Alpari leaves US market

Letter from Alpari

Dear Trader,

I am writing to inform you of upcoming changes to Alpari (US) LLC's ("Alpari") business model that will impact your relationship with us. Following a strategic review, Alpari has decided to exit the US retail foreign exchange market as a Retail Foreign Exchange Dealer ("RFED") and focus on developing its successful institutional division, QuantumFX.

As of the close of business on Friday, September 27, 2013, Alpari will no longer be the counter-party to your trades. To facilitate the transition, Alpari has made arrangements to transfer your MetaTrader 4 trading account to Forex Capital Markets, LLC ("FXCM"). FXCM is a leader in online forex trading headquartered in the heart of New York City's Financial District at 55 Water Street, and is dually registered with the Commodity Futures Trading Commission ("CFTC") as a Futures Commission Merchant ("FCM") and an RFED with the National Futures Association ("NFA"), member ID 0308179.

Moving your account from Alpari to FXCM is simple, all you need is to complete this short form. There will be several changes to your account including your account number and login details, as your account will be transferred to a different counterparty but you can continue to trade through your MetaTrader 4 platform after the transfer is complete. For more information about the transfer, please visit our FAQ page.

Please note that after the close of business on September 27, 2013, Alpari will no longer be the counterparty to your trades. As such, all open positions will be liquidated and all floating profits/losses will be realized. The subsequent cash balance of your account will then be transferred to your new counterparty, FXCM.

Please be aware, FXCM intends to re-establish all open positions liquidated by Alpari. The re-establishment of positions is limited to positions liquidated by Alpari and does not include positions manually liquidated by clients between the time of this notification and the close of business at 5:00PM ET on Friday, September 27, 2013. Please manage any open positions with these considerations in mind. For more information about the transfer, please visit our FAQ page

Note: You are not required to accept the proposed transfer and may direct Alpari to liquidate your positions or transfer your account, including open positions, to a firm of your selection. If you wish to discuss alternative options regarding this transfer, please contact Alpari's customer service no later than 4:00PM ET Friday, September 27, 2013; otherwise, your account will be transferred to FXCM at the close of trading day.

Once again, for more information about the transfer, please visit our FAQ page. If you have any additional questions, please direct them to Alpari's customer service by email at cs@alpari-us.com, by phone at 1 (646) 825-5760, or via live chat. You may also contact FXCM's customer support by phone at 1 (212) 897-7660 or by email at clients@fxcm.com.

We sincerely appreciate your business with us and I would like to personally thank you for your continued support over the years. We wish you the best of luck in all of your future trading endeavors.

Sincerely,

Jermaine C. Harmon
CEO, Alpari (US), LLC

FXCM announced that it will be assuming the retail client accounts of Alpari US, in a notification issued today. The listed firm was chosen by Alpari US, as it exits the retail FX arena in the United States.
Alpari US has revealed that the 27th of September, the last Friday of the month, as its departure date. FXCM will take over client accounts from the specified date.
Alpari US issued a statement earlier today, providing further details of the reason the company was pulling out of the US market. The statement came after the news release issued by Forex Magnates about the move. In addition, the firm  sent out an email to all of its clients, providing details about the withdrawal, and also contained specific questions and answers that could be raised by clients.
One of the most important questions for current clients was answered in the email.
“What will happen to my open positions? Alpari will not transfer open positions to FXCM. All open positions will be liquidated, and all pending orders will be cancelled at close of business at 5:00PM ET on Friday, September 27, 2013. Alpari recommends that you manage all your positions prior to this date. However, FXCM intends to re-establish the positions liquidated by Alpari. Please note, that the re-establishment of positions is limited to positions liquidated by Alpari, and does not include positions manually liquidated by clients, between the time of this notification and the close of business at 5:00PM ET on Friday, September 27, 2013. Additionally, FXCM will only be able to re-establish positions offered by both Alpari and FXCM.”
The US FX brokerage space has been systematically declining over the last three years since the implemetation of the new rules, which have affected leverage, capital adequacy and order types. Once a flourishing industry, the US FX brokerage sector was home to the world’s largest providers. The regulatory changes have had a negative impact, with a flurry of brokers packing their bags. Alpari US follows in the shadows of FX Solutions, Easy Forex, Forex Club and GFT.
The new rulings are thought to be positive for the market. However, when assessing their impact on traders, the results are quite the opposite. The reduction in the number of brokers from whom traders can choose, means that there will be little or no competition, in addition, brokers will not have the need nor desire to innovate and introduce new trading solutions. Only regulated firms in the USA are allowed to solicit US clients. Therefore, US clients will lose out.
Capital adequacy requirements for FX brokers in the US are extraordinarily high, when compared to other major regulators. In the UK, firms need to hold a minimum of seven hundred and thirty thousand Euros. In Singapore firms are obliged to hold one million Singapore dollars.
The $20 million bounty set by the US regulator, has been one of the major factors that has been drowning the FX markets in USA.
Turkey’s financial regulator, SPK, issued a circular specifying that it intends to increase capital requirements for brokers. Unlike other regulators, the SPK is following the direction of the NFA.
Financial terms of the transaction between FXCM and Alpari US have not been disclosed.
http://forexmagnates.com/fxcm-adopts-retail-fx-accounts-from-alpari-us/