Brokers need solid system in place which can ensure the client losses never exceeded the equity .
Bearing in mind the CHF moved 30% in one move can you please tell me how they could do that?
Do I go in to Dixons and ask for " One solid system please" ? or is it a bit more technical than that.
It was a move that hadn't been seen for 40 years and you Mr Harry Hindsight think it just needs a solid system. Would that Solid System have put some bids in at 1,19, 1.18, 1.17, 1.16 ??
Brokers have solid systems already otherwise they would go bust every day with people owing them money. Bad debts in our industry run historically at less than 1% of revenue. I'd call that Solid already.
We all know what would have avoided these terrible losses that so many people are nursing and that was more responsible action by the SNB. 3 days prior to them removing the floor stating that 1.2000 was still fully supported by them was a despicable and irresponsible thing to do. They should be hanging their heads in shame.
But, and its a big BUT, there are risk warnings over the SB sites that state 'YOU MAY LOSE MORE THAN YOUR INITIAL DEPOSIT' this means you are trading at your risk with an execution only broker that allows you to open a trade with only a small percentage of the notional deal size. this doesn't mean your maximum loss is your margin or what you have on deposit. it means if it all goes tits up you could lose your shirt, and guess what, it went tits up in a big way.
Its not the brokers fault you had a trade on. its not your fault the SNB were goons. Its just unfortunate and you know what, sometimes it goes the other way and you're fortunate. That's the way this industry is and it isn't going anywhere.
Alpari will be forgotten by everyone other than people who owe them money or are owed money. FXCM are already back (for now), conversations are already about different subjects... life goes on. People have gone broke before taking risks and people will go broke in the future taking risks.
