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Medium size accounts FDIC insured?

  • #1
  • First Post: Aug 5, 2009 10:52am Aug 5, 2009 10:52am
Has anyone noticed CitiFX Pro--an FF preferred broker?

Accounts are FDIC insured and Citi is bound by tougher bank regs than the NFA. In other words, Citi will be held more accountable. Initial deposits are a little larger, leverage is a little lower, and spreads are mediocre, adding up to a much more conservative package than most retail brokers offer.

However, I think for serious US traders, the benefits might outweigh the concessions. I think that for better or worse, this is the direction that US retail Forex will be going. It might be a good idea to look over this more conservative approach. We'll be seeing a lot more of it.
  • #2
  • Aug 5, 2009 1:15pm Aug 5, 2009 1:15pm
Quoting billflet
Has anyone noticed CitiFX Pro--an FF preferred broker?

Accounts are FDIC insured and Citi is bound by tougher bank regs than the NFA. In other words, Citi will be held more accountable....
Unfortunately, this 'conservative' approach does not give the advantage to the trader..

Yes, funds are insured, which is a huge value add, especially for those bigger accounts -- BUT -- I've seen Citi's live platform and it is not even comparable to most retail shops. It's very difficult to trade the EURUSD at 3 wide plus commission at 11am EST..

I like the idea of larger banks entering the retail arena, I just think Citi jumped the gun and did not put necessary time into their platform...

For serious US traders (assuming FDIC insurance is not the utmost concern) due diligence on several brokers should be high priority. There are plenty of solid, well-capitalized, stable brokers, US and UK based, that may not offer insurance on your deposits, but WILL give you excellent trade conditions and allow you the opportunity to make money.

After all, what good is insurance if you blow up your account?!

Billflet, thanks for this thread. The US retail FX market will be changing even more so in the next few months and we all should be discussing the various options available in this open forum.
  • #3
  • Last Post: Aug 5, 2009 1:44pm Aug 5, 2009 1:44pm
I haven't checked out their platform. I suspect that reail brokers will have more and more restrictions placed on them which will make the playing field attractive to more big banks. Once the banks start competing among themselves, we'll see better platforms, etc.

I'm sure Citi is already preparing for Round 2.
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