Brokers chasing you for negative account balance | Page 38 | Forex Factory

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Brokers chasing you for negative account balance

  • #741
  • Jul 14, 2015 5:18pm Jul 14, 2015 5:18pm
Has anyone heard more from IG? It is now common knowledge that as a result of some stops being filled, they were left with a long eurchf position. It is also now clear why they waited over 10 minutes to aggregate and unwind other client positions at 0.9250. It's because in the first 10 minutes they offloaded their own risk and at a much higher price than 0.9250.

This has been highlighted to the FCA and clients have passed on that info to the Financial Ombudsman Service.
  • #742
  • Jul 15, 2015 2:37am Jul 15, 2015 2:37am
Hi igeurchfloss
its very likely you have seen these

http://www.euromoney.com/Article/346...-post-SNB.html

http://www.signaturelitigation.com/n...d-swiss-franc/
  • #743
  • Jul 21, 2015 6:22am Jul 21, 2015 6:22am
Hi
I am in similar situation with Alpari UK.
CCI legal are demanding over £400,000 have not responded to them any advice will be appreciated from those with similar case.
  • #744
  • Jul 21, 2015 1:55pm Jul 21, 2015 1:55pm
Quoting Shab
Hi I am in similar situation with Alpari UK. CCI legal are demanding over 400,000 have not responded to them any advice will be appreciated from those with similar case.

What was the closing price for eurchf trade ?
Did you put a stop loss ?
  • #745
  • Jul 22, 2015 7:20am Jul 22, 2015 7:20am
Hi
No I dint have stop loss.
I don't have access to statement so don't know what was the close price
  • #746
  • Jul 24, 2015 2:24pm Jul 24, 2015 2:24pm
Quoting Forexia
{quote} Even though all they do is just order matching matching buyers with sellers BUT they did lend you the extra money for you to trade via the leverage rate just like a loan and when your trade is closed, you repay that extra money that you borrowed with your account balance and your profit/loss. When your account balance is negative that means you don't have enough to pay for what the broker has lent you then you have defaulted on that loan just like you defaulted on your mortgage or your car loan. Since your account balance is not collateralized...
The client does not have to pay for the negative balance. If the broker is required to pay it means that it is scam. I personally have never met such situations. I advise you to get away from LMAH
  • #747
  • Jul 28, 2015 10:46am Jul 28, 2015 10:46am
IG is aggressively chasing the negative balance (around 3K) due to the Greece crisis weekend gap. Even if IG could get 3K~4K gross profit from my transaction on my account (around 3000 mini lots, 10K per mini lot) in total, they don't want to forgive one penny. They are trying to maximize their profit despite of client's painful loss.
  • #748
  • Jul 30, 2015 12:46pm Jul 30, 2015 12:46pm
Quoting Lazzar
{quote} What was the closing price for eurchf trade ? Did you put a stop loss ?
hi lazzar
we also have stop loss in EURCHF...but still have a huge negative balance. And we receive CCI mail today and force us pay back the """""debt"""""" before 3 AUG......
  • #749
  • Jul 30, 2015 1:58pm Jul 30, 2015 1:58pm
Quoting jojo234
{quote} hi lazzar we also have stop loss in EURCHF...but still have a huge negative balance. And we receive CCI mail today and force us pay back the """""debt"""""" before 3 AUG......
You should pay it it is a debit allah will ask you about it

have a nice day sir
focus while relaxed to see better
  • #750
  • Jul 30, 2015 5:57pm Jul 30, 2015 5:57pm
Quoting Forexia
{quote} Even though all they do is just order matching matching buyers with sellers BUT they did lend you the extra money for you to trade via the leverage rate just like a loan and when your trade is closed, you repay that extra money that you borrowed with your account balance and your profit/loss. When your account balance is negative that means you don't have enough to pay for what the broker has lent you then you have defaulted on that loan just like you defaulted on your mortgage or your car loan. Since your account balance is not collateralized...
I like this kind of mentality - demanding ECN environment, but when you have some big problems - please give us MM conditions.
In case of LMAX - they are just middle men. It means when somebody lost 2000 pips with high leverage, somebody else gained 2000 pips. Now winner got his money, loser wants to get away free and then blame LMAX or other broker for not paying his debt.
  • #751
  • Jul 30, 2015 6:03pm Jul 30, 2015 6:03pm
Quoting johnnycash
{quote} I like this kind of mentality - demanding ECN environment, but when you have some big problems - please give us MM conditions. In case of LMAX - they are just middle men. It means when somebody lost 2000 pips with high leverage, somebody else gained 2000 pips. Now winner got his money, loser wants to get away free and then blame LMAX or other broker for not paying his debt.
  • #752
  • Edited 12:09pm Aug 1, 2015 3:01am | Edited 12:09pm
Quoting johnnycash
{quote} I like this kind of mentality - demanding ECN environment, but when you have some big problems - please give us MM conditions. In case of LMAX - they are just middle men. It means when somebody lost 2000 pips with high leverage, somebody else gained 2000 pips. Now winner got his money, loser wants to get away free and then blame LMAX or other broker for not paying his debt.
Except in this case. The "winners", the LP's didn't really "win" fair and square; they cheated. They "won" by price fixing and some of the more unscrupulous brokers like Saxo Bank artificially created and/or enlarged negative balances by filling clients' trades with prices several thousand pips away from the fair close published on the interbank ECB.

