Brokers chasing you for negative account balance | Page 36 | Forex Factory

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Brokers chasing you for negative account balance

  • #701
  • Mar 26, 2015 12:36pm Mar 26, 2015 12:36pm
Quoting mojo123
http://forexmagnates.com/alpari-uk-s...e-etx-capital/ Seems to me that all Al Pari clients, including ones with the negative balance, are sold to ETX Capital. Not sure does this change anything though...
That's a dicey bargain. Not all of the clients will agree to stay with a new broker, some may leave sooner or later, with a panic feelings left, that something may go wrong there too.
  • #702
  • Mar 26, 2015 2:38pm Mar 26, 2015 2:38pm
Quoting igeurchfloss
Whilst I do appreciate the advice...I don't think that approach will put me in any more favourable position than I am now. I am facing complete ruin for myself and my family. There is nowhere to turn to. FOS can only try to help with up to 150k. FCA don't care about individuals...and lawyers will cost a fortune anyway. If anyone has strong legal arguments or cases from the past that can help....then it would be much appreciated.
Your case is not clear! Are you asking for money from the broker or is it the opposite way?!

Who's the complainant who's the defendant?!

My advice was according to the subject of broker after negative balances so you must be the defendant, in that case no option but wait for legal accuse NOT threatens of legal path by broker!!

Not sure how FOS can help in 150K when FCA max. coverage per account is 80K

Explain your case better!
  • #703
  • Mar 27, 2015 3:23am Mar 27, 2015 3:23am
Quoting Ed-Forex
{quote} Your case is not clear! Are you asking for money from the broker or is it the opposite way?! Who's the complainant who's the defendant?! My advice was according to the subject of broker after negative balances so you must be the defendant, in that case no option but wait for legal accuse NOT threatens of legal path by broker!! Not sure how FOS can help in 150K when FCA max. coverage per account is 80K Explain your case better!
Sorry wasn't clear.

With IG Index...got huge slippage and a huge negative balance.
  • #704
  • Mar 30, 2015 4:29am Mar 30, 2015 4:29am
Quoting igeurchfloss
{quote} Sorry wasn't clear. With IG Index...got huge slippage and a huge negative balance.
Hi,Sorry to know about your situation. Are you based in the uk?Did you have stop losses at place and at what levels?
  • #705
  • Mar 30, 2015 4:35am Mar 30, 2015 4:35am
UK based....but IG centralised everything and so clients across the world with IG Index got the same treatment.

Some people got closed at stops.....some didn't. Some people could close their position on the platform, some couldn't.

Some stops at 1.19xx got closed, yet some stops at 1.2000 didn't. Absolutely ridiculous way of handling the situation and what's more annoying is how they are chasing balances when it was not completely the fault of clients.
  • #706
  • Edited 5:03am Mar 30, 2015 4:50am | Edited 5:03am
Quoting igeurchfloss
UK based....but IG centralised everything and so clients across the world with IG Index got the same treatment. Some people got closed at stops.....some didn't. Some people could close their position on the platform, some couldn't. Some stops at 1.19xx got closed, yet some stops at 1.2000 didn't. Absolutely ridiculous way of handling the situation and what's more annoying is how they are chasing balances when it was not completely the fault of clients.
So I assume you are stating that your stops in the 1.20 range were not closed while the stops lower were closed.If that's
the case, it is very strange.I suggest you call the financial ombudsman.This is just poor execution.I would't pay
anything and would actually contest the closing prices.Just not done.
FCA requires best execution for clients positions .This is anything but proper execution.I suggest you call financial
ombudsman and fca at the earliest.The fact is they cant just quote what they want.Lack of liquidity is a valid point
but having no protection isn't.You should take a look at the 1min chart from your broker and compare it with
those from others.This should be then provided to the fca indicating you have received a poor deal .
  • #707
  • Mar 30, 2015 5:00am Mar 30, 2015 5:00am
1.1945 - some filled and some not

Don't know how....

Are you an IG customer too?
  • #708
  • Mar 30, 2015 5:11am Mar 30, 2015 5:11am
Quoting igeurchfloss
1.1945 - some filled and some not Don't know how.... Are you an IG customer too?
Alpari here. Well,there is only one logic they can give for this i.e. your order was in a queue.
Hence all orders could not be filled as the prices moved very fast.That is their only alibi.
For starters contact the fca and financial ombudsman.
I too was caught with a massive slippage but still have a positive balance atm.
However alpari admin are looking at the closing prices which has me worried.
one of my order was closed in the 1.19 range while the other at 1.10 even though
the stop loss was placed at the same price.
  • #709
  • Mar 30, 2015 5:45am Mar 30, 2015 5:45am
Quoting shail31
{quote} Alpari here. Well,there is only one logic they can give for this i.e. your order was in a queue. Hence all orders could not be filled as the prices moved very fast.That is their only alibi. For starters contact the fca and financial ombudsman. I too was caught with a massive slippage but still have a positive balance atm. However alpari admin are looking at the closing prices which has me worried. one of my order was closed in the 1.19 range while the other at 1.10 even though the stop loss was placed at the same price.

