7) WH Selfinvest @ 1.044
8) Dukascopy @ 1.03
9) ETX @ 1.06
10) Fineco @1,01
11) Avatrade @ 1.0450
12) Gain @ 1.04
13) fxcm @ 1.05
14) saxo @ 0.96

Tnx for the list buddy.
So, some of them managed to close @1.10, while others did it @0.92. And they say the liquidity providers screwed them up. And because they got screwed they would like to pass the responsibility on clients and make them pay for it???
And they main argument is "client can loss more than initially deposited" sentence? I can't see that happening...

Scam alert
http://forexmagnates.com/fraud-alert...f-forex-scams/
and this from reuters today about IG

http://www.reuters.com/article/2015/...0WJ2KZ20150317

highlight:

The company highlighted in its announcement that it expects to provide for the majority of client debts it is owed totaling £18.4 million ($27.2 million) with about half of the debtor accounts already settled.
At the same time, the firm highlighted that the majority of the remaining debtors are not likely to be in a position to settle their obligations with the brokerage.
- See more at: http://forexmagnates.com/ig-group-ex....aefusdyY.dpuf

All users want talk and consulting with me for expose their particular case and receive answers can contact me writing at this page:

www.facebook.com/consultingfirmsbanksinsolvency

In here you can post all your issues in any case of insolvencies around the world especially in U.K. (U.K. insolvencies) and you will receive answer about their situation and how we can help you to keeping you updated and step by step how to claim your funds back!

Share the page with others and post any question in that page usually in few hours you will receive a detailed answer for your particular case.

Thank you all for supporting thanks.

Apparently, ALPARI/KPMG started sending out the first wave of letters asking clients with neg. balances to make their accounts good. Has anyone received any letter or phonecalls yet, that he is willing to share with the thread?

seems that it will be only for clients that were negative before the crash ...

We are now in a position to contact the first tranche of clients with negative balances. This tranche
should cover all clients with negative balances for whom the Joint Special Administrators have
verified
the available contact information but excludes
clients that had open CHF trades after 09.00

Briefly, tell them to piss off.

Agree, but do it in a way that you dispute the balance. Unless you dispute the negative balance, after few weeks (3 weeks I think) they can claim the debt and sell it to the debt collector. If you do that they will have to go to court. They are not going to do that straight away, they will try to negotiate first. But, if you dispute it you will be on the safe(er) side.

