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  • #6,961
  • Feb 4, 2015 2:16pm Feb 4, 2015 2:16pm
There we go, so much so for the no negative balance....
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  • #6,962
  • Feb 4, 2015 3:18pm Feb 4, 2015 3:18pm
Traders who have a history of positive trading and hold large deposits with FXCM are not part of the group getting balances reset to zero. The 90% of small account holders who don't make a dime each month through trading are getting their accounts reset to zero.

I am sure lawsuits are in the works!
  • #6,963
  • Feb 4, 2015 3:53pm Feb 4, 2015 3:53pm
Quoting COGnizant
Traders who have a history of positive trading and hold large deposits with FXCM are not part of the group getting balances reset to zero. The 90% of small account holders who don't make a dime each month through trading are getting their accounts reset to zero. I am sure lawsuits are in the works!
Very true. You either have a no debit policy or you don't. There should be a greater concern of lawsuits due to discrimination as opposed to the actual policy. They can't pick and choose who they are going to collect from.
  • #6,964
  • Feb 4, 2015 4:07pm Feb 4, 2015 4:07pm
Quoting Profit Daily
{quote} Very true. You either have a no debit policy or you don't. There should be a greater concern of lawsuits due to discrimination as opposed to the actual policy. They can't pick and choose who they are going to collect from.
I just don' see how this will end clean... seems like a mess will be created just by the new policy versus sticking to the contract they have with all traders when an account is created. I think it is great they will be helping out many traders but the traders who don't get account balance relief will be even more pissed! Classic Catch 22 here!
  • #6,965
  • Feb 4, 2015 4:24pm Feb 4, 2015 4:24pm
Quoting COGnizant
Traders who have a history of positive trading and hold large deposits with FXCM are not part of the group getting balances reset to zero. The 90% of small account holders who don't make a dime each month through trading are getting their accounts reset to zero. I am sure lawsuits are in the works!
Well well, from what I hear... there are some actions under way in various countries.... Head wind expected for FXCM
You might be a 'High Net Worth' but, if negative balance is 5x your 'Net Worth', what do you do? Seriously!
  • #6,966
  • Feb 4, 2015 4:55pm Feb 4, 2015 4:55pm
Quoting adi17
{quote} Well well, from what I hear... there are some actions under way in various countries.... Head wind expected for FXCM You might be a 'High Net Worth' but, if negative balance is 5x your 'Net Worth', what do you do? Seriously!
Liquidate all personal assets within 14 to 21 days... take cash and hide it (not in any banks)... then file bankruptcy (if you have debts remaining like credit cards, etc).
  • #6,967
  • Edited 6:09pm Feb 4, 2015 5:50pm | Edited 6:09pm
The terms of FXCM master trading agreement, available on the FXCM website, provide FXCM with rights to collect negative balance plus interest.

For the benefit of ALL FXCM clients can Jason Rogers or an FXCM representative:

1. Name the disclosure document where this information can be found.
2. Indicate the relevant clause number/s reference.

  1. THIS INFORMATION IS RELEVANT TO ALL FXCM EXISTING CLIENTS AND ANY FUTURE FXCM CLIENT.
  2. THE FXCM DISCLOSURE DOCUMENTS ON THE FXCM WEBSITE ARE PUBLIC & NON-CONFIDENTIAL DOCUMENTS.
  3. THERE CAN BE NO EXCUSE FOR FXCM NOT INDICATING THE DOCUMENT AND RELEVANT CLAUSE NUMBER/S REFERENCE.

TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #6,968
  • Feb 4, 2015 5:54pm Feb 4, 2015 5:54pm
Ive never even heard/seen/read a doc called "Master Trading Agreement" from FXCM.

