IC Markets Covering 90% of Client Negative Losses from Swiss Franc Volatility
IC Markets has become the latest broker that has decided to cover client negative balances. The decision to absolve clients who sustained negative balances from losses due to the Swiss franc’s volatility earlier this month has become a heated industry topic. On one hand, clients are in essence taking loans when they trade with margin with an obligation to cover the loan in the case of a loss. On the other hand, very few retail forex customers are aware that they could lose more than their deposit amount.
The question is especially an issue for brokers utilizing a straight-through processing model where each of their customer’s trades is hedged with external liquidity providers. As a result, client negative losses are losses that brokers have also absorbed with their liquidity providers. Failure to collect negative balances from their retail customers means they are sustaining an uncoverable loss with their counterparties.
In IC Market’s case, the firm made a decision to forgive negative balances for 90% of their clients. Overall, similar to other Australian brokers who have a large concentration of their customer base in the APAC region, IC Markets wasn’t believed to have held large exposure to the Swiss franc. The firm confirmed this to Forex Magnates, adding that franc exposure was also reduced when the firm decreased leverage in franc forex pairs in December. They added that the majority of their negative balance exposure was limited to three account holders.
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32 Comments on "IC Markets Covering 90% of Client Negative Losses from Swiss Franc Volatility"
Ron….great news for IC guys….
Can someone speak with IG now please? We as clients have been under severe stress for weeks now whilst most of the other companies seem to be announcing wiping negative balances.
We’re asking IG to be compassionate and understand that what has happened to retail clients is not fair. We are not blaming IG…..we are asking for their help as loyal customers for many years
Ron….great news for IC guys….
Can someone speak with IG now please? We as clients have been under severe stress for weeks now whilst most of the other companies seem to be announcing wiping negative balances.
We’re asking IG to be compassionate and understand that what has happened to retail clients is not fair. We are not blaming IG…..we are asking for their help as loyal customers for many years
Like many other broker having trooble with the CHF crisis IC Markets is covering 90% of Client Negative Losses but IC Markets is not covering hedge funds and institutional client negative losses… Cause it costs too much…
Like many other broker having trooble with the CHF crisis IC Markets is covering 90% of Client Negative Losses but IC Markets is not covering hedge funds and institutional client negative losses… Cause it costs too much…
FxPro had, and has, Guaranteed Negative Balance Protection for 100% of its clients – it has been an integral part of their T&C’s for some time.
FxPro had, and has, Guaranteed Negative Balance Protection for 100% of its clients – it has been an integral part of their T&C’s for some time.
Fx Pro also have trading costs 2-3x greater than ICM. with costs like that they can afford to cover negative balances…
Fx Pro also have trading costs 2-3x greater than ICM. with costs like that they can afford to cover negative balances…
Robert, I guess it has been paying off, then 🙂
Robert, I guess it has been paying off, then 🙂
Good move ICM. I don’t trade Swissy so it does not affect me, but good to know they are not going to chase those additional losses of their clients.
Good move ICM. I don’t trade Swissy so it does not affect me, but good to know they are not going to chase those additional losses of their clients.
This is the way to ensure future business. Someone should also point out this to Axitrader.
This is the way to ensure future business. Someone should also point out this to Axitrader.
@rob, ron, IC lovers etc – its only 90% – seems like just a marketing move with those other 10% probably the majority of the losses
@rob, ron, IC lovers etc – its only 90% – seems like just a marketing move with those other 10% probably the majority of the losses
Don´t get too excited about ICM being compassionate or pardoning anything. Read the FxPeaceArmy page and you will find plenty of complaints againts ICM from clients requesting a reverse or a refund and getting nothing. If they forgive anything either the client is right and threatens to sue them, or the client has more funds in other accounts to compensate the loss, or it is too expensive for ICM trying to recover the loss.
We don´t expect compassion from FX brokers, what we demand is fairness and honesty, and getting those would be a REAL trading benefit.
Don´t get too excited about ICM being compassionate or pardoning anything. Read the FxPeaceArmy page and you will find plenty of complaints againts ICM from clients requesting a reverse or a refund and getting nothing. If they forgive anything either the client is right and threatens to sue them, or the client has more funds in other accounts to compensate the loss, or it is too expensive for ICM trying to recover the loss.
We don´t expect compassion from FX brokers, what we demand is fairness and honesty, and getting those would be a REAL trading benefit.
Good move IC Markets perhaps other Australian brokers will follow suite. They really have their clients in mind.
I see the post by Peter Fontana, and note that if you have a negative balance in one account and enough money in the other then you dont have a negative balance. All brokers have the right to offset accounts. I dont think you are a very informed trader.
Good move IC Markets perhaps other Australian brokers will follow suite. They really have their clients in mind.
I see the post by Peter Fontana, and note that if you have a negative balance in one account and enough money in the other then you dont have a negative balance. All brokers have the right to offset accounts. I dont think you are a very informed trader.
This Peter Fontana guy is stupid. If he trades with and broker or even ans multiple bank accounts with a bank and one goes negative the bank or broker has the right of offset.
Another illinformed trader.
This Peter Fontana guy is stupid. If he trades with and broker or even ans multiple bank accounts with a bank and one goes negative the bank or broker has the right of offset.
Another illinformed trader.
Re Michael´s message,
I´m always ready to help any fellow trader victim of dishonest brokers.
Even though I do not do spread betting, I´m sending a letter of support.
Good luck to you.
Re Michael´s message,
I´m always ready to help any fellow trader victim of dishonest brokers.
Even though I do not do spread betting, I´m sending a letter of support.
Good luck to you.
This is just PR Bullshit.
After wiping out one of my accounts, when I was Long on the CHF on what was false data feeds. I know the truth about IC Markets.
They made no attempt to try and adjust my account and did not resolve the negative balance that my account ended up in.
This is just PR Bullshit.
After wiping out one of my accounts, when I was Long on the CHF on what was false data feeds. I know the truth about IC Markets.
They made no attempt to try and adjust my account and did not resolve the negative balance that my account ended up in.