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FXCM Discussion

  • #6,221
  • Jan 20, 2015 1:26pm Jan 20, 2015 1:26pm
By the way, in this very moment fxcm stock is trading at 1.5 (-88% today), looks like it's a penny stock again.
I guess the market didn't like the loan details.

I am starting to worry this time.
  • #6,222
  • Jan 20, 2015 2:03pm Jan 20, 2015 2:03pm
Quoting TranceTrader
Bloomberg are reporting that FXCM owners are bankrupt due to SNB move and a sale of the business is being forced...
Hi TranceTrader,

FXCM received $300 million in financing as we reported on Friday. We are open for business and continue normal operations.

Jason
  • #6,223
  • Jan 20, 2015 2:10pm Jan 20, 2015 2:10pm
Quoting Jason Rogers
{quote} Hi TranceTrader, FXCM received $300 million in financing as we reported on Friday. We are open for business and continue normal operations. Jason
Everything is normal... nothing to see here....

Inserted Video
  • #6,224
  • Jan 20, 2015 2:12pm Jan 20, 2015 2:12pm
Quoting Jason Rogers
{quote} Hi TranceTrader, FXCM received $300 million in financing as we reported on Friday. We are open for business and continue normal operations. Jason
I really hope you guys are open for business for years to come just scared after what happened recently.
GBP/USD
  • #6,225
  • Jan 20, 2015 2:16pm Jan 20, 2015 2:16pm
Quoting spaceduck
By the way, in this very moment fxcm stock is trading at 1.5 (-88% today), looks like it's a penny stock again. I guess the market didn't like the loan details. I am starting to worry this time.
I'm worried as well, and I'm not sure what to think of the whole situation. Like in many cases I think their business operation is going to be sold out in few months.

I have heard a lot of good things and the fact that they have changed a lot in the last year as well as the fact that they have changed their business model as well, but now the SNB tsunami it seems it has put an end to their business, I hope I'm wrong but .............
  • #6,226
  • Jan 20, 2015 2:30pm Jan 20, 2015 2:30pm
what about funds safety? I've an account with fxcm uk, and i'm not an UK resident... does fscs cover to non-uk residents? what's covered deposit or balance?

I don't know if I should withdraw my money... but an stock at 1.5 makes me shake..... + the fxcm's china loses which aparently are huge...
  • #6,227
  • Jan 20, 2015 2:47pm Jan 20, 2015 2:47pm
Quoting Jonathan3009
what about funds safety? I've an account with fxcm uk, and i'm not an UK resident... does fscs cover to non-uk residents? what's covered deposit or balance? I don't know if I should withdraw my money... but an stock at 1.5 makes me shake..... + the fxcm's china loses which aparently are huge...
Pretty sure funds in UK are kept in segregated account and are safe. US traders should worry more as their money is not separated from the firm capital and may be lost is bankruptcy. But if you worry about your money, FIRST THING YOU DO is talk with the company representatives and read the legal disclosure of the particular entity you are dealing with, not looking for an advice from fellow traders who likely have no idea either
  • #6,228
  • Jan 20, 2015 3:00pm Jan 20, 2015 3:00pm
Quoting Jonathan3009
what about funds safety? I've an account with fxcm uk, and i'm not an UK resident... does fscs cover to non-uk residents? what's covered deposit or balance? I don't know if I should withdraw my money... but an stock at 1.5 makes me shake..... + the fxcm's china loses which aparently are huge...
"FXCM UK protects the deposits of their retail customers through the segregated accounts described above. These funds cannot be used for other creditors. In the unlikely event that FXCM Limited is unable to satisfy repayment claims, eligible claimants have the right to compensation by the FSCS. The FSCS is the UK's compensation fund of last resort for retail customers of authorised financial services firms.
FXCM's clients whom are eligible would be placed under the 'investments' claim category, whereby the cover is £50,000* per person per firm. If a client held an account with an authorised investment firm and there was a shortfall in segregation, they might still receive up to £50,000 in compensation.
For more information about the FSCS and its protection to investors, please visit http://www.fscs.org.uk/."


