Is Your Broker Weathering the CHF Storm? Real Time Updates
Thanks to a surprise shakeup from SNB, the FX industry has been placed in a state of flux with the
Update: New Real Time Updates.
Thanks to a surprise shakeup from the Swiss National Bank (SNB), the FX industry has been placed into a state of flux with the playing field radically redrawn – consult Forex Magnates’ comprehensive broker list to see the state of each broker.
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Amongst the speeding headlines, perhaps no two brokers received more attention than FXCM and Alpari UK that has announced it is reversed its own insolvency declaration and its board of directors are now “urgently” considering an imminent sale.
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FXCM however, after facing losses in excess of $220 million, has received a $300 million Leucadia National bailout and confirmed that it has managed to ensure the full financial stability of all its client accounts. Meanwhile, the rest of the industry seems to be relatively intact – the following is a list of each broker at the time of writing along with the present state of their business:
FYI margin on lmax is lowered too to 10:1 on CHF pairs. They seem to be rather aggressive with things like these, they pulled the plug on RUB trading too with only extremely priot notice to traders.
There is an error in the brokers status table: trading on CHF pairs is NOT halted in INTERACTIVE BROKERS.
I am an IB customer and I’m trading EURCHF right now.
good idea to do this list. your weekly forex recap should have a separate “timeline” that deals exclusively with CHF aftermath. Timeine would keep everything organized and concise.
We at ACM Gold are open for CHF trades. We did suffer losses just shy off 2.1M USD but that has an immaterial impact on the company capital. I sincerely hope and wish that we see more of Alpari. I really like their brand.
Not looking forward to lower volumes because of lower leverage that would be enforced by the regulators in the coming and the consolidation that would follow. Well done to Drew and Team at FXCM to strike a deal so quickly.
if my broker is not on the list, which assumption(s), if any, can be drawn? Surely by now, all brokers should know if they are ok or not?
Interactive Brokers is business as usual. They stated there were clients that had losses greater than cash in the client accounts but the losses were only near 2% of capital. They also didn’t suspend trading. Get your story straight
Business as usual, no financial impact.
@Paul, the list may not be all inclusive of all forex brokers/IBs in the industry, as there are several hundreds and IBs would run into the 1,000s if not more. By now, a concerned live client would have contacted their broker via email, chat, or phone to assess the situation. I suspect by Monday close of business, we will know the full extent of the situation. If you have not heard anything back by Monday, then I would start checking the forex forums that your broker frequents (you can actually start scanning now). Then file a complaint with the broker’s… Read more »
Matador Prime wishes to inform its clients and the FX community that our trading systems have navigated the Black Thursday without any inconvenience. The risk management of our medium frequency algorythms have proven to be efficient, the client's accounts have not been affected, and even though this past Thursday will be remembered by many as the worse in the trading history, we are glad to inform that it was a normal day of trading, and that are accounts are as solid and profitable as ever.
The ultimate question here is, did regulation work? Will customers who did not suffer market related losses incur credit losses to Alpari UK? Full credit to FXCM for knowing exactly where they stood and dealing with the losses immediately – THEIR losses, since they had guaranteed that customers could not lose more than their deposits, guaranteeing stops that could never have been filled… that was their business model, that’s where the chips fell. As with firms like Merrill Lynch, Drexel Burnham, Knight, and others that fell into financial difficulties, their customers will not lose a cent. If UK regulators did… Read more »
iam a FXCM customer and my account is having a negative balance now. . i wonder if Fxcm is going after me for the loss that exceed my account balance. (very worried)
Kindly inform about CitiFxPro
FXCM clearly has published a document that stated "client cannot loss more than their deposit" ( http://tinyurl.com/ppl5wwq ) . But now that document is no longer at FXCM official website. Hopefully FXCM will honor their promise.
Ian: read the Saftey-of-Funds FAQ on the fxcm website. They clearly state that customers will not be liable for negative balances.
@Ian
http://www.fxcm.com/uk/support/faq/margin-requirements/
Is there a debit balance risk? Can I lose more money than I deposit?
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.
