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Thread: any legal proceedings yet against negative balance accountees?

  1. #1
    Alpari , Saxo and another FX brokers have officially declared that they will chase back the negative balance.

    FXCM will even do for 10% of the negative equilibrium accountee.

    But it seems that no legal proceedings have been officially launched.

    Any legal proceedings yet against damaging equilibrium accountees ???

  2. #2
    The brokers will dare not sue for the negative balances.... Since they will have to prove that the negative balances are accurate and fair. No court of law will allow a margin call to be implemented - 30 minutes after a margin call. Don't worry. We'll never hear of any legal instances.

  3. #3
    Quote Originally Posted by ;
    The brokers will dare not sue for the negative balances.... Since they need to verify that the negative balances are accurate and honest. No court of law will enable a margin call to be implemented - 30 minutes following a margin call. Thus, don't worry. No instances that are legal will be heard of by us.
    #8203;Do you ever read broker's terms and conditions before signing? Of course will improbable chase individuals themselves, they will just sell the debt to collectors in which it's possible. Before they can sell it there is a process, they will send a few letters and warnings and so on. However, it will happen. I believe in per year.

  4. #4
    Quote Originally Posted by ;
    Alpari , Saxo and another FX brokers have formally declared that they will chase back the negative balance. FXCM may also do for 10% of the negative balance accountee. Nonetheless, it looks like no legal proceedings have been formally launched. Any legal event yet against negative balance accountees ???
    Nah, these are merely rumors. Are you currently a client of mentioned brokerages? I am almost sure their TS includes the supply about losses that are surpassed customers margin. They'll be taken over by broker, so client balance should be returned to 0.

    This excerpt from HF clears any doubts regarding legal proceedings in case of unprecedented losses:
    Quote Originally Posted by ;
    Though the margin call feature was made to close places when account equity drops below the margin requirements, there may be instances when liquidity does not exist in the specific margin call rate. As a result, account equity may fall below margin requirements in the time orders are filled, even to the point at which equity account becomes negative. This is particularly true during market interruptions or volatile intervals. HotForex will not hold traders responsible for deficit balances in this scenario, but clients must be aware that all funds on deposit...

  5. #5
    Quote Originally Posted by ;
    quote #8203;Maybe you ever read broker's terms and conditions prior to signing? Of course will unlikely chase individuals themselves, they will just sell the debt into collectors where it is possible. Before they could sell it there's a procedure, they will send a few warnings and letters and so on. However, at some time it will happen. I believe in per year.
    I agree with that the legal proceedings will be surely carried out, but not at the same time.

    Anyway, I expect such legal cases will help to explain some ambiguous FX practise.

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