Brokers chasing you for negative account balance - Page 2
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Thread: Brokers chasing you for negative account balance

  1. #11
    Quote Originally Posted by ;
    Any reason particularly LMAX should cover YOUR losses?
    Goodwill, long-term company relationship, positive PR, Intense Conditions, reduction because of unfair business training on liquidity suppliers' part, just a couple that comes to mind

    The only individuals that we should be taking to court Is Really the liquidity suppliers for unnaturally driving down prices to induce monetary losses

  2. #12
    Quote Originally Posted by ;
    quote Do you have a source for this as I was considering starting an account with them? Not so sure now.
    You could create some type of limited liability legal form like the british restricted or the german GmbH (in addition, the LTD comes a lot cheaper and may be preferable anyway as LMAX is a UK broker). You might choose to share that with your accountant/financial advisor/Steuerberater.

  3. #13
    I am curious, what about the margin call? It's an automatic stop loss basically if your equity goes too low to handle the trade. If a broker, LMAX in this case, didn't honor their own margin requirements how is that fault? The entire reason margin calls exist would be to get this thing.

    Instead of calling the broker to learn what happens in the event that you've got a negative balance you should first read the contract they made you sign when you initially opened a live account with them. That is the sole documentation you can be held by them to. If they don't adhere to the contract it's called a breach of contract and they'd be responsible.

  4. #14
    Quote Originally Posted by ;
    quoteThe only people that we should be taking to court Is Really the liquidity providers for Unnaturally driving down prices to Induce Monetary losses
    lol what

  5. #15
    Not with FXCM. It's FXCM's policy to charge accounts to a zero balance when calculating balances occur because of trading.
    One of the most significant concerns traders have about leverage is that a sizable loss could result in due money to their broker. In FXCM, your greatest risk of loss will be limited by the amount in your account. All accounts are tracked by our Margin Watcher attribute. Together with the Margin Watcher attribute, if account equity drops below margin requirements, the FXCM Trading Station will activate an order to close all open positions.

    Why FXCM in 225 Million loss?

  6. #16
    Quote Originally Posted by ;
    quote Depends on the nation, debt in the UK is a civil matter not criminal. And folks seize goods and knock on your door. In the courts making it difficult to get credit they're also able to mark your name. Each nation will differ.
    holy crap! Seize goods!!! Now at first I envision such act would be imposible. All this time we all doing everything by internet, enrollment, deposit, withdrawal, entrance transaction, etc. . even complaining with our delayed withdrawal from online.
    And now when instances goes into broker bankruptcy, all clients are taking responsible from such occasion which absolutely coming from brokers sided. And all clients taking this 'mad' responsibility. Just doesnt right, unjust, and they call this a 'legal action' ? For your Godsake.
    Is there anything we can do to assist those our fellow traders ? Perchance a request at change.com? Or any manner we can perform, even a little bit.

  7. #17
    It's too early, some brokers are going to review executions especially for those whose stops were implemented quite high 1.19 . But among my friends received a call from his broker asking the balance to be repaid by him. However they hinted they would be happy if he's about to pay 50% of the balance, to make a deal today they will forget about the rest. It was relatively small sum, although I also heard from somebody that LMAX provided them to refund only 30 percent of the balance, LMAX that is unlikely goes to court for it. People with huge accounts will probably won't go off so lightly and may need to declare bankruptcy to unload debt.

  8. #18
    Quote Originally Posted by ;
    quote I am disappointed and amazed to learn that LMAX chooses to proceed after the negative balances.
    Not just that. In a case of Default with LMAX, you need to cover:

    - If the Debit is #10,000 or less (or an equivalent amount in any other currency), by no later than 4.00pm on the business day

    - If the Debit is higher than #10,000 on precisely the exact same day or, in the event that the negative cash balance arises after 2pm, by noon on the next Business Day following the day upon which the adverse cash balance appears.

    - If you do not cover, they charge you interest on the amount due, 4% over the conventional interest rate.

  9. #19
    Take a look


    6.3. If a Stop Out implementation has caused a consequence of the Customers Trading Account, the Client shall not be liable for this reduction. Business makes an adjustment of the full quantity of Balance from personal resources.

    Problem is, I'm not sure whether this is still valid, it is from 2010

    Source:

    https://forum.fxopen.com/showthread....unt-Protection

  10. #20
    Quote Originally Posted by ;
    quote lol what
    Quote Originally Posted by ;
    quote The only people that we should be taking to court is actually the liquidity suppliers for unnaturally driving down prices to cause financial losses
    Correction: LP's erasing liquidity by artificially stopping price quotes that caused the precipitating drop in prices that in turn caused this massive negative balances by traders and brokers. They chose to depart the market leaving us holding the bag of s***. Well this is REALLY that their shit that they created should we pick up the tabs? Haven't we money they obtained four years they to the fiscal astrophe that was caused by these? No this is THEIR S***, we are going to push it straight back at them. Thanks for providing me a chance.

    When I were those brokers, I would look at my customer's trading actions, when the trader's negative balances was incurred over the first 3 minutes after the news release once the liquidity suppliers were there providing pricing quotes and making market, I would consider recovering them in the trader but if the negative balance was a consequence of the trade not being able to be executed due to the liquidity suppliers shutting down the market, I would push it back into my own liquidity provider with my middle finger sticking up at a really friendly gesture, not go after my clients, the traders to get a cent. Should they take me I would sue them for colluding for price fixing.

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