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Ur Funds Vs Ur Brokers.

  • #1
  • First Post: Sep 20, 2006 12:51pm Sep 20, 2006 12:51pm
Hey Traders,

I strated a Thread called ¨Are ur funds safe...with ur Brokers¨ where i got few replies but not enough to make a rite desicion to Fund a live account with any particular broker the replies were quite helpful but limited, as there were not enought participants.

Actualy, There were sevral questions arising in my mind while writing this.

Apart from forex trading being so risky, that abt more then 90-95% of traders lose.

If one is not sure of his money with the Broker he is trading with, then wat is left in the market to ask for...? (Really it conserns me....)

I don't knw abt other traders but it realy conserns me I m an Enterprenur, hav invested in Real Estate, Businesses and other projects.

Its this Enterprenal Spirit which got me attracted towards Forex Market, and i can say even other traders might have the same enterprenal Spirit
which got them here.

But i lament to say that i haven't seen anywhr such a big ignorance...!

I would like to give u an eg, just do one thing put urself in tat position and try to answer.

A person wants to quit his job and looks for better life in Forex Markets for better living.

He dedicates 3-5 hours daily studying the basics of Forex and get hold on Trading strategy, MoneyMangt. ..etc... and after a year he opens a live account with a Well Know Firm ¨XYZ¨ with say $ 5,000.

He trades Part Time whenever he gets time here and there and apart from this, he Works at his job fulltime.

After a year he made a Good Trading style, Decipline, Strategy say all the necessary things one need to quit JOB and Trade Forex as a Full Time Trader.
Also he increase his Live trading account from $5,000 to $20,000 during the first year. (i think its possible...rite.)

Now, he is ready to quit his JOB and Start Forex-Trading as fulltime.

He devotes his next 3-Years to forex trading live as a fullTime trader and increase his account to $250,000-300,000 from his $20,000. (May be a big amount for few, but i think is Feasible in Forex-Market.)

All he used to do is take out the amount of money wat he wanted for living and his Resonable luxuries... Rest he used to keep in the Trading Account to Increase his account Faster.

Now, comes the Real Part to think. Pay Attention Pls. Pay Attention.

Wat if something happens and the Broker goes Broke/Bankcrupt/Backs out.

Do u have Some solution for this Trader now...........!!! ???

(i know few ppl over here will say why one has to keep all his money with the same broker and y not to keep it in diff. palce with diff broker, say u divide it in 2 Good brokers 150K each, but if one goes Bankcrupt then u have lost ur 150k is that alrite for u to lose bcoz u didnt care abt Fund-Safety...? Now pls dont come with the comments like, open account with 4 or 5 or 6 borkers....!)

For the Time around 5 yrs he gave to the forex Market, learn a subject, quit his Job and after 5 yrs whn he managed to make a success in it... Wat happend...Just gone with the wind, Why.....bcoz Broker didn't had any Fund-Safe thing even thou the Broker was WellKnown.... so wat..??? (Think on this... Put urself here in his shoes for a moment.)

If u realy put urself in his shoes u might be feeling a sense of ur Fund-Safety from ur brokers as a important part of ur Forex Trading Business... rite ? It is. I m not trying to make it big Mountain out of small rice, but this is wat happend to the ppl who were in RefcoFx (I Guess.)

I have completed my first year of Basic knowledge, with a good strategy, MoneyMangnt...etc and i am into the 2nd year to open my Live Account.
I wouldn't like that after 2 or 3 or 4 years the broker i am trading with goes bankrupt and i can't get my Hard Earned Money back, bcoz i didn't get the info before hand on his Fund-Safety policy... ? (It wud be a Nightmare)


So, Guys Just don´t let this discussion end here... Put ur thoughts, give ur views, ask ur brokers wat Fund-Safety they provide if u have not asked yet. And if u have asked just put a view of few sentences telling us wat they say with ur Brokers Name. It should take only 1-min to put down ur view but it will be a Gr8 help for all the traders.

Get all ur Question and their Replies over here share that with other traders so others Traders get some light from ur Q/A.

I wont let this Post down here... i know atleast abt myself, bcoz if i do want to have a ForexTrading as a Business and want to success. It is not a normal question, it is one of my Prime Priority to know if my Funds are Safe, with the Broker they are?

