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Author Topic: Alpari clients with negative balances will be forced to repay them - liquidators  (Read 5171 times)

Offline pipsbuster

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Quote
The Joint Special Administrators are aware that, following the validation process, there are likely to
be a number of clients who will have negative balances in their Client Account, some of which may be
significant, due to the volatility in the market following the SNB announcement on Thursday, 15
January 2015. Where there are negative balances, those clients will be required to make payment to
the Company.

https://www.insolvency-kpmg.co.uk/Viewer/pdfViewer.aspx?sid=mjk0qjwop3sufd0achicn3uy&did=6cd48d1c-0089-4d2e-9b60-ffdda8bb3774

Hence, trading Forex appears to be far riskier than one would think.

Offline cyberryder

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the risk was always there in the TOS. Some read and understood them, some not.

The only thing new is that the risk is very real and that it can be that high.
@BeeksFX LD5
Read the broker TOS!
Searching for a broker, offering additional fund security in the TOS. None available today: http://www.donnaforex.com/forum/index.php?topic=13785.msg335342#msg335342

Offline SpreadGuy

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saxo are another company who start legal act, and giving 3 option to repay the negative balance for any client who had negative balance below 100k, is there any chance they will reconsider their decision, I believe not all client are able to pay that much. just imagine how it will ruin my whole financial life, when had 10k account with high expectation of profit gain but in single flash turn into -50k negative, and I fully responsible to cover those losses, dont make any sense at all.
 :-X

Offline pipsbuster

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the risk was always there in the TOS. Some read and understood them, some not.

The only thing new is that the risk is very real and that it can be that high.

One never expects a currency pair to drop from 1.20:1 to 1:1 in a blink of an eye. Yet this happened and can sure happen again.

However, FXCM has forgiven its retail clients their negative balances in the SNB aftermath while Alpari's liquidators want to have that cash from them. While previously many traders strived for the A-book true STP brokers, now they might cosnciously favor the B-book bucket shops for that very reason, as long as the bucket shop does not bother to artificially obstruct their clients trading, bearing in mind most of them are losers anyway. At least, in the latter case, they're not going to end up owing far more than they deposited.

Offline odysseus11

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Agree.
And thats the theory behind "Hybrid" accounts.
http://www.forexfusion.com
stop gambling. start trading.

Offline ColiseumFX

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the risk was always there in the TOS. Some read and understood them, some not.

The only thing new is that the risk is very real and that it can be that high.

One never expects a currency pair to drop from 1.20:1 to 1:1 in a blink of an eye. Yet this happened and can sure happen again.

However, FXCM has forgiven its retail clients their negative balances in the SNB aftermath while Alpari's liquidators want to have that cash from them. While previously many traders strived for the A-book true STP brokers, now they might cosnciously favor the B-book bucket shops for that very reason, as long as the bucket shop does not bother to artificially obstruct their clients trading, bearing in mind most of them are losers anyway. At least, in the latter case, they're not going to end up owing far more than they deposited.

Trading with a bucket shop is trading against the house, this is not the solution.

Offline rodneyp

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saxo are another company who start legal act, and giving 3 option to repay the negative balance for any client who had negative balance below 100k, is there any chance they will reconsider their decision, I believe not all client are able to pay that much. just imagine how it will ruin my whole financial life, when had 10k account with high expectation of profit gain but in single flash turn into -50k negative, and I fully responsible to cover those losses, dont make any sense at all.
 :-X

There is nothing illegal about a broker collecting negative balances. You should read your brokers terms and conditions so you know what you are getting into before you start trading. You cant blame your broker just because you did not do your homework.

Offline pipsbuster

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the risk was always there in the TOS. Some read and understood them, some not.

The only thing new is that the risk is very real and that it can be that high.

One never expects a currency pair to drop from 1.20:1 to 1:1 in a blink of an eye. Yet this happened and can sure happen again.

However, FXCM has forgiven its retail clients their negative balances in the SNB aftermath while Alpari's liquidators want to have that cash from them. While previously many traders strived for the A-book true STP brokers, now they might cosnciously favor the B-book bucket shops for that very reason, as long as the bucket shop does not bother to artificially obstruct their clients trading, bearing in mind most of them are losers anyway. At least, in the latter case, they're not going to end up owing far more than they deposited.

Trading with a bucket shop is trading against the house, this is not the solution.

Depends if the bucket shop obstructs your trading. Since most traders are losers, a bucket shop is a net winner anyway. If it plays no dirty tricks on its few winning clients, then it's preferable to them than a possibility of ending up with a huge negative balance, like the case with a true STP.

Offline pipsbuster

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saxo are another company who start legal act, and giving 3 option to repay the negative balance for any client who had negative balance below 100k, is there any chance they will reconsider their decision, I believe not all client are able to pay that much. just imagine how it will ruin my whole financial life, when had 10k account with high expectation of profit gain but in single flash turn into -50k negative, and I fully responsible to cover those losses, dont make any sense at all.
 :-X

There is nothing illegal about a broker collecting negative balances. You should read your brokers terms and conditions so you know what you are getting into before you start trading. You cant blame your broker just because you did not do your homework.
Who will fund the countless trials that the liquidators are supposed to launch against multiple brokerage clients with substantial negative balances?

Offline rodneyp

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saxo are another company who start legal act, and giving 3 option to repay the negative balance for any client who had negative balance below 100k, is there any chance they will reconsider their decision, I believe not all client are able to pay that much. just imagine how it will ruin my whole financial life, when had 10k account with high expectation of profit gain but in single flash turn into -50k negative, and I fully responsible to cover those losses, dont make any sense at all.
 :-X

There is nothing illegal about a broker collecting negative balances. You should read your brokers terms and conditions so you know what you are getting into before you start trading. You cant blame your broker just because you did not do your homework.
Who will fund the countless trials that the liquidators are supposed to launch against multiple brokerage clients with substantial negative balances?

Clients will if they dont pay as they will likely loose. In all court cases looser pays. Read you brokers terms and conditions first.

Offline uzakon

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I have heard the news that Alpari began to work again. Is it true? Does anybody trade with this broker?

Offline 999cjb

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Quote from: uzakon link=msg=344351 date=1438489161

I have heard the news that Alpari began to work again. Is it true? Does anybody trade with this broker?


There are a number of Alpari brokers around the world. As far as I know they are all separate businesses and can claim not to be connected with Alpari UK.

Offline corre971

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Quote from: uzakon link=msg=344351 date=1438489161

I have heard the news that Alpari began to work again. Is it true? Does anybody trade with this broker?

Tue new entit is based in St Vincent and Grenadines, so is an offshore broker. So forget FCA regulation and the compensation scheme in case of bankrupt. Anyway if someone had experience with this new broker, woul be interesting to know something

Offline uzakon

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Quote from: corre971 link=msg=344355 date=1438496891

Tue new entit is based in St Vincent and Grenadines, so is an offshore broker. So forget FCA regulation and the compensation scheme in case of bankrupt. Anyway if someone had experience with this new broker, woul be interesting to know something

It's clear now, thanks. I also wonder about the clients of Alpari UK, did they get any compensation?

Offline 999cjb

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Quote from: uzakon link=msg=347379 date=1443548810

Quote from: corre971 link=msg=344355 date=1438496891

Tue new entit is based in St Vincent and Grenadines, so is an offshore broker. So forget FCA regulation and the compensation scheme in case of bankrupt. Anyway if someone had experience with this new broker, woul be interesting to know something

It's clear now, thanks. I also wonder about the clients of Alpari UK, did they get any compensation?


We received all our money back. Eventually  :)

 

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