And with everything about forex being OTC, price is supposed to decided by negotiations between the buyers and the sellers except because us retail traders are so inadequately capitalized, we are in no position to negotiate. Whatever price they set is whatever we retail traders, the most bottom feeders will have to take. So it's basically whatever those LP's and/or brokers say is the negative balance through prices that they fill our trades with is whatever we have to pay.
Make your losses in demo. Earn your profits live.
  • #753
  • Aug 1, 2015 7:24am Aug 1, 2015 7:24am
Quoting Forexia
{quote} Except in this case. The "winners", the LP's didn't really "win" fair and square; they cheated. They "won" by price fixing and some of the more unscrupulous brokers like Saxo Bank artificially created and/or enlarged negative balances by filling clients' trades with prices several thousand pips away from the fair close published on the interbank ECB. And since everything about forex is OTC, price is supposed to decided by negotiations between the buyers and the sellers except because us retail traders are so inadequately capitalized, we...
There should be a regulation for this market strong one or all will lose an important mechanism in this market

all have a nice day please
focus while relaxed to see better
  • #754
  • Aug 1, 2015 9:54am Aug 1, 2015 9:54am
Quoting jojo234
{quote} hi lazzar we also have stop loss in EURCHF...but still have a huge negative balance. And we receive CCI mail today and force us pay back the """""debt"""""" before 3 AUG......
At which price was your stop loss ? And at which price alpari closed your trade ?
  • #755
  • Aug 13, 2015 3:52am Aug 13, 2015 3:52am
Quoting weaverslane
Hi Guys, I've been trying to get a hold of people who are in the same situation as me - basically Alpari/KMPG/CCI chasing me for a negative balance ! I have received a number of emails from these guys now, some generic, some very specific to me with a confirmed negative balance (from their side only). I have not agreed to any of their data, and said that I do not consent to any of their rules, regulations, or calculations with regards my so called debt. I do not see it as debt at all - I will not be held responsible for the incompetence of alapri....
Hi Weaverslane,

I am in the same situation regarding Alpari/KMPG/CCI. Similar to you they keep pressuring me to pay 14000 GBP. I was advised by a German lawyer not to pay.
I would be grateful if you could report about developments in your case. Thanks.
  • #756
  • Aug 13, 2015 8:38am Aug 13, 2015 8:38am
Quoting r4in123
Alpari just sent out a mass mailing confirming account balances to people and announcing that CCI legal will now be in contact with customers shortly. I have formed a skype group of several people in the same situation. If anyone has the same problem and would like to join, feel free to PM me.
Hi,

I also recently had letters und e-mails from CCI Legal pressing me to urgently pay up 14000 GBP.
Could you share some of the conclusions you have come to?
Thanks
  • #757
  • Aug 13, 2015 8:45am Aug 13, 2015 8:45am
i just encounted a SOYBEAN trade 2 days ago that causes a negative account balance with Forex.Com
mine wasn't that bad as eurchf incident, but there was a gap of 400+ pips off market opening that causes a 2.6k USD deficit

I have spoke to Forex.Com about it but to no avail. ANyway, found out that Forex.com did square off for their clients during the eurchf incident. anyone to prove?

I'm not technically good in UK regulations, but what can i be expecting from forex.com now? They did mention "legal actions" to be taken. I'm residing in Asia btw.
  • #758
  • Aug 20, 2015 2:31pm Aug 20, 2015 2:31pm
is there anyone who presented the Alpari case to the UK financial ombudsman and ask for a formal statement on whether Alpari is right or wrong to chase people with negative balances?
functionaltrader.com
  • #759
  • Sep 9, 2015 6:16am Sep 9, 2015 6:16am
Hi, what is the latest on this, has anyone got any legal advice of whether there is a case not to pay. I am being issued a summons from CCI to pay the outstanding balance....my negative balance on Alpari account was not due to CHF issue, I had a negative balance from before due to the weekend gap, I spoke to Alpari at the time and they said I would not have to pay this balance and they will not chase me for it... now the company has gone belly up, they are chasing me. Lot of people are in negative as a result of CHF plummiting as Alpri did not close the open trade. I am wondering if the opposite have happened, is there anyone out there who made a lot of money from that drop or did Alpari close the trade before it made the money?? if this is the case then you may have an agrument.
I would like to please hear from anyone else out there in similar situation.

Thanks
  • #760
  • Sep 9, 2015 2:24pm Sep 9, 2015 2:24pm
Quoting Shuni
{quote} Hi Weaverslane, I am in the same situation regarding Alpari/KMPG/CCI. Similar to you they keep pressuring me to pay 14000 GBP. I was advised by a German lawyer not to pay. I would be grateful if you could report about developments in your case. Thanks.
they can send threating letters by the dozen it does not mean you have to pay but if you do pay then after you find you didn't have to pay you will kick yourself if you pay they are the winners take your lawyers advice
people leave, but this thread will go on for ever
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