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CitiFX or FinFX - Convince me

  • #1
  • First Post: Mar 1, 2011 9:50am Mar 1, 2011 9:50am
I am right now choosing between CitiFX or FinFX. Can someone push me over the edge? Here are my requirements:

Accepts US customer
Hedging allowed
No FIFO restrictions
Min Lot = .1 or .01 is even better
MT4 platform
Acct may be denominated in multiple currencies (as long as I don't have to use the US dollar then I am happy) to be safe in case of US dollar crisis

Any help would be appreciated. Thanks.
  • #2
  • Mar 1, 2011 11:59am Mar 1, 2011 11:59am
I don't think you can hedge with CitiFX. Not sure if you've looked at MBTrading; although there's no hedging there too, they allow the equivalent of 0.01 lots in MT4, and there are other currency deposit denominations allowed.
  • #3
  • Mar 1, 2011 12:08pm Mar 1, 2011 12:08pm
I did a search at 100forexbrokers.com and it states that CitiFXPro can hedge. You might wanna zap them a email to confirm.
  • #4
  • Mar 1, 2011 12:32pm Mar 1, 2011 12:32pm
CitiFX - deposits FDIC insured, company is highly regulated, very long firm history
FinFX - deposits not insured, company is not regulated, very short firm history

That about sum it up?

edit - if not..

CitiFX - a gigantic global bank
FinFX - 2-3 guys in Finland with an Integral-MT4 bridge
  • #5
  • Mar 1, 2011 12:57pm Mar 1, 2011 12:57pm
Quoting Trader KGB
CitiFX - deposits FDIC insured, company is highly regulated, very long firm history
FinFX - deposits not insured, company is not regulated, very short firm history

That about sum it up?

edit - if not..

CitiFX - a gigantic global bank
FinFX - 2-3 guys in Finland with an Integral-MT4 bridge
"gigantic global bank" is what scares me. And the fact that it is based in the US (inflation and dollar concerns).

But thank you for your reply. I will consider it.
  • #6
  • Mar 1, 2011 12:59pm Mar 1, 2011 12:59pm
FDIC protected up to $250k, that should quell some concerns.
  • #7
  • Mar 1, 2011 1:03pm Mar 1, 2011 1:03pm
If I'm right, brokers in the US do not allow hedging at all. Second, Commodity Futures Trading Commission CFTC has made a proposal of limitating leverage of retail forex traders to 10:1. So in this manner, FinFX looks better...

But let's dig this deeper: CitiFX is regulated in the US and one of the most famous financial institutions in the world - it's not a bucket shop!

Controversially, FinFX is not regulated at all. The CEO of FinFX has claimed me that Intergral's True FX broker certificate acts as a relevant licence. Forex is not regulated in my homeland Finland where FinFX is based in so they may have no other choice.

As trader KGB stated, FinFX is a bucket shop, some guys (even without an economical/business education) just running the business.
  • #8
  • Mar 1, 2011 1:10pm Mar 1, 2011 1:10pm
CitiFX and dbFX aren't regulated by the CFTC, they're regulated by the SEC & FINRA. That being said, they fall outside of the 50:1 leverage restriction. dbFX offers 100:1, and CitiFX may be negotiable (not sure).

If you want high leverage, regulation, and non-US, your best bet are the UK brokers.
  • #9
  • Edited 1:39pm Mar 1, 2011 1:23pm | Edited 1:39pm
CitiFX's site doesn't provide much information on min lot size, hedging, FIFO or etc. And I can't seem to find a good place that covers this information for CitiFX. Any good websites that provide this comprehensive information?? Thanks.
  • #10
  • Mar 1, 2011 1:58pm Mar 1, 2011 1:58pm
Quoting newark18
CitiFX's site doesn't provide much information on min lot size, hedging, FIFO or etc. And I can't seem to find a good place that covers this information for CitiFX. Any good websites that provide this comprehensive information?? Thanks.
You're prob going to have to download the demo platform and do some test orders.
  • #11
  • Mar 1, 2011 2:03pm Mar 1, 2011 2:03pm
Aja,

good idea. thanks.
  • #12
  • Mar 1, 2011 6:42pm Mar 1, 2011 6:42pm
Quoting Trader KGB
CitiFX and dbFX aren't regulated by the CFTC, they're regulated by the SEC & FINRA. That being said, they fall outside of the 50:1 leverage restriction. dbFX offers 100:1, and CitiFX may be negotiable (not sure).

