Alpari UK, New Zealand Excel - Insolvent

[iMusingKiMi]

Anyone heard about it? Both of the forex broker went into insolvent after EUR/CHF crash.

http://leaprate.com/2015/01/exclusive-ig-group-looking-to-buy-forex-brokers/

Proud to be part of IG clients.

 

[RahmanSL]

The news is all over Bloomberg & CNBC that some FX Brokers were heavily hit by the surprise downturn in EUR/CHF....with some Kiwi FX brokers (as CNBC puts it) "teetering on the brink"...FXCM was hit with some USD225m loses by their clients and, with such massive losses, the company might not be able to raise sufficient capital to stay in business.

Alpari UK & N. Zealand was not mentioned specifically, but I supposed they were affected too.

 

[AsstModerator]

Alpari's website claims they may pull through.

 

[iMusingKiMi]

Alpari's website claims they may pull through.

Yeah, hopefully. I inform my friend too late, he have couple of thousand pounds there and it is closed now. Just ask him, he told me Alpari closed and nothing he can do. Luckily most of the fund wasn't in there. But the did mentioned retails trader still safe segregated according to FSA regulations if I am not wrong.

 

[iMusingKiMi]

The news is all over Bloomberg & CNBC that some FX Brokers were heavily hit by the surprise downturn in EUR/CHF....with some Kiwi FX brokers (as CNBC puts it) "teetering on the brink"...FXCM was hit with some USD225m loses by their clients and, with such massive losses, the company might not be able to raise sufficient capital to stay in business.

Alpari UK & N. Zealand was not mentioned specifically, but I supposed they were affected too.

Yeah, 3 major bank such as Citigroup, Deutsche Bank and Barclays accumulate with a 400 million of loss. I just read it on Business week.

 

[Pharaoh]

More news - FXCM got bailed out. Alpari UK may still be in trouble.

And, some of the scumbag bucketshops that didn't lose a cent may decide that this is a good time to "declare bankruptcy" grab all the money, and reopen under new names.

 

[irongoose]

That Nadex binary exchange is starting to sound a lot better, whats going to happen if we get something else like this again this year? Surely it would be catastrophic to the Forex brokers!

 

[AsstModerator]

Any broker connected to LPs could have this issue. The same thing could have happened to Nadex if clients had been heavily long on the EUR/CHF on their exchange traded options.

 

[irongoose]

Any broker connected to LPs could have this issue. The same thing could have happened to Nadex if clients had been heavily long on the EUR/CHF on their exchange traded options.

I don't see how being they are an exchange and the other side of the trade is funded by someone else taking the opposite direction of your trade .

 

[AsstModerator]

It would be exactly the same as a forex broker that passed a trade to an LP. A large enough trade with enough leverage could result in losses exceeding the funds in the client's account. The exchange, just like an LP, would expect the broker to cover the loss.