So much for the grand standing statement that FXCM will forgive the majority of negative balances accrued over the SNB move. The company stated that around 90% of negative balances would be zeroed and that only 10% would be chased, comprising of experienced, high worth and institutional clients.
Today ForexLive has heard that they are sending out letters from their legal department chasing negative balances.
Here is a copy of a letter doing the rounds from someone who apparently is not is not classified under the 10% description.
FXCM letter
From what we’ve heard the letter looks to have given the person around 10-14 days to settle the balance which seems far removed from the comment FXCM CEO made last month.
“FXCM worked diligently to reach this decision and we are extremely appreciative of our clients for their patience and loyalty as we worked through this”
It all boils down to how they classified investors under the applicable regulatory umbrella. If you find yourself in this situation then you should check the details of your terms when you signed up. If they’ve incorrectly classed you as a professional/experienced trader rather than a private investor (again, check the regulatory body for your region for classification rules) then you may have the basis for an argument.
We await further details on this story but if anyone else has been contacted over the same issue then please let us know in the comments.
