Just one of my friend in Dubai told me shocking news regarding Alpari closed his trading account. He also told me that he is not the only in Duabi, got the issue with Alpari. Thousands of Dubai residents dealing with this Forex broker had suffer losses and their accounts been suspended.
I dig into the matter and came across that's fairly a bitter truth. Here is recap what exactly happened today that forced Alpari shutting off all his operations.
What Causes this!
"Swiss franc cap of 1.2 was been removed with respect to Euro by Swiss National bank which dramatically make CHF to jump down to 30%. against the Euro and for sure other currencies."Now What Alpari is stating
"The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. " Official statement Alpari
Alpari shut down operations!
Well, its too early to make announcement that Alpari have been shut down by FCA but i think so their clients are been having the same trouble bubble like my friend had today. Closed account, even my friend think he might had lost all his deposits in the Alpari trading account. Market Speculations are that might Alpari have to freeze all their activities.
Foreign exchange broker Alpari UK has entered insolvency, a day after the Swiss National Bank sent currency markets into a tailspin with its decision to suddenly scrap the ceiling on the Swiss franc against the euro. Financial times
Moves on the Swiss franc have forced online currency trader Alpari (UK) into insolvency, the London-based broker said Friday. MarketWatch
Foreign exchange broker Alpari UK announced Friday that it had entered insolvency following the Swiss National Bank's (SNB) shock decision to drop its three-year-old peg of 1.20 Swiss francs per euro. CNBC
The foreign exchange broker Alpari UK has been declared insolvent following market turmoil over Switzerland's shock decision to unpeg its currency from the euro. Sky news
Conclusion
As per the market dramatic turnover yesterday over Swiss Franc, Not only Alpari is been suffered, FXCM, City Index and IG suffers alot . FXCM losses crossed $230 million till today morning news. Its look like traders are in bad hand with these big players. Almost all brokers closed or freeze the trading for CHF involving trades yesterday.