Another thing i would like to see Thoughts In Particular BY MERLIN, ISOTONIC, DIALLIST and all those who would like to drop their views.

(IN HOPE THIS POST HELPS)
  • #2
  • Sep 20, 2006 12:55pm Sep 20, 2006 12:55pm
As i started this post, i would like to make a start.
Here is some info on INTERBANKFX.
I had a chat with them which is underneath:

Quote
Please wait for a site operator to respond.
You are now chatting with 'Client Services'
Client Services: Hello this is D'yana, how may I help you?
you: hii Dyana
you: i had a quest. abt fund-Safety
Client Services: ok, sure
you: does Interbankfx has any fund-Safety policy for its clients
Client Services: Customer's funds are kept seperately from Interbankfx fund
Client Services: The Bank of the West
Client Services: is where we keep your funds.
Client Services: Was that your question?
you: hmm hmm.. can u explain it how it works... and wats the safety...incase the company goes bankcrupt or something ?
Client Services: yes, in fact let me provide you with the link
Client Services: http://www.patricknouvion.com/IBFX/ibfx_faq.php#0
Client Services: This has a large paragraph written about the security of our customers funds
you: hmm hmm... i will go thru that. thanks a lot if it couldnt clear my doubt i will bother u again..:-)
Client Services: no, problem..we are always here to speak to you..
Client Services: have a good day
  • #3
  • Sep 20, 2006 1:03pm Sep 20, 2006 1:03pm
Here is the 2nd chat i had with INTERBANKFX which was around 1:30 hours, related to few other questions i had abt ECN.

Pay attention on the last question...its interesting...!
It was abt how Interbankfx can all traders trading MiniLots as ForexMarket inreality trades in Whole Standered lots.
Read the conversation...

Ohhh Man i was dead tired after the whole long chat with Mike.... . The chat was more then 1 hour man...

