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FXCM Discussion

  • #5,861
  • Jan 16, 2015 7:01am Jan 16, 2015 7:01am
Quoting scalpforex
{quote} I agree that they're in a sticky situation (to put it lightly) but I don't believe there's this time bomb going off, this is a NYSE listed company. There must be more to it...

No there isn't, their regulator requires them to find 225Mn USD to meet their capital requirements, a rights issue is no longer a possibility as their company share price is down to a little over 1 dollar giving them a Market cap of 60 MN USD, I don't know what line of credit they have but I can assure you that their will be plenty of covenants in those also and they may well not be able to tap into that one either based on their share price as it stand currently.

That leaves 2 more options, find a buyer, again not very likely because any buyer can snap it up for less then 100Mn right now, that is again less than they need. They could try to find a buyer who will snap them up for 100Mn and extend them a line of credit to get them the 225Mn they need, that would rebound the share price and give someone a decent trade.

All in all this doesn't leave a whole heck of a lot of options.


I am glad I am not in their board room right now, they must be sweating bullets.
A contrarian; I always disagree.
  • #5,862
  • Jan 16, 2015 7:08am Jan 16, 2015 7:08am
I've seen this before. that the share price is going to the toilet so fast suggests ruin and makes any would be saviour reluctant to lend money or buy share capital. I suspect their shares will be suspended pending an outcome which may not be pretty for investors. As to customers, IF they have segregated client funds properly.....
  • #5,863
  • Jan 16, 2015 7:13am Jan 16, 2015 7:13am
Quoting goldfinch
{quote} I am glad I am not in their board room right now, they must be sweating bullets.
The last place where you wanna be now is in FXCM's boardroom

How about something like this now? :
Attached Image
Forex is a losers game.
  • #5,864
  • Jan 16, 2015 7:22am Jan 16, 2015 7:22am
close all orders and withdraw my money, this is really not looking good
  • #5,865
  • Jan 16, 2015 7:24am Jan 16, 2015 7:24am
If FXCM goes out of business I have know idea which UK broker to go with, not many options available.
  • #5,866
  • Jan 16, 2015 7:24am Jan 16, 2015 7:24am
Quoting gajebo
close all orders and withdraw my money, this is really not looking good
Pls confirm when you got the money back
thx
  • #5,867
  • Jan 16, 2015 7:27am Jan 16, 2015 7:27am
Quoting mitch77
If FXCM goes out of business I have know idea which UK broker to go with, not many options available.
Thinking the same.
GBP/USD
  • #5,868
  • Jan 16, 2015 7:30am Jan 16, 2015 7:30am
Jason Rogers are you able to answer any questions?
Wooooohooooo or Boooooohooooo
  • #5,869
  • Jan 16, 2015 7:31am Jan 16, 2015 7:31am
Quoting deepak925
{quote} Thinking the same.

FXCM is not a UK Broker, it's a US broker.

IndustryFinancial Services
Founded1999 (1999)
HeadquartersNew York, United States
Forex is a losers game.
  • #5,870
  • Jan 16, 2015 7:32am Jan 16, 2015 7:32am
Quoting deepak925
{quote} Thinking the same.
Same, there aren't many I actually trust...especially in UK when I want to open a spreadbetting account...any ideas?
  • #5,871
  • Jan 16, 2015 7:33am Jan 16, 2015 7:33am
30 Minutes to go!
Forex is a losers game.
  • #5,872
  • Jan 16, 2015 7:34am Jan 16, 2015 7:34am
Anyone knows what would happen to the other FXCM units if FXCM USA goes bust?
  • #5,873
  • Jan 16, 2015 7:34am Jan 16, 2015 7:34am
The stock is down from $12.63 to $1.67 right now...
  • #5,874
  • Jan 16, 2015 7:37am Jan 16, 2015 7:37am
There's some pretty rich powerful people that are going to be pretty annoyed at the swiss bank for this....any repercussions?
  • #5,875
  • Jan 16, 2015 7:42am Jan 16, 2015 7:42am
Quoting valdor
Anyone knows what would happen to the other FXCM units if FXCM USA goes bust?
either sold or closed. If the parent company goes bust so does its subsidaries.
Trade what you see, not what you think!
  • #5,876
  • Jan 16, 2015 7:43am Jan 16, 2015 7:43am
I don't trade with FXCM but what ever happens to FXCM the SNB action is going to change the market for retail traders going forward. But I wish FXCM all the best in their struggle.
  • #5,877
  • Jan 16, 2015 7:43am Jan 16, 2015 7:43am
The pre-market trading window has opened on the New York Stock Exchange showing that FXCM Inc Shares are trading lower by about 85% from yesterday’s closing price. Currently shares are changing hands at $1.80 having traded as high as $17 on Monday.
The impacts of the $225 million prospective loss of capital, which the company published late yesterday has yet to be fully digested by the market. Credit Suisse has issued a two notch downgrade on the shares of the publicly listed brokerage setting a $4 target.
- See more at: http://forexmagnates.com/fxcm-inc-sh....YneV5Zkk.dpuf
Buy at the Low, Sell at the High You make money by waiting not by trading.
  • #5,878
  • Jan 16, 2015 7:45am Jan 16, 2015 7:45am
Quoting Lacunoide
The pre-market trading window has opened on the New York Stock Exchange showing that FXCM Inc Shares are trading lower by about 85% from yesterday’s closing price. Currently shares are changing hands at $1.80 having traded as high as $17 on Monday. The impacts of the $225 million prospective loss of capital, which the company published late yesterday has yet to be fully digested by the market. Credit Suisse has issued a two notch downgrade on the shares of the publicly listed brokerage setting a $4 target. - See more at: http://forexmagnates.com/fxcm-inc-sh....YneV5Zkk.dpuf...
I wonder if anyone made money on shorting FXCM?
  • #5,879
  • Jan 16, 2015 7:47am Jan 16, 2015 7:47am
as a public company I thought they would had taken better risk measures if such a thing happened compared to the smaller brokers. I was dead wrong... At least, Forex.com is making it out way better.
Trade what you see, not what you think!
  • #5,880
  • Jan 16, 2015 7:49am Jan 16, 2015 7:49am
FXCM down to $1.35..
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