HEy,
I bank with SaxoBank as I am a non-resident US alien.
Apparently they were a big FOREX broker and the CHF revalutaion put them
$107m in the hole, for which they are
hitting individuals with negative balances of $500,000 and more!
Thankfully, I'm not stupid and didn't folly with FOREX, but here are some horror stories from there:
I was buying short tearm options through SAXO bank trade floor. Initaly I was working with 20 000 USD, last morning 12:00 I fell to 16000 usd and I couldnt withdraw it from the account. After that they recalculated my loss and said that I am -400 000 usd, and a bit later -560 000 USD, and that I haver to cover that Loss in the next couple of months ???????!!!!!
and another one here
I am in the same case. My account is showing a 6 digits negative number. Do you know what to do ? I am student and i dont have the funds necessary to make up for that loss. Do you think you can contest it ?
And yet another one
I am a retail trader with SAXO Bank and they too also have asked me to pay a 6 figure sum to them due to negative balance. They originally close me out around 1.15 taking all my margin.. then they called me the next day saying they adjusted the price and now I should pay a very very large sum.. I don't have this money and infarct i lose my life savings here..
Though they seem to blow off $107 as rather immaterial to them, is my capital at risk here from the bank going insolvent?
Especially if the above news sparks a run on them to withdraw assets?
My understanding was that the SEC assures investors that any securities held are safe regardless of the brokerage/bank used to purchase them, right?
So aside from the few hundred dollars I have in cash in my acc, I am not exposed to any risk in the event that the bank were to go insolvent?