Reuters reports that it is selling its retail FX assets (meaning your account if you have an account at Refco) to FXCM for about $110 Mllion. Account balances will be transferred, positions will be intact. That's the plan.
Click here to read the article.
There are two big things that we learn from this experience.
1. Trading with a big company like Refco has risks, but it also increases the likelihood that someone will save the company if there are problems. And there are always problems. We cannot ever be sure that our forex dealers are going to avoid problems.
2. FXCM is making enough money from retail FX clearing that they are willing to spend $110 million for 15,000 customer accounts.
I hope this news starts to provide some relief to traders who have been worried about their accounts.
