Maximum amount you would keep with your broker?

They are going to dictate to you when you contact them. They each have their own set of rules on how what their maximum lot size per trade will be. They will try to "cover" their bases by telling you that there is no limit on the "number of trades" that you can make per day. However, who wants to make 17 trade back-to-back just to get 8,500 lots into the market. Physically, it is not feasible to sit their and key in all those trades. You want to scale all that into the market, sure, but you want to be able to do that more smoothly and right now, the guys that you mentioned do not have both the Platform AND the Policy to support that level of trading – not many “retail” brokers in the world have that kind of smooth capability. It is a function of intermediary credit, interbank connections and technology. Large Hedge Funds and large Model Funds do this all the time with different currencies across the board, but they are all using direct access platforms designed specifically for commercial account management, portfolio management, risk management, etc. - systems such as Reuters enterprise platforms, etc.

So, I think FXCM is only going to allow you to enter a maximum of 500 lots per trade. That’s about a $25,000.00 cash-on-cash trade from what they call a Mini Account using 200:1 leverage, or about $50,000.00 cash at 100:1 (if, my rough numbers are correct – fact check them yourself). So, you end up being able to control about $5,000,000.00 currency units maximum per trade with FXCM at these leverage levels – which is the leverage that I like to use in my own personal trading. Drop the leverage to 50:1 (which still makes some traders very squeamish) and you still control about $5 million currency units, but now it makes your cash-on-cash entry closer to $100k+ per trade. So, with a decrease in effective leverage, you have risk more “literal cash” to control the same number of currency units. Of course, your per pip net value remains the same at about $500.00 each time the price moves one pip. That represents a 2% max p/l per pip for the $25,000.00 cash-on-cash trade, and a 0.5% max p/l per trade on the $100k cc trade. (always fact check my numbers, or anyone else’s for that matter).

On the other hand, some “retail brokers” will only allow a maximum of 50 lots per trade max along with telling you that there is no limit on the number of trades you can make, yet they won’t offer a smooth transactional platform for accomplishing more. Rather, you have to flip through hoops just to get it done. They will also tell you that in many cases, you will have to call their dealing desk for approval for each trade above their max per trade. If I have to pick-up the phone to place a trade just so somebody can blow my entry times and trade against me on the back-end before deciding that they’d rather send me to interbank, then I need to be dealing with another firm. They say that they are taking a “risk” by allowing you to trade high lots with high leverage and to an extend this is true. However, what risk is there when most of these brokers/mm’s already have bots that auto-margin your account when you hit their margin limits to protect themselves from being blown out of the market. So, I don’t always buy the “we’re taking the risk” quote often given by brokers in the business – that’s what auto-margin stops are for – they are built into the system to prevent runaway negative trades.

So, to a large degree the concern about how many lots before making the switch to a true “commercial” player will depend on the broker you use. Anything above 500 per trade will just about take care of all of them in the retail space.

Hope this helps.

Thanks a lot for such a detail answer mate. Truly apreciated it. One question: when you say "Anything above 500 per trade will just about take care of all of them in the retail space", that is mini lots or standard lots?

Thanks again.

8500 lots huh you pushing a yard? 17 max size trades at Oanda would be 170 million not many pushing that much either. You real or dreamin.

If you have more than 25 000$ at Forex.com it is FDIC insured

I trade my investors account which is 35 000$ and it is in JP Morgan bank and FDIC insured

Hello Fxtrader777

You should be aware about what the NFA Basic Brochure says about FDIC insurance:
* Retail off-exchange forex trades are not guaranteed by a clearing organization. Furthermore, funds that you have deposited to trade forex contracts are not insured and may not receive a priority in bankruptcy. Even customer funds deposited by a dealer in an FDIC-insured bank account may not be protected if the dealer goes bankrupt. Be wary of firms that say "Your investment is protected" or "Your funds are segregated."
*Unlike regulated futures exchanges, in the retail off-exchange forex market there is no central marketplace. The forex dealer determines the execution price, so you are relying on the dealer to give you a fair price.

I think you are not 100% safe even if you are FDIC insure.

Please anybody feel free to comment about this, I am really confuse about safety of funds.


Mx

I was able to find Saxo website but was unable to get to IFX. I find too many hits in google. can somebody point to the website of IFX?

Thanks

Try this www.cbfx.com/

mx

what about having a large account with ifx markets/cbfx.com they offer 50 million max per trade online.

the good thing about cbfx is they regulated by CFTC, Member of National Futures Association.

Sorry if we opened up a can of worms for you. I assume you've been flooded with pm's. I hope you remember my pm I sent you. Your response to it created much of the discussion on this thread. I was just wondering if there would be any way without compromising you security or relationships with other brokers that you could do some consulting for our group manager (the man on the button making the trades for us). We would be willing to compensate you for your help. Last night we were forced to change from 100:1 to 25:1 leverage by our broker because we are moving more than they are comfortable backing. We just don't know where to go from there.

No any courts or institutions will recover your lost if your broker shutdown. All brokers are bucket shop. Even they are regulated by CFTC,FSA or ***. Trading with any brokers have similar risks, no different with InterBank, FXCM, and Marketiva.

Fxtrading has huge risks, of course huge return.

I'd like to deposit no more than 5K$

If interested in broker/dealer ratings, there's a truckful of info @:

www.goforex.net


Look under Forex Broker Ratings and comments following. Nobody is happy with their dealer. Must be a thankless business to be in, 'cept for the money.

Spot Forex indeed is unregulated market. Look what happend to RefcoFX.

Has anyone heard of MIG Investments before?

www.migfx.ch

Is it safe to open account with them?

Try it.