Swiss origin Dukascopy, an international provider of currency and CFD brokerage services, has announced that it will be taking an exceptional decision to cover negative balances on its clients’ accounts. The move comes after brokers suffered at the mercy of the SNB and its surprise rates decision, last week. In its note, Dukascopy urges other industry peers to follow its ‘yellow brick road’ of comfort for troubled traders.
Dukascopy joins some of the good Samaritans of the industry by waiving off client closes. The move comes after several brokers reported to Forex Magnates their exact losses during the CHF crisis, listed provider, FXCM, taking a major hit with losses in excess of two hundred and twenty million dollars putting the firm in a dire position, consequently the firm has been bailed out. However, Alpari UK was an unfortunate provider that called it quits earlier today after failing to secure a rescue deal.
The note states: “Management of Dukascopy Group has decided to take an exceptional decision to cover negative balances on client accounts related to CHF move on SNB decision on 15.01.2015.
In spite of the fact that agreements and regulation allow Dukascopy to claim negative balances compensated by clients, it was decided to release customers from obligation to cover negative balance.
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Dukascopy Bank has not cancelled or negatively adjusted any trade concluded on 15.01.2015 with clients during the CHF move.
Dukascopy Bank and Dukascopy Europe invite all the industry to follow the same approach to build up customers’ trust in the industry.”
Elements of shock were flowing around the five trillion a day forex industry on Thursday, January 15th, after a surprise move by Switzerland’s central bank to remove its peg to the euro and change ineptest rates. Historic events followed with the currency dripping to record lows and traders being wiped out, the horror flowed with a number of forex providers facing the music, with one UK-based firm having to go into administration.
Oanda reported that it had waived negative balances. Another forex provider, Easy-Forex, has offered a guaranteed stop loss which prohibits the account to go into negative.