West Ham football club sponsor and currency broker Alpari
has shut its UK arm following the Swiss National Bank's
decision to end its capping of the Swiss franc against the
euro.

The foreign exchange broker said in a statement that the move
had created "exceptional volatility and extreme lack of liquidity".
As a result, the majority of Alpari clients had "sustained losses".
The euro rose 1.2% on Friday to buy 0.9869 Swiss francs.
Thursday's euro-franc close was 0.9755, well above its lowest
point of 0.85 following the sudden removal of the cap.

"Where a client cannot cover this loss, it is passed on to us," it
said. "This has forced Alpari (UK) Limited to confirm today that it
has entered into insolvency."

The Financial Conduct Authority said it was "working closely" with
the company.
West Ham said Alpari's collapse would not affect the club, which
was in talks with potential new shirt sponsors for next year.
The SNB shocked markets on Thursday by reversing a three-year-
old policy.

The bank had previously capped the value of the franc at 1.20 per
euro.
FXCM shares suspended

At one point on Thursday, following the decision to abandon the
cap, the franc soared more than 30% against the euro.
Derek Halpenny, a currency strategist at Bank of Tokyo-Mitsubishi
UFJ, described the currency move as "unprecedented".
The euro regained some ground on Friday, rising 2.5% to 1.01
francs.

Alpari, which signed a £3m, three-year deal with West Ham in
2013, is one of a number of companies to be affected by the
volatility caused by the SNB's action.
Shares in US forex trading group FXCM were suspended shortly
before trading began in New York on Friday after the stock plunged
by 90% in pre-market dealing.

FXCM said on Thursday it might not be able to meet certain
regulatory capital requirements due to "unprecedented volatility"
after clients suffered losses of $225m.
The US market regulator, the National Futures Association, said it
was in "constant contact" with FXCM.
"We've been watching the volatility in light of the activities that
occurred early yesterday morning, so we are monitoring all of our
firms," a NFA spokesperson said.

Analysis: Jonty Bloom, business correspondent
The Swiss National Bank's decision on Thursday to abandon
attempts to fix the Swiss Franc against the euro resulted in the
"Swissie" rising by 30%. It was probably the largest one-day
movement by a major currency since the First World War.

The reasoning for the move were fears that the eurozone will soon
start printing money. That is almost certain to cut the value of the
euro and boost that of safe haven currencies, such as the franc. In
short, the Swiss could no longer afford to hold the line.
The consequences are just beginning to be felt. Alpari, one foreign
exchange broker, has gone bust, while another has lost £30m.
Yet it is the Swiss who have lost most, as the cost of their exports
will now soar.

If you were thinking of treating yourself to a nice Swiss watch for
the new year, you might want to check your bank balance first. It
is likely to be 15% more expensive than it was on Wednesday.
New Zealand foreign exchange dealer Global Brokers NZ was also
forced to close due to hefty losses incurred from the currency
turmoil.

Following the closure, New Zealand's Financial Market Authority
said it would "be seeking assurances that the client funds have
been protected and segregated."

Other forex companies also suffered losses. IG Index said it would
lose some £30m following the turmoil.
CMC Markets also recorded losses, but chief executive Peter
Cruddas said the overall impact had not materially affected the
group. "It's business as usual," he said.
Source: bbc.com/news/business-30846543

what is the way forward?
which broker is best now?
i ve account with alpari uk, thinking of retrading this year, so what do u think?