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Is it safe to deposit $50,000 in a single broker?

  • #21
  • Aug 13, 2010 10:00pm Aug 13, 2010 10:00pm
Quoting kidspips
I think if you trade with famous brokers like forex.com, fxcm, alpari, oanda which are highly regulated then the possibility of the bankruptcy of the broker will decrease a lot and your deposit will be safe as these ecn brokers will send your orders directly to the interbank. They only earn from the commission.
hate to break it to you but these aren't ecn brokers
  • #22
  • Aug 13, 2010 11:09pm Aug 13, 2010 11:09pm
Quoting kidspips
I think if you trade with famous brokers like forex.com, fxcm, alpari, oanda which are highly regulated then the possibility of the bankruptcy of the broker will decrease a lot and your deposit will be safe as these ecn brokers will send your orders directly to the interbank. They only earn from the commission.
1. those names mentioned are not ECN brokers, but in some cases a mix.
2. Forex.com has just been busted screwing over clients by the NFA. FXCM run two differnt price feeds two its clients. Comms on their active trader are ridicules.
3. No brokers ( I heard of) send orders to the interbank.
4. Alpari last time I checked, only segregated a % of your deposit meaning your really more at risk with them.
5. forex.com and Oanda are still market makers and I believe profit from losses. FXCM claim they don't but when you see two different price feeds it makes you wonder.

I believe most regulated brokers are safe to put 50K with but IMO anyone that keeps their life savings with a broker is taking to much risk.

Cheers,
  • #23
  • Aug 13, 2010 11:17pm Aug 13, 2010 11:17pm
Why isn't anyone discussing this? Info about it is at fxstreet.com
  • #24
  • Aug 14, 2010 1:52am Aug 14, 2010 1:52am
Quoting go4pips
Why isn't anyone discussing this? Info about it is at fxstreet.com
Hi go4pips I can't find the article could you please direct me. Thanks James
  • #25
  • Aug 14, 2010 4:55am Aug 14, 2010 4:55am
consider dukas they accept a bank garantee which means u can have 20% of your money in your bank in your country and send only 80% to them. Besides they are a very reputed broker they had applied for a banking licence a while ago, it may have come through by now.

i believe there are also many IB's for dukas who will pay you back anywhere between 40%-60% commision (in case you're wondering no I'm not an IB) directly back into your trading a/c on a monthly basis.
  • #26
  • Aug 14, 2010 5:14am Aug 14, 2010 5:14am
Quoting fugly
consider dukas they accept a bank garantee which means u can have 20% of your money in your bank in your country and send only 80% to them. Besides they are a very reputed broker they had applied for a banking licence a while ago, it may have come through by now.
They did get their license which is great news.
  • #27
  • Aug 14, 2010 5:29am Aug 14, 2010 5:29am
Quoting staccato
Hey guys,

Ive been demo trading for nearly a year now. Ive just recently started understanding market moves and am slowly getting there.

Famous last words. We've all been at that point. Trust me it's very likely that you will get brought down to the ground sooner or later. Why not start with 1-5K see how it goes for 6 month and then gradually deposit more?
  • #28
  • Aug 14, 2010 6:16am Aug 14, 2010 6:16am
Quoting TJPLD
Famous last words. We've all been at that point. Trust me it's very likely that you will get brought down to the ground sooner or later. Why not start with 1-5K see how it goes for 6 month and then gradually deposit more?
Very good post, some will think harsh, I think kind advice.... 1k to start fresh on a live market is more then enough.
  • #29
  • Aug 14, 2010 6:40am Aug 14, 2010 6:40am
Quoting >Apocalypto<
Very good post, some will think harsh, I think kind advice..
those who think it's harsh, is egocentric &/or foolish.
regardless, im very sure the market will humble him/her & make him/her rethink sooner or later.
  • #30
  • Aug 14, 2010 10:29am Aug 14, 2010 10:29am
Lets say someone has proven themselves and become successful at trading...they have been profitable 2,3,4,5 years or whatever you want to consider being successful. Now lets say this person wants to trade standard lots(not micros, not mini's)...you are going to need a larger account 100k or more in order to keep the proper risk ratio for your lot size(assuming you only want to risk 2-3% of your account). Which broker would you recommend?
  • #31
  • Aug 15, 2010 4:02am Aug 15, 2010 4:02am
Quoting goldtrader
Deposit ~ 5K to the broker, i.e Oanda, or if you go for other bigger you need deposit more (i don't know well about that) and you can still trade with 50K account with 5k deposit, just position like 50k on the 5k account, you can wire the money more if you loss a little... in that case if broker broke you get less of risk
That's what I'm talking about, create an account with 5k deposit, Leverage 1:500, that would be like if he's trading with 50k.
  • #32
  • Aug 15, 2010 3:04pm Aug 15, 2010 3:04pm
Quoting Adam2010
That's what I'm talking about, create an account with 5k deposit, Leverage 1:500, that would be like if he's trading with 50k.
Oanda will not leverage you more then 50:1
  • #33
  • Aug 16, 2010 3:05am Aug 16, 2010 3:05am
Then why I'd use Oanda? I seek another broker which allows higher leverages.
  • #34
  • Aug 21, 2010 6:00pm Aug 21, 2010 6:00pm
Is this PFG Best? PEREGRINE FINANCIAL GROUP INC I believe I saw a post where you said you had them as a ecn broker. Can you explain the last two figures? It's on the june pdf.

