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How safe is our money?

  • #1
  • First Post: Feb 12, 2007 6:27am Feb 12, 2007 6:27am
Been thinking about this lately. I have an account with FxSol and I'm very happy with the platform etc. I now wish to transfer some more funds into my account, but I've started wondering how safe my money will be.

I'm basically moving a large amount of my capital into a company I know nothing about, based in a country of which I understand nothing about it's financial protections etc.

Also, is it normal to minimise your risk by having at least two different brokers, or is that just an unnecessary complication.

Thanks.
  • #2
  • Feb 12, 2007 6:35am Feb 12, 2007 6:35am
First of all, I would like to say that I am not affiliated with FXSol in any way, but they are my broker.

I was wondering the same thing, and did some research.
FXSol was named one of Inc Magazine's "Inc 500", a list of America's 500 fastest growing companies.
I can't remember where (sorry!) but I found a list put out by the NFTC that listed all the brokers and their amount of cash on hand, and FXSol had plenty. I believe it exceeded 10M and they were only required to have about 1-2M on hand. (These figures are from my memory, so take it with a grain of salt)

Overall, I am very happy with FXSol. I don't know and don't want to know how much money you are talking about transferring. If it is <75000, I would say go for it. If it is greater than that, I would look for something bigger.

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #3
  • Feb 12, 2007 10:49pm Feb 12, 2007 10:49pm
fund deposited on SaxoBank is guaranteed by Danish bank if im not mistaken. please check at their website.
  • #4
  • Feb 13, 2007 12:25am Feb 13, 2007 12:25am
Quoting haha22
fund deposited on SaxoBank is guaranteed by Danish bank if im not mistaken. please check at their website.
yes you are right and government covers untill about 40.000 euro in case of bankrupty per account. So' if you have more you need many to be sure
  • #5
  • Feb 13, 2007 10:51am Feb 13, 2007 10:51am
Quoting haha22
fund deposited on SaxoBank is guaranteed by Danish bank if im not mistaken. please check at their website.
second that...2 days witdrawal time...
its just money
  • #6
  • Feb 13, 2007 12:26pm Feb 13, 2007 12:26pm
One thing you may ask yourself is how much are you willing to risk. Never forget that this is money you can afford to lose.
Next, whats your leverage?
At 400:1 you can trade $100,000 EUR/USD for about $300 or at 20:1 it will require about $6,500. Each will yeild the $10/pip move. How's you're money management skills?
Do you need to make more than that per pip?
A $10,000 account can make you a lot of money if you have a good trading system and good money management. On the flip side you can blow a $50,000+ account in no time with the wrong leverage.
You need to ask yourself why you need a HUGH account to trade with. If you're good enough to turn a $5,000 account into a $20,000 account take half off the table, then turn you're $10,000 into $40,000 (again, take half off the table). Now you have a $20,000 account and so on... .
Never start out with a big account. Prove to youself you can turn a small one into a big one first.
Balance leverage with money management and with a winning system you'll have more than enough to spend.
  • #7
  • Feb 13, 2007 3:42pm Feb 13, 2007 3:42pm
Quoting crl212
One thing you may ask yourself is how much are you willing to risk. Never forget that this is money you can afford to lose.
Next, whats your leverage?
At 400:1 you can trade $100,000 EUR/USD for about $300 or at 20:1 it will require about $6,500. Each will yeild the $10/pip move. How's you're money management skills?
Do you need to make more than that per pip?
A $10,000 account can make you a lot of money if you have a good trading system and good money management. On the flip side you can blow a $50,000+ account in no time with the wrong leverage.
You need to ask yourself why you need a HUGH account to trade with. If you're good enough to turn a $5,000 account into a $20,000 account take half off the table, then turn you're $10,000 into $40,000 (again, take half off the table). Now you have a $20,000 account and so on... .
Never start out with a big account. Prove to youself you can turn a small one into a big one first.
Balance leverage with money management and with a winning system you'll have more than enough to spend.
Well Said
  • #8
  • Last Post: Feb 14, 2007 12:20am Feb 14, 2007 12:20am
Quoting crl212
One thing you may ask yourself is how much are you willing to risk. Never forget that this is money you can afford to lose.
Next, whats your leverage?
At 400:1 you can trade $100,000 EUR/USD for about $300 or at 20:1 it will require about $6,500. Each will yeild the $10/pip move. How's you're money management skills?
Do you need to make more than that per pip?
A $10,000 account can make you a lot of money if you have a good trading system and good money management. On the flip side you can blow a $50,000+ account in no time with the wrong leverage.
You need to ask yourself why you need a HUGH account to trade with. If you're good enough to turn a $5,000 account into a $20,000 account take half off the table, then turn you're $10,000 into $40,000 (again, take half off the table). Now you have a $20,000 account and so on... .
Never start out with a big account. Prove to youself you can turn a small one into a big one first.
Balance leverage with money management and with a winning system you'll have more than enough to spend.
agree with you 100%.....the only problem ,i believe is to have a nice strategy !!!
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