How possible do you more well FX-versed traders...

think that it would be a firm like FXCM to become insolvent?

 

you will lose your money long before FXCM loses theirs

 

I bet Refco clients thought the same thing

 

I can't stand FXCM and would urge anyone not to use them.

However in terms of counterparty risk I should imagine they are an awful lot better than many firms.