If you want high leverage, regulation, and non-US, your best bet are the UK brokers.
I coulda swore I saw 50:1 somewhere on their site, before they revamped it - not sure why it would be better, as that's an NFA thing.

Citibank used to hold #1 place as the biggest liquidity provider and/or turnover in the world - they then slipped to #3 or 4, and vowed to get back. Haven't had a chance to research since then (2 yrs ago), but with the changed industry landscape, I can't imagine they fulfilled their goal. CitiFX is a new entity, with probably some legal reason behind it's formation.

Just reading the FDIC page, which really sucks, and is an "out" ... ie., if there's USD tankage and belly-uppedness, what value does this have, lol!

Quote
Accounts in any currency held outside the US, including EUR, GBP, JPY and HKD, are not FDIC insured.

Reminds me of my first new home purchase and the crappy windows with a 2 year warranty: the windows were all shot in 1.5 years, and the builder will happily put in the same crappy windows, and oh, I have to pay for the labour, lol!
  • #13
  • Mar 3, 2011 6:32pm Mar 3, 2011 6:32pm
Quoting matlock
Controversially, FinFX is not regulated at all. The CEO of FinFX has claimed me that Intergral's True FX broker certificate acts as a relevant licence. Forex is not regulated in my homeland Finland where FinFX is based in so they may have no other choice.

As trader KGB stated, FinFX is a bucket shop, some guys (even without an economical/business education) just running the business.
Integral is an ECN, and of course it is not a bucket shop. FinFx is just a bridge, they earn commissions, and this exclude being a bucket shop.
  • #14
  • Mar 3, 2011 8:07pm Mar 3, 2011 8:07pm
Quoting jagui
Integral is an ECN, and of course it is not a bucket shop. FinFx is just a bridge, they earn commissions, and this exclude being a bucket shop.
They still have discretion over STPing each trade or bucketing it in-house. Just b/c they can bridge 100% of client trades thru Integral, doesn't mean they have to or indeed do so.
  • #15
  • Mar 15, 2011 12:51pm Mar 15, 2011 12:51pm
CitiFX max leverage 1:50 - confirmed by their sales rep.
  • #16
  • Mar 15, 2011 2:35pm Mar 15, 2011 2:35pm
CitiFx is a bucketshop deal desk broker who is using Saxobank as their liquidity provider and data feed with large spreads. It is indeed Citibank and it is under the SEC regulations with up to 250k FDIC protection, however that is it. They are just using their name to get a piece of the retail forex business and make profits using a deal desk market maker model. One would think if Citibank were to go retail forex they would use direct market access and ECN model and use their own liquidity as Deutchebank does at least.
  • #17
  • Mar 15, 2011 7:40pm Mar 15, 2011 7:40pm
http://www.citifxpro.com/node/100015
  • #18
  • Mar 16, 2011 4:39am Mar 16, 2011 4:39am
Quoting Trader KGB
CitiFX - deposits FDIC insured, company is highly regulated, very long firm history
FinFX - deposits not insured, company is not regulated, very short firm history

That about sum it up?

edit - if not..

CitiFX - a gigantic global bank
FinFX - 2-3 guys in Finland with an Integral-MT4 bridge
Although I agree with this point it might be worth reading the fine print with Ctifx... CITI bank deposits are FDIC insured yes but the cash is not directly sent to CIT BANK the CTI FX take sit and THEN deposits it with CITI bank
Please double check

What about IB?
  • #19
  • Mar 16, 2011 7:58am Mar 16, 2011 7:58am
Quoting moksha
Although I agree with this point it might be worth reading the fine print with Ctifx... CITI bank deposits are FDIC insured yes but the cash is not directly sent to CIT BANK the CTI FX take sit and THEN deposits it with CITI bank
Please double check

What about IB?
whats are you talking about
  • #20
  • Mar 19, 2011 7:13pm Mar 19, 2011 7:13pm
Quoting Trader KGB
They still have discretion over STPing each trade or bucketing it in-house. Just b/c they can bridge 100% of client trades thru Integral, doesn't mean they have to or indeed do so.
In ECN accounts there is no discretion, all trades go through.
This is the new growing business model for forex brokers: collect commissions without risk.
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