Quote

Please wait for a site operator to respond.
You are now chatting with 'Client Support'
Client Support: Hello, My name is Mike, How may I help you?
you: hii mike i had few questions. if u can answer them pls
Client Support: sure
you: interbankfx is a ecn rite?
Client Support: yes
you: i mean it doesnt have a dealing desk ?
Client Support: no we dont
Client Support: your trades go through to the banks
you: ok.. how are the price given to its clients... bid/ask.. is it directly from diff banks
you: ok.. which banks does interbankfx deal with ?
Client Support: our feed comes from the bank, we dont have control of it
Client Support: we dont give out the banks we use
you: i ask this bcoz ... a client wants to confirm if there would be enough liquidity for the lots he is trading...? and if there is someway tat he can know tat xyz are the particular banks with whom interbankfx deals with then it would be more satisfying dont u think so...?
Client Support: all i can say is we use one of the top currency trading banks
you: no in words it wont satisfy if u can understand me... if there is somewhr written would be more satisfying.
Client Support: we dont give out what banks we use
you: its just one of the security things if u understand me.
you: is there something wrong to give out the banks interbankfx is using... is their any kind of harm or threat ?
Client Support: i have been told by my manager that we do not provide the banks we use
you: i think it would be more benificial for interbankfx to gain clients trust if they can share with which banks they are working, do u think so...
you: i understand ur situation.
you: can i spk to one of ur seniors who can give me abit more satisfying answer...or can u just confirm with some of ur other seniors who has a better reply then ¨u dont provide the bank u use¨ Please.
Client Support: yes i understand where you are coming from. I am not sure if its the banks that dont want us to give that information out.
Client Support: i have asked my manager many times on this the best thing i can have you do is email our owner at
you: hmm hmm... tat would be fine
Client Support: [email protected]
you: thanks for the email.. i had few more question if i m not bothering u
Client Support: sure go ahead
you: interbank allows hedging rite ?
Client Support: yes we do
you: is every trade handled saperately ?
Client Support: in the hedge, your buy would be one trade ticket and the sell would be another trade ticket
Client Support: you would have to close each one seperatly
you: if u buy 2 times at diff levels is that aveg up or handled diff ?
Client Support: they would stay at the market price they where executed at on each one
you: ok should be closed sperately rite?
Client Support: yes
you: Interbank chart feeds and the tickets have diferent feeds or are the same ?
Client Support: same
you: I mean wat u see on interbankfx charts is wat u get in the tickets rite?
Client Support: yes
Client Support: thats correct
you: and wat abt Demo feeds and the live feeds are they same or diff ?
Client Support: they are the same, what you see on the demo is the same the live clients are trading off of
you: hmm tats nice.
you: how long does it takes to open up a live acc. and to get it run i mean to make a live trade ?
Client Support: here is the proccess
Client Support: you send in the application it takes about one day for that to get set up
Client Support: then we email you with the account number
Client Support: then you will fund that account either by credit card or bank wire
Client Support: the funds take about 24to 48 hours to post
Client Support: then from there we will email you with the password
Client Support: so it takes about 3 business days to get it open
you: to get it run ... to make live trade it might take arnd 3-5 days ?
you: or after 3 days is it possible to trade live?
Client Support: it all depends an how quickly you can get the money to us
you: ok.. as u said u have a option of funding thru Credit card... it shouldnt take time rite ?
Client Support: with credit card usually 24 hours to post
you: and to withdraw how long does it takes ?
Client Support: once we recieve your request 24 hours to process and send out the money so it would depend on when your bank recieves the wire we would send them
Client Support: but we are coming out with a debit card you can move the funds to
Client Support: and then use that card to take the money out
you: does it charge any kind of commissions to take out withdraw money from ur Interbankfx Debit card
Client Support: we dont but if you used an atm machine the atm fee that the machine charges might be applied
you: Debit cards normaly are not charged any commision i guess but visa are charged arnd 3%. rite ?
Client Support: i am not sure on that we are just coming out with it and we are still getting some specifics on the card each day
Client Support: it doesnt come on until october so we should have more information on the fees if any
Client Support: as it gets closer to the release date
you: Does all clients get Debit card or with some with particular Equity. or something
Client Support: i think its for anyone that wants one
Client Support: no limit on how big the account is
you: i mean clients with Mini acc. and Standered everyone is entitlled to it rite ?
Client Support: yes
you: sounds good.
you: so wat if someone without debit card wants to withdraw money... how is that done ?
