The Wall Street Journal reports that FXCM is considering sales of non-core assets to help repay the $300 million loan it was forced to accept under distressed conditions last week.

Shares of the company are down 85% since mid-month and declined nearly 30% on Friday.

They said FXCM is “reviewing countries where it offers currency trading, with an eye toward possibly lopping off jurisdictions where capital requirements and other costs are too onerous, one of the people said.”

There is nowhere where capital costs are higher than the US.

The WSJ reports that a leading contender to be sold is FXCM’s minority stake in FastMatch Inc., a separate company that operates an electronic currency-trading platform. FastMatch matches buy and sell orders among banks, hedge funds and other asset managers. The company estimates its share is worth roughly $70 million.

We’re still waiting for definitive news on whether or not FXCM is going after negative client accounts but so far the tea leaves point to ‘yes’. If so, we think all traders should reconsider doing business with them.

Especially after they made frequent claims like this one:

This is reportedly the letter that’s been sent to clients:

Dear Client,

IMPORTANT NEWS REGARDING YOUR FXCM TRADING ACCOUNTS

Please be advised that in order to offset negative balances you currently hold in your FXCM account(s), FXCM has transferred funds from your account(s) with a positive balance. The terms of your master trading agreement entered into with FXCM, available online, provide FXCM with these rights.

If after this transfer you still maintain a negative balance on your account, you are requested to remit funds immediately. FXCM accepts deposits by, debit card, bank wire and ACH electronic check. All options can be accessed via our www.myfxcm.com portal.

As you may already be aware, last week, the Swiss National Bank (“SNB”) announced that they will no longer support a self-imposed floor on the EUR/CHF exchange rate. Learn More.

The SNB announcement, extreme price movements and the resulting lack of liquidity were exceptional and unprecedented events causing many market participants to incur trading losses. These events were unforeseen and beyond the control of FXCM, constituting force majeure events.

Record of this transaction is available by generating a Combined Account Statement and referencing the description “Offset Transfer from Account to Account for Negative Balance”.

FXCM thanks you for you cooperation and understanding.

If you have any questions, please contact one of our specialists, who are available 24 hours a day, by live chat, by calling 1-888-503-6739, 1-888-503-6739, or by e-mail at info@fxcm.com

FXCM hereby reserves all rights and remedies that it may have at law, in equity, under the terms of any contracts with you. Nothing in this notice shall be deemed to constitute a waiver or settlement of any of FXCM’s rights and remedies.

Here is a list of forex brokers forgiving negative balances and those who aren’t