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Safest broker to trade a million dollars with

  • #81
  • Mar 5, 2014 1:48pm Mar 5, 2014 1:48pm
Quoting mvp77
{quote} Have you thought of the question itself or did you have help from the FF team? Sorry, you ask a question here and disappear. Well, that works just the internet. push push push But the quality suffers again!

GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #82
  • Edited 2:28pm Mar 5, 2014 2:08pm | Edited 2:28pm
Quoting stt
so many posts but no one answering the real question. The question was "what is the SAFEST broker to trade a $1m account". all the answers so far have provided nothing in terms of what makes their recommended broker safe.
ok, here's what makes Dukas stand out against many of its peers: you do not need to host your money at Dukascopy at all - they call it custodian banking service: http://www.dukascopy.com/swiss/english/forex/custodian/
Return To Disorder
  • #83
  • Edited 2:35pm Mar 5, 2014 2:23pm | Edited 2:35pm
Quoting fffx
If one wants to trade a million dollar in forex spot, which is the most appropriate broker, safety of funds wise.
Disclaimer: Beware. Do you have proper risk management that is in place from day 1? Do you have machine-like strategies that leave little room open for emotions to take hold? Do you have experience in trading and the overall feel of the market? Have you decided on the currencies that will be the center of your focus? Of course, there are many other questions that would be wise to think about.


This post assumes that you are trading in the United States and are a US Citizen without Dual Citizenship. While there are a number of options, it would be wise to review and study more than is given here, I would recommend trading with a bank with a USA presence and that is regulated by US Authorities. 1.) Likelihood of bank failure. 2.) History of bank. 3.) Current relationship with bank. 4.) Current/pending litigation towards bank. 5.) Liquidity. 6.) Does the bank operate in your state? If a company is formed, does the bank operate in that state?

However; there are other questions that need to be answered. Are you trading through your name, a company, a fund, etc. Is the beginning capital personal or family money? Loans? Investors? Based on your answer, the CFTC would like a word with you; FINRA too. Don't forget your home/incorporation state as well. Thankfully, currently, the SEC can probably remain unaware (depending, of course). The rabbit hole spirals downward at an unyielding pace. Welcome to an increasingly scrutinized and regulated industry. You many need to deal many things: offering documents and disclosures, properly set up funds, regulations regarding licenses (such as 3 and 34), anti-money laundering schemes, auditing, taxes, compliance with IT and Banking (and more), etc. You may need non of these. Your question is too vague for detailed replies.

Quick shortcuts for enjoyment:
CFTC: http://www.cftc.gov/index.htm
FINRA: http://www.finra.org/
SEC: http://www.sec.gov/
Dodd-Frank: http://www.cftc.gov/lawregulation/do...kact/index.htm

Disclaimer: Every bank listed has not been fully researched and may or may not be able to offer assistance. Some may only offer their platforms to certain countries. You have expressed interest in trading, to many, a sizable account in a market that is not known for kindness, softness, or risklessness. Do your diligence and research.

Banks:
Goldman Sachs: http://gset.gs.com/Products/ForeignExchange
Bank of America: http://corp.bankofamerica.com/busine...rime-brokerage
CitiBank: http://www.citifxpro.com/
UBS: http://www.ubs.com/microsites/about-...ding-phrase-DT
JP Morgan: https://www.jpmorgan.com/pages/jpmorgan/au/cib/ts/fx
Barclays: https://www.barclaysmarginfx.com/why-barclays-margin-fx
Dukacopy: http://www.dukascopy.com/swiss/engli...unt/?headerBar

While I may be mistaken (I often am), due to Dodd-Frank and other regulations, you may be stuck with banks such as: Goldman Sachs, Bank of America, CitiBank, and JP Morgan.

Good luck. Please feel free to correct or question any information that may be wrong, misleading, or otherwise obtuse.

One final note, as said earlier - you are asking a rather significant question with few details. Your current best friend should be a knowledgeable lawyer that specializes in these things. Again, it depends on various factors. One of the most important - ownership of the starting capital. If there are other people involved, do your best to not go to jail by doing it right.

Feel free to shoot me a message if need be.

EDIT:
Quoting stt
"so many posts but no one answering the real question. The question was "what is the SAFEST broker to trade a $1m account". all the answers so far have provided nothing in terms of what makes their recommended broker safe."

The safest broker is the one that is, for US Citizens with non Dual Citizenship, a major bank with a US presence that is regulated. You want no transfers outside the country, the IRS to be happy, regulators to be happy, and such. Also, from my understanding, at certain (perhaps all) banks that are among the types listed, some insurance, such as FDIC, applies. Go with such a bank. You want one that never will fail, has the reserves, liquidity, and insurance. CitiBank is one such bank.