Client Support: they can sed in the request and we would wire the funds to there bank account
you: ok... as i live in spain... how long wud it take to get it in my acc.
Client Support: international wire usually take about 48 hours to be recieved they can sometimes go faster it depends on how the banks decide to route the money
you: Mike i would appriciate... in case if any question u r not sure dont give me 99% answer give me 100% sound answer. Please. wud be appriciated.
you: Hmm back again.. to funding question. I live in spain. wat documents would Interbankfx need from me for opening a live acc. ?
Client Support: on international wires once we send the money out it is out of our hands it all depends on when your bank post there wires, if it goes through an intermediary bank
you: Hmm but from ur knwldg. Max 5 working days and the amt would be in the clients bank account if its in europe say Spain?
Client Support: yes it should be there in 5 business days
you: hmm tats fine. back to the funding quest. I live in spain. Wat documents do they need for my side to open a live acc.
Client Support: we would need a picture id (passport, drivers license, goverment id)
Client Support: then a bank statement or utility bill with your name and address on it
Client Support: also you would need to fill out a w-8 form
Client Support: and that would be it
you: wats w-8 form ?
Client Support: its a form since we are in the U.S. saying you live in a different country and you pay taxes to that country
Client Support: thats all
you: can i read that form is have u got any link to that
Client Support: sure here is the link
Client Support: http://www.interbankfx.com/AccountsForms/W-8.pdf
you: hmm thanks... i will go thru..
Client Support: ok
you: anther thing.. while trading.. for eg. if my computer goes of.. some system failier occers... is there a way to cancle my open trades...
Client Support: you can contact us through chat or call and we can close or open positions for you
Client Support: we are here 24 hours a day
you: u mean to say... I m able to open and close position thru Phone, Chat and my computer.... And vice-vercas ?
Client Support: yes if you contact us we can do trades on your account if you are unable to
you: just to confirm it... is posible to open trade thru Ph. and cancel thru my computer ?
Client Support: yes
you: Done the ph. or chat trades appers in my computer ?
Client Support: yes they will any trade placed is stored on our servers
you: ok... how do u manage to enter a trade from my side.. as u havent got any Dealing Desk ? if u have a Dealing Desk i can understsand who can be contacted and then a trade can be done thru Phone ?
Client Support: the trade information are held on our servers so we have back office systems that we can look your account up and place a trad4e on your account
you: ok u mean to say u have a back off. which can be contacted thru Ph or chat and trade can be made ?
Client Support: you can contact us here at customer support/ trade support and we can place the trades for you
you: hmm hmm how does that happen do u need any kind of passwords from my side to know i m the rite person..
Client Support: we would verify some personal information
you: ok and is there anywhr metioned the Phone no. whr i can call and make a trade ?
Client Support: i can give you that
you: would be good
Client Support: it also on the platform under the "help" tab at the top
Client Support: then "about"
Client Support: 1-801-733-6910
you: yea i can see thanks anyway...
you: i asked this question bcoz somewhr i read that interbankfx donestn allow its clients to close the postion thru Phone if they are Opened thru Computer/internet.. is it true ?
Client Support: we do
Client Support: i do it all the time
you: ok tats good to hear
you: another thing... will i be assigned any Particular ForexSpecialist for my doubts or any Problems during live trading...?
Client Support: we dont have that but you can contact any of the agents here we also have on each shift a trade manager that handles reviewing trade problems on clients accounts
you: So there is not a particular forexSpacialist kind of a thing which tackles particular client ?
Client Support: we dont but you can ask for our managers
Client Support: our 2 top managers are arthur and ken
you: would have been good.. in place to spk to diff. People... as u for now u Can answer so many questions at a time.. and then whn i come with diff. quetion there wuld be diff. and he doesnt know wat background i m from and wat are my concerns u know ?
Client Support: we do make notes on the account usually the trade manager who helped on the first one would take over the second problem if there was one, normaly Arthur would be the one handleing the problem
you: So u mentioned Aurthur and Ken. how shall i reach them ?
Client Support: here is there emails
Client Support: [email protected]
Client Support: [email protected]
you: and whoes email id is this [email protected] some of ur previous person gave me ? if u can tell me
Client Support: our owners name is todd crosland
you: ok.
Client Support: that is his email
you: just few more questions
you: if u dont mind
Client Support: sure
you: wat are the spreads normaly in Majors?
Client Support: eur/usd=2
Client Support: usd/jpy=3
Client Support: gbp/usd=4
Client Support: usd/chf=4
you: and during News times like US NFP, GDP ?
Client Support: last big new announcement the eur was 9 to 10
