Thread: Negative balance account

It unfortunate that the balance in my account is negative due to the sudden drop...
what next?...

Thank you mr.rime for your post and welcome to the forum!


I have a negative balance in my account, does this mean that I owe FXCM money?

One of the greatest concerns traders have about leverage is that a sizable loss could result in owing money to the broker. Not with FXCM.

Many forex traders use a high level of leverage running the risk of losing more money than the account balance. If this happens, the account can have a negative balance, often called a "debit balance". In this case, the account holder would owe money to the broker, and the broker may call in collections agencies or engage in legal action to recover the losses.

FXCM does not use this practice as it is unfair to the traders. FXCM operates with a No Debit Balance Policy--if losses become too large, the system will automatically liquidate all positions at the best available price. Ideally, the system closes out the trades before the account becomes negative. In the rare case where it cannot, FXCM will credit the account back to zero. An FXCM account holder will never owe FXCM money due to trading losses.

Bottom line: It is FXCM’s policy to credit accounts to a zero balance when debit balances occur as a result of trading.

What is margin?

Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit. Margin requirements (per 10K lot) at FXCM are determined by taking a percentage of the notional trade size plus a small cushion. A cushion is added to help alleviate daily/weekly fluctuations.


Why trade on margin?

Trading on Margin (Trading with Leverage*) is a common attraction of the forex market. It allows you to open trades that are larger than the capital in your account.

Example

In the example above, $1,000,000 have been purchased through a long USD/JPY position with a $50,000 account balance (20:1* Leverage).
Trading on margin can both positively and negatively affect your trading experience as both profits and losses can be dramatically amplified. To learn more about the benefits of using lower leverage, please click here (Margin Trading and Leverage FAQ).

* Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.


How can I notify FXCM if my account has a negative balance or has encountered a technical issue?

FXCM would be happy to review the market execution of any recent trade or credit a negative balance account. To have a trade formally reviewed, please submit the ticket number, the nature of the execution inquiry, and other details of the trade in the form. The Trade Audit Team will then contact you as soon as possible with a resolution to the inquiry. In the meantime, please manage the trade as you see is appropriate.

Standard Accounts

If you have a live standard account you can submit your trade inquiry by clicking on the link that corresponds to your account below:

FXCM LLC (US) l FXCM LTD (UK) l FXCM Australia (AU)

Please fill out all the information requested, including ticket numbers, a description of what occurred, and what you would like the outcome of the resolution to be.

Micro Accounts:

If this is for a live micro account, you can submit a Trade Audit to have the case reviewed by clicking here.

Please fill out all the information requested, including ticket numbers, a description of what occurred, and what you would like the outcome of the resolution to be.

Once you submit the case, it can take up to 3-5 business days for the Audit Team to come to a resolution.

mr.rime, I see that the FXCM Audit Team has already credited your account and resolved the issue. Is there anything else we can assist with and were you satisfied with the outcome?

Thank you again for your post mr.rime! Please feel free to post additional questions or contact me at help@fxcm.com

Originally Posted by mr.rime

It unfortunate that the balance in my account is negative due to the sudden drop...
what next?...

Hi,
I had a similar problem and submitted an inquiry (one on Monday, one on Thursday).
Also emailed but no reply at all.
What do I do next?

Hello edchen, and thank you for your post! On behalf of myself and everyone here at FXCM, welcome to the forum community!


What is the status of my trade inquiry?

I see that our dedicated Financial Services and Sales department has been working with you and that the issue has been resolved! If anything else arises in the future please do not hesitate to reach out to me directly by email whenever any questions come to mind, if you need further assistance, or just to let me know how you are doing. Remember I am always here to help!


Thank you again for your post edchen! Please feel free to post with additional questions or contact me directly at julius@fxcm.com

Originally Posted by edchen

Hi,
I had a similar problem and submitted an inquiry (one on Monday, one on Thursday).
Also emailed but no reply at all.
What do I do next?