Attention all affected by suspension of euro cap: this caused some brokers to close. FXCM will likely be one of them.
Read in forum section "Zorro and the Brokers" here

Hmmm, can anyone enlighten me on how this change in CHF could have such impact on the market, and on the brokers?

Hmm, speaking of which, when I look at the USD/CHF chart now, I guess that the gap is the problems. The ones who had long positions really got kinda screwed. Is that the reason for some brokers having problems, FXCM amongst others?

FXCM just closed all trades of my Z12 account and transferred the resulting money complete to my Z4 account, although I have an email of my contact person at FXCM, that they won't do such a cross clearing between accounts - I just asked this question before I became a FXCM customer.

Hi Sphin. Yes, the games are apparently on / not done. Can you post the email?

FXCM has just done the same to me. It's even weirder, though. FXCM also closed all trades in a different account in a different subsidiary and has not (yet?) transferred those funds anywhere.

I also don't understand how they justify doing this, since their written policy is by ACCOUNT, not by CLIENT.

jcl, have you seen this same behavior with your accounts? Presuming that you have better contacts than we at FXCM, what's going on?

Thanks.

Wow. That is really weird. My Z12 account still seems to be alive...
How can they just close all trades? That is no professional behavior.

Now my Z3 is also grounded the same way and cross cleared with another account. DdlV, I only have the mail traffic in german, I don't know if it is useful for you or good to post it here. Yes Sundance, that's the next point, destroying running strategies is not really the fine way.
But I never would have opened several accounts at FXCM if I knew that they behave this way. There are so many brokers on the market where I could use Zorro at least via the MT4 bridge and they all want customers. Therefore I asked FXCM explicitly before I did what I did. That's really big shit now.

I have not seen this effect on my FXCM accounts, but they had mostly been overcapitalized - even the Z5 account had still capital after the margin call. I know that another one of our developers also had only one of his FXCM accounts affected.

It depends on your contract. Contracts are usually per client, not per account, so it definitely makes sense to open accounts with different brokers. Still, different accounts can only be affected when the contracts allows that you're charged for a negative balance.

Currently it looks as if FXCM had survived that mishap.

Maybe it makes sense to take this as a recommendation into the tutorial to prevent other users from such a disaster.

Ibra


The problem is that forex brokers are not really brokers. As much as they try to label themselves as that, they are still really market makers. There is no exchange traded forex (unless you count futures contracts), so every time you make a forex trade, at some point your broker is taking the other side of that trade, even if only for a few milliseconds. They have to keep quoting prices as per their commitments around spread, so when the markets are going nuts, these guys are still giving some fills(or your account is going negative), however in this case, a lot of them where not actually able to hedge off the exposure anywhere else.

jcl, are ALL of your accounts overcapitalized and NONE went negative balance?

Anyone else have an FXCM account that went negative balance? It's hard to believe that only Sphin & I are the "lucky" ones...

Thanks.