Client Support: the us/jpy was if i remeber right was 11
Client Support: gbp/usd was 13
you: and how long does it last tat big... for a min. or 10 min or 30 min how long
Client Support: depends on the news announcement usually about 5 to10 minutes
Client Support: it comes back down once the banks get an idea of the direction the market is going to go
Client Support: and the movements settle down
you: ok is there a link whr one can see the lattest spreds on Major during the week.. as Oanda does it ?
Client Support: it is on our home page on the website
Client Support: there is a market watch on the right side
Client Support: and the far right number is the spread
Client Support: currently
you: is there any kind of commision apart form spreads ?
you: comisions or charges ?
Client Support: no
Client Support: just the spread
you: do u pay intrest on swap rates ?
Client Support: yes we pay you and charge the swap here is the rates
Client Support: http://www.interbankfx.com/swap_rates.php
you: k... the spread u said is it same for mini acc. holders and standered acc..?
Client Support: yes
Client Support: the same for both
you: i have heard the real forexMarket deals in standered lots... how do u manage to give Minilots without having a dealing desk ?
Client Support: we have an agreemant with our bank to provide mini lots
Client Support: now how they handle them on there side i am not sure
you: yea tats wat i wud like to know... bcoz u do got to gether all mini lots and process them as a Standered lot and put them in the market or not ?
Client Support: your trades go through to the banks we dont see your trades
Client Support: we dont have a dealing desk that buckets the trades
you: then is this these banks who buckets our trades if interbankfx donest then the bank u deal with might have to bucket the trades to trade in Standered lot.. wont u agree ?
Client Support: i am not sure how they handle them to be honest
you: no probs i like ur honest answer... but at the same time i would like u to consult with ur seniors Pls ?
you: M here ........
Client Support: yes
Client Support: i asked my manager and they are not sure if the bank buckets the trades or not
you: ohhh... this is Strange... dont u think. Managers dont know...? i m not trying to be rude... just showing u my concern.
you: who knows then... do Managers have any seniors abv them ?
Client Support: yes
you: If u have access to them wud u pls chk with them ?
Client Support: but the bank might not even tell us what they do with the trades
you: Y not. Bank has to have transparancy... they have to tell u the machenism of how the trade goes thru them... rite ?
Client Support: the bank is the market they make the rules
Client Support: when you place a trade you are sending a request to the bank for that price now they accept that order and fill the order at the avaliable price
you: Yes tats wat i m saying.. if they make the rules and u interbakfx as a participant has the rite to know wat the rules are ? as i m a client of interbanfx and interbankfx is bound to tell me all the rules and regulations they have to deal with...similarly Bank has to tell thier clients wat rules they have. and interbankfx is their client. If u r geting me.
Client Support: i understand what you are asking
you: if u r not sure wat reply u should give... its fine... i would apriciate if u ask ur seniors....
Client Support: i am asking them
Client Support: what the banks do with the trades is there business they might not give out that information
you: i cant agree with that...y i will tell u
you: As i a client of Interbankfx wants to know how do u handle my trades, Interbankfx is Bound to tell me how the thing works... Similarly Banks are bound to tell their clients like interbankfx how things work... it doesnt mean to show them how things work...but to explain them how things work... r u geting it
Client Support: yes
you: do u agree with it ? wat i said
Client Support: here is how it works from my understanding you submit the trade on your system our server takes that trade and links it to the banks servers now the bank accepts that trade and fills it at the avaliable market price
you: i know how the trades work... the question was... how are minilots traded in real forex world as In realForexMarket only standered lots are accepted ?
you: if i trade 1 minilot..my trade goes to banks and they take 9 other minilots and make 1 standered lot and then trade them or not ?
Client Support: what my managers are saying is that the banks does not tell us what they do with the trades the fill the orders how they do it
Client Support: they accept mini lots traded throughus
Client Support: but you get fillled at what the current market price is
you: to be frank its not a satifactory answer...
Client Support: that is the best answere i have for you
you: will Todd crosland be able to give a sound answer ?
Client Support: i am not sure
Client Support: it might be information that hte banks dont give out
you: ok... i wont bother u more.. thanks for ur time and information
you: Actualy i wont agree with tat bank wont give the info on how does the lots get traded...it cant be a secret
you: it was nice talking to u... say the next time if i wanna spk to u ... is their a way to reach u ?
Client Support: just ask for mike
you: tats it
Client Support: simpson
you: Mike Simpson rite ?
Client Support: yes
you: thanks once again...T.C.
Client Support: see you
you: sure