Example:
http://www.bloomberg.com/apps/news?p...d=amKAYDYClsh8
http://en.wikipedia.org/wiki/CitiFX_Pro
"In February, 2009, the company added Federal Deposit Insurance Corporation(FDIC) insurance on US dollar deposits placed as margin for trading.[5]"
  • #84
  • Mar 6, 2014 8:06am Mar 6, 2014 8:06am
Thanks rockit and quickanswer for adding valuable information to this question.

Regarding the Dukascopy's custodial account, one has to research what types of withdraw the contract allows dukascopy to make from custodial account (i.e. when doing daily net pnl, who is making sure net pnl calculated by dukas is accurate). This is the model large hedge funds use typically - have custodial account at banks like state street, ny mellon (two big ones) and trade via prime brokers. So this is a right model however i am not totally sure if dukascopy's account offers similar protection. The issue always comes when SHTF - like in mfglobal's case. Can Dukascopy miscalculate pnl and withdraw from your custodial account and then go under - whats the protection against that. The way large hedge funds work is that they send log of trades to custodial banks in real time(or clsoe to real time) thus custodial bank can independently calculate pnl (approx at least as some of the assets are OTC so no offical price on these).

Quickanswer, Very good information - thanks!!
Think : Trade : Live Life
  • #85
  • Mar 11, 2014 1:39pm Mar 11, 2014 1:39pm
Register a limited company in the BVI and fly to Singapore to open a OCBC corporate account. Once you have the account you can open a iOCBCfx Pro trading account with a minimum deposit of 30000$US.

That's the best way to trade retail forex, point.

Why?
No annual/monthly reporting, audit or bookkeeping requirement for a BVI limited company.
No capital gains tax for a BVI company.
OCBC is one of the safest banks in the world, safer than any US/EU bank. Have a look at the annual "World strongest banks" report from Bloomberg for more infos.
They allow multi currency accounts.
The language of business in Singapore is English.
The cost of trading with iOCBC is low.
The cost of running a BVI company is very low.

Please note that if you are a US citizen this technique might not work, consult with a tax specialist before doing anything.
  • #86
  • Mar 11, 2014 2:40pm Mar 11, 2014 2:40pm
Quoting valdor
Please note that if you are a US citizen this technique might not work, consult with a tax specialist before doing anything.
Won't work from almost every "high tax" country as they will consider the bvi company tax resident in the high tax country if you live there, because of the place of "central management". One step is missing: take a flight to another more tax favorable country (and get a new citizenship if you're from the US). In this case, you probably don't need a company anymore, you can directly open the account in your name. But all this tax related issues were not the question in the first place ...
  • #87
  • Mar 11, 2014 6:19pm Mar 11, 2014 6:19pm
Quoting valdor
Register a limited company in the BVI and fly to Singapore to open a OCBC corporate account. Once you have the account you can open a iOCBCfx Pro trading account with a minimum deposit of 30000$US. That's the best way to trade retail forex, point. Why? No annual/monthly reporting, audit or bookkeeping requirement for a BVI limited company. No capital gains tax for a BVI company. OCBC is one of the safest banks in the world, safer than any US/EU bank. Have a look at the annual "World strongest banks" report from Bloomberg for more infos. They allow...
This information is GOLD! I hope one day i am in a position to take advantage of your advice!
  • #88
  • Mar 11, 2014 6:55pm Mar 11, 2014 6:55pm
iOCBCfx Pro: Commission charges: 1 pip per 100,000 per side

So you pay 10 pips per million? Thats ridiculous.
  • #89
  • Mar 11, 2014 7:05pm Mar 11, 2014 7:05pm
Quoting shrike
iOCBCfx Pro: Commission charges: 1 pip per 100,000 per side So you pay 10 pips per million? Thats ridiculous.
Plus single bank portal .. not aggregated spread either .. should be no commission
  • #90
  • Mar 11, 2014 8:00pm Mar 11, 2014 8:00pm
Quoting shrike
iOCBCfx Pro: Commission charges: 1 pip per 100,000 per side So you pay 10 pips per million? Thats ridiculous.
You would pay 10 pips for 1 million, but pips based on 100K.
You can't multiply the number of pips AND the amount you calculate those pips on, means commission would increase ^2

At least I assume, but totally agree it's very badly presented. It must be 1 pip, period.
Pip value being relative to traded amount, it is ridiculous to talk of "pip per" any amount.
That's people knowing forex

So would be 200 units of base currency per million round turn, still very, very expensive !
  • #91
  • Mar 11, 2014 8:06pm Mar 11, 2014 8:06pm
why some million dollar account holder trade forex?

honestly no millionaire will ever like to have stress which trading has.
I am smart than average trader, I simply copy the best.
  • #92
  • Mar 11, 2014 8:19pm Mar 11, 2014 8:19pm
Quoting Mevo
{quote} So would be 200 units of base currency per million round turn, still very, very expensive !
Thats like more than 12 times the commission i pay now. Plus my govt doesn't look kindly on tax evasion/circumvention/avoidence, in fact, depending on the amount, it can be rather harsh. So, its onshore for me..
  • #93
  • Mar 11, 2014 8:53pm Mar 11, 2014 8:53pm
Any major regulated broker should work...

