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  • #6,301
  • Jan 21, 2015 2:40pm Jan 21, 2015 2:40pm
Quoting triger88990
Things are going from worse to worse by minutes: Law firm launches investigation into FXCM : http://www.forexlive.com/blog/2015/0...ion-into-fxcm/ FXCM SHAREHOLDER ALERT: The Law Firm of Levi & Korsinsky, LLP Launches an Investigation into Possible Violations of Federal Securities Laws by the Board of Directors of FXCM Inc. http://www.marketwatch.com/story/fxc...k=MW_news_stmp...

I wouldn't worry too much about that law firm, they sue everyone and everything that has a shareprice drop with class actions hoping they get a settlement. they are what is wrong with the US judiciary system.

Anybody here trading with FXCM who has actually got an email asking for a deposit or close of positions to meet the new marging requirements?

Another question, is this change of margin permanent or just to cover the volatility over the next few days? The press release wasn't clear on that.

I am not a customer but do have a financial interest in FXCM and would like to stay on top of developments.
A contrarian; I always disagree.
  • #6,302
  • Jan 21, 2015 2:48pm Jan 21, 2015 2:48pm
Pips are irrelevant I adjust my size to fit my risk.If eg £50 is 1% of my account then I calculate my size so I do do lose more than £50 with stops etc.

Yes I agree but risk is open ended but you need confidence in stops to trade properly.I realise there was low liquidity which is why I said FXCM are only partly to blame.Why did they let so many clients build up a position in Chf trades in one direction and not manage this properly? Why did they not increase margins as other brokers did months before on a pegged currency?Why did they not hedge such a risky position?Why are there no procedures in place for a worst case scenario it's not the first time we have had a black swan?Why have other brokers came out of this ok?

This is why they are partly to blame, yes clients should protect themselves but it is also up to them to protect clients and their future business.
  • #6,303
  • Jan 21, 2015 2:53pm Jan 21, 2015 2:53pm
Quoting goldfinch
{quote} Anybody here trading with FXCM who has actually got an email asking for a deposit or close of positions to meet the new marging requirements?
I believe this only affects non-US FXCM customers. If you are a US customer than you are already at 1:50 or 2%. Can anyone confirm?
  • #6,304
  • Jan 21, 2015 3:11pm Jan 21, 2015 3:11pm
Quoting Market Maker
So Jason what will FXCM be doing with clients who did not go negative but lost their whole account because of stop slippage. I lost 100% of my account on a 1% risk eur/chf trade.I realise this is not all your fault due to lack of liquidity but on the basis that clients rely on there stops and FXCM failed to put in place any protection for a major risk event then some blame must lie with FXCM.A nice gesture to clients would be to except some blame and cover at least half the loss. Also if u do decide to zero negative balances then it will mean negative...
so this is the real question and not about negative balances since they have been very obviously marketiring "no negative balances for clients"..what about those clients who properly managed position wityh 1=2%risk rule and used 5:1 leverage only..shouldnt have FXCM advised clients that situatio9n was risky prior 15/1/15 with eur chf and SL's just below 1,20...there is an article in Terms and Conditions that they have every right to close any position and even refuse trade if they find appropriate?why they didn't do that?inform us to close the bloody positions????i've didnt blown my account, have made a return of 20% for 5 months and then in single blow went from +20 to -20%......i was lucky i only used 1,5 :1 leverage in that position..imagine i"ve used 5:1 leverage and my account would have been blown completely..plus SL was placed 4 months ago with them, they've had enough time to hedge or close the position if properly risk-managed
  • #6,305
  • Jan 21, 2015 3:12pm Jan 21, 2015 3:12pm
Quoting Profit Daily
Karma is a bitch. All of those year screwing their clients. Ironic thing is had they not changed for the better to non dealing desk, they would have survived just fine. Look at scam broker forex.com, they made money that day.
Couldn't agree more, Drew Niv and Co have spent years raping their customers accounts in just about everyway possible and have got very rich from it. I have seen it all from manipulated price feeds to outright theft. This is how they got where they are today and most of their employees were complicit to this and quite Happy to accept their paycheque in return.

I feel not one jot of sympathy for FXCM, the current situation is a result of years of arrogance. Ironically for the last 3 years or so their offering has improved and Drew's dream of Global domination forced a more regulated approach to their clients and I have been at least content to hold my funds their until recently. The dust will settle and the crowds of wanna be rich quick newbies will form an orderly queue and eagerly dispose of their savings oblivious to all of the above. I wouldn't be at all surprised to see FXCM come through this in some way. Either way they have made their money.
  • #6,306
  • Jan 21, 2015 3:27pm Jan 21, 2015 3:27pm
Nothing from Jason yet then? Cat got your tongue?Come on Jason you keep preaching FXCM are an honest,upfront, transparent company.Prove it!
  • #6,307
  • Jan 21, 2015 4:08pm Jan 21, 2015 4:08pm
Attached Image (click to enlarge)
Click to Enlarge Name: FXCM - Losses 8.PNG Size: 6 KB

http://forexmagnates.com/covered-bro...ng-chf-crisis/
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #6,308
  • Jan 21, 2015 4:08pm Jan 21, 2015 4:08pm
On my short experience with them FXCM was a pretty decent broker.