  • #4
  • Sep 21, 2006 5:28am Sep 21, 2006 5:28am
Hi Kev,

I was just browsing thru Broker Disscusion... and i saw ur post.
It looks like it took you a lot of time and energy to put all this together...I can feel the concern u r trying to show in ur first post by giving an example.

I havent got a particular answer to tat but i would like to see other traders reponse.

I havent read the chats yet... but soon i will read them aswell.
  • #5
  • Sep 21, 2006 9:38am Sep 21, 2006 9:38am
nice thread......

Ups...

if you really want an ecn then go for efxgroup.com

http://finance.groups.yahoo.com/grou...guid=225151186
  • #6
  • Sep 21, 2006 9:55am Sep 21, 2006 9:55am
Quoting hanz
nice thread......

Ups...

if you really want an ecn then go for efxgroup.com

http://finance.groups.yahoo.com/grou...guid=225151186
Dude, we've been over this a bunch of times...EFXGroup is an IB for MBT which is NOT an ECN.
  • #7
  • Sep 21, 2006 11:18am Sep 21, 2006 11:18am
Quoting hanz
nice thread......
Ups...
if you really want an ecn then go for efxgroup.com

http://finance.groups.yahoo.com/grou...guid=225151186
Thanks for ur reply Hanz.

Its nice to hear tat u like the Thread. To be True it was realy a lot of work to put all these things together... Just to show traders, how Important is Fund-Safety.

And as u mentioned if i was looking for ECN, efxgoup is good.

I will say i m not exactyly after ECN broker. It can be Non-ECN aswell... All i want is a well known broker with a Sound Fund-Safety Policy.

i would like more views by u if u get info on this matter.
Thanks again.
  • #8
  • Sep 21, 2006 11:25am Sep 21, 2006 11:25am
Quoting kevfx
Thanks for ur reply Hanz.

Its nice to hear tat u like the Thread. To be True it was realy a lot of work to put all these things together... Just to show traders, how Important is Fund-Safety.

And as u mentioned if i was looking for ECN, efxgoup is good.

I will say i m not exactyly after ECN broker. It can be Non-ECN aswell... All i want is a well known broker with a Sound Fund-Safety Policy.

i would like more views by u if u get info on this matter.
Thanks again.
EFXGroup is not an ECN. It is an Introducing broker for MBT. EFXGroup basically offers the same product with no enhancements as MBT does...AND they charge more in commissions.

If you're going with EFXGroup, you might as well go with MBT. Same thing.
  • #9
  • Sep 21, 2006 12:00pm Sep 21, 2006 12:00pm
Quoting mrmikal
AND they charge more in commissions
they charge exactly the same in commissions wich is 5$ for every 100.000$ traded.
I'm not insane; my mother had me tested.
  • #10
  • Sep 21, 2006 12:05pm Sep 21, 2006 12:05pm
Quoting hanz
nice thread......

Ups...

if you really want an ecn then go for efxgroup.com

http://finance.groups.yahoo.com/grou...guid=225151186

Do you trade EFX?

==========

EFX Group is an affiliated introducing firm for MB Trading Futures, Inc (MBTF) that receives a volume based referral fee for its services. MB Trading Futures, Inc. and 3DForex, LLC are registered with the CFTC and members of NFA as a Futures commission Merchant (FCM). MBTF offers execution and settlement services for off-exchange foreign currency (forex) products through EFX. 3DForex, LLC offers forex products only to institutional customers. Trading in forex is speculative in nature and not appropriate for all investors. Investors should only use risk capital because there is always the risk of substantial loss. Account access, trade executions and system response may be adversely affected by market conditions, quote delays, system performance and other factors. EFX Group, LLC. 2005, All Rights Reserved.

===========
  • #11
  • Sep 21, 2006 12:30pm Sep 21, 2006 12:30pm
Quoting RoBiK
they charge exactly the same in commissions wich is 5$ for every 100.000$ traded.
Ahh, yes...right you are...sorry, I did some research on them about 6-8 months ago and they were charging, I think $7 per $100,000 USD traded. They have since changed their rates which is good.

Carry on.

Still though...as mentioned, they are an introducing broker for MBT which means your money is still with MBT which, I think is an extremely reputable commission-broker. The navigator platform is a little less than desirable, but the MBT API is one of the most robust I've seen and you can pretty much build whatever you want with them.
  • #12
  • Sep 21, 2006 12:38pm Sep 21, 2006 12:38pm
Dear Traders,

I appriciate ur views in this Thread, But there is one thing i would like to Emphasise on is this Particular thread ¨Ur Funds Vs Ur Brokers¨i started for all the traders who want to have a QUICK INFORMATION on Different Brokers and their Particular Fund-Safety Policies.

I would appriciate if u dont post ur views other then The Topic i:e Ur Funds and Ur Brokers policy abt ur funds.

We can always discuss all other things in different Threads if one has to disscuss abt EFX as an ECN or a Good Borker or any other topic i think there are many different Threads in Bokers discussion. where we all then put our views.

Wat i would like we keep this Particular Thread just for the topic related to Ur Funds and Ur Brokers Policy abt it.

