Refco FX account withdrawl frozen!!!
- Thread starter inet
- Start date
RefcoFX has taken the PDF withdraw form off of their site. I just happen to have the latest one, which you can fill out with Acrobat Reader.
If you are in Canada you can withdraw your money, but I see no point because your money is safe and you can continue trading. I think if Refco goes under they will transfer your account to another company free of charge.
If you are in Canada you can withdraw your money, but I see no point because your money is safe and you can continue trading. I think if Refco goes under they will transfer your account to another company free of charge.
I really do think that the doomsayers are making it worse than it is. So doomsayers, let me ask you this. How come Canadians are allowed to withdraw? The people at Refco FX love to eat Canadian bacon? 
It just doesn't make sense that if customer funds are all gone that the Canadians would be allowed to withdraw.
It just doesn't make sense that if customer funds are all gone that the Canadians would be allowed to withdraw.Quote from Deptrai:
I really do think that the doomsayers are making it worse than it is. So doomsayers, let me ask you this. How come Canadians are allowed to withdraw? The people at Refco FX love to eat Canadian bacon?
It is true that Canadians would be allowed to withdraw according to Refco FX..
you cld try to sell cable right now on yr refcofx acct and simultaneously hedge on another fx acct you may have with another broker? (there is a reasonable prob. that cable may want to head back towards 1.77 other next 48hrs, after today's BoE release... altho' at the same time, it may not... now standing @ 1.7530) ... and if u believe in that trade, buy double the amt at the other broker's? all i'm saying is, no reason to just sit tight if there r ANY ways to try & diminish yr exposure, no matter how big or small yr acct may be...
broadly correct compared to regulated markets, however there r ways to diminish the risks:
- some fx brokers offer segregated accts... u still need to read the fine print tho', and be prepared to spend some time negotiating contractual adjustments with yr broker prior to signing up... am not saying its easy, just doable if the broker is really interested in getting yr biz...
- some jurisdictions r more 'favourable' than others, e.g. the UK has implemented a number of measures - Client Money Rules notably - that go a long way in terms of protecting 'private' customers monies. (as regards 'intermediate' customers' monies, those protections wldn't generally apply, but then there r the segregated accts...) as well as some measure of SIPC-type protection altho' insufficient if u have a $100K+ acct...
in any case a complex matter and people r right to say that one needs to read the fine print carefully.
guess after what's just happened to refco, and refcofx in particular for those of us who mostly focus on fx trading, more people will be pressing for / demanding acct segregation type measures across the board in the retail fx world and, altho' still not a silver bullet, thats a rather good thing!
as an FYI (though it's hard to be heard over Chode's bellowing little woman routine):
Refco sells unit, then files for bankruptcy
A consortium of private buyout firms, led by J.C. Flowers & Co. LLP, tentatively agreed late Monday to buy Refco's commodities trading subsidiary for $768-million, salvaging one of the few solvent divisions in the company.
Refco and 23 of its subsidiaries then filed for Chapter 11 protection in U.S. Bankruptcy Court in Manhattan.
http://www.sptimes.com/2005/10/19/Business/Hedge_fund_gives_Walt.shtml
Refco sells unit, then files for bankruptcy
A consortium of private buyout firms, led by J.C. Flowers & Co. LLP, tentatively agreed late Monday to buy Refco's commodities trading subsidiary for $768-million, salvaging one of the few solvent divisions in the company.
Refco and 23 of its subsidiaries then filed for Chapter 11 protection in U.S. Bankruptcy Court in Manhattan.
http://www.sptimes.com/2005/10/19/Business/Hedge_fund_gives_Walt.shtml
The material you quote refers to options and futures. Where does it say that CFTC regulates spot fx trading, and more importantly, which CFTC regulations apply to spot trading? If you cannot identify them (there are none), I'd leave the issue alone. Otherwise, you're simply spreading a myth that cannot possibly help anyone.
Personal aside: why you would want to shill for these fx retailers, particularly now? I mean, just this moment, you're staring into the wreckage of one of these bucketeers. Potentially, many people could lose their accounts. Isn't that sobering, and doesn't it suggest at a minimum that you and anyone else with an interest in the subject should exercise a bit more caution?