1) What happens if a liquidity provider goes bust?
2) What if the broker is trading it's own profits - it can make a loss and then even if your accounts are segregated you can still lose funds. This is a different thing to brokers who may trade any funds clients aren't using. I've only found one rating I trust for InteractiveBrokers back from 2008 I trust - with an A from Weiss and Weiss have stopped rating brokers now. I don't trust S&P ratings - they didn't spot Lehman Brothers so why take any notice of what they say now?
3) What about P2P exchange services for longer term currency positions since they offer the best spreads.
Money transmittal services (CurrencyFair, Klickex, Transferwise) - secure? Quick intro.
CurrencyFair:
Offers the most fair pairs.
You can store funds
Set your own rate.
Klickex:
Aimed at NZ and Australia but also has GBP.
NZD/AUD/GBP only (plus some pacific island currencies)
Set your own rate.
Transferwise:
Can't store funds. You send, they convert at the rate previously agreed and they forward onwards.
Best for euro fiat pairs but has CNY and INR too.
Other brokers like XE:
Can't store funds. They typically forward when funds received. More secure than p2p?
Multi-currency currency call accounts:
Don't seem to offer competitive spreads in countries with less bail-in risk such as Australia. In Aus the rates are ridiculous. Rates are OK in the UK but the the rating for the country is worse.
2) What if the broker is trading it's own profits - it can make a loss and then even if your accounts are segregated you can still lose funds. This is a different thing to brokers who may trade any funds clients aren't using. I've only found one rating I trust for InteractiveBrokers back from 2008 I trust - with an A from Weiss and Weiss have stopped rating brokers now. I don't trust S&P ratings - they didn't spot Lehman Brothers so why take any notice of what they say now?
3) What about P2P exchange services for longer term currency positions since they offer the best spreads.
Money transmittal services (CurrencyFair, Klickex, Transferwise) - secure? Quick intro.
CurrencyFair:
Offers the most fair pairs.
You can store funds
Set your own rate.
Klickex:
Aimed at NZ and Australia but also has GBP.
NZD/AUD/GBP only (plus some pacific island currencies)
Set your own rate.
Transferwise:
Can't store funds. You send, they convert at the rate previously agreed and they forward onwards.
Best for euro fiat pairs but has CNY and INR too.
Other brokers like XE:
Can't store funds. They typically forward when funds received. More secure than p2p?
Multi-currency currency call accounts:
Don't seem to offer competitive spreads in countries with less bail-in risk such as Australia. In Aus the rates are ridiculous. Rates are OK in the UK but the the rating for the country is worse.