In a timeline covering the aftermath of the removal of the peg on the Swiss franc, online broker FXCM has produced a dramatic to-the-second account of the currency swings that led to huge losses for margin traders.
The timeline, detailed below, shows how traders had seconds to react to the unexpected surge in the Swiss franc.
The data was released as part of stark criticism by FXCM of the Swiss National Bank’s decision to abandon its currency peg on January 15.
In its commentary, FXCM accuses the SNB of being “reckless” in the way it abandoned the peg.
Drew Niv, the CEO of FXCM, told Financial News: “By announcing the decision without any prior warning, the SNB has damaged its own credibility and caused widespread market failure and a flash crash that could easily have been avoided.”
He added that a better time to announce it would have been over the weekend, when brokers could have contacted customers in advance and warned that they should expect significant volatility.
The SNB did not respond to a request for comment.
Online brokers such as FXCM provide margin trading, where retail investors can ramp up the yields (and losses) of their trades, often bets on whether a currency will rise or fall, through credit lines.
It was particularly affected by the unexpected move, which allowed the Swiss franc to trade freely against the euro, away from its former fixed exchange rate of 1.2 francs to 1 euro.
The broker had to be rescued by Jefferies Group parent Leucadia National Corporation, which provided a $300 million secured loan. Similar firms, such as Alpari and Global Brokers NZ, went out of business.
All times on the morning of January 15 are in Eastern Standard Time. The movements are quoted in pips (price interest points) which measure the change in exchange rate for a currency pair.
One pip is equivalent to 0.0001 so a fall in the value of the euro against the Swiss franc from 1.2000 to 1.1000 is equivalent to 1,000 pips.
CHF is the market abbreviation for the Swiss franc, while ECNs refer to electronic communication networks – electronic platforms used by spot FX traders. The below is from FXCM:
04:30 – The Swiss National Bank announces the removal of the 1.2000 EUR/CHF floor.
04:30:47 – EUR/CHF drops below 1.2000 for the first time.
04:30:56 – Nine seconds later, the major international banks who provide liquidity to FXCM begin rapidly removing liquidity as quotes go as low as 1.1659.
04:30:57 – FXCM’s system circuit breakers deploy to halt new quotes and trading. These circuit breakers are designed to protect clients against erroneous quotes and off-market trades.
04:31:08 – 21 seconds following the drop below the 1.2000 floor, only one liquidity provider is quoting FXCM at 1.1094 (1,000 pips from the floor price).
04:31:43 – One major international bank is quoting a bid of 1.0037. Another major international bank is quoting a bid of 1.1556 (1,500 pip range in bids between two liquidity providers at the same second). EBS quotes 1.0000 at this time.
04:32:41 – The first quote from FXCM liquidity providers below parity – 0.9831. The EBS quote at this time is 1.08115 – 1000 pips away.
04:33:32 – One major international bank quotes a bid of 0.6374. Another major international bank is still quoting 1.1220 at the same time (5,000 pip range between two liquidity providers at the same second). There is no valid quote on EBS at this time.
04:35:16 – While there are still no valid quotes on EBS, three bid quotes from FXCM liquidity provider bounce within a 6,000 pip range in two seconds: 1.1078, 0.5696, 0.9769. (0.5696 is the lowest quote received by FXCM from all its liquidity providers.)
04:42:28 – EBS shows a bid quote of 0.9550 one second, then a bid quote of 0.5000 the next second (a difference of 4,500 pips). The next new price shown is 0.9600, five seconds later.
04:55:40 – The market finally trades somewhat consistently above parity, but volatility is still extreme. The range of bid quotes between major FX industry ECNs is 0.87 to 1.0001 (1300 pips).
05:10:00 – The market begins to stabilise around the 1.0400 level. Spreads and consecutive price ticks are still above 100 pips. The range of bid quotes on major FX industry ECNs is 1.0120 to 1.0600 (480 pips).
05:17:00 – FXCM’s quoting circuit breakers are removed and prices begin updating again. Execution is still halted.
05:23:00 – FXCM’s trading circuit breakers are removed and execution of trades begins again. Liquidity levels are as little as 5% of normal levels, and only three or four liquidity providers are quoting consistently.

Ofcourse dispute, by the "piss off"the client giving the brokers tracking negative balances a final reply........Go to court if you can and after that tell me how the judge decision(if against client) can be applied ?? hahahaha

Guys, those idiot brokers can do nothing especially when the client is in another country that applies to most those bucketshop brokers!!!


For example FXCM was trying to steal money from clients as soon as possible asking them to deposit money or they'll charge them, when FXCM don't have money to charge them and FXCM policy mentions that it is responsible of covering negative balances not clients.

Briefly, The Scam brokers asking for negative balances CAN DO NOTHING OTHER THAN BARKING. GIVE THEM THE BONES HAHAHA

OK, I just now saw this.

My opinion is that there is nothing they can do. I believe that if they want to recover what negative balance they assigned to your account, they would need to come to your home country and first prove that you owe them money in court. This would be very difficult and expensive, especially if there is no contract stating the amount you agreed to pay with your signature. The T&C is not enough for most countries' consumer protection laws.

They could try to sell their claim to a local debt collector but it would be the same result, you tell them to prove that there is a legal debt in court and I doubt they would even try if it will cost them money.

Also there is a ton of information on the Internet for consumer protection laws, check out getoutofdebtfree.org and consumer action group, there are others. As I mentioned before, do not take advice from Internet forums, do your own research and consult a legal specialist if necessary.