Scaling up from Dukascopy - any suggestions? | Forex Factory

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Scaling up from Dukascopy - any suggestions?

  • #1
  • First Post: Oct 18, 2011 6:54am Oct 18, 2011 6:54am
Hi,

I am currently trading a personal account with Dukascopy. (Around USD 50K).
I had decided to go with Dukascopy for my personal account after they got their banking license (and thereby giving some security to my funds).
I am pretty happy overall with Dukascopy's platform (spread,execution and customer support).
I am now thinking of scaling up a bit, I would be trading for a few investors as well as my personal account. I would peg the capital at around USD150k for now.

I am now wondering if my slightly revised trading capital would help me get access to better brokers/banks?

By better, I mean tighter spread/lower transaction cost (as well as possibly more liquidity partners) than what I am currently enjoying with Dukascopy.

I have researched and decided against "similar" brokers like Interactive brokers,MBT and even LCG currenex as they are not too different/better than dukascopy.

I would like to know know the actual figures (and not educated guesses) on capital required to approach Tier 1 Prime Brokers (Which I know I would not qualify for right now) or Tier 2 Prime Brokers.

Thanks in advance for anyone taking the time to help me out by giving suggestions.

Regards.
  • #2
  • Oct 28, 2011 4:32am Oct 28, 2011 4:32am
Quoting Scalperforex

I am now wondering if my slightly revised trading capital would help me get access to better brokers/banks?
In a word, no.

Most PBs don't want the business below 3-5M $. If you're a HFT you might be able to seduce Barclays at 300K (which is the extreme low, on the other end of the spectrum you have DB who wants 25M $ to start talking to you), but they generally don't want that business.

Going to a Tier II wont give you much of a upgrade compared to Dukasopy. Don't know how many rounds of ammo you fire in a month but Marex could work with you for 2-3 yards (minimum) a month. Still, that deal would only be slightly better than Dukascopy.

When you get to 250k, trade with a bank guarantee. Then one day when you have between 7-10M $ in the bank you can start to look around for a PB.

//BBC
Get rich or die trying
  • #3
  • Nov 8, 2011 11:46am Nov 8, 2011 11:46am
Quoting BBC
In a word, no.

Most PBs don't want the business below 3-5M $. If you're a HFT you might be able to seduce Barclays at 300K (which is the extreme low, on the other end of the spectrum you have DB who wants 25M $ to start talking to you), but they generally don't want that business.

Going to a Tier II wont give you much of a upgrade compared to Dukasopy. Don't know how many rounds of ammo you fire in a month but Marex could work with you for 2-3 yards (minimum) a month. Still, that deal would only be slightly better than Dukascopy.

When you...
BBC if you trade with a PB and say for example you have a balance of $10M, is the whole account guaranteed?
  • #4
  • Nov 8, 2011 1:31pm Nov 8, 2011 1:31pm
Have a look at www.lmaxtrader.co.uk , the ONLY real broker that executes trades on an exchange

These are the average spreads

http://www.lmaxtrader.co.uk/average-spreads
  • #5
  • Nov 8, 2011 3:56pm Nov 8, 2011 3:56pm
http://www.marexfx.com/

FSA reg

They have Currenex, EBS, etc
  • #6
  • Nov 8, 2011 10:35pm Nov 8, 2011 10:35pm
Have you checked out these guys http://www.cfhmarkets.com/. I do not trade with them as their were complications opening up an account for Australian clients, but I here good things of them from a big trader who suggested them to me and they look good to me.
  • #7
  • Nov 9, 2011 8:16am Nov 9, 2011 8:16am
Quoting BobskiTheFX
BBC if you trade with a PB and say for example you have a balance of $10M, is the whole account guaranteed?
Not really.