FXCM
CitiFX
Forex.com
Oanda


Just make sure it's regulated and North American.

I notice that many people have been mentioning that FXCM was recently fined. While this is true keep in mind that it was specifically the UK division ("FXCM UK"). I have been a client of FXCM for a while and I have never had a problem with them. Yes, there was a little mishap with funds in their UK division, but this incident is not representative of how the business operates.
Any advice I provide should not be considered a financial recommendation.
  • #94
  • Mar 11, 2014 9:50pm Mar 11, 2014 9:50pm
Quoting I-Robo
why some million dollar account holder trade forex? honestly no millionaire will ever like to have stress which trading has.
Stress?

Your trading outside your comfort zone .

Billionaires trade forex - They love the feel of winning
  • #95
  • Mar 13, 2014 3:56pm Mar 13, 2014 3:56pm
Quoting midnight
{quote} Question 1: my answer is yes! It is free advertising, and its also the best advertising a company can have: word of mouth! Question 2: for me its easy, i only support the brokers who i believe are doing the right thing by me and my fellow traders!
You are right especially with you second point, one would only raise the flag up for brokers who deserve such praises. It doesn't necessarily mean that we are advertising them, after all this is a section for brokers and when you are impressed with their work, you are bound to praise them. Speaking of safety of funds, one way to overcome this fear is looking for a broker that deals with only regulated liquidity providers, in this way one can be sure that the funds are in a safe hand. This should not be very difficult know as the liquidity providers are clearly stated in the sites of the brokers, and if I should say my broker is doing well in this regard you can always go and find out to know if actually am advertising or being truthful.
  • #96
  • Mar 15, 2014 1:04am Mar 15, 2014 1:04am
Quoting Mevo
{quote} You would pay 10 pips for 1 million, but pips based on 100K. You can't multiply the number of pips AND the amount you calculate those pips on, means commission would increase ^2 At least I assume, but totally agree it's very badly presented. It must be 1 pip, period. Pip value being relative to traded amount, it is ridiculous to talk of "pip per" any amount. That's people knowing forex So would be 200 units of base currency...
You pay one pip regardless of the size of the order, the value of the pip simply increase with a larger order. It is expensive compared to most retail brokers but I consider it the price of peace of mind. To be honest I would be nervous about depositing a million dollars in a Oanda/pepperstone/fxcm... account. They might be decent firms but they are not as regulated and well capitalized as big banks. Also, when you consider that with the setup I explained earlier you have no taxes to pay, no declaration or bookkeeping to do, the one pip price is not that bad really.
  • #97
  • Mar 15, 2014 1:10am Mar 15, 2014 1:10am
Quoting Mevo
{quote} Won't work from almost every "high tax" country as they will consider the bvi company tax resident in the high tax country if you live there, because of the place of "central management". One step is missing: take a flight to another more tax favorable country (and get a new citizenship if you're from the US). In this case, you probably don't need a company anymore, you can directly open the account in your name. But all this tax related issues were not the question in the first place ...
You can use a nominee director and shareholder for the BVI company if you think this might be an issue in your country.
  • #98
  • Mar 15, 2014 2:22am Mar 15, 2014 2:22am
Who can be so freaking NAIVE to put a big amount of money into a BROKER!!??

Some people just don't get it. You will lose it all in the end...

When you lose it all, don't whine and come here to try to blame someone. It's your fault, because you are wasting your money into a gambling scheme.

And you cannot say I didn't warn you. I warned a lot of people here, I'm glad some get the message, can see the TRUTH and decide to keep their hard earned money. But other people truly don't get it and go ahead and lose it all.

Nothing else to add.
The Black Swan: The Impact of the Highly Improbable
  • #99
  • Mar 15, 2014 6:26am Mar 15, 2014 6:26am
Quoting MapleLeaf
Who can be so freaking NAIVE to put a big amount of money into a BROKER!!?? Some people just don't get it. You will lose it all in the end... When you lose it all, don't whine and come here to try to blame someone. It's your fault, because you are wasting your money into a gambling scheme. And you cannot say I didn't warn you. I warned a lot of people here, I'm glad some get the message, can see the TRUTH and decide to keep their hard earned money. But other people truly don't get it and go ahead and lose it all. Nothing else to add.
So in other words you are considering all FF members to be losers (not profitable) ... Right ?

Let me tell you that you are totally wrong ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #100
  • Mar 15, 2014 6:11pm Mar 15, 2014 6:11pm
Quoting FerruFx
{quote} So in other words you are considering all FF members to be losers (not profitable) ... Right ? Let me tell you that you are totally wrong ...
It's not my consideration. It's a FACT based in objective numbers. 99.6% of RETAIL FOREX TRADERS lose long term...

Another fact FERRU-FX, is that you do not make a living trading RETAIL FOREX. I like to be direct and clear in this matter.
The Black Swan: The Impact of the Highly Improbable
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