A Swiss broker - Your money can be safe. | Forex Factory

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A Swiss broker - Your money can be safe.

  • #1
  • First Post: Oct 4, 2007 8:20am Oct 4, 2007 8:20am
Please keep your post on the other brokers on the other threads. Thanks. Anything both positive and negative welcome.
Please post real informations and not supposed informations and make it as if it is true.

Qoute:
Dukascopy is launching a new custodian service in partnership with a number of Swiss Banks, allowing clients to keep money in their banks while getting credit line to trade in the Swiss FX Marketplace. The custodian service consists of automatic daily settlement of P/L and trades in the client’s bank account.
According to Alain Broyon, CEO of Dukascopy, “This custodian business model follows a long term trend adopted by Dukascopy to separate the activities: SWFX - Swiss FX Marketplace with custodian service delivered by bank participants and Dukascopy Swiss FX Brokerage House, providing prime brokerage services to SWFX Swiss FX Marketplace along with other major marketplaces.. ) Qoute:

There have been so much written about how well regulated/controlled US or UK bokers are. And a lot of bashing on Swiss brokers. In the end, we still have Refco and Enron !!!

Neither NFA nor CFTC are able to protect your money. The only way is to keep your money in your bank account under your own name and pays it in/out to and from your broker. That way if your broker goes bankrupt, your money is not touched. So you have the best SAFE broker almost none US and UK brokers can't beat.

I don't think there is any other safer way.
  • #2
  • Oct 4, 2007 8:24am Oct 4, 2007 8:24am
Yes - I hope one day all brokers will be forced to adapt this rule.
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  • #3
  • Oct 4, 2007 8:50am Oct 4, 2007 8:50am
I have been trying to contact Dukascopy to find out if they are using the LSV method. I am still waiting.

I must say that this is onething they ought to improve. Their replies are not prompt enough.
  • #4
  • Oct 4, 2007 9:24am Oct 4, 2007 9:24am
Quoting highway
I have been trying to contact Dukascopy to find out if they are using the LSV method. I am still waiting.

I must say that this is onething they ought to improve. Their replies are not prompt enough.
Meanwhile let me explain what is LSV in Switzerland. I had been using this for a long time in my business.
Your bank account is at your bank and under your name. You have control over it. It is not a seperate account within the broker's account and control.
The bank is not making any bank gaurantees other than the amount in the account. There is no bank guarantee fees to pay. I use telebanking for my payement and there is a charge ( about $30 a year - I forgot ) .
My creditors, which I permit, can themselves debit from my account directly to their account through telebanking. My bank have all the details of the bank of my creditor. In case of dispute, I can stop the payments. My creditors are required to present the reasons or invoices/delivery of services/goods.
If this system is used, the Fx broker might request that the account must have at all times a required minimum amount.
Attention!! Not confirmed yet !!!
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  • #5
  • Edited 10:16am Oct 4, 2007 9:38am | Edited 10:16am
Great info highway, I appreciate it very much.

I agree, Dukas is very slow in handling customers requests etc. I have signed up for an account over 3 weeks ago and still messing around back and forth, but the worse thing is, I have to contact them every week to hear if they proceed, not the other way. That worries me a little...

Anyway, looking forward to hear how they reply to your request,

PC

Quoting highway
Meanwhile let me explain what is LSV in Switzerland. I had been using this for a long time in my business.
Your bank account is at your bank and under your name. You have control over it. It is not a seperate account within the broker's account and control.
The bank is not making any bank gaurantees other than the amount in the account. There is no bank guarantee fees to pay. I use telebanking for my payement and there is a charge ( about $30 a year - I forgot ) .
My creditors, which I permit, can themselves debit from my account directly to their account through telebanking. My bank have all the details of the bank of my creditor. In case of dispute, I can stop the payments. My creditors are required to present the reasons or invoices/delivery of services/goods.
If this system is used, the Fx broker might request that the account must have at all times a required minimum amount.
Attention!! Not confirmed yet !!!
Less is more...
  • #6
  • Oct 4, 2007 10:30am Oct 4, 2007 10:30am
very good news, hope it proceeds successfully
Do you know the parcitipating banks?
Regards
  • #7
  • Oct 4, 2007 10:46am Oct 4, 2007 10:46am
Quoting howard
very good news, hope it proceeds successfully
Do you know the parcitipating banks?
I am still waiting for their reply on the details.
I might probably ask them to come here to answer some questions directly.