Anyone?
  • #6,969
  • Feb 4, 2015 5:57pm Feb 4, 2015 5:57pm
Quoting qp2
{quote} Hi Jason, I have emailed them twice once on Monday and again on Tuesday with no acknowledgement. With the RBA announcement yesterday FXCM froze for about 30 minutes , the account on the VPS worked but it not the same I really want my own platform, if they could just give me a clue about what to do, I have tried finding my real account through the beeksfx thing and opening it but it is not that simple. Where to from here? Regards Allan.
Hi Allan,

The fact that your account worked on VPS suggests that the problem was indeed latency as I had suspected. You should be able to trade your own platform from within the VPS to address this issue. Please send me a private message with your contact details and the best time to reach you. I'll have our tech support team walk you through how to set this up over the phone.

Thanks,
Jason
  • #6,970
  • Feb 4, 2015 6:48pm Feb 4, 2015 6:48pm
Quoting adi17
There we go, so much so for the no negative balance.... {image}
I am wondering what happened to the negative balance forgiveness statement made by an official FXCM representative some years back. While that may not be a contract, it does put into question whether or not what FXCM states can be totally trusted. I understand the need to raise funds but these letters seem quite punitive and treat former customers like criminals. As good as FXCM has treated me personally, it leaves a bad flavor in my mouth knowing that if something like this happens again, even using a stoploss and being an overall responsible client, that I may some day have the "FXCM Legal Department" threatening and demanding things from me for which public statements say I was not liable for. I would really like some explanation for how that promise is being nullified and why FXCM believes I should believe other statements made on the website that may or may not be written into the formal legal contract.

Jason, you know I've defended this company because I honestly am happy with my personal service. But after vehemently defending FXCM here on ForexFactory denying to everybody that any kind of negative balance demands would ever happen, I have been denied any ability to save face from my previous comments and would really like some explanation for why the company thinks it's acceptable to renege on those past promises. Like many others, I'm simply interested in some clarity as to what's going on.

If a public response to my question is not possible, I invite a private message or an email from FXCM's legal team if necessary. Does FXCM forgive negative balances for their customers or was the public statement inaccurate?
  • #6,971
  • Feb 4, 2015 8:05pm Feb 4, 2015 8:05pm
Quoting adi17
There we go, so much so for the no negative balance.... {image}
I believe they sent those letters to all their customers with a negative balance.

It does not mean much because they will only go after the guys who they know can pay.

If some naive retailer pays it, they will gladly take it but they have their eyes on the institutional ones.

There is a cost to collect/prosecute people so I doubt they will bother people with -5k or less in their account.
So, you think you have rights? LOL
  • #6,972
  • Feb 5, 2015 1:20am Feb 5, 2015 1:20am
Quoting Kanzler
{quote} I am wondering what happened to the negative balance forgiveness statement made by an official FXCM representative some years back. While that may not be a contract, it does put into question whether or not what FXCM states can be totally trusted. I understand the need to raise funds but these letters seem quite punitive and treat former customers like criminals. As good as FXCM has treated me personally, it leaves a bad flavor in my mouth knowing that if something like this happens again, even using a stoploss and being an overall responsible...
Kanzler, I am fully with you on this one. Till Jan 15th, I really enjoyed working with FXCM; plateform, service, total cost... all was OK & I personally had no reason to move elsewhere. So much so, that I had several A/Cs there!! To push it further regional FXCM offices still support their traders, but... they have to sit tight (I understand this too).
Then:
- From Jan 15th to end of Jan: I was the sick man sitting in the hospital emergency waiting room.
- Feb 2nd: surgeon is busy now, sorry, but... we have to put you down. Not sure if it painful or not, haven't had time to test that new medicine!
- March: Frankenstein resurface!
  • #6,973
  • Feb 5, 2015 2:13am Feb 5, 2015 2:13am
One thing for sure.

If FXCM gets out of this mess, it will be the biggest, reputable, credible and profitable Retail Forex House.

But, the question remains is, would their Leadership do it and is FXCM Org capable of doing that?
newzTrader
  • #6,974
  • Feb 5, 2015 2:15am Feb 5, 2015 2:15am
Quoting newzTrader
One thing for sure. If FXCM gets out of this mess, it will be the biggest, reputable, credible and profitable Retail Forex House. But, the question remains is, would they do it?
One thing I learned.... nothing is for sure!
  • #6,975
  • Feb 5, 2015 3:36am Feb 5, 2015 3:36am
Quoting newzTrader
One thing for sure. If FXCM gets out of this mess, it will be the biggest, reputable, credible ....