PEREGRINE FINANCIAL GROUP INC N NFA 06/30/2010 34,884,481 20,000,000 14,884,481 402,292,757 25,187,311

Quoting TC East
FXDD is fine; have had an account there for over 2 years and done well.

But I wouldn't put $50K there or at any one forex broker....
  • #35
  • Aug 21, 2010 6:06pm Aug 21, 2010 6:06pm
Please do yourself a favor and NOT open your first live account with $50,000. Open it with no more than $2,000. You'll thank me later.

While most claim to make money trading the facts remain that many lose money. Many newbies also claim to successfully trade demo, while in fact most newbies even exaggerate their demo trading success.


Quoting staccato
Hey guys,

Ive been demo trading for nearly a year now. Ive just recently started understanding market moves and am slowly getting there. My goal is to save up 50,000 to start live trading. By then im hoping to be real good at what i do

I do have a question though. Is it safe to deposit $50,000 in just a single brokerage like FXDD or FXCM and trade with it?? I ask this because ive heard of cases where the brokerage goes broke and can't return funds..Is this true? If it is please guide me in the right direction..

Thank
Fxrulez
  • #36
  • Aug 21, 2010 6:19pm Aug 21, 2010 6:19pm
This is so perfectly worded. Nothing more to say!

Quoting GulfCoastPip
Please do yourself a favor and NOT open your first live account with $50,000. Open it with no more than $2,000. You'll thank me later.

While most claim to make money trading the facts remain that many lose money. Many newbies also claim to successfully trade demo, while in fact most newbies even exaggerate their demo trading success.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #37
  • Sep 9, 2010 5:54am Sep 9, 2010 5:54am
Wow! Thanks for all those responses, it was really great to read all the posts and digest all that information.

After doing some thinking, I've come to the conclusion that it is not wise to open an account with $50,000. I've decided to open an account with $1000 and once I've managed to double that into $2000 I add another 2000 on so on. I've also been doing some research on Dukascopy and I've decided that they might be the ones I'd go for.

The reason being, I would be able to open a $1000 account and trade micro lots. As I've read in previous posts that MT4 it is not so reliable I have decided to use another broker to analyze my charts and then use these guys to place my trade.

I mean I don't mind having two platforms running on one computer. Is that something you guys would recommend doing? I also do know that these days insure your money but I'm not sure if that.


Thanks
Staccato
  • #38
  • Sep 9, 2010 11:05pm Sep 9, 2010 11:05pm
Quoting TC East
FXDD is fine; have had an account there for over 2 years and done well.

But I wouldn't put $50K there or at any one forex broker. If they go bankrupt you have no protection unlike stock and futures brokerages. One exception though is CitiFX. They offer FDIC insurance on all deposits, so your money would be protected there in case of bankruptcy.

In lieu of that, I'd suggest spreading that $50K around to spread the risk. Maybe 3 brokers that are NFA regulated, that have a good bit of money (can check at http://www.cftc.gov/marketreports/financialdataforfcms/),...
i agree. Citi and DB should be safe!!!
  • #39
  • Sep 10, 2010 11:21am Sep 10, 2010 11:21am
Fxrulez,

Look into IB (Interactive Brokers), DBFX (Deutsche Bank). This is only place I would leave my money on spot FX side. You can have a master account over at IB. This master account can basically trade anything from stocks, futures, spot fx and list goes on!

I'm currently with IB... I have no reason to ever change my broker.

PS: These brokers offer insurance, unlike majority of other brokers thy don't. 100k with IB, 50k with DBFX. Another thing to consider... Only deposit enough money to cover your margin, and trade account as if it was 50k account. This way if something ever did happen. You wont ever loose all your monies, unless from trading!


Mike
Life is a game, play it well, their is no restart!
  • #40
  • Sep 10, 2010 12:07pm Sep 10, 2010 12:07pm
Quoting cugir321
Is this PFG Best? PEREGRINE FINANCIAL GROUP INC I believe I saw a post where you said you had them as a ecn broker. Can you explain the last two figures? It's on the june pdf.

PEREGRINE FINANCIAL GROUP INC N NFA 06/30/2010 34,884,481 20,000,000 14,884,481 402,292,757 25,187,311
Hey sorry to just now be responding, but I had forgotten all about this thread So, if you ever read this...

Yes Peregrine is PFG Best. Re. the last 2 figures, I'm assuming you mean the last 2 columns in the CFTC net capital document? If so, I don't really know, but don't care much either. Main thing to me is what's the capital they're required to keep and how much do they have. PFG has always been pretty solid in that regard.

I actually still have an open account there but with a zero balance. For what I need I'm using a couple other brokers...
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