Alpari clients with negative balances will be forced to repay them - liquidators

[babyjake1961]

The Joint Special Administrators are aware that, following the validation process, there are likely to
be a number of clients who will have negative balances in their Client Account, some of which may be
significant, due to the volatility in the market following the SNB announcement on Thursday, 15
January 2015. Where there are negative balances, those clients will be required to make payment to
the Company.

https://www.insolvency-kpmg.co.uk/V...n3uy&did=6cd48d1c-0089-4d2e-9b60-ffdda8bb3774

Hence, trading Forex appears to be far riskier than one would think.

 

[YouAreNotFree]

I don't think anyone enters into fx trading thinking that it's not risky. It's made very clear you can lose more than your account balance.

That said, I'm very sympathetic to those who find themselves in debt. Especially if they have assets at risk.

 

[terriegym]

Sadly we all know that is the risk you take, and the risk is openly plastered over all the brokers websites.

I was lucky i was on the right side of the drop! but not in a good place waiting to see if i get my balance back.

My thoughts are with those who are now in difficulty

 

[Mr. Charts]

It's very sad for those affected, but use lots of margin and you are into high risk territory.
Part of the problem for home traders is that they don't realise there are so many better opportunities trading other instruments with much less risk than FX. They are also tempted by low deposits and dreams of huge wealth from using huge margin.
It's been said a million times, but don't risk more than you can afford to lose.

 

[pindol]

It may be worth looking at the other alpari thread for some of my other alpari comments which is http://www.trade2win.com/boards/first-steps/202614-alpari-discussion-help-thread-17.html#post2483942 .

But I would also highlight on this thread the following opinion from leaprate re claiming back negative balances which is the focus of this thread, the quote follows:-

"Alpari UK lost £24 million ($36 million) on Black Thursday from the Swiss Franc spike, and currently sits on $31 million of client’s negative account balances. About half of those $31 million of negative balances are attributable to just 9 customers. (As we’ve written before, we believe it will be very difficult for brokers generally to collect on negative client balances. Very few clients, if any, will voluntarily just send in a check, and if it ever gets to a courtroom are likely to argue that the implied agreement with the broker is that client losses are limited to amounts deposited)."

 

[0007]

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"Alpari UK lost £24 million ($36 million) on Black Thursday from the Swiss Franc spike, and currently sits on $31 million of client’s negative account balances. About half of those $31 million of negative balances are attributable to just 9 customers.


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Sounds a bit like "Boy Plunger" (Jesse Livermore) territory to me!