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Thread: ALpari-US Scam Alert Margin Call Level being moved from 20% to 100% in 72 hrs

  1. #1
    Men,

    I just recieved this email out of Alpari US, get your accounts to over 100% margin amount ASAP. Reduce all drawndown rankings and transfer your cash to a new broker when possible. If your drawndow you make a deposit or suffer a margin call!!!!!

    It is completely unsatifactory that this firm could move their margin call amount from 20% to 100% and just provide their customers 72 hours notice via email at that!!!!!!! I'll be closing my account within 30 days!!!!!

    I spoke to customer support and they assert their doing this to stop entire accounts out of being wipe out, this is bull crap. They're hoping that your account is drawn down, and you didnt grab the email, and wake up Monday morning with a margin call!!!!!! And practically a vacant account!!!!!!!!!


    Dallas


    Dear ,

    Effective January 18, 2009, Part 2 of this Client Agreement and Section 6 of the Terms of Company are being revised as follows:

    CUSTOMER AGREEMENT #8211; SECTION 2. SECONDARY RISK DISCLOSURE: HIGH RISK INVESTMENT

    Trading Is Quite speculative and risky. Forex Trading is highly speculative and is suitable just for those Clients who (a) know and are willing to assume the economic, legal and other risks involved, and (b) are financially able to assume losses significantly in excess of Margin or deposits. The Client represents, warrants and agrees that the Client understands these risks; that the Client is willing and able, financially and otherwise, to assume the risks of Forex Trading and that reduction of this Client#8217;s entire Trading Account Balance will not alter the Client#8217;s life style.

    The high Leverage and low Margin associated with Margin Trading can result in significant losses due to price fluctuations in the international currency markets. Alpari#8217;s Margin policies may require that additional funds be provided to properly margin Client#8217;s Trading Account and that the Client must immediately meet such Margin requirements. Failure to sustain a Margin Level in an amount equal to or exceeding 100% of Margin requirement may result in the liquidation of any Open Positions with resultant loss to the Customer.

    TERMS OF BUSINESS #8211; SECTION 6. STOP OUT

    6.1. The Company is entitled to close the Client#8217;s Open Positions without the permission of the Client or any previous notice if the Equity is less than 100% of the essential Margin.

    6.4. Whenever the final Open Position is closed in accore with clause 6.1 and there is no Price Gap or Price Gap on the Market Opening, the Company will use reasonable endeavors to maintain the Trading Account Balance within 0%-100% of the margin, which will be needed to keep this position.

    For an amended copy of this Client Agreement and Terms of Business, please visit http://www.alpari-us.com/files/doc/terms.pdf and http://www.alpari-us.com/files/doc/agreement.pdf on or after January 18, 2009.

    In accord with these modifiions, effective January 18, 2009, Alpari (US) will improve its stop out amount to 100% of the required margin.
    Please refer to this following example to get an explanation on how this will influence your trading:

    Assume that the quote to the EUR/USD is 1.2600, and you've got $5,000.00 on your account.

    Assume that, now, you start a position of 1 standard lot of EUR/USD. If the price moves against you after you start your circumstance, MetaTrader 4 will automatically close your position around $252.00 (20% of the required margin), with a reduction of around $4,748.00.

    As of January 18, 2009, you start an inventory of 1 standard lot of EUR/USD on your account. If the price moves against you after opening your circumstance, MetaTrader 4 will automatically close your position at $1,260.00 (100% of the required margin), with a reduction of $3,740.00.

    Please note the following: all places which are left open with inadequate margin after the market closes on January 16, 2009 will be automatically shut upon the market8217;s re-opening on January 18, 2009, with no additional notice.

    Team of Alpari (US)

    Risk Caution: Forex Trading is speculating in foreign currency exchange rates in an off trade over the counter market (OTC). The money in your account may not be given the same protection under U.S. Bankruptcy code as capital deposited for exchange traded contracts. You could end up being an overall lender if Alpari (US) were to become insolvent. Forex trading is extremely speculative, risky and is not suitable for many investors. In fact, you could lose all of your initial investment and may be liable for further losses. Alpari (US), LLC is registered with the CFTC as a Futures Commission Merchant and is a member of the NFA - Member ID: 0379678.

  2. #2
    Quote Originally Posted by ;
    This is no scam.
    You should thank them should they shut your position !!

    And do yourself a favor - Redo your money management
    Usually the leverage for internet forex brokers is all about 1:100. If Alpari really did increase their margin amount to 100 percent, which means they can vertically close anyones account at any point if we start dropping our first deposit. As an example, I made a deposit $100 to a forex account using a leverage of 1:100. After the margin amount is , I have to have at least 40 in my account or they can shut my order at any point. But in the event the margin amount is 0, they can shut my order even if my account still have $199 deposited there.

  3. #3
    Quote Originally Posted by ;
    As of January 18, 2009, you open a position of 1 standard lot of EUR/USD on your account. If the price goes against you later opening your standing, MetaTrader 4 will automatically close your position at $1,260.00 (100% of the required margin), with a loss of $3,740.00.

    Please note the following: all places that are left available with inadequate margin after the market closes on January 16, 2009 will be automatically closed on the market's re-opening on January 18, 2009, without further notice.
    Sounds just like they experiencing capitalization troubles?

  4. #4

  5. #5
    This is no scam.
    You should thank them if they close your position !!

    And do yourself a favor - Redo your cash management

  6. #6
    If you have stop loss orders in place I really don't see the difference it makes.

  7. #7
    Quote Originally Posted by ;
    This is no scam.
    You should thank them should they close your position !!

    And do yourself a favour - Redo your cash management
    First,

    I scalp so I dont incur substantial drawdown (15 pip SL here) , however I do know lots of day and intraday traders with various places open and thier accounts are fairly often below 100% free margin.

    My problem with the whole issue is a transfer from 20% to 100% to get a margin call is enormous shift on your account policy; and also to give your clients 72 hour notifiion and through email at that is completely disappointing IMHO.

    What about traders that are still on holiday with places open on there terminal, and there accounts are under 100% free margin, ahh they'll return next week and also have a huge surprise waiting them.


    And I agree with the other poster it totally smells like liquidity issues, or a move to force extra deposits!!!


    Dallas

  8. #8
    Has anyone phoned them? Is this aimed only at increasing Capital cash or an additional requirement from the farm bill modifiion from last fall? I am trying to recall if margin requirement minimum was addressed at the CFTC Cap Requirement change effective January 17th. Regardless of Cap cash on hand.

    Update:
    While I did not find what I wanted in my copy of the new legal requirements, it is addressed in this informative article. Now my only question is if margin minimums were raised for NFA members no matter Cap. Money on hand.

  9. #9
    Quote Originally Posted by ;
    Has anybody phoned them? Is this aimed at raising Capital cash or an extra requirement from the farm bill amendment from last fall? I am trying to recall if margin requirement minimum was addressed at the CFTC Cap Requirement change effective January 17th. Regardless of Cap cash.

    Update:
    While I did not find what I wanted in my copy of their new legal conditions, it's addressed in this post. My only question is if margin minimums were...
    Ahhh,


    Thank You for the upgrade. Now everything makes sense, they're short on capitol so you press overleveraged accounts for deposits, or stiff them!!!! Thats


    Dallas

  10. #10
    Quote Originally Posted by ;
    Ahhh,


    Thank You for the update. Now everything makes sense, they're short on capitol so you press overleveraged accounts such as residue, or stiff them!!!! Thats cute!!!!!!


    Dallas
    What leverage they before and that which leverage would be they after the email to you? I do not utilize Alpari, so I'm asking for advice.

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