The UK subsidary of FXCM, one of the firms that suffered a blow in the fallout of the SNBomb, has announced an upcoming updated to its negative balance policy.
Here is a list of 10 brokers not fully waiving negative balances. And from here on, please find the press release by FXCM:
LONDON, March 20, 2015 (GLOBE NEWSWIRE) — Forex Capital Markets Limited (FXCM UK), today announced that it will be updating its Negative Balance Policy for new and existing clients in the near future. Existing clients should expect to receive more details about the updated policy in the coming weeks, which will include changes to the company’s master trading agreement and notice of when such changes are to take effect. New clients should be sure to carefully review the terms of any trading agreement proposed during the account opening process to determine the appropriate policy then available.
The changes to the Negative Balance Policy will include the following, subject always to the terms and conditions provided in the client’s master trading agreement:
FXCM Updates Provision in Master Trading Agreement: Clients subject to the Negative Balance Policy who incur negative balances in excess of US $50,000 (determined by aggregating all of the client’s negative balances across all accounts held byFXCM and any of its affiliate(s), incurred over a 24 hour period of time) will be responsible for and owe FXCM the value of the total negative balance above US $50,000, regardless of market conditions. Subject to certain exceptions, FXCM will waive the first US$50,000 of a client’s total negative balance (determined by aggregating all of the client’s negative balances across all accounts held by the FXCM group, incurred over a 24 hour period of time). This policy will apply to negative balances incurred during all market conditions, including exceptional market movements.
Specific Exceptions: Each client’s master trading agreement will detail all of the specific exceptions to the Negative Balance Policy. Some of the key exceptions to this policy include the following: negative balances incurred by legal entities, omnibus relationships, white label relationships, Eligible Contract Participants, Eligible Counterparties and/or Professional Clients (as defined in the client’s master trading agreement) and/or negative balances incurred on share CFD positions or products traded on an exchange.
FXCM is a global foreign exchange broker regulated in multiple jurisdictions. Regulated entities may require different notice periods for changes to the master trading agreement. As such, the effective date of the revised Negative Balance Policy will vary by jurisdiction in which an account is held. Clients will be notified accordingly. The revised Negative Balance Policy will only apply after the effective date and will not apply to negative balances incurred before such date. This release contains general statements regarding FXCM’s planned revisions to its Negative Balance Policy, is for informational purposes only, and should not be considered to form part of any client’s agreement with FXCM.
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