Best thing I've heard all week.
  • #6,976
  • Feb 5, 2015 3:51am Feb 5, 2015 3:51am
Quoting newzTrader
One thing for sure. If FXCM gets out of this mess, it will be the biggest, reputable, credible and profitable Retail Forex House. But, the question remains is, would their Leadership do it and is FXCM Org capable of doing that?
I wanted specifically to inquire about this what you said "will be the biggest, reputable, credible and profitable".

Do you actually believe what you said? FXCM is the biggest joke right now in the industry and I personally believe this company will not be around in 12 months.

Why?
1) The punitive terms of the loan agreement they have with Jeffreys are going to suck them dry, what ever capital they have left.
2) The brand has incurred material damage and like Enron, MF Global it is fatal and non-reversible.
3) NFA will definitely impose much lower leverage on all US-regulated brokers. Lower leverage means lower trading volume for MFGloba, sorry FXCM.
4) My assumption is that 30-50% of FXCM clients, especially the larger ones have either already left or will be leaving shortly. Smaller client base means lower profitability.
5) To survive, FXCM would have to significantly lower their cost, meaning to fire majority of the staff and close a lot of offices they have globally. This means that the quality of the service will go down.
6) Good people will leave this company and head to competitors. Under good people I don't mean Drew, who screwed up at FXCM. Less professional people means that FXCM will be less competitive down the road.

Do you want me to continue?

For those of you who are based in the US I would suggest leaving FXCM immediately and opening an account with Oanda or any other remaining US-based FX broker. Trading is not for those who have illusions. FXCM is a big illusion.
  • #6,977
  • Feb 5, 2015 3:55am Feb 5, 2015 3:55am
I just saw FXCM cut their margin requirement by 50%, hope they cut it another half to be back as in the past.
COT: The precious data ignored
  • #6,978
  • Feb 5, 2015 4:13am Feb 5, 2015 4:13am
I agree with what you said.

The caveat here is ONLY IF FXCM gets out of this mess.

There is easy path and There is hard path. The success will be based on which path FXCM management will prefer.


Quoting BobbyStar
{quote} I wanted specifically to inquire about this what you said "will be the biggest, reputable, credible and profitable". Do you actually believe what you said? FXCM is the biggest joke right now in the industry and I personally believe this company will not be around in 12 months. Why? 1) The punitive terms of the loan agreement they have with Jeffreys are going to suck them dry, what ever capital they have left. 2) The brand has incurred material damage and like Enron, MF Global it is fatal and non-reversible. 3) NFA will definitely impose...
newzTrader
  • #6,979
  • Feb 5, 2015 2:26pm Feb 5, 2015 2:26pm
Another $18 million for the PFG futures clients whose funds were supposedly "segregated" --- but evidently, ZERO for the PFG forex customers who, according to U.S. law, are not even entitled to segregated accounts.

Why is anyone still trading with any US based, NFA regulated broker? They require you to put up 20x the margin as the rest of the world, and as you can see above, THEY PROHIBIT forex accounts from being segregated. So basically increase the funds you must deposit and offer no protection of those funds. Everyone needs to write to them and ask for an itemized description of exactly what they are doing to protect us.
  • #6,980
  • Feb 5, 2015 4:04pm Feb 5, 2015 4:04pm
Quoting Profit Daily
Another $18 million for the PFG futures clients whose funds were supposedly "segregated" --- but evidently, ZERO for the PFG forex customers who, according to U.S. law, are not even entitled to segregated accounts. Why is anyone still trading with any US based, NFA regulated broker? They require you to put up 20x the margin as the rest of the world, and as you can see above, THEY PROHIBIT forex accounts from being segregated. So basically increase the funds you must deposit and offer no protection of those funds. Everyone needs to write to them...
ALPARI showed us that segregated accounts mean nothing.
So, you think you have rights? LOL
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