As many ppl will be coming on this thread and browsing thru...if all they find is just Different topic Discussion and no real Info abt the Brokers and their Fund-Safety policy then the purpose of this Particular thread won't be fulfilied.
I hope u all get my point.
I really appriciate the views on this Thread. But PLEASE stick to the TOPIC, don't just drop the Main Topic of Fund-Safety and start different discussion.
  • #13
  • Sep 21, 2006 12:53pm Sep 21, 2006 12:53pm
The only way to truly keep your money safe from things like a Broker going bankrupt or worse, is to remove your profits and place them in a seperate bank account, which is federally insured, but trade your broker account as if you had the full amount in it. You're still sticking to sound money management rules but you just don't have the total amount of your account at risk.

Thus you can continue to build on that $250K account with at least $150K-$200K of it safely locked away in a bank account somewhere. Going by the 5% rule, you would be trading about $500 pips at the high end. That can easily be accomplished with $50K - $75K in yor broker account.
  • #14
  • Sep 21, 2006 1:15pm Sep 21, 2006 1:15pm
Quoting kevfx
He devotes his next 3-Years to forex trading live as a fullTime trader and increase his account to $250,000-300,000 from his $20,000. (May be a big amount for few, but i think is Feasible in Forex-Market.)

All he used to do is take out the amount of money wat he wanted for living and his Resonable luxuries... Rest he used to keep in the Trading Account to Increase his account Faster.

Now, comes the Real Part to think. Pay Attention Pls. Pay Attention.

Wat if something happens and the Broker goes Broke/Bankcrupt/Backs out.

Do u have Some solution for this Trader now...........!!! ???
Hi Kev,

I keep the majority of my trading account in a secure personal bank account insured by FDIC.

I only keep enough in my brokerage account to cover margin requirements and to allow trades a bit of room to swing. Everytime I've built up a nice amount of profits, I withdraw it from my brokerage account and deposit it into my insured bank account.

If the broker goes bust, I've only lost what little was in the brokerage account. The majority of my account is safe in the bank.

Simple example: If I have $10,000 to trade with, then $8,000 goes in the bank and $2000 goes in the brokerage account. Your position size would be calculated on the entire $10,000, and not just the $2,000. This makes sense because it is only one bankroll, but stored in two places.

To keep the amount you have to put in the brokerage account to a minimum, you should use the highest leverage your broker will allow. This will minimize your margin requirements and allow you to keep less money in your brokerage account and more of it in your bank account.

Does this make sense?

Dial
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  • #15
  • Sep 21, 2006 3:30pm Sep 21, 2006 3:30pm
Great ideas guys. I am ashamed to say I have never thought about this. LOL.
  • #16
  • Sep 21, 2006 3:57pm Sep 21, 2006 3:57pm
Hi Kev,

I've never posted before, but I've been following similar threads for a while now, and thought I'd add something.

This is a good thread about Oanda. It also has a few good links.
http://www2.oanda.com/cgi-bin/msgboa...7;t=002044;p=1

Personally, I have an account with Oanda, and only found out later that my money is not protected. Other than that, Oanda is great.

I've learned that the best thing to do is to open an account with a broker based in Canada with CIPF insurance. However, an important question arises: what if, just prior to their bankruptcy, they withdraw from the insurance coverage?

MAN Financial FX seems like a good bet for a broker... "As of March 31, 2006, Man Group reported funds under management were over $48 billion."

FXCM is backed by MANFX, and both offer CIPF insurance. Would it be better to go with MANFX or FXCM? Why?

It's kind of scary how long it took to find out just this much info about account security. A full day of research, and still no sure answer.

I'll post this under your previous thread as well.
  • #17
  • Sep 21, 2006 4:30pm Sep 21, 2006 4:30pm
Honestly, or you trade and take the risk, or you don't.


As I have said in another thread, if you want to be 100% sure that your money will be safe and do not mind paying pretty big spreads (avg. 4-5, but even higher at times) then just open an account with Deutsche Bank (their retail account) and forget about it.....you are guaranteed that your money will be more than safe, since they are among the biggest bank in the world.

Otherwise, just take a risk and use any other broker that has a positive reputation and follow the suggested idea of always withdrawing your profit once it gets too big.

