Hi,Could you please provide me with your opinion about what happens if "best execution” policy which
is regulated by the fca is not followed.Basically for the eur/chf ,I had two orders with the stop loss at the same price and only one was closed while the other was not executed almost wiping my a/c.
The broker mentioned the stop loss which was not executed was in a queue and could not be closed something which they have no control over.This looks to be going against fca regulations about best
execution.They let it run for over 900 pips while the other was closed at 30pips.
what will happen to all clients whose balancies fell to negative equity.Where can you get more information when you are FXCM client?
Hi Everyone,
I know you have been waiting for more information from me, and I would like to thank you for your patience. I wanted to post sooner but the nature of such announcements required me to wait until the official press release:
[I]January 16, 2015[/I]
[B]Leucadia National Corporation and FXCM Announce $300 Million Financing to Permit FXCM to Continue Normal Operations[/B]
NEW YORK–(BUSINESS WIRE)-- Leucadia National Corporation (NYSE: LUK) and FXCM (NYSE: FXCM) today announced that Leucadia would be providing $300 million in cash to FXCM and its subsidiaries (collectively “FXCM”) that will permit FXCM to meet its regulatory-capital requirements and continue normal operations after yesterday’s loss of $225 million due to the unprecedented actions of the Swiss National Bank. Under the terms of the agreements, Leucadia is investing $300 million in cash into FXCM in the form of a $300 million senior secured term loan with a two-year maturity and an initial coupon of 10%. The term loan obligations are guaranteed, on a secured basis, by certain of FXCM’s domestic subsidiaries. In addition, Leucadia will receive, in the event of a sale of FXCM or its subsidiaries, a certain percentage of the sale proceeds and, in the event FXCM makes other distributions on account of its equity, a corresponding payment for its own account. This transaction is expected to close this afternoon. Drew Niv, Chief Executive Officer of FXCM, stated: “We could not be more grateful to Leucadia and its team for their rapid and effective response and to our regulators, who have been willing to work with us through this challenging process. Leucadia’s support and this financing are by far the best alternative for FXCM, our customers, our shareholders, and all other relevant constituencies. We are pleased to continue to act as the leading online provider of foreign exchange trading and related services to retail and institutional customers worldwide.”
[I]Click to see full press release: bit.ly/1ua85Ve[/I]
I had a massive shocker with eurchf… I did not have a chf position on 15th but had left an order to buy at 1.2007 if the level was reached… the market supposedly never touched that level as it gapped in less than 30 sec from market open (based on bloomberg prices)…yet my order got filled unlike my stop loss (which was only 25bps lower)…ended up losing more than 6 digits (when the stop loss was intended at a 2.5k loss…)…shocking…
Call me cynical but I know what the conclusion of the FXCM audit will be regarding that trade - we provided best exec, filled your buy order but could not fill your stop loss order due to slippage, have a great life…
Regarding whether you need to pay the negative balance or not: The FAQ says no (Check margin requirements section on the website) but if you read the 65-page terms and conditions it is quite the contrary…
I think we have a precedent here and I think that FXCM appreciate the gravity of the situation- I think it will have massive negative publicity implications if they start suing individuals left and right for a few k…especially with the aggressively reassuring FAQ that states “At FXCM, your maximum risk of loss is limited by the amount in your account.” But I really dont think they have an incentive to resolute all the trade audit requests in favor of the customer…
The real question is: Can FXCM prove that they provided best exec in front of the regulator and/or court (especially in light of the fact that other brokers didnt struggle that much with filling stop-orders limiting customers’ losses)? I am sure that their lawyers are working during the weekend to figure that out and if they think they can provide evidence, forget about your money…
I see a candle running up to 121. on CHF/JPY so your 117.37 SL should of been triggered.
fxcm=deceit=liers
Dear Client,
IMPORTANT NEWS REGARDING YOUR FXCM TRADING ACCOUNTS
Please be advised that in order to offset negative balances you currently hold in your FXCM account(s), FXCM has transferred funds from your account(s) with a positive balance. The terms of your master trading agreement entered into with FXCM, available online, provide FXCM with these rights.
If after this transfer you still maintain a negative balance on your account, you are requested to remit funds immediately. FXCM accepts deposits by, debit card, bank wire and ACH electronic check. All options can be accessed via our myfxcm.com portal.
