FXCM Discussion | Page 291 | Crypto Craft

Options

Go to
Permalinks
Print Thread

Related Instruments

EUR/JPY

Similar Threads

FXCM with Sierra Charts - Discussion and alternatives 8 replies

Elliott Waves discussion 4 replies

FXCM gets another CFTC fine, while Drew Niv leaves FXCM UK board 17 replies

Euro/Dollar discussion 9 replies

Forward Testing Discussion Thread 241 replies

Attachments: FXCM Discussion
Exit Attachments

FXCM Discussion

  • #5,801
  • Jan 16, 2015 12:20am Jan 16, 2015 12:20am
Quoting jclude25
A representative will be with you in 20 minutes. If you would like to provide feedback at the end of this chat, please complete FXCM’s Feedback Survey by clicking “Close” at the top right. Your estimated wait time is 17 minute(s). Your estimated wait time is 14 minute(s). Your estimated wait time is 14 minute(s). Your estimated wait time is 12 minute(s). Your estimated wait time is 11 minute(s). Your estimated wait time is 11 minute(s). Your estimated wait time is 50 minute(s). Might be waiting forever!
that's ridiculous!
  • #5,802
  • Jan 16, 2015 12:43am Jan 16, 2015 12:43am
I withdrew my money from another broker and was just waiting for my fxcm account to open before I deposited my money. My belief is that it will be open today, I'm guessing I should wait and see what happens? I consider myself pretty lucky not having any money in a broker right now. I have no idea who to open an account with now, am I obligated to deposit money with them? I got an email requesting deposit last night but my account isn't even open yet?....many thanks, hope everyone gets their issues sorted
  • #5,803
  • Edited 1:07am Jan 16, 2015 12:50am | Edited 1:07am
Quoting Forexia
{quote} Just withdraw all your money NOW if you don't feel safe!!! That's the best guarantee. Are you gonna really believe them when they "guarantee" to you that all your money is withdrawable?
I did put in a wire request to withdraw almost my entire account balance about an hour before the news hit the wires. Got an automatically generated generic email acknowledging request, saying it could take up to 5 business days to process. I'm not holding my breath. From what I can gather researching the internet, Forex broker funds are not required to be segregated in the US, unlike in New Zealand. If I don't get my money back in short order, I will move my non-FXCM money to TD Ameritrade, which allows Forex trading, but has insured accounts. Unfortunately I had a significant amount of money in my FXCM account, and it will hurt if I don't get my money back. Thank goodness I have a good job and enough liquid assets to start building a sizable account again, but this will still be painful if I lose my FXCM account money. Unfortunately, I picked FXCM because they seemed to be the largest and most financially solid company in the US to trade Forex with. Guess I was wrong. Can't believe they didn't hedge against this kind of tail risk in order to protect themselves. They let themselves be blown out by traders gone wild. You would think a Forex company, of all companies, would understand risk management. And echoing someone else's comments above, this could indeed be the death knell for Forex trading in the US if FXCM declares bankruptcy and is unable to honor customer withdrawals in a timely fashion and for 100% of account value, if requested.
  • #5,804
  • Jan 16, 2015 12:55am Jan 16, 2015 12:55am
The unsubscribing of Jason on this thread here puts up a signal that something not so appropriate went through the fan at FXCM - mildly said.

I withdrew about 80% of my equity on that. As a trader you should always be prepared to scale out a risky position.

But FXCM is not the only name mentioned in this article here:

http://www.zerohedge.com/news/2015-0...atory-capital-
  • #5,805
  • Jan 16, 2015 1:52am Jan 16, 2015 1:52am
have put a withdrawal request for 95% of my account.
i don't wanna induce panic. but i don't feel safe in this environment.
i also don't think it's unethical since fxcm should have had segregated accounts for their customers.
what bothers me the most is that they aren't answering by phone or chat.
i understand the loss is $220 mil but that doesn't help me to see any step further without additional info (given to the press) into the next days.
man, and i was thinking yesterday or so what would i do if i were to live in greece? would i run to the bank and keep my money under the mattress? now i'm doing exactly the same thing.
at least, what i hold for sure into my hand, is a confirmation mail that my request is processed. if fxcm goes belly-up, at least i'm ahead of their filling for chapter 9 (or whatever).
sorry fxcm. hopefully you're fine and i'm just eaten alive by my personal insecurities.
  • #5,806
  • Jan 16, 2015 1:58am Jan 16, 2015 1:58am
i am chat with them and they said ..FXCM is still allowing clients to trade, deposit, and withdraw as usual. All withdrawals are still being honored.
If you would like real time updates from FXCM, you can go to FXstatus.com.
  • #5,807
  • Jan 16, 2015 2:16am Jan 16, 2015 2:16am
Quoting psychop13
i am chat with them and they said ..FXCM is still allowing clients to trade, deposit, and withdraw as usual. All withdrawals are still being honored. If you would like real time updates from FXCM, you can go to FXstatus.com.
that's nice! thanks man!
they should have said it some hours ago!
thanks again!
and please everyone keep us updated (mainly since jason is no longer with us).
  • #5,808
  • Jan 16, 2015 2:20am Jan 16, 2015 2:20am
Hell yeah, get out get out get out.

