GAIN Capital (Forex.com) Confirms Negative Balances Forgiven by Thursday

GAIN Capital (NYSE:GCAP) has sent out an email to its clients confirming it will reset accounts with negative balances wherever it is legally allowed to do so. Regulations in different jurisdictions around the world differ on whether this is permitted by securities laws.

Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates has already reported GAIN Capital is forgiving negative balances (marked as "Yes" on the Real Time List) but it seems the broker felt it needs to reiterate the fact after comments were made doubting it.

Affected clients have been notified by email and GAIN Capital said it expects all credits to be completed and posted to clients' trading accounts by 5pm ET on Thursday, 22 January, 2015.

Other notable international brokers are still on the fence regarding the issue of resetting negative balances. Follow our Real Time List to keep updated on what brokers' clients are covered.