If the bank that hold your funds goes bust you could lose a substantial amount of your capital. You can hedge your risk by buying an insurance which would add more security to your funds, but that's not going to guarantee anything either since we've seen insurance companies going under after having to pay out huge sums of money, all at the same time.
Get rich or die trying
  • #8
  • Nov 10, 2011 10:47pm Nov 10, 2011 10:47pm
So what kind of spread do you get from these prime broker?

even less than duka after commission?
  • #9
  • Nov 11, 2011 6:05am Nov 11, 2011 6:05am
Quoting MoreYummy
So what kind of spread do you get from these prime broker?

even less than duka after commission?
Your spread and commission is going to be determined by the amount of yards you do in a month. If you're not a big shark your average spread will be 1-1,5 pips on the E/U. Remember, at this level it's more about the quality of the fill than the spread.

More on PBs

http://www.forexfactory.com/showthread.php?t=321792
Get rich or die trying
  • #10
  • Nov 13, 2011 3:19am Nov 13, 2011 3:19am
Quoting BBC
Not really.

If the bank that hold your funds goes bust you could lose a substantial amount of your capital. You can hedge your risk by buying an insurance which would add more security to your funds, but that's not going to guarantee anything either since we've seen insurance companies going under after having to pay out huge sums of money, all at the same time.
maybe buy insurance on the insurance company?
  • #11
  • Nov 13, 2011 3:24am Nov 13, 2011 3:24am
if you are a volume trader, like 40+ trades a day there is no way to make money if your spread is big or you pay com. per lot.

You have 2 choices, 1. become your own broker, 2. have huge sums of money

If a broker would be smart (a stp broker like FXCM) they would offer you actual spread and a 2500 monthly flat fee to trade as much as you like, I say FXCM because of out the whole bunch they are one of the few that could be trusted, alpari would be ok too if you are using alpari us as they have fear to screw with clients there.
  • #12
  • Nov 13, 2011 3:42am Nov 13, 2011 3:42am
Quoting BBC
Not really.

If the bank that hold your funds goes bust you could lose a substantial amount of your capital. You can hedge your risk by buying an insurance which would add more security to your funds, but that's not going to guarantee anything either since we've seen insurance companies going under after having to pay out huge sums of money, all at the same time.
BBC,thanks for the info. So would the best way to protect your funds, is to have it deposited with a bank with AAA credit status and continually monitor the banks credit status and then get a bank guarantee to trade with.
  • #13
  • Nov 14, 2011 2:37am Nov 14, 2011 2:37am
Quoting Hedge212
maybe buy insurance on the insurance company?
In your case you might wanna get on Oprah and talk about your issues.....


Quoting Hedge212
if you are a volume trader, like 40+ trades a day there is no way to make money if your spread is big or you pay com. per lot.

You have 2 choices, 1. become your own broker, 2. have huge sums of money

If a broker would be smart (a stp broker like FXCM) they would offer you actual spread and a 2500 monthly flat fee to trade as much as you like, I say FXCM because of out the whole bunch they are one of the few that could be trusted, alpari would be ok too if you are using alpari us as they have fear to screw with clients there.
If you're unable to make money on your system because of spread and commission you need: a) therapy, b) go back to the drawing board and design a better system, c) if you can't design a better system you might wanna try Taco Bell in Kansas, they're looking for new interns.


Quoting BobskiTheFX
BBC,thanks for the info. So would the best way to protect your funds, is to have it deposited with a bank with AAA credit status and continually monitor the banks credit status and then get a bank guarantee to trade with.

Yes,

Make sure your money is held within Fort Knox, not a 7-Eleven disguised as Fort Knox. Any of the AAA banks would be a good place to keep your trading capital. It's about not taking unnecessary risks, it's about protecting your funds before concentrating on how to grow them.

Any of the top 10 banks on this list would be a good place to keep your capital and issue a bank guarantee to trade through.

http://www.gfmag.com/tools/best-bank...#axzz1db2ZppBa
Get rich or die trying
  • #14
  • Last Post: Nov 17, 2011 2:00am Nov 17, 2011 2:00am
BBC Thanks for the link.
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