I just saw the spreads at 9+ points for the CHF pairs.... I was trading them and made a little money, and then occasionally you get some weird stop-outs that you dont even see on the 1min charts.... you dont even see the move and your "taken out" of the trade.....

so now that I have high net worth clients feeding off me by viewing the stops and limits of my positions, i also have the "market" to contend with on top of that!

Screw this, I have been with FXCM long enough to know im getting f*cked. Sorry FXCM, enough is enough.
  • #5,809
  • Jan 16, 2015 2:26am Jan 16, 2015 2:26am
Quoting hatzius
... .i don't wanna induce panic. but i don't feel safe in this environment.
Nor do I - when they changed their business rules last year and ditched the segregation paragraph I asked:"Does that mean FXCM gets "MF Global"ed any time soon? (Free Jon Corzine )"(*) and I was given a lot of salesman blurb which I decline to comment any further.

Quoting hatzius
what bothers me the most is that they aren't answering by phone or chat.
They are surely busy like a one legged man in a ... hurdles contest.

Quoting hatzius
i understand the loss is $220 mil ...

... what sounds much more incinerating to me is: How could an ECN broker get so deep into the ... water?
Until today I thought only market makers were endangered to get beaten by such a X-Sigma event.
This would mean that FXCM is not an ECN borker at all.

Heres the press release: http://www.reuters.com/article/2015/...de+ONE20150116


(*) here: http://www.forexfactory.com/showthre...24#post7604624
  • #5,810
  • Jan 16, 2015 2:36am Jan 16, 2015 2:36am
Quoting Naddmer
{quote} Nor do I - when they changed their business rules last year and ditched the segregation paragraph I asked:"Does that mean FXCM gets "MF Global"ed any time soon? (Free Jon Corzine )"(*) and I was given a lot of salesman blurb which I decline to comment any further. {quote} They are surely busy like a one legged man in a ... hurdles contest. {quote} ... what sounds much more incinerating to me is: How could an ECN broker get so deep into the ... water? Until today I thought only market makers were endangered to get beaten by such a X-Sigma...
... what sounds much more incinerating to me is: How could an ECN broker get so deep into the ... water?
Until today I thought only market makers were endangered to get beaten by such a X-Sigma event.
This would mean that FXCM is not an ECN borker at all.

ABSO-BLOOMING-LUTELY!

because i didn't want to hear the answer to this question while having my capital with them, i did quit. i mean.... JASON DID IT before me!
  • #5,811
  • Jan 16, 2015 2:59am Jan 16, 2015 2:59am
It seems that FXCM is out of business, the more you thing about it the more it looks like MF Global all over again!!!!

This is scary!!! Just the thought that you could loss more than just your entire account in a matter of seconds.
  • #5,812
  • Jan 16, 2015 3:12am Jan 16, 2015 3:12am
Quoting hatzius
{quote} ... what sounds much more incinerating to me is: How could an ECN broker get so deep into the ... water? Until today I thought only market makers were endangered to get beaten by such a X-Sigma event. This would mean that FXCM is not an ECN borker at all. ABSO-BLOOMING-LUTELY! because i didn't want to hear the answer to this question while having my capital with them, i did quit. i mean.... JASON DID IT before me!
I think you have that around the wrong way. Market Makers can offset looses ECN/STP brokers cannot. If they had of hedged against clients positions then they would be fine just like Oanda which is a MM.
  • #5,813
  • Edited 3:47am Jan 16, 2015 3:31am | Edited 3:47am
Quoting mitch77
{quote} I think you have that around the wrong way. Market Makers can offset looses ECN/STP brokers cannot. If they had of hedged against clients positions then they would be fine just like Oanda which is a MM.
Uh? I always thought ECNs route the clients' orders to other liquidity providers and have nothing else to do with the open trades of their clients?

On a MM the MM is short against his client when the client is long and vice versa.
To offset the risk when the client is on the winning side the MM has to hedge himself in the market and this hedge has to be a long if the client is long and a short if the client is short.

An ECN should not have to do such things when the clients' orders are routed to some other liquidity providers.
Except: If the ECN sides with exceptionally losing traders as MM or - this would be grave not only for FXCM but for trading as well - when one or more liquidity providers get busted on the X-Sigma.


Pfiate :-)
  • #5,814
  • Jan 16, 2015 3:33am Jan 16, 2015 3:33am
Share price down 20%, 225Mn in the hole (by their own admission) in breach of capital requirements (by their own admission)

The FXCM rep, unsubscribed from their own thread here.