Here is the link http://www.fxcm.com/uk/advantages/safety-of-funds/

Just keep in mind, in case of insolvency, your money may be safe but it may take some time before it is wired back to you.
  • #6,229
  • Jan 20, 2015 3:48pm Jan 20, 2015 3:48pm
under the current circumstances I think FXCM is too risky to hold my money. After careful consideration I have withdrawn all my funds and opened several accounts at another forex broker. I read the FXCM statement on the terms of the leucadia loan and it seems pretty clear that FXCM management will be focused on other tasks that are not trading related but are survival related. If this were a trading situation I'd pass since I can quantify the risks. I've moved on. Best wishes to FXCM and Jason.
  • #6,230
  • Jan 20, 2015 4:01pm Jan 20, 2015 4:01pm
Made a withdrawal from my non-US broker very late Friday. The free of charge wire hit my bank before 10AM this morning. I am sure it would have been there yesterday if no holiday. High leverage, no FIFO, hedging (I don't hedge, but could if I want) and they somehow get my money here in 18 business hours, when my domestic broker takes 4 days. If we all just go offshore, who is going to stop us.
  • #6,231
  • Jan 20, 2015 4:17pm Jan 20, 2015 4:17pm
Quoting GEfx
under the current circumstances I think FXCM is too risky to hold my money. After careful consideration I have withdrawn all my funds and opened several accounts at another forex broker. I read the FXCM statement on the terms of the leucadia loan and it seems pretty clear that FXCM management will be focused on other tasks that are not trading related but are survival related. If this were a trading situation I'd pass since I can quantify the risks. I've moved on. Best wishes to FXCM and Jason.

Another thing that bothers me about fxcm is their silence regarding the negative balances. I read their legal disclosure and seems clear cut that traders are not liable for losses beyond their equity. Yet, fxcm representatives keep telling customers that there is still no decision how to proceed. Sorry, I can't trust company that says one thing when things are fine but then "needs time to decide" when everything goes south.
  • #6,232
  • Jan 20, 2015 4:49pm Jan 20, 2015 4:49pm
Some of my fxcm accounts were affected by the snb news and i held long eurchf only.
Two days ago fxcm transfered money from my other acc which had a positive balance of $250 to my other acc which had -$180k balance. Clearly they dont expect me as a continuing client.

Jason Rogers can you explain this?

Despite their policy of clients never owe money and negative balance will be reset to zero, they dont care about keeping old clients and only worry about survival.

I dont think it's wise to open a new acc fxcm, let alone staying with them.
  • #6,233
  • Jan 20, 2015 5:07pm Jan 20, 2015 5:07pm
Quoting william17
{quote} Another thing that bothers me about fxcm is their silence regarding the negative balances. I read their legal disclosure and seems clear cut that traders are not liable for losses beyond their equity. Yet, fxcm representatives keep telling customers that there is still no decision how to proceed. Sorry, I can't trust company that says one thing when things are fine but then "needs time to decide" when everything goes south.
since fxcm's us branch does not have segregated accounts for clients' funds, does it mean that we all go belly up if something worse happens?
subsequently, does clients losing 225 mil for fxcm affects other clients like myself sitting in cash right now?
i don't have much experience and will appreciate if someone is able to explain this issue to all of us.
also, if fxcm will suddenly close the business, what's better:
a) having a withdrawal confirmation
b) having the account closed before action becomes irreversible?

i had a withdrawal request for 16th of jan. my account is still fully funded. i talked to a chat operator and he (matthew) said it takes up to 7 days now, since the swiss conflagration. he also asked me why i chose to cash out such a big amount (95% of my account). i said i need it.
god help us all (fxcm included)! otherwise, we're screwed (at least here in the us).
thanks again cftc for doing everything possible to screw us!
why fifo, why leverage, why hedging restrictions (and credit card funding now) if you can't regulate the safety of our funds?
  • #6,234
  • Jan 20, 2015 5:14pm Jan 20, 2015 5:14pm
Quoting rayzz
Some of my fxcm accounts were affected by the snb news and i held long eurchf only. Two days ago fxcm transfered money from my other acc which had a positive balance of $250 to my other acc which had -$180k balance. Clearly they dont expect me as a continuing client. Jason Rogers can you explain this? Despite their policy of clients never owe money and negative balance will be reset to zero, they dont care about keeping old clients and only worry about survival. I dont think it's wise to open a new acc fxcm, let alone staying with them.
You have a -$180K balance in one account? Nice. And they took $250 (without k) from the other account - and you complain? Thats a staggering sense of self-entitlement.
  • #6,235
  • Jan 20, 2015 5:22pm Jan 20, 2015 5:22pm
Quoting rayzz
Some of my fxcm accounts were affected by the snb news and i held long eurchf only. Two days ago fxcm transfered money from my other acc which had a positive balance of $250 to my other acc which had -$180k balance. Clearly they dont expect me as a continuing client. Jason Rogers can you explain this? Despite their policy of clients never owe money and negative balance will be reset to zero, they dont care about keeping old clients and only worry about survival. I dont think it's wise to open a new acc fxcm, let alone staying with them.
beside that, can i ask you, since i'm absolutely puzzled and horrified by how much money was lost:

