IG £30 million down this morning... ouch!

[NVP]

interesting thread and I recommend every damn wannabee trader reads this .........you must have a responsible broker to ensure they can handle these issues/events ........remember that if someone goes down you probably wont get your money back....even if you were not trading the event that caused it

they have your money .............full stop

N

 

[Jack o'Clubs]

IG results today, they've additionally disclosed: £12m of the £30m is IG trading loss (ie where they've honoured gtd stops but couldn't hedge in the market and £18m is client negative equity. Of the latter 'we've begun the process of collecting on these'.

 

[gle101]

Guaranteed stops are only as good the solvency of the bookie.

If IG losses had been big enough and they declared insolvency then guaranteed stops could be reneged on and your account wiped out.

Scary thought and something to keep in mind before overleveraging in future.

Absolutely true, and a thought for caution trading with high leverage.

 

[gle101]

c'est la vie

A couple of bookies lost money , who cares ? I even wont call them brokers .

You are a hard one. Though I have never traded with FXCM I kind feel for the owners that their live work had been wiped out in a flash. As I understand it Alpari were hit hard, not able to continue operating.

 

[tar]

You are a hard one. Though I have never traded with FXCM I kind feel for the owners that their live work had been wiped out in a flash. As I understand it Alpari were hit hard, not able to continue operating.

I use fxcm , hope they survive but it doesn't look good , stock currently is under $2.5 .

 

[Fugazsy]

I have two accounts with Oanda and CMC, Tar already posted the letter from Oanda, the one below is from CMC

Dear Traders,

As a result of a surprise move by the Swiss National Bank to remove the peg on the Swiss Franc’s value against the Euro last week, global FX markets experienced extreme volatility. As the currency surged many retail brokers reached critical levels and ceased accepting trades.

Despite the acute financial pressure of the past few days there was no material impact on CMC Markets Group which is trading as normal.

Strength & security – As a global market leader in CFD and FX trading, CMC Markets continues to deliver upon its growth focussed business model to ensure the company continues to go from strength-to-strength. Presently the business holds funds in excess of GBP130M and is well in advance of capital requirements.

Full client money segregation - As a co-founder of the CFD Forum we lead the way in providing security and safeguards for CFD and FX traders and have consistently pioneered greater industry reform and higher regulatory standards to mitigate investor risk. One of our cornerstone commitments is the protection and full segregation of client money. CMC Markets holds all client funds in segregated onshore AA-rated top tier banks, ensuring no client funds are used for our hedging purpose or for business operations. This provides you a level of protection higher than required by current regulations and beyond that of many other brokers in the industry.

Unparalleled service culture – CMC Markets consistently provides leading support through our team of onshore client service experts. Known for our market leading education program our team of global analysts provide vital market insights via the Blog and through respected media outlets.

If you have any questions please don’t hesitate to contact our Customer Service Team on
1800 303 888.

Kind Regards,

Matt Lewis
Head of CMC Markets Asia Pacific

 

[tar]

Fxcm increases FX margin requirements , good move :

http://img.fxcorporate.com/global/pdf/fxcm-uk-markets-updated-margin-2015-01.pdf

 

[tar]

In addition to increasing margin requirements , i think brokers should make having a TP target obligatory - with maximum distance - , this will help alot in the case if a security suddenly gaps , example CHF .

 

[gle101]

In addition to increasing margin requirements , i think brokers should make having a TP target obligatory - with maximum distance - , this will help alot in the case if a security suddenly gaps , example CHF .

Yes I understand you thought here, many FX traders would not like it though.

I guess quite a few have second thoughts about starting a business as a broker, offering high Forex leverage after this occurrence.

 

[tar]

New margin requirements in the US :

Effective 6:00 p.m. EST on January 22, 2015, as directed by the National Futures Association there will be margin increases on CHF to 5% , SEK & NOK to 3%. On January 26th, 2015 there will be margin changes on the AUD, JPY to 3% and MXN to 6%.

Good move , even 3% margin is low enough to leverage your trades ...