Problem Fxcm - what a dissapointment

[paulm1162]

I am so glad now that the FXCM compliance division, nor a Mr Ainsworth, bothered to get back to me regarding being turned down for opening a live account by an automated message.......lots of communication until that point about a month ago, ha ha, so glad i was forced to go with another broker who looks after it's money and customers better....i really feel for all the people whom have lost out in the SNB debacle, i truly do wish you all a positive outcome to all who have been negatively, that goes for all the honest brokerages that went to the wall too

 

[Master Yoda]

FXCM just lost $225M, and needed a credit line of $300M to survive. I don't think they will be able to deal with customers as they used too anymore, and I mean for the worse

 

[navyseal]

I don't think they will vanish but maybe a branch like an Alpari office has gone with numerous brokers due to Swiss Bank decision. In this time, many brokers would do anything to keep their business.

 

[undertaker]

FXCM just lost $225M, and needed a credit line of $300M to survive. I don't think they will be able to deal with customers as they used too anymore, and I mean for the worse

Where can they get $300M, an international bank or their captial? And I wondered if they are really true STP/ECN broker, how do they lose that amount?

 

[Master Yoda]

Where can they get $300M, an international bank or their captial? And I wondered if they are really true STP/ECN broker, how do they lose that amount?

From Leucadia

Leucadia National Corporation and FXCM Announce $300 Million Financing to Permit FXCM to Continue Normal Operations

 

[Afterlife]

Did anybody else received notification from Fxcm they should cover the negative balance?
Should I wait for their official claim or should I be proactive and ask them to reimburse the negative balance as they promised when I opened the account?

 

[Master Yoda]

Did anybody else received notification from Fxcm they should cover the negative balance?
Should I wait for their official claim or should I be proactive and ask them to reimburse the negative balance as they promised when I opened the account?

In FX there should not be a negative balance, it may happen due to spike and in that case the broker should cover it

 

[Afterlife]

I know, and this is clearly stated also on fxcm site.
Unbelivable but , even in these conditions, they called and asked me to cover the negative balance.

 

[Jason Rogers]

Where can they get $300M, an international bank or their captial?

The $300M loan provided by Jefferies Group (a unit of Leucadia) allows FXCM to meet our regulatory capital requirements worldwide and continue normal operations. That means trading, deposits and withdrawals continue as before.

And I wondered if they are really true STP/ECN broker, how do they lose that amount?

Currencies held at artificial levels as we saw with EUR/CHF remain at the same risk so we will be looking to implement additional measures to prevent this from happening in the future. I will share more details once I have more information.

Since our founding in 1999, FXCM has had experience with gapping and significant price moves. FXCM processes approximately half a milllion transactions a day and our margin system has worked through major market moves as in the 2008 financial market crisis as well as the 2011 Japan earthquake.

Prior to Thursday, the EUR/CHF was looked at as a very liquid G10 currency with very low volatility. From the profitability study DailyFX released, we know that our clients tend to be most profitable in low volatility currency pairs. The floor at 1.2000 for the past 3+ years made it a popular currency pair for traders for this reason and there were no indications that this would not continue. However, the SNB essentially lied and didn't intend to protect the floor.

We believe that the NDD model remains the fairest pricing model for forex traders. When you are trading with a dealing desk or market maker, at the most basic level, when you lose money on those trades, they make money. Some of these brokers are now announcing record profits as a result of their client losses. If the market would have moved in EUR/CHF traders favor, then we may have been looking at a much different scenario.

 

[alfexcy]

I always thought FXCM is a MM but as it turns out.. only if they are STP or hybrid they could have been affected by negative balances