I trade with IB and TradeStation on regular basis.

My backup account was with Oanda but their tricks were driving me insane.

I gave FXCM a try and I was pretty happy with the experience.

I withdraw my money, so I'm currently flat with them.

As soon as the dust settles I will probably refund and trade with them again.
So, you think you have rights? LOL
  • #6,309
  • Jan 21, 2015 4:20pm Jan 21, 2015 4:20pm
Quoting ForexOracle
On my short experience with them FXCM was a pretty decent broker. I trade with IB and TradeStation on regular basis. My backup account was with Oanda but their tricks were driving me insane. I gave FXCM a try and I was pretty happy with the experience. I withdraw my money, so I'm currently flat with them. As soon as the dust settles I will probably refund and trade with them again.
Hi ForexOracle - I am also with FXCM and found them decent but not sure now how safe they are and concerned about their lack of feedback on negative balances. Been looking at OANDA and quite like their platform but you mention their "tricks" - do you mind expanding on this because they are on my shortlist of possible alternatives
  • #6,310
  • Jan 21, 2015 4:22pm Jan 21, 2015 4:22pm
Quoting OMGtrader
{quote} Jason, any word from company on how the company will take measures to prevent similar future events from significantly affecting the company?


There are two major upcoming news events which may cause significant volatility: the ECB Bank Rate Decision on Thursday (12:45 GMT) and the Greek Election on Sunday. Due to these events we will increase margin requirements on forex and gold.


For FXCM AU accounts:

The first scheduled Margin Requirement increase will take effect on Thursday, 22nd between 11:00 AM AEDT and 1:00 PM AEDT Time. An additional Margin Requirement increase will take effect after market close on Friday January 23rd. Refer to this document below for new margin requirements: http://bit.ly/1CQVllP



For FXCM UK accounts:

The first scheduled Margin Requirement increase will take effect on Thursday January 22nd between 00:00 GMT and 02:00 GMT. An additional Margin Requirement increase will take effect after market close on Friday January 23rd. Refer to this document for new margin requirements: http://bit.ly/1yI9mDg



For FXCM US accounts:

The Smart Margin Feature will be disabled on Wednesday January 21st between 7:00PM EST and 9:00PM EST. Accounts will no longer be allowed to enter into temporary warning status. Accounts that fall below initial margin required for open positions will be liquidated.
In addition we will increase Margin Requirements on the USD/HKD and USD/CNH Currency Pairs on Friday January 23rd, 2015 after market close:

http://i.imgur.com/8Cc45sA.png



Note that this increase in margin may be temporary depending upon market conditions. Please review your account to ensure that you have enough available margin to support your open positions. You may deposit additional funds at www.myfxcm.com or close positions as needed.
  • #6,311
  • Edited 4:46pm Jan 21, 2015 4:30pm | Edited 4:46pm
Seems like FXCM now enters the Rouque-Broker-Bucketshop-Mode while their LPs are drying them up.

