Will Your Broker Survive the CHF Move?

AsstModerator

FPA Forums and Reviews Admin
Messages
5,602
Will Your Broker Survive the CHF Move?

Just in case you missed the news, the Swiss National Bank removed their longstanding policy to keep the EUR/CHF from falling below 1.200. The effects on the market were huge. Price moved down quickly and there was little liquidity. Stop losses were filled at the next available price, in some cases hundreds of pips below the original SL. Many accounts didn't just experience a margin call. Many went negative.

For those of you who didn't suffer any trading losses, the problems may not be over. The issue is what is happening with brokers where the client base was mostly long on the EUR/CHF and related pairs. If the broker really passed the trades onto the market, the broker lost more money than was in the client accounts.

Some brokers offer negative balance protection. Brokers which don't offer negative balance protection still have to find a way to collect money owed by clients. Either way, many brokers are short on cash.

I'm going to put brokers into 4 categories...

1. Dead or dying.

ExcelMarkets.com has announced that they will go out of business.

Alpari UK issued conflicting statements. As of Monday, they say they are insolvent.

2. In danger of collapse.

I was going to put Alpari UK here, but the latest announcement moved them to category 1.

3. Severely damaged, but may recover.

FXCM's stock plummeted. It has received loans and may be able to recover.

4. Little or no damage. Business as usual.

Several brokers have announced in the Forex Peace Army Press Releases folder that they didn't suffer major damage.


Please use this thread for reports on which brokers are in which categories and other news related to the move of the Swiss Franc caused by the Swiss National Bank.
 

TarryFaster

Private
Messages
18
I'm not sure what category this would go into, but I got a letter yesterday (Jan. 19th) from FinFX declaring that they weren't going to accept anymore US clients and the ones that they already had would have to get off their system by Jan. 30, 2015.

What I'm interested in, is finding out which brokers are "wholesome" and still taking US clients.
 

tyrant666

Recruit
Messages
1
I'm not sure what category this would go into, but I got a letter yesterday (Jan. 19th) from FinFX declaring that they weren't going to accept anymore US clients and the ones that they already had would have to get off their system by Jan. 30, 2015.

What I'm interested in, is finding out which brokers are "wholesome" and still taking US clients.

Got the same message and also looking for a US Broker that is not going to RAPE me.
 

soulsurfer

Recruit
Messages
2
Regarding Alpari (UK) Ltd., they are currently in "Special Administration". KPMG (of MF Global fame) are in charge, and keep moving the goalposts. For a blow by blow account of my so far vain attempts to get my money back see:

Swiss National Bank
 

fxspreadtrader

Recruit
Messages
7
Alpari UK are now under KPMG who are looking for a buyer, but in current market condition that does not seem likely which is a shame as they are a good broker.

When FXCM's stock plummeted it was a great time to buy into this global firm but no prices were out there, back room deals have been done and the 300mil would have brought a good share of the company, watch this stock rise..

Fx5T
 

sun85

Private, 1st Class
Messages
27
I am considering to open new account with Dukascopy EU (with less deposit) ,and then i found out a pop up as below :
dukascopy.png

Good news for all clients of Dukascopy especially who suffered negative balance.. :)
 

irongoose

Private, 1st Class
Messages
67
I'm not sure what category this would go into, but I got a letter yesterday (Jan. 19th) from FinFX declaring that they weren't going to accept anymore US clients and the ones that they already had would have to get off their system by Jan. 30, 2015.

What I'm interested in, is finding out which brokers are "wholesome" and still taking US clients.

Let me start first by saying Friday of last week I closed my account with them and received all money by Tuesday.And second in the letter to all US clients they offered to automatically transfer your accounts to Tallinex by 1/30/15 who has similar trading conditions. Tallinex - FX Trading Software.jpg click image to enlarge.

I must admit it was a little scary when I first checked my E-mail Monday morning after initiating the closing and withdrawing of all funds the Friday before and seeing that they where no longer serving US clients anymore instead of seeing "your funds have been transferred to your account." I thought FinFx had gone belly up over the Swiss Franc thing and they were pulling a fast one on me and I was never going to see my money again! But rest assured as I stated above I did receive my money without any delay or run a rounds like them asking to update IDs or utility bills extra..........

I will be keeping my money closer to home for now on though and I'm thinking of possibly opening a new account on the Nadex binary exchange. There's just more of a reassuring feeling knowing your money is in the country you live in and that you are never more then a two day's drive away from being able to take a baseball bat to someone for F-ing you over. :cool:
 
Top