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Author Topic: Halifax Investment Services info re GOING BUST  (Read 1666 times)

Offline outsidetheboxhk

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Halifax Investment Services info re GOING BUST
« on: December 12, 2018, 05:07:42 AM »
https://twitter.com/OutsidetheBoxHK/status/1072716469438304256


Yup another Forex Broker getting into trouble, corruption, mismanagement, etc

And this time one of my accounts is involved again.  Last time I had experienced this sort of consequence as a result of someone else's lack of skill/morality was with FXCM's whole fraud in 2011 and 2014.
Listen to the first Creditors Meeting held on 5 December at link below to hear what a sham this is - once again.
Time to hold these people accountable for real and return funds to those who have no fault.

https://www.ferrierhodgson.com/au/-/media/ferrier/files/documents/corp-recovery-matters/halifax-investment-services/webcast-recording--first-meeting-of-creditors.mp3
https://www.financemagnates.com/forex/brokers/exclusive-halifax-investment-services-has-gone-bust/

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12166975
« Last Edit: December 12, 2018, 05:11:31 AM by outsidetheboxhk »
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Online reinerh

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Re: Halifax Investment Services info re GOING BUST
« Reply #1 on: December 12, 2018, 03:38:45 PM »

man that sucks,

at least you were lucky enough to withdraw most of your money a long time ago, that was a good move.

maybe your 7th sense kicked in.

still loosing 6k is a pain, but it could have been a lot worse.

Offline oportunis

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Re: Halifax Investment Services info re GOING BUST
« Reply #2 on: December 12, 2018, 06:18:35 PM »
All brokers have that risk unless they offer CUSTODIAL account at a different bank.
SEGREGATED accounts are BS, this means that you are in a pool of all investors and if one big player gets a margin call and passes over into debt they will deduct the amount from the whole segregated pool of accounts.

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Re: Halifax Investment Services info re GOING BUST
« Reply #3 on: December 12, 2018, 08:12:07 PM »
All brokers have that risk unless they offer CUSTODIAL account at a different bank.
SEGREGATED accounts are BS, this means that you are in a pool of all investors and if one big player gets a margin call and passes over into debt they will deduct the amount from the whole segregated pool of accounts.

Thank you for sharing this, I never knew that!

Could you clarify why the custodial account should be at a different bank?

Offline oportunis

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Re: Halifax Investment Services info re GOING BUST
« Reply #4 on: January 03, 2019, 01:41:25 PM »
All brokers have that risk unless they offer CUSTODIAL account at a different bank.
SEGREGATED accounts are BS, this means that you are in a pool of all investors and if one big player gets a margin call and passes over into debt they will deduct the amount from the whole segregated pool of accounts.

Thank you for sharing this, I never knew that!

Could you clarify why the custodial account should be at a different bank?
For better protection in case, broker goes in debt and the bank tries to freeze assets connected to it. If you have the same bank for corporate, segregated pool and custodial account it's much easier to lock funds. While if you use a 3rd bank they won't do it. You need to file for insolvency etc. plus the broker and insolvency court shouldn't touch those funds as they are not theirs to begin with...

Online Nasdaq100

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Re: Halifax Investment Services info re GOING BUST
« Reply #5 on: January 03, 2019, 03:27:45 PM »
All brokers have that risk unless they offer CUSTODIAL account at a different bank.
SEGREGATED accounts are BS, this means that you are in a pool of all investors and if one big player gets a margin call and passes over into debt they will deduct the amount from the whole segregated pool of accounts.

Thank you for sharing this, I never knew that!

Could you clarify why the custodial account should be at a different bank?
For better protection in case, broker goes in debt and the bank tries to freeze assets connected to it. If you have the same bank for corporate, segregated pool and custodial account it's much easier to lock funds. While if you use a 3rd bank they won't do it. You need to file for insolvency etc. plus the broker and insolvency court shouldn't touch those funds as they are not theirs to begin with...

Sorry for being too slow at understanding this, please pardon my ignorance.

So let's say that my broker asks to wire transfer money to their HSBC account to fund my MT4 account. Should I use my HSBC account to wire transfer the money to their HSBC account?

And if yes, what if I use my PayPal account or any other online payment platform to fund my MT4 account?

And in case of locking the funds, which funds exactly? The amount that I have transferred or the amount shown in my MT4 account?

And if the answer is MT4 for the above question, wouldn't the broker find it extremely easy to block access or directly manipulate the results statement so I wouldn't be able to claim any funds?

I appreciate your input

Offline oportunis

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Re: Halifax Investment Services info re GOING BUST
« Reply #6 on: January 09, 2019, 07:12:39 PM »
You send money to a custodial bank. This means you open account under your own name not under broker's name and sign agreement that broker can use your funds for trading and that's it. But this is usually offered if you invest with 100k+ and so far I found only Swiss banks offer this.

Now with normal retial trading, you send funds to broker account not your own. When you deposit you can see the beneficiary is the broker, then you write a reference number of your mt4 login, so they know this is for you. Same is for paypal, you send to broker's paypal account and not yours. Money is in a broker's account. You have a pool and each time a user deposits it gets filled. They get reference number and then they credit those funds to your mt4.

In case one user opens 100 lots and we have a black swan event and it goes against him and he generates a 100mil loss and cannot repay a debt to the broker, then the broker is insolvent and goes bust. All funds in broker account are frozen until the debt is settled or at least in part. In EU, UK you have protection for 20k, 50k or so and this is covered by the compensation scheme. But if you have more funds than you lose them unless the broker has enough to cover the loss.

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Re: Halifax Investment Services info re GOING BUST
« Reply #7 on: January 09, 2019, 07:48:22 PM »
You send money to a custodial bank. This means you open account under your own name not under broker's name and sign agreement that broker can use your funds for trading and that's it. But this is usually offered if you invest with 100k+ and so far I found only Swiss banks offer this.

Now with normal retial trading, you send funds to broker account not your own. When you deposit you can see the beneficiary is the broker, then you write a reference number of your mt4 login, so they know this is for you. Same is for paypal, you send to broker's paypal account and not yours. Money is in a broker's account. You have a pool and each time a user deposits it gets filled. They get reference number and then they credit those funds to your mt4.

In case one user opens 100 lots and we have a black swan event and it goes against him and he generates a 100mil loss and cannot repay a debt to the broker, then the broker is insolvent and goes bust. All funds in broker account are frozen until the debt is settled or at least in part. In EU, UK you have protection for 20k, 50k or so and this is covered by the compensation scheme. But if you have more funds than you lose them unless the broker has enough to cover the loss.

Thank you very much

So in short, your funds are safe if you trade through Swiss banks that offer custodial accounts.

Anything other than that, including 'heavily'regulated brokers can potentially lead to you waking up one morning and find out that your $1 million deposit has completely disappeared while you might get 2% to 5% compensation. This is starting to sound like a bunch of BS! I am in complete shock!

Offline Arsssele

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Re: Halifax Investment Services � info re GOING BUST
« Reply #8 on: June 16, 2019, 03:11:21 PM »
I am also shocked with news. In reality no matter how much we put trust in broker, mismanagement can lead to bankruptcy and liquidation of company. I am not smart how to keep money safe except to have funds with several brokers. It is not convenient for trading, but at least brings some safety

 

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