Alpari insolvent!

ffsear · Jan 16, 2015

threads merged

neil · Jan 16, 2015

spinola said:
The SWISS are ****ing financial terrorists ! ! Send in the MOABS !

Burn your cuckoo clocks in the streets !

YouAreNotFree · Jan 16, 2015

up-down said:
Just come back from TESCO. they closed my friends 20 lots Cable USD positions , what is going on, F***king SNB

Can we trust the Safe haven ****y CHF and SNB any more...

I closed my GBP/USD position manually about 30 mins ago and re-established elsewhere.

No idea what is going to happen to the funds in my account.

counter_violent · Jan 16, 2015

spinola said:
The SWISS are ****ing financial terrorists ! ! Send in the MOABS !

LOL and the Europeans who fail to put their house in order....they have no part to play in the SNB decision ?

FTSE in mouth · Jan 16, 2015

Can anyone confirm the rumour that it wasn't all down to client losses but also an in house trading strategy that relied heavily on the 1.20 cap?

Either way it sucks big time. All the best to all affected.

terriegym · Jan 16, 2015

tar said:
Early on January 15, 2015, the Swiss National Bank (SNB) sent global financial markets into turmoil with a surprise move to eliminate its three-year-old cap on the franc (CHF).

In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA remained true to its 14-year legacy of transparency, integrity and fairness to our clients. OANDA did not re-quote or amend any CHF cross client trades. We even took the further step of forgiving all negative client balances that were caused when clients could not close out their positions fast enough (where permitted by regulations).

As a very well capitalized broker, we are proud to report that it is business as usual at OANDA: client trading, deposits and withdrawals are processing normally.

OANDA is proud of its strong reputation for fairness and integrity. We thank our customers for their continued loyalty and welcome new traders who want to experience outstanding service and execution.

Dont suppose OANDA would like to start me up with the $1000 i lost with Alpari this morning???

tar · Jan 16, 2015

FTSE in mouth said:
Can anyone confirm the rumour that it wasn't all down to client losses but also an in house trading strategy that relied heavily on the 1.20 cap?

Either way it sucks big time. All the best to all affected.

Seriously how many traders trade EUR/CHF , its about all CHF crosses , shorts made money big time , longs were closed at SL / margin calls / negative balance . Dont forget the stupid leverage is offered here - 400:1 ! - .

tomorton · Jan 16, 2015

Oh joy! Email from Capital Spreads thanking me for the cheque I sent them on Monday. I'm just glad I could help them out.

ffsear · Jan 16, 2015

tar said:
Seriously how many traders trade EUR/CHF , its about all CHF crosses , shorts made money big time , longs were closed at SL / margin calls / negative balance . Dont forget the stupid leverage is offered here - 400:1 ! - .

I sure there would have been plenty of buy orders down towards 1.2000

YouAreNotFree · Jan 16, 2015

Alpari:

"This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm that it has entered into insolvency."

A 'majority'?!

Incredible.

spinola · Jan 16, 2015

terriegym said:
Dont suppose OANDA would like to start me up with the $1000 i lost with Alpari this morning???

You'll get your money back (soon hopefully ) you're protected in UK .

I'm using Oanda also. They have a UK regulated arm too.

tar · Jan 16, 2015

ffsear said:
I sure there would have been plenty of buy orders down towards 1.2000

Just 2% of open positions at Oanda and Fxcm were in Eur/CHF ... i would imagine USD/CHF shorts did hurt brokers big time , ie. they have to be paid in full ...

ffsear · Jan 16, 2015

Also given the lack of volatility in EUR/CHF over the last 3 years, i'm guessing some of those positions would have been quite sizable.

trendie · Jan 16, 2015

whats does this mean?
if an Alpari client has a positive balance, does that mean they lose that money because Alpari UK goes insolvent?

stollybollybull · Jan 16, 2015

trendie said:
whats does this mean?
if an Alpari client has a positive balance, does that mean they lose that money because Alpari UK goes insolvent?

No. If the funds are properly segregated (which they said is the case) then you get the money back.

FCA regs as I understand them say for retail clients, funds have to be segregated. So you hold cash with the broker; the broker then uses its own cash to place your position. It is different for "professional" clients.

The only problem arises when the company doesn't segregate the funds properly. And also if you had a profitable position that has been closed out. But money on deposit should come back quickly - at least once they have confirmed it's all segregated.

The Highwayman · Jan 16, 2015

I have an account with Alpari UK - only because they were regultaed by the FCA. I also had an account with MFG and they too were regulated. They went under in 2011 and it took 3 years to get my money back. I hope its not going to take as long this time. I wonder if there is such a thing as a "safe forex broker"?

terriegym · Jan 16, 2015

stollybollybull said:
No. If the funds are properly segregated (which they said is the case) then you get the money back.

FCA regs as I understand them say for retail clients, funds have to be segregated. So you hold cash with the broker; the broker then uses its own cash to place your position. It is different for "professional" clients.

The only problem arises when the company doesn't segregate the funds properly. And also if you had a profitable position that has been closed out. But money on deposit should come back quickly - at least once they have confirmed it's all segregated.

and some of us have to wait it out before starting again with another firm. i think its disgraceful that Alpari havent even bothered to circulate an information email to its clients and continue to just play music on the phones!!!

trendie · Jan 16, 2015

neil said:
Burn your cuckoo clocks in the streets !

Place an import embargo on toblerones.
That'll learn 'em.

stollybollybull · Jan 16, 2015

The Highwayman said:
I have an account with Alpari UK - only because they were regultaed by the FCA. I also had an account with MFG and they too were regulated. They went under in 2011 and it took 3 years to get my money back. I hope its not going to take as long this time. I wonder if there is such a thing as a "safe forex broker"?

But that delay was down to funds not being properly segregated http://www.investopedia.com/financial-edge/0312/what-happened-at-mf-global.aspx

Because this was a "shock" move, I would personally have more confidence. It's when a broker is trying to boost operating spend by dipping into client funds that you have a problem.

Mr. Charts · Jan 16, 2015

trendie said:
Place an import embargo on toblerones.
That'll learn 'em.

And shoot their cheese full of holes, buy Hong Kong watches and never eat a swiss roll again.

Alpari insolvent!

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