WE WANT TO TELL YOU THE REAL HISTORY ABOUT WHAT SAXO BANK DID TO THEIR CUSTOMERS.
THIS IS THE REAL HISTORY.
In a surprise move on January 15, the Swiss National Bank (SNB) removed the exchange rate floor of 1.20 on the value of the Euro versus the Swiss franc (EUR/CHF). After that the EUR/CHF rate dropped. At that moment a lot of Saxo Bank customers had long EUR/CHF positions, some of them with stop loss and some of them without stop loss. As the EUR/CHF started to fall Saxo Bank closed the EUR/CHF positions with the stop loss for some customers, and closed the EUR/CHF positions automatic for other customers without stop loss who received the margin call as the margin available to trade in their account was gone. After the closing of all the positions, nobody had negative balance, all the people lost a lot of money, but their account retained positive balance to trade with. All the traders paid to Saxo Bank a big amount of money for their positions, they did a trade, they took the risk, and they lost the money. This is trading and the end.
However 12 hours after the closing of all the positions, Saxo Bank sent an e-mail to their customers to inform them that Saxo Bank had ''liquidity problems'' when closing the positions and that they had to re-quote the closing price to a price which Saxo Bank received on the market. Saxo Bank retrospectively changed the price that they confirmed to the customers when closing their positions. And of course the rate that Saxo Bank gave after 12 hours was very low compared with the real market price at that moment. Then all the accounts finished with negative balance. After the re-quote and change of the price, Saxo Bank sent out another e-mail to their customers asking them to pay the negative balance on their account within maximum of 4 days, otherwise Saxo Bank will start sending debt collector to the customers. The customers were in shock.
Imagine you are a trader, you are Saxo Bank customer, you have your account with 80.000 Euros. You open your positions of 900.000 EUR/CHF long (buy) at 1.2020 and you put your stop loss at 1.1620, then the EUR/CHF rate drops and you stop close your position with balance of 49.020 euros. Your loss on this trade is 30.980 Euros in that moment. You think, OK, I did my trade, I took the risk and I lost, I accept my loss. But after 12 hours you receive e-mail saying that Saxo Bank changed the price of your position that was already closed with your stop loss and confirmed in their trading platform and now the closing price is 0.90. Then you don't lose 30.980 Euros, you lose 302.000 Euros. After applying the re-quoted rate your account now has a negative balance of 222.000 Euros – all of this after getting one simple e-mail. Why ? Because Saxo Bank claims they had liquidity problem on the market when closing customer’s positions and they had to adjust the price. It was very simple for them. They made a mistake and you pay 222.000 Euros because someone has to pay for their mistake, and of course they don't want Saxo Bank to pay.
Then you already lost your account value of 80.000 Euros, but this is not enough for Saxo Bank, that sent an e-mail and explained that you have 4 days to pay 222.000 Euros. And of course you are one of the top10 in the Forbes and you go to the bank and you send the money to Saxo Bank... because 222.000 Euros is nothing, you can pay even with your credit card if you want, like if you buy a mobile phone in a shop...
That is a real example of what happened on that day. Saxo Bank clearly cheated their customers, Saxo Bank did a fraud, this is the worst decision in their life, they are playing with their customers, destroying their reputation with this bad manner and illegal action. Saxo Bank is a market maker, and they think that they can do whatever they want with customers’ trading accounts. There is no other broker in this World who would dare to transfer their loss onto their customers.
If Saxo Bank had a liquidity problem, it is not the fault and responsibility of the customers. The customers closed their positions and Saxo Bank closed their positions. Then as Saxo Bank is the market maker there is no excuse for the lack of liquidity, this is their business and their responsibility, there is no way the customers should pay for Saxo Bank’s mistake as a market maker broker. Even if they would send all of the EUR/CHF orders to the real market individually and they did not have liquidity, why did they close the customers’ positions? Any excuse is ridiculous, they have to pay for their mistake themselves, not the customers.
Ladies and gentlemen, this is our sad history.