As you may already be aware, last week, the Swiss National Bank (“SNB”) announced that they will no longer support a self-imposed floor on the EUR/CHF exchange rate. Learn More
The SNB announcement, extreme price movements and the resulting lack of liquidity were exceptional and unprecedented events causing many market participants to incur trading losses. These events were unforeseen and beyond the control of FXCM, constituting force majeure events.
Record of this transaction is available by generating a Combined Account Statement and referencing the description “Offset Transfer from Account to Account for Negative Balance”.
FXCM thanks you for you cooperation and understanding.
If you have any questions please contact one of our FXCM specialists, who are available 24 hours a day, by live chat, by calling 0808 234 8789 (free phone), or by e-mail at info at fxcm.co.uk.
FXCM hereby reserves all rights and remedies that it may have at law, in equity, under the terms of any contracts with you. Nothing in this notice shall be deemed to constitute a waiver or settlement of any of FXCM’s rights and remedies.
Remember forex and CFD trading can result in a loss of some or all of your deposited funds and therefore may not be suitable for everyone, so please ensure that you fully understand the risks involved.
Care to elaborate on why they are deceitful and liers?
You owe them money and they are asking you to pay it back. Seems quite reasonable to me.
Equally reasonable:
“The continued trust and loyalty of our customers drive every decision we make. In light of last Thursday’s extraordinary market events, we are forgiving all negative balances incurred by our retail clients that day.”
That is from Forex.com - there are a few others who stand above the crowd.
The crowd are really not liars, not indeed even deceitful, they are just bookies who are used to normally winning. When they lose, as FXCM did, well then they behave like all good bookies do - recoup the losses.
[QUOTE=“rindoan;679172”] Care to elaborate on why they are deceitful and liers? You owe them money and they are asking you to pay it back. Seems quite reasonable to me.[/QUOTE]
No one owes FXCM anything
Skip to 1:30 … Plain and simple… FXCM just stated that they guarantee that one cannot lose more then their deposit. They should be forgiving all negative balances.
It will be interesting to see how long FXCM keeps this video up as they begin wrongfully chasing account holders for negative balances.
Damn. You gottem there Globalmac.
[QUOTE=“Arbitrager on Acid;679267”] Damn. You gottem there Globalmac.[/QUOTE] I’m no lawyer but I’d guess that piece of video right there is probably going to kill any chance FXCM will stand in court if a client refuses to be intimidated and takes it to court.
GlobalMacro + SNB Bomb Drop = New ideas and new techniques for this arbitrager on acid.
http://www.fxcm.com/resources/video-library/new-to-forex/what-is-leverage/
Here is the same video still on FXCMs website… Meaning it’s current policy and not an old outdated video.
Who wants to start betting that this gets removed or edited by Monday?
If I was an FXCM client with a negative balance I’d be saving this video to my HD, flash drive, be recording it with my phone, taking Polaroids, and maybe hire a few witnesses to substantiate its existence before it disappears.
In the case of Forex.com they are a market maker who made 3m$ from their clients losses during the SNB move so them forgiving negative balances isn’t really going to cost them much.
Just below the video:
Educational Videos: All videos are provided for educational purposes only and clients should not rely on the content or policies as they may differ with regards to the entity that you are trading with. Further, any opinions, analyses, prices, or other information contained on this website is provided for educational purposes, and does not constitute investment advice. FXCM will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
[QUOTE=“rindoan;679274”] Just below the video: [/QUOTE]
Such a strongly worded “we guarantee clients will not lose more then their deposit” will be more then enough to override anything they try putting in fine print. If they do try pursuing negative balances now every account holder can sue for false advertising claims.
It also doesn’t have that fine print in the YouTube video title, description or embedded in the video itself… Therefore if one were to watch only the video that they posted on YouTube, they would not see it.
Nope no way to dodge this one.
Shix. At the very least it would be false advertising if they did not actually offer what the advert says they offer. They may indeed have binding contracts and legal rights to collect on negative balances, but they would be also liable for false advertising in a countersuit. Yikes.
I really like FXCM. I hope they can sort this all out and be better for it.
Eventually they will be in Full-on Xtc Chill Mode.
I have list of pages and videos from FXCM site all say ‘YOU CAN NOT LOSE MORE THAN YOU DEPOSIT. WE GARAUNTEE’.
If they have cake and it nasty they still must eat!
I must have 5 post before I can use link though 
I like FXCM too, until now they be good to me.
But they show they lie all over web site.