Are those incurring losses the only ones connected with liquidity providers because you never know in this not so transparent industry, as the mere coming out of age ECN STP brokers shows, who by the way suffered the biggest blow if any ? The carry trade on EURCHF used to be a big deal two years long, how could so few brokers be affected? Just asking. In a business model based on client deception , broker loose nothing on negative account, in fact it owes him the house. He just have to disconnect losers from real market. Against any broker’s… Read more »
@JLTrader @Andy. thanks for letting me know FXCM has deposit garuntee. at first I was worried about different FXCM subsidiary has different policy. (the one I signed up with is FXCM Asia ). now i finally found the document regarding fundSafety & depositGaruntee http://www.tinyurl.com/pstrcnm .. (feeling relieved)
A fool and his money are soon parted
@Ian and others concerned. http://www.fxcm.com/uk/advantages/safety-of-funds/ http://www.dailyfx.com/forex_forum/other-account-questions/472390-negative-balance-account.html I would advise to check the forex forums or contact fxcm for that document. Checked cached pages from google or archives.org wayback machine or something similar. FXCM ‘Jason Rogers’ is very active on several forums, mainly ForexFactory, ForexTSD, BabyPips.com, etc. But just glancing at the forexfactory thread for the last 2 days Jason has not been responding to intelligent inquiries, likely on a executive ‘gag’ order until top brass finalizes a deal and can issue clear directives going forward. Any official pages, go ahead and snag a screenshot. Save any important Terms and Conditions… Read more »
@Jon 2% Minimum margin required = 50 to 1 maximum leverage allowed.
@Jon 2% Minimum margin required = 50 to 1 maximum leverage allowed.
@Ian and others helpful ppl
Would anyone has a screenshot of the Fxcm Asia document regarding fundSafety & depositGaruntee http://www.tinyurl.com/pstrcnm .. (feeling relieved), appears they have removed it from their website.
Much appreciate your help
http://www.fxcmasia.com/en/advantages/execution-advantage/forex-truth/
http://www.fxcmasia.com/docs_pdfs/the_truth_about_forex_trading_guide.pdf
backup: https://www.scribd.com/doc/252961897/The-Truth-About-Forex-Trading-Guide-FXCM-Asia
http://www.fxcm.com/uk/advantages/safety-of-funds/
should be other forex forums which have this pdf available.
Fxcm is caught.
My Balance on Alpari is way negative. will they take that Money from me? I’m terribly worried!
what about XFOREX.
Plz let me know their fate as their offices are not returning my calls.
WHAT ANOUT THOSE SMALL PRIME BEOKER ?
such as boston technologies, cfh , and so on
Guys… Any news on IG and negative balanced pls
I’d be also interested in the negative balance of IG markets.
They seem to lose many customers, as I understand.
IG update would be really interesting
FXCM deduct all the money in related accounts to pay back the negative account. So did PRIORFX.
But if you have only one account there, i guess you dont have to worry.
Ron is correct. If you want to max out negative balance protection, you need to use 2 or more separate accounts, each at SEPARATE BROKERS.
Then gamble as you wish.
Or use the same broker, but have the accounts in separate names. Each will be treated as separate people.
Is there any news about the copytrading brokers, like zulutrade, myfxbook, tradency, etoro, darwinex etc. Did they suffer? I would think not because for most of them the clients’ funds are at the brokers, but still, any news would be appreciated.
ig update… They are actively trying to get negative balances paid off by clients so far in Italy, Germany and Switzerland. I’m. Guessing UK and the rest tomorrow
i see zero
i see zero
is anyone trading with synergy i have a large negative balance synergy fx is chasing me for the losses just wondering if anybody else has had the same experience with synergy fx they are threatening action if i do not pay. Any advice appreciated . Will post again soon with outcome.
Warning! Plus500 no withdraw and payment out since 01.15 !!!
sorry : plus500 dont pay “my withdraw”! Someone has information???
Synergy may state business as usual but i can assure you they are hunting down clients to repay ” negative balances”. I find this at odds with the new hybrid product they are marketing that states you wont lose more than you initial investment. My advice stay away from them, their actions in hunting down clients to repay negative balances indicates the real intent of this broker. Christian can spin all he likes but ” action speaks louder than words” in this case. I will post more detail on this as it unfolds, if others affected by Synergy wish to… Read more »
Hi Martin -please post email address and i will contact you regarding your loss and issue with Synergy FX.