Alpari's range was, as far as I know, from 1.199x to 0.98xx. However, they said the other day they are unlikely to change it. But you never know. Some people say that ICC have started sending emails asking to cover the negative balance.
Has anybody received anything?
  • #710
  • Mar 30, 2015 6:13am Mar 30, 2015 6:13am
Quoting mojo123
{quote} Alpari's range was, as far as I know, from 1.199x to 0.98xx. However, they said the other day they are unlikely to change it. But you never know. Some people say that ICC have started sending emails asking to cover the negative balance. Has anybody received anything?
The range cannot be the same for everyone.It would depend mostly on the price of the stop loss,followed by the time it was placed and also how big the lot size was.
  • #711
  • Apr 2, 2015 2:20am Apr 2, 2015 2:20am
If they are not regulated in the UK......you need to check with a lawyer if they can chase you for negative balances. In the UK spreadbetting comes under the FCA hat and losses are enforceable under S412 of the FSMA. If not FCA regulated I assume they can't chase you under those rules and will have to rely just on their T&C ?
  • #712
  • Apr 8, 2015 4:27am Apr 8, 2015 4:27am
Quoting igeurchfloss
If they are not regulated in the UK......you need to check with a lawyer if they can chase you for negative balances. In the UK spreadbetting comes under the FCA hat and losses are enforceable under S412 of the FSMA. If not FCA regulated I assume they can't chase you under those rules and will have to rely just on their T&C ?
Hi IGEURCHF,

Hmmmm.......Maybe I missed something., but I didn't see anything in S412 of the FSMA about enforcing losses/negative balance.

Now you got me curious, could you please quote the relevant text from that section?

Thanks in advance.
  • #713
  • Apr 8, 2015 4:41am Apr 8, 2015 4:41am
http://www.legislation.gov.uk/ukpga/2000/8/section/412

Effectively says not in exact words....spreadbetting contracts ARE enforceable
  • #714
  • Apr 8, 2015 4:52am Apr 8, 2015 4:52am
Quoting igeurchfloss
http://www.legislation.gov.uk/ukpga/2000/8/section/412 Effectively says not in exact words....spreadbetting contracts ARE enforceable
Ok, thanks for the link, it's the same that I read earlier. I'm not a lawyer, but based on my research of contractual law, I believe you are mixing apples and oranges.

Your statement regarding losses/negative balance being enforceable via S412 of the FSMA, is this your opinion / interpretation or did you get this from a lawyer/legal expert?
  • #715
  • Apr 9, 2015 1:41pm Apr 9, 2015 1:41pm
Is anyone clued up on CONDUCT RISK? Maybe it applies as brokers should have been managing risk before the event. Instead most did not and they suffered losses as well as clients.

http://www.iggroup.com/corporate/fai...treatment.html
  • #716
  • Edited 7:33pm Apr 11, 2015 6:20pm | Edited 7:33pm
Quoting Kjyzai
Not with FXCM. It is FXCM's policy to credit accounts to a zero balance when debit balances occur as a result of trading. One of the greatest concerns traders have about leverage is that a sizable loss could result in owing money to their broker. At FXCM, your maximum risk of loss is limited by the amount in your account. All accounts are tracked by our "Margin Watcher" feature. With the Margin Watcher feature, if account equity falls below margin requirements, the FXCM Trading Station will trigger an order to close all open positions. Why FXCM...
NOT ANYMORE!!

All FXCM account holders in the U.S. just got noticed this weekend:
They have changed their 'Master' Trading Agreement
If it happens again....

You're liable.

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"You Never Know.....Until You Find Out."
  • #717
  • Apr 20, 2015 4:02am Apr 20, 2015 4:02am
Did anyone else trade with IG Index and lose money on EURCHF?
  • #718
  • May 3, 2015 11:16am May 3, 2015 11:16am
Too late FXCM! Must pay clients who signed on the old agreement.
  • #719
  • May 4, 2015 12:09am May 4, 2015 12:09am
All are lying crooks. Thank god I was done with them when they got listed.
  • #720
  • May 4, 2015 12:36am May 4, 2015 12:36am
Quoting MarkChew
All are lying crooks. Thank god I was done with them when they got listed.
people leave, but this thread will go on for ever
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