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Need Help: Urgent Broker Problem (Phillip Capital: NT Brokerage, Edge Clear)
I personally would not trade till we are assured all issues have been sorted. The US finance industry is a bit like the wild west, like old Wells Fargo with the Stage Coach. In Australia the ASX is small but the checks and balances are in place even more so with the Royal Commission that scratched open issues in the finance industry. However I would rather trade the US market than the Chinese market 🤠
That is not how futures brokers work. It is a highly regulated industry. There have only been a few notable exceptions in the last few decades where customers segregated funds were at-risk.
I don't know about others, but when I read "they will keep the winnings and pass the losses to their clients", the first thing that comes to mind are forex bucket shops that are not regulated nor trading on a centralized exchange.
Futures Brokers do not belong in this same category. As mentioned previously in the thread, you have the NFA which is an excellent option for resolving any serious issues you have with your broker. Using the NFA is truly a last resort, but it is there. Then there is the CFTC, which in my experience is only useful when a large number of people are affected by a singular issue (and not a case-by-case resolution, which the NFA can provide).
Certainly, this particular outage that Phillip Capital experienced may be escalated to the CFTC, and they may be fined. In my opinion, it will almost certainly result in a NFA case(s).
On top of that, you have NinjaTrader stating that they are also vigilantly ensuring customers will be made whole by this experience. That is another layer on top of the others listed.
All of this is highly contrary to your statement.
Naturally, like all of my posts, this is solely my opinion and not to be taken as legal advice. I also am not speaking on behalf of any of the companies named in my post. My post represents solely my thoughts and opinions, nothing more.
Hello, I have a question about account statements from PC. I have only been trading futures for a few weeks. Now the chaos at PC has hit me right away. So I took a closer look at the account statements.
Is it possible that I have different prices when I buy 2 futures?
1Micro 31289
1Micro 31212 bought with one click?
That's what it says on the account statement, it's an open position.
I had some trades in this instrument that day
It is a mystery to me especially since the price was never possible that day.
Also, in the explanations in the NT it only says the correct price
i was refencing clients that opened new positions to close out positions that did not really exist . some of the positions will be losses. the software problem did not directly create this, it was what will be called the clients untimely and unwise reaction to the problem that will be blamed. this area is gray in my view . i do not think losses in this area will be taken care of. i hope they are .
I hope so as well. These are the only items where an actual gain or loss can have taken place -- everything else on the statements are just reporting errors that do not represent true transactions, and they will be found and removed by the reconciliation process. If the customer did not act on these erroneous entries by initiating a true trade to close them, then no real transaction is involved and there is no actual loss, once the errors in the statements are removed.
But if the customer did the natural thing and tried to close a position their statement said they had, and therefore did a real trade that actually executed, this is where they have potential real exposure. This exposure could be bad, because if they thought they were long x contracts , and therefore sold x contracts to close this out, then on the exchange, not on their platform or on their statement, they are short, not flat.
This is why it has been said repeatedly in this thread to NOT close out any position that you do not recognize, but to contact support immediately.
As I understand the many statements made by @NinjaTrader in this thread, NT intends to make all these customers whole, meaning, they will not be stuck with the losses. This is the responsible thing to do, and NT clearly said they will do it. It does appear there was some confusing responses made at various times by NT support on this subject, but Ray is the boss and he has been clear on the sugject:
I can understand the sort of automatic cynicism that says the broker will look after himself and the customers will take the losses, but this is not what @NinjaTrader is publicly stating.
Everyone please also note the instructions repeatedly given in case you have an open position that is not yours, and especially one that you closed by an offsetting trade:
------------------
As @Big Mike has said, I am not connected with NinjaTrader nor with Phillip in any way, and am not speaking for them, nor can I. I'm just a guy who is typing here, not a spokesperson for these firms, so don't rely on my attempt to summarize the situation -- make sure you understand it, and don't be satisfied until you are sure you do.
I do strongly recommend that anyone in this situation immediately stop trading until and unless they are 100% confident that all is settled with their account.
Also, it appears that some of the refunding of accounts may take some time to figure out what needs to be done. Don't add to the problem by making any new trades.
Be careful now, and keep your head while this is going on.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
ninja traders clients will be taken care of in my view . i had a software problem that cost me a lot by another broker a few years ago that was not taken care of. i will not reference them . they sue people that rat them out. you know who i am referencing.
I'm afraid I don't know which broker you are referring to. I would really like to know but understand your reticence to name them if they like to sue people. All the more reason that I would like to know! Can you send me a private message with the name and a synopsis of what happened? Thanks!
Persistence! Nothing in the world can take the place of persistence.
Talent will not ... nothing is more common than unsuccessful men with talent.
Genius will not ... Unrewarded genius is almost a proverb.
Education will not ... The world is full of educated derelicts.
Persistence and determination alone are omnipotent! Calvin Coolidge
If Phillip Capital does not fully reimburse us customers I´m all for collectively suing them. They make millions every year with our fees. If they mess up they need to pay a couple thousand to us small retail traders. This mess is on them. It´s unacceptable that they do not fully reimburse us. I´m still waiting. I´m in contact with NinjaTrader and I like the platform very much. I hope they will find a solution. If there is a lawyer interested in taking the case please get in touch. I´m a lawyer myself, unfortunately not in the US. There is a lot of financial damage here and in my opinion also emotional distress, which is also damage being inflicted on us due to their incompetence and that needs to be repaired.
