FXCM Is Buying RefcoFX - Deal is Done - Funds are safe

Discussion in 'Forex Brokers' started by Trader/God, Nov 11, 2005.

  1. RefcoFX Canada has the quality of service that FXCM offers, CIPF inssurance, and accecpt US Accounts. Is it true?
     
    #11     Nov 11, 2005
  2. Yes I think it is. They'll be on a short list of dealers I'll be looking at up there.
     
    #12     Nov 11, 2005
  3. #13     Nov 11, 2005
  4. #14     Nov 11, 2005
  5. Chood

    Chood

    You’re correct, only the bankruptcy judge can be certain. It's not doom and gloom to point out that fact.

    The MOU looks great for the customers, and I hope for their sake that it is accepted as submitted. But to say, as some have, that the "legit" character of these firms accounts for the good break is a bit much. If you draw a big hand late in a poker game to climb out of a trap for the night, you’re lucky. Luck and legitimacy are not the same thing.

    35 percent of FXCM is at stake in the bankruptcy, and FXCM has an incentive to buy that stake from the bankruptcy estate. That and the goodwill FXCM will generate for itself – which converts to profits to the fx retailer from the future trading of the rescued customers – are the motive for the MOU. That goodwill, and the profits from it, would be a lot less (or non-existent) if the accounts are not delivered to FXCM intact.

    Stiffed, disgruntled, and wary retail traders do not make the best customer base for a fx retailer. No doubt FXCM will make that point to the bankruptcy judge to win approval of the MOU.
     
    #15     Nov 11, 2005
  6. Deptrai

    Deptrai

    Praise the Lord. Hallelujah. Do I hear an Amen? :p
     
    #16     Nov 11, 2005
  7. #17     Nov 11, 2005
  8. The only problem is, who will own them at years end???

    Will they still exist??????
     
    #18     Nov 11, 2005
  9. FXCM clients who make money get put on manual execution. I'm not a forex guy, but I remember reading that here on ET.
     
    #19     Nov 11, 2005
  10. Chood

    Chood

    Which raises the interesting question, theological in nature, whose suffering is the greatest:

    1) the RefcoFX fish who is bucketed to bust prior to bankruptcy, or

    2) the RefcoFX fish who, having been saved temporarily by the bankruptcy (account frozen), is bucketed to bust by FXCM?

    (Deptrai, since you’re religious, feel free to weigh in.)
     
    #20     Nov 11, 2005