before being in the red by 180k, how much money you had in your account?
wow, that's crazy man! hope you're well and still think clearly!
  • #6,236
  • Jan 20, 2015 5:42pm Jan 20, 2015 5:42pm
Quoting rayzz
Some of my fxcm accounts were affected by the snb news and i held long eurchf only. Two days ago fxcm transfered money from my other acc which had a positive balance of $250 to my other acc which had -$180k balance. Clearly they dont expect me as a continuing client. Jason Rogers can you explain this? Despite their policy of clients never owe money and negative balance will be reset to zero, they dont care about keeping old clients and only worry about survival. I dont think it's wise to open a new acc fxcm, let alone staying with them.
If you are so keen to retrieve your $250 you have to FIRST READ THEIR LEGAL DISCLOSURES and see how they treat different accounts belonging to the same person( are they different entities or not). Example, If you have different accounts but they are treated as "rooms" in a "house", you lose all rooms if the bank (fxcm in this case) repossess your "house"(accounts in this case). Even if they don't have the right to do so, would you fight them for $250? If I were you, I would be taking screenshots/ downloading their legal disclosures, etc that say clients are not responsible beyond their deposited funds in case they try to collect the -180000 balance. This should be your primary concern!
  • #6,237
  • Jan 20, 2015 6:08pm Jan 20, 2015 6:08pm
Attached Image (click to enlarge)
Click to Enlarge Name: FXCM - Losses 3.PNG Size: 11 KB
(20-Jan-15 23:51 GMT)

Can Jason Rogers comment re above (image).

1. FXCM UK & AU clients are covered by above. (above exists on FXCM UK site and must surely be a legal term of contract)

  1. a) Yes
  2. b) No

2. FXCM US and other International clients are not covered by above. (above does not exist on FXCM US and other FXCM International sites)

  1. a) Yes
  2. b) No

Regards

TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #6,238
  • Jan 20, 2015 6:31pm Jan 20, 2015 6:31pm
Quoting Phylo
{image} (20-Jan-15 23:51 GMT) Can Jason Rogers comment re above (image). 1. FXCM UK & AU clients are covered by above. (above exists on FXCM UK site and must surely be a legal term of contract) a) Yes b) No 2. FXCM US and other International clients are not covered by above. (above does not exist on FXCM US and other FXCM International sites) a) Yes b) No Regards
FXCM US does not have that on the website but you can find the following on their risk disclosure (http://www.fxcm.com/legal/trading-execution-risks/)

Although the margin call feature is designed to close positions when account equity falls below the margin requirements, there may be instances when liquidity does not exist at the exact margin call rate. As a result, account equity can fall below margin requirements at the time orders are filled, even to the point where account equity becomes negative. This is especially true during market gaps or volatile periods. FXCM will not hold traders responsible for deficit balances in this scenario, but clients should be cognizant that all funds on deposit in an account are subject to loss. FXCM also recommends that traders use Stop orders to limit downside risk in lieu of using a margin call as a final stop.

It is as clear cut as it gets. Any attempt to spin this and suggest that US traders owe the company any money beyond their deposits should be easily defeated in court and possibly open the doors for action class suit AGAINST fxcm for acting in bad faith
  • #6,239
  • Jan 20, 2015 6:53pm Jan 20, 2015 6:53pm
Just read this article on Bloomberg http://www.bloomberg.com/news/2015-0...y-trading.html

The interesting part:
"The 157-page prospectus for FXCM’s 2010 initial public offering warns of the disaster that could follow extreme market volatility, as happened last week.
“We may be unable to close out customer positions at a level where margin posted by the customer is sufficient to cover the customer’s losses,” the prospectus says.
Many businesses might sue customers who refuse to pay up. Not FXCM.
The prospectus goes on to describe what, in hindsight, might seem like a weakness in FXCM’s business plans: “Our policy is generally not to seek to pursue claims for negative equity against our customers.”
In other words, if customers run up big losses, FXCM will be on the hook."
  • #6,240
  • Jan 20, 2015 7:01pm Jan 20, 2015 7:01pm
The points are:

1. If they even took $250 in order to offset $-180k, it shows they are desperate. @ Shrike: u missed my point.

2. Negative balances with fxcm aus will likely be reset to zero because it happened to me in the recent past and they even emailed me saying that it is their policy to reset negative balance, and because they do a no debit balance policy that explicitly states so.
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