First one bites the dust

Thx · Post by **Thx** » Fri Jan 16, 2015 10:02 am

HannesJoubert » Thu Jan 15, 2015 7:39 pm wrote:I sometimes wonder if these pukes even realise what havoc they cause in peoples lives.

H

Yes i agreed, and apparently the effect is goes far beyond our 'trading world', here's one that i can find on the wires.
http://www.bloomberg.com/news/2015-01-1 ... s-cap.html

HannesJoubert · Post by **HannesJoubert** » Fri Jan 16, 2015 10:08 am

SteveHopwood » Fri Jan 16, 2015 11:58 am wrote: Let's put a favourable interpretation on this and assume it was a mistake rather than an outright lie. All of my chf positions closed smoothly (and at a mahoosive profit) bar one, and Jeremy closed that one for me. Broker? Global Prime, who else.

Yup, filled in the GP application forms, passed the quiz (woohoo

can't be that much of tool then

)
Uploaded the documents, so now I wait...I hope my documents are in order, we had a postal strike for much of last year here in ZA, so bills are hard to come by at the moment...

Hannes

HannesJoubert · Post by **HannesJoubert** » Fri Jan 16, 2015 10:21 am

Apparently Alpari UK has also had its back broken...

Who was it that created the image of corpses rising to the surface? Fitting description...

If anything, this is another lesson about high leverage if I understand Jem correctly...

H

WackyRacer · Post by **WackyRacer** » Fri Jan 16, 2015 11:04 am

Yes Alpari UK seems to have gone under - at least for now

This morning at about 9am UK time my 4 open trades all closed and I got Trading Disabled when I tried to Open a pending. Only I micro account and I wasn't affected by CHF.

The message on their web site:

"The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules"

Looks like I need a new broker.

B Rgds

WR

Post by **milanese** » Fri Jan 16, 2015 11:24 am

WackyRacer » Fri Jan 16, 2015 11:04 am wrote:Yes Alpari UK seems to have gone under - at least for now

This morning at about 9am UK time my 4 open trades all closed and I got Trading Disabled when I tried to Open a pending. Only I micro account and I wasn't affected by CHF.

The message on their web site:

"The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules"

Looks like I need a new broker.

B Rgds

WR

just go to Global prime and you will be happy!!

Post by **matt_32** » Fri Jan 16, 2015 11:43 am

Fx pro clients ... negative balance issue

http://www.fxpro.co.uk/group/media/news ...

Post by **Reaper** » Fri Jan 16, 2015 11:48 am

matt_32 » Fri Jan 16, 2015 11:43 am wrote:Fx pro clients ... negative balance issue

http://www.fxpro.co.uk/group/media/news ...

Well, this has just put them on the map. Being a UK regulated broker and negative balance protection.

Now I just want to know if they honoured their client's SL levels with minimal slippage?

Post by **boldtrader** » Fri Jan 16, 2015 11:54 am

and there is more....

- IG Group announced a potential hit of GBP 30mln saying “it closed its client’s positions at a more beneficial level than the Co. was able to close its entire corresponding hedge to the market dislocation.” Co. shares fell by as much 6.7% in reaction in response.

and

- Excel Markets based in New Zealand informed its clients that in can no longer meet the regulatory minimum capitalization requirements of NZD 1mln and will not be able to resume business.

add these to the list..

HannesJoubert · Post by **HannesJoubert** » Fri Jan 16, 2015 12:25 pm

Eish people, eish

Post by **Reaper** » Fri Jan 16, 2015 12:40 pm

So it actually turns out that there are several brokers that offer Negative Balance Protection. You will never lose more than what's in your account and therefore never have to owe the broker should their platform not margin call you automatically. If you do get negative, they will 'zero' the account for you. This feature is now a must for me if I every want to do any trading online.

This list might not be accurate so please double check.

FXPRO
FXCM
OANDA
Forex.com

The brokers take the hit instead of the clients. The brokers should have collateral account set up for this event. With Client funds held in a completely separate account also. Now whether companies like FXCM can handle the $225 Million bill is another story.