EURAUD FXCM above - EURAUD OANDA amidst - EURAUD RTFX below.
Attached Image


Attached Image


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Pity - it was fun while it lasted.
  • #6,312
  • Jan 21, 2015 4:39pm Jan 21, 2015 4:39pm
Quoting Jason Rogers
{quote} There are two major upcoming news events which may cause significant volatility: the ECB Bank Rate Decision on Thursday (12:45 GMT) and the Greek Election on Sunday. Due to these events we will increase margin requirements on forex and gold. For FXCM AU accounts: The first scheduled Margin Requirement increase will take effect on Thursday, 22nd between 11:00 AM AEDT and 1:00 PM AEDT Time. An additional Margin Requirement increase will take effect after market close on Friday January 23rd. Refer to this document below for new margin requirements:...
As a former FXCM client, the ECB decision and Greek election are well known upcoming events with plenty of news and analysis covering both. Using these events as an excuse to adjust margins requirements is simply BS. The upcoming volatility, if it develops, is expected and can be easily managed, by traders and brokers alike, without all these dramatics. Shame on FXCM for what it is doing. Everyone who continues to use this broker is at risk of having there money removed from their account by fxcm in a "sudden" and "unexpected" increase in volatility. You are being set up. Run!
  • #6,313
  • Jan 21, 2015 4:51pm Jan 21, 2015 4:51pm
Quoting GEfx
{quote} As a former FXCM client, the ECB decision and Greek election are well known upcoming events with plenty of news and analysis covering both. Using these events as an excuse to adjust margins requirements is simply BS. The upcoming volatility, if it develops, is expected and can be easily managed, by traders and brokers alike, without all these dramatics. Shame on FXCM for what it is doing. Everyone who continues to use this broker is at risk of having there money removed from their account by fxcm in a "sudden" and "unexpected" increase in...
FXCM does seem to be the drama queen lately. I think this is the silliest thing they've done yet. It's like running around after you were hit by a train telling everybody to lookout. These upcoming events are all on the calendar............Should we hide under the bed too? Where was all the risk aversion prior to this?
  • #6,314
  • Jan 21, 2015 5:12pm Jan 21, 2015 5:12pm
Quoting GEfx
{quote} As a former FXCM client, the ECB decision and Greek election are well known upcoming events with plenty of news and analysis covering both. Using these events as an excuse to adjust margins requirements is simply BS. The upcoming volatility, if it develops, is expected and can be easily managed, by traders and brokers alike, without all these dramatics. Shame on FXCM for what it is doing. Everyone who continues to use this broker is at risk of having there money removed from their account by fxcm in a "sudden" and "unexpected" increase in...
agree... any good recommendations?
  • #6,315
  • Jan 21, 2015 5:24pm Jan 21, 2015 5:24pm
Quoting Jason Rogers
{quote} There are two major upcoming news events which may cause significant volatility: the ECB Bank Rate Decision on Thursday (12:45 GMT) and the Greek Election on Sunday. Due to these events we will increase margin requirements on forex and gold. For FXCM AU accounts: The first scheduled Margin Requirement increase will take effect on Thursday, 22nd between 11:00 AM AEDT and 1:00 PM AEDT Time. An additional Margin Requirement increase will take effect after market close on Friday January 23rd. Refer to this document below for new margin requirements:...
Can you please clarify when the margin increases will occur for U.S. clients? All your post indicates is that FXCM is shutting down the "Smart Margin Feature" between 7:00 PM EST and 9:00 EST. I'm assuming that's when the new margins will take effect ... . I'm not particularly concerned with the amount of exposure in open positions I've got, but would like to know.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #6,316
  • Jan 21, 2015 5:32pm Jan 21, 2015 5:32pm
Quoting ZebraSquirl
{quote} Can you please clarify when the margin increases will occur for U.S. clients? All your post indicates is that FXCM is shutting down the "Smart Margin Feature" between 7:00 PM EST and 9:00 EST. I'm assuming that's when the new margins will take effect ... . I'm not particularly concerned with the amount of exposure in open positions I've got, but would like to know.
As per referenced document - http://bit.ly/1yI9mDg
Attached Image (click to enlarge)
Click to Enlarge Name: FXCM - Losses 9.PNG Size: 50 KB

Attached Image (click to enlarge)
Click to Enlarge Name: FXCM - Losses 10.PNG Size: 38 KB
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #6,317
  • Jan 21, 2015 5:34pm Jan 21, 2015 5:34pm
Quoting Phylo
{quote} As per referenced document {image} {image}
Thanks, man ... .

So, I guess we're already there:

Attached Image
Fireworks are fun ... as long as you don't blow your fingers off.
  • #6,318
  • Jan 21, 2015 5:35pm Jan 21, 2015 5:35pm
Hi Jason.
I trade DAX and FTSE Indices so thankfully/hopefully it seems these new margin requirements don't apply to me?
However, reading the Updated Margin Requirements document sent out today with the warning email, they talk about leverage profiles A,B,C and D and imply that looking at Simplified Dealing Rates in TS2 will tell me what margin requirements are. All I see there is the current MMR of 6.00, no "profile" information. How do I know which leverage profile the accounts I trade fit into?

Thanks.
Full-time trader and loving it!
  • #6,319
  • Jan 21, 2015 5:40pm Jan 21, 2015 5:40pm
Quoting ZebraSquirl
{quote} Thanks, man ... . So, I guess we're already there: {image}
... which generates a follow-up question: the MMR's are already in place for me for new orders ... . Have they been applied to the open positions yet? I don't think so, but wanted to make sure ... . Frankly too tired to do the math ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #6,320
  • Jan 21, 2015 6:01pm Jan 21, 2015 6:01pm
Dear Client,
There are two major upcoming news events which may cause significant volatility: the ECB Bank Rate Decision on Thursday (11:45 PM AEDT) and the Greek Election on Sunday. Due to these events we will increase Margin Requirements on Forex Instruments and Gold.
The first scheduled Margin Requirement increase will take effect on Thursday, 22ndbetween 11:00 AM AEDT and 1:00 PM AEDT Time. An additional Margin Requirement increase will take effect after market close on Friday January 23rd. Refer to the document below for new margin requirements.

=====

I got the email at 9:55 AM AEDT. Lucky I happened to check that account (I often go a day or two without checking it) as they will be quadrupling the margin requirement on my Cable positions, tripling my gold MMR and gave me a big 65 minute warning.

Can see people getting burned by this.
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