I might also try to get brokers from all over to at least read this. If other brokers can see ahead the eventuality of losing some of their clients, they might also introduce this way of handling funds earlier. Then we might have a safer place for all FX traders and turn a page in the sad history of the Forex book.
  • #8
  • Oct 4, 2007 11:55am Oct 4, 2007 11:55am
I removed that last post so you can stay on topic Highway. As you say, it had nothing to do with the topic.
  • #9
  • Oct 4, 2007 12:05pm Oct 4, 2007 12:05pm
Quoting smjones
I removed that last post so you can stay on topic Highway. As you say, it had nothing to do with the topic.
Thank you SM Jones. Greatly appreciate your intervention.
  • #10
  • Oct 4, 2007 1:16pm Oct 4, 2007 1:16pm
Quoting howard
very good news, hope it proceeds successfully
Do you know the parcitipating banks?
I believe at present they have one participating bank which is a small swiss bank called BCP www.bcp-bank.com
My understanding is that the account size has to be a minimum of $500k.
  • #11
  • Oct 5, 2007 5:33am Oct 5, 2007 5:33am
Well, if the participating banks prove to be too small the same problem of unreliability may arise.
Regards
  • #12
  • Edited 6:10am Oct 5, 2007 5:54am | Edited 6:10am
Quoting howard
Well, if the participating banks prove to be too small the same problem of unreliability may arise.
The person I am supposed to contact is on holiday. Switzerland schools are off for Autumn holidays. I suppose she is Mum.

Don't jump to any conclusion yet. The normal bank that they are working with at present is UBS. Which banks they are goung to use for this case, let me ask them when I get her online.
  • #13
  • Oct 5, 2007 6:10am Oct 5, 2007 6:10am
Quoting howard
Well, if the participating banks prove to be too small the same problem of unreliability may arise.
The only Swiss bank, I know, that had any problem was a state bank. That was connected to the Rey case. The state got everything straightened out.
When your money is at a bank, and under your name, it is between you and the bank - not the broker.

In such a case you have the SFBC and all the other banking commisions working for you watching over ALL banks.

You would the the most unlucky person and make swiss history if the bank you deposit your money will be the first one to go bankcrupt -and not bail out.

Please mail me each time you fly or travel. Just that I won't be on the same trip or plane. Come on ! Just kidding.
  • #14
  • Oct 5, 2007 9:32am Oct 5, 2007 9:32am
Anyway this scheme is at its early stages, they just announced it on 2 Oct. These things take time to be set up properly.

BTW Highway While we are on this subject and as you are in Switzerland, do people have to travel to Switzerland to open a bank account?
Regards
  • #15
  • Oct 5, 2007 10:39am Oct 5, 2007 10:39am
Quoting howard
Anyway this scheme is at its early stages, they just announced it on 2 Oct. These things take time to be set up properly.

BTW Highway While we are on this subject and as you are in Switzerland, do people have to travel to Switzerland to open a bank account?
No. You don't need to be present to open a swiss bank account account

And if Dukascopy is going the give you a list of banks, they certainly will do all that is necessary for you to open your account with which ever bank you choose. I guess.
  • #16
  • Oct 5, 2007 12:35pm Oct 5, 2007 12:35pm
Quoting highway
No. You don't need to be present to open a swiss bank account account

And if Dukascopy is going the give you a list of banks, they certainly will do all that is necessary for you to open your account with which ever bank you choose. I guess.
Thanks a lot highway
Regards
  • #17
  • Oct 9, 2007 5:16am Oct 9, 2007 5:16am
Any progress on this matter, highway?
Regards
  • #18
  • Oct 15, 2007 4:47pm Oct 15, 2007 4:47pm
Quoting howard
Any progress on this matter, highway?
I still have no reply

That is certainly not very efficient
  • #19
  • Oct 15, 2007 8:45pm Oct 15, 2007 8:45pm
highway ,any news about migfx?.
are they ok?

their spread smaller compared to others.
pls comment.
tq
  • #20
  • Oct 16, 2007 8:39am Oct 16, 2007 8:39am
Hi everyone! My name is Lei Yao from Dukascopy. Sorry about not being able to be reached for 3 weeks, I was having my vacation.

So in this case, clients will have their own bank account in a Swiss private bank and trade with Dukascopy. Clients' funds are well protected.

Minimum to have an account with the private bank and trade with Dukascopy is 500,000 USD.

Should you have any other questions, please do not hesitate to contact me.

Thanks
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