Not too many options left other than those two.....you'll never really know what goes behind the scenes of every broker, so don't waste too much time on that 'cause they will all lie if they want to and tell you that they are just doing great.

Future
"Lunch ? Lunch Is For Wimps !"
  • #18
  • Sep 21, 2006 10:28pm Sep 21, 2006 10:28pm
Quoting diallist
Hi Kev,

I keep the majority of my trading account in a secure personal bank account insured by FDIC.

I only keep enough in my brokerage account to cover margin requirements and to allow trades a bit of room to swing. Everytime I've built up a nice amount of profits, I withdraw it from my brokerage account and deposit it into my insured bank account.

If the broker goes bust, I've only lost what little was in the brokerage account. The majority of my account is safe in the bank.

Simple example: If I have $10,000 to trade with, then $8,000 goes in the bank and $2000 goes in the brokerage account. Your position size would be calculated on the entire $10,000, and not just the $2,000. This makes sense because it is only one bankroll, but stored in two places.

To keep the amount you have to put in the brokerage account to a minimum, you should use the highest leverage your broker will allow. This will minimize your margin requirements and allow you to keep less money in your brokerage account and more of it in your bank account.

Does this make sense?

Dial
i read a other post of yours saying your with interbankfx...so it is to say that ibfx allows having a $10k equity while $8k goes safely to the bank of west,canada & $2k just for trading?

thanks
(currently demo with ibfx)
  • #19
  • Sep 22, 2006 9:48am Sep 22, 2006 9:48am
Quoting hanz
i read a other post of yours saying your with interbankfx...so it is to say that ibfx allows having a $10k equity while $8k goes safely to the bank of west,canada & $2k just for trading?

thanks
(currently demo with ibfx)
Hi Hanz,

No, I'm not with InterbankFX. I'm with FX Solutions.

Regardless of which borker I'm with, it is not a matter of them "allowing" me to put most of my account in a safe account. They don't have anything to say about it. It is none of their business. All my borker would know is that I had deposited $2000 with them. The borker is clueless about how much more of my account is stored in a safe location.

In the example I gave ($2000+$8000), if I opened a position for 20 micro lots then my true leverage from my perspective would be 20000/10000 = 2:1

But, from my borker's perspective my true leverage would be 20000/2000 = 10:1

I want to make it clear that one's trading capital does NOT all have to reside in the borker's account. The only portion of one's trading capital that a borker should see is that amount required for margin plus a little extra to allow open trades room to swing. I'll keep the rest of my trading account out of the borker's grubby little hands.

Hope that clears it up.

Dial
sxaxlxvxaxtxixoxnxbxyxgxrxaxcxexdxoxtxoxrxgx
  • #20
  • Sep 24, 2006 7:22am Sep 24, 2006 7:22am
Hello Diallist,
i would like to ask u...

Quoting diallist
Hi Hanz,

No, I'm not with InterbankFX. I'm with FX Solutions.

Regardless of which borker I'm with, it is not a matter of them "allowing" me to put most of my account in a safe account. They don't have anything to say about it. It is none of their business. All my borker would know is that I had deposited $2000 with them. The borker is clueless about how much more of my account is stored in a safe location.
According to this, do u mean that one person can open an account with any broker and keep say 20% of his equity in his brokers account and rest of the Equity safe in the Bank and then trade the Brokers account with 100% equity.
I will ask this quetion by puting an eg.
Jim has opened an account with a broker with 5k and then after few months he reaches 20k can he just keep 4k (=20%) of his total equity now with his broker and rest 16k(=80%) away from the broker safe in the bank and still trade on 20k as his equity...?

Quote
In the example I gave ($2000+$8000), if I opened a position for 20 micro lots then my true leverage from my perspective would be 20000/10000 = 2:1

But, from my borker's perspective my true leverage would be 20000/2000 = 10:1
Pls if u can expalin it on standard lot example would be easier to understand compard to Micro or Mini lots.

Quote
I want to make it clear that one's trading capital does NOT all have to reside in the borker's account. The only portion of one's trading capital that a borker should see is that amount required for margin plus a little extra to allow open trades room to swing. I'll keep the rest of my trading account out of the borker's grubby little hands.

Hope that clears it up.

Dial
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