Shall we start a book how long it will take for a run to start on their deposits?
A contrarian; I always disagree.
  • #5,815
  • Jan 16, 2015 3:38am Jan 16, 2015 3:38am
Quoting Naddmer
{quote} Uh? I always thought ECNs route the clients' orders to other liquidity providers and have nothing else to do with the open trades of their clients? On a MM the MM is short against his client when the client is long and vice versa. To offset the risk when the client is on the winning side the MM has to hedge himself in the market and this hedge has to be a long if the client is short and a short if the client is long. An ECN should not have to do such things when the clients' orders are routed to some other liquidity providers. Except: If...

The problem for an ECN is that when all the stops got filled on long eur/chf prices they were done at some silly prices as an ECN gets the prices from the market, hence thousands of customers ended up getting filled at prices that took their accounts negative, I bet plenty got filled at silly prices too on their eur/usd long and usd/chf short trades also.

As an ECN has little to no control on where they get filled, FXCM now has the problem of having negative account balances that they will stuggle to get refunded by their own clients.

By their own admission yesterday cost them 225Mn, they now have to find that shortfall. They have a few options, issue share capital, borrow from their lenders or shut up shop. They must have burned the midnight oil yesterday and made a decision, now they will have to inform their customers and markets, I bet you the regulator already knows what they decided.

An ECN business model works nice until the crap hits the proverbial.
A contrarian; I always disagree.
  • #5,816
  • Jan 16, 2015 3:40am Jan 16, 2015 3:40am
Quoting hatzius
have put a withdrawal request for 95% of my account. i don't wanna induce panic. but i don't feel safe in this environment. i also don't think it's unethical since fxcm should have had segregated accounts for their customers. what bothers me the most is that they aren't answering by phone or chat. i understand the loss is $220 mil but that doesn't help me to see any step further without additional info (given to the press) into the next days. man, and i was thinking yesterday or so what would i do if i were to live in greece? would i run to the...
Keep cool man don't panic

EVERY Broker out there makes a difference between clients funds and corporate funds. In the case of a bankrupt, client funds remain untouched
Forex is a losers game.
  • #5,817
  • Jan 16, 2015 3:42am Jan 16, 2015 3:42am
Quoting Naddmer
{quote} Uh? I always thought ECNs route the clients' orders to other liquidity providers and have nothing else to do with the open trades of their clients? On a MM the MM is short against his client when the client is long and vice versa. To offset the risk when the client is on the winning side the MM has to hedge himself in the market and this hedge has to be a long if the client is short and a short if the client is long. An ECN should not have to do such things when the clients' orders are routed to some other liquidity providers. Except: If...
Yeah I meant that The MM offset the risk therefore situations like this the MM is ok. ECN on the other hand will either have to cover looses of negative balances of clients or the client has too.

I was replying to the post by Hatzius who believes that MM are the brokers that will be out of pocket ie shafting the client, when in fact it is the ECN/STP brokers and their clients that will be, as someone has to pay.
  • #5,818
  • Jan 16, 2015 3:47am Jan 16, 2015 3:47am
Alpari has gone bust, If I had an account with FXCM, I would try to get my money back today.
A contrarian; I always disagree.
  • #5,819
  • Jan 16, 2015 4:02am Jan 16, 2015 4:02am
Looks like the FXCM rep subscribed to this thread again, they probably realised their PR disaster by unsubscribing at the first place, you can't have the guy representing you running away from their customers who are rightly concerned at this point.
A contrarian; I always disagree.
  • #5,820
  • Jan 16, 2015 4:07am Jan 16, 2015 4:07am
Quoting goldfinch
{quote} The problem for an ECN is that when all the stops got filled on long eur/chf prices they were done at some silly prices as an ECN gets the prices from the market, hence thousands of customers ended up getting filled at prices that took their accounts negative, I bet plenty got filled at silly prices too on their eur/usd long and usd/chf short trades also. As an ECN has little to no control on where they get filled, FXCM now has the problem of having negative account balances that they will stuggle to get refunded by their own clients....
But that would be the problem of the clients, isn't it? It should not have any impact on the equity of FXCM if the clients accounts were segregated properly from FXCMs equity. The clients owe FXCM the negative account balance and they can siphon it in if it were so.

And that's where I hooked Jason on the new business rules last year, because the ditching of the segregation rules smelled somehow fishy to me.

Quoting goldfinch
By their own admission yesterday cost them 225Mn, they now have to find that shortfall. They have a few options, issue share capital, borrow from their lenders or shut up shop. They must have burned the midnight oil yesterday and made a decision, now they will have to inform their customers and markets, I bet you the regulator already knows what they decided. An ECN business model works nice until the crap hits the proverbial.
I won't take the bet. Hope you do not bear any grudges against me because of that. :-)
8 traders viewing now