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Questions about Prime Brokers

  • #1
  • First Post: Aug 14, 2011 6:54pm Aug 14, 2011 6:54pm
Hello fellow traders,

First off thank you for your time, would really appreciate some help with the following questions.

What is a prime broker?

benefits over average brokers?

When a trader is ready to move up to a prime broker?



Any additional information is welcome thanks again,
NY
  • #2
  • Aug 15, 2011 12:36am Aug 15, 2011 12:36am
From my understanding prime brokers are like wholesalers that provide liquidity for feeds etc. Us as retail traders would never trade with them. For example, brokercompanyA is a brokerage firm. It could have prime brokerage relationships with a bunch of banks and use an aggregator to combine all those different bank prices into 1 feed. That feed is then pushed out its platform to its retail clients that trade on it. hope that makes sense!
  • #3
  • Aug 15, 2011 4:40pm Aug 15, 2011 4:40pm
Quoting praky
From my understanding prime brokers are like wholesalers that provide liquidity for feeds etc. Us as retail traders would never trade with them. For example, brokercompanyA is a brokerage firm. It could have prime brokerage relationships with a bunch of banks and use an aggregator to combine all those different bank prices into 1 feed. That feed is then pushed out its platform to its retail clients that trade on it. hope that makes sense!
Thanks I have heard similar to the fact that prime brokers are not for retail trader so good to double check

What are some good brokers that I could look into moving upto if there are any good brokers designed for the professional retail trader with larger account size?

Thanks again,
NY
  • #4
  • Aug 17, 2011 12:34am Aug 17, 2011 12:34am
just looked at your profile and notice you are in the USA.... that limits things a bit. I'd go with InterbankFX. I have personally had an account with them and had no problems with them at all.
  • #5
  • Aug 17, 2011 5:53am Aug 17, 2011 5:53am
Quoting praky
just looked at your profile and notice you are in the USA.... that limits things a bit. I'd go with InterbankFX. I have personally had an account with them and had no problems with them at all.
Good start thanks, I am realizing I need not exactly a prime broker as that is probably not for retail traders so I'm looking into good ECN's so I don't have to worry about market makers screwing me or kicking me out

I was looking into interactive brokers

I heard lots of good things not sure if they accept US traders
  • #6
  • Aug 22, 2011 12:55pm Aug 22, 2011 12:55pm
Quoting newyear498
Good start thanks, I am realizing I need not exactly a prime broker as that is probably not for retail traders so I'm looking into good ECN's so I don't have to worry about market makers screwing me or kicking me out

I was looking into interactive brokers

I heard lots of good things not sure if they accept US traders
Yes, a prime brokerage arrangement is a general term for either a buy side firm (hedge fund, money magnagement) or mid- tier bank which routes its business through an top-tier sell side firm, which, beyond transactions, also often handles accounting, margin, trade reporting, etc in a aggregated way.

And Interactive Brokers is based in Greenwich, CN. While worldwide, they are very much American. They do have a very real and very serviceable ECN arrangement for forex.
  • #7
  • Aug 24, 2011 2:19am Aug 24, 2011 2:19am
Quoting newyear498
What is a prime broker?
benefits over average brokers?
When a trader is ready to move up to a prime broker?
...
dont have an experience with them yet, so this may be way off...

prime broker = big investment banks/securities firms
benefits? most likely, service, liquidity, legitimacy
when? when a trader has accumulated a significant amount &/or is fed up with 'average' brokers
  • #8
  • Aug 24, 2011 8:03am Aug 24, 2011 8:03am
OldQuant & supremeChaos Thanks guys

So my general conception now is that I need not worry about Prime Brokers.. but more likely moving from good ECN's to better ECN's as I grow.

It also looks like the average retail trader confuses prime brokers with ECN brokers to some degree, or atleast it appears many retail traders are fuzzy on what exactly a prime broker is and who exactly uses them (I certainly was).


Thanks again
  • #9
  • Sep 9, 2011 12:42pm Sep 9, 2011 12:42pm
this broker i fund 50$ and im have 25$ bonus i make profit 68$ and process

i now madw withdrawal 139$ in 48 h ago all support rejected me


and i think this not pay me


any one here can help me

and this regulated broker

pls all client help me


http://www.forexfactory.com/%3Ca%20h.../230569853.jpg[/IMG]


http://www.forexfactory.com/%3Ca%20h.../255644315.jpg[/IMG]


http://www.forexfactory.com/%3Ca%20h.../585249874.jpg[/IMG]



http://www.forexfactory.com/%3Ca%20h.../538508876.jpg[/IMG]



http://www.forexfactory.com/%3Ca%20h.../537388272.jpg[/IMG]

please all client this all proof why this broker dont payment my debosit+my profit


whats my problem


please any one can help me pm me

Amount Type Trading Account Date Status 50 USD Deposit 8555601 2011/09/07 Approved 25 USD Bonus 8555601 2011/09/07 Approved 68 USD Withdraw 8555601 2011/09/08 Approved

thank you
  • #10
  • Edited Sep 10, 2011 4:38am Sep 9, 2011 12:43pm | Edited Sep 10, 2011 4:38am
My company is currently using a PB for trading.

Most of retail traders are trading on margin with their broker. We trade with a credit line provided by our prime broker.

We have one account with the PB and he gave us a credit line of +100M. We use them for our cash settlement as we trade currencies to get delivered.

The process is very simple:
We are currently using a Currenex broker who execute the trade for us, and then gives-up the position to our prime broker. The LP first faces the Currenex broker and then he faces our PB as counter-party.

Then our PB will settle the trade with the LP and deliver cash on our accounts.

The main thing is that the PB is acting like our counter-party for all our transactions. We are also using another bank platform as a back-up. When we trade on it, the trade is also given-up to our PB.

Hope this makes sense. If not let me know I will try to explain better how this works.
  • #11
  • Sep 9, 2011 2:52pm Sep 9, 2011 2:52pm
any one here can help me

my money 139$

please any oney can help me


Login: 8555601


carigoldfourms help broker to scam client

all broker in carigold scam


but tradersway pay me firsttime

and next ime rejected

please i need help
  • #12
  • Sep 12, 2011 1:43am Sep 12, 2011 1:43am
please all help me im need withdrawal my money from tradersway any one can help me
  • #13
  • Last Post: Sep 12, 2011 10:32am Sep 12, 2011 10:32am
this closed my account withoput reason

read finance reply

We couldn't proceed your request because of open positions on your account. Please close all positions and create withdrawal again.


Dear Client #8555601,

You are accused in cheating our company so your account is blocked and your deposit will be refunded.
As you have already made a withdrawal bigger than your total deposit, your deposit is cancelled.

Regards, Security Dep.

this scam broker

stole my debosit + my profit 160$

scam broker
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