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Are Ur Funds Safe...with Ur Brokers...?

  • #21
  • Sep 7, 2006 9:20pm Sep 7, 2006 9:20pm
Quoting FXopportunist
Call your broker and ask him if your money is safe?????
Are you kidding?????
What is it you expect them to say????

Do a little reading and research man, come on.
You may discuss it here, but you sure aren't going to find the definitive answers here. You have to be responsible for who you choose to do business with. We have all made our decisions and in the end we own that decision.
Chill-Think
Hi Fxopportunist,

I m chilled, i think u took my reply abit hard, there was no intention to give u hard one... the thing i said ur reply made me more concerned is true...nothing worng in it, rite.

And the latter part i said was for all other traders to give a call to their broker, whom do have doubts like me and want it to get clear. (Just read my reply with a clam mind u wouldnt find anything rude.)

The thing was i answerd ur reply and then Put my general thought for other traders and which might have mixed up and u took it personaly...

As far as i m concerned to give a call to my broker i did call my broker on Wed 4th sept.06 abt this topic and the forex Specialist who is assigned to me was not sure wat to reply all he said ¨you got to open an acc. with big firm like us¨ and then latter giving me eg of Refco which was contradicting himself. So i told him to give me a sound reply and if he needed time give me call on friday, on this fund-Safety thing and few other question.

I will keep you guys update wat he said.

I like to share with YOU and all other traders wat they say... and wat could be done to increase our safety.

And if u didnt took it personaly or something, my mistake, as ur reply had many question marks ???????? it seemed u were repling me in abit upset mood.
No hard feeling buddy.

I realy appriciate the thoughts and views of the ppl, on this thread.
  • #22
  • Sep 7, 2006 10:39pm Sep 7, 2006 10:39pm
about retail trading with banks... deutsche bank has that dbfx. abn amro is using the oanda platform, limited to 40:1... but for banks 40:1 I guess is still good. I remember I looked at their site and opening an account was not allowed for me, being from Canada... but I can t remember which countries are allowed.
  • #23
  • Sep 8, 2006 12:35am Sep 8, 2006 12:35am
Hi again Kevfx ..No. not all commercial banks allow forex trading with low fees .
In the UK , i think that Saxo bank has opened recently in London . It'll be great for you . They allow tradind via Direct Access mode .They have a good platform and fine spreads and you won't be charged more than your spreads . I was talking about fees ,cuz i thought you are in a small country . ( i'm living in Lebanon - so i trade via my local account . i don't have this opportunity Saxo bank and others offer ) .
you can go there ,negotiate ,and get the tighter spreads you can (spreads can be adjusted for clients regarding the amount they trade - get the best of them ) ,and the best services .I know ,that CitiBank also allows Forex spot ,but you 'll be charged for your trades .In my Country , CitiBank don't allow direct access trading , so i'm charged for every trade about 20 $ . Any way , you can call and ask the bank there .

Good luck .

< just an advice , don't reply for every post on your thread , cuz some people here are just kids and use it to post trivial opinions . i wish that the site's manager can filter the posts and delete the trivials and keep this site the best . >
Lebtrader 1
  • #24
  • Sep 8, 2006 1:23am Sep 8, 2006 1:23am
Kev,

I think that there are hundreds of varied opinions on the subject and when we trade fx, we accept the risk inherent with it. The subject of if your funds are safe is a question open to debate forever. Refco, went down under, while others are still doing business.
Its like doing business, you try and find the best deal you can and do your due diligence. There are literally hundreds of brokers and nothing is guaranteed. Almost every broker has been trashed and praised by others. It can get confusing.
As mentioned in one of the posts, make sure that they are atleast approved. Personally call their office/emails to check their response. It gives you an idea of how they operate. If you are with a big account, you can try and get a better deal.
Check:
1)http://www.nfa.futures.org/index.asp
2)http://www.bbb.org/
There is a wealth of information you can find out about your brokers.
Anyway, just some things to get you started.

Pm me if you need more help

Cheers
  • #25
  • Sep 8, 2006 7:26am Sep 8, 2006 7:26am
Hey i found this Post by Frank, its Related to Fund-Safety so i thought to put it here...its a letter abt FXCM.


By Frank:
hi folks,

i ve received an interesting e mail from fxcm


Quote:
<TABLE cellSpacing=0 cellPadding=6 width="100%" border=0><TBODY><TR><TD class=alt2 style="BORDER-RIGHT: 1px inset; BORDER-TOP: 1px inset; BORDER-LEFT: 1px inset; BORDER-BOTTOM: 1px inset">Dear Trader,

At FXCM, we believe that our customers deserve the best- in service and support and in funds security.
After interviewing and analyzing several institutions, government agencies and regulatory authorities around the world, we have concluded that the very best – and most convenient – protection is offered by the Canadian Investor Protection Fund (CIPF). In our opinion, it is the only entity that provides ironclad security for retail forex accounts.

Therefore, we have decided on a joint venture with Man Financial Canada. By opening your FXCM trading account with Man, your account funds are completely insured by the CIPF up to one million Canadian dollars (approximately $905,633 USD).

Of course, a few questions will come up:

Why Man Financial Canada?
To qualify for full CIPF protection, your funds must be held with a Canadian firm. Man’s reputation as a leader in brokerage and asset management services has been well-established in its 200-year history. With over $48 billion in client funds under management, the integrity of Man Group and its affiliates make it ideal for our customers.

Do I have to be a Canadian citizen or resident to be eligible for this protection?
No. The CIPF protection applies to all accountholders whose funds are held with Man Financial Canada, regardless of citizenship or country of residence.

By signing with Man Financial, what changes will there be in my FXCM account?
None. Except for the name on the paperwork, there is no change at all. All your FXCM products and services will stay exactly the same.

Will the execution that I receive change?
No. As usual, you will continue to trade on live, executable quotes with tight, fixed spreads during all normal market conditions.

Do I have to fill out a lot of extra paperwork?
No. Simply complete a two-page application for Man Financial – it usually takes less than five minutes.

Are there any fees for this account protection?
No. Your funds are protected at no additional cost when held with Man Financial Canada.
With this offering, FXCM elevates the industry standard, rising into an elite category of foreign exchange firms that offer clients greater safety of funds.

To sign up for the CIPF funds protection, please , or call us anytime –

We look forward to serving you.

Sincerely,

FXCM Client Services
Forex Capital Markets, LLC
Financial Square
32 Old Slip

</TD></TR></TBODY></TABLE>
Hope this help few of the traders, as far as i m concernd i m not tat keen on having FXCM as my Broker.

I will be back with more info.
  • #26
  • Sep 8, 2006 7:29am Sep 8, 2006 7:29am
Quoting kevfx
Will the execution that I receive change?
No. As usual, you will continue to trade on live, executable quotes with tight, fixed spreads during all normal market conditions.
What is considered an abnormal market condition? Still sounds like they reserve the right to increase spreads, stop hunt, etc. just like any other brokerage.

More info please.
  • #27
  • Sep 8, 2006 9:31am Sep 8, 2006 9:31am
http://www.cipf.ca/c_explore_coverage.htm#determination
  • #28
  • Sep 8, 2006 8:43pm Sep 8, 2006 8:43pm
Quoting kevfx

As far as i m concerned to give a call to my broker i did call my broker on Wed 4th sept.06 abt this topic and the forex Specialist who is assigned to me was not sure wat to reply all he said ¨you got to open an acc. with big firm like us¨ and then latter giving me eg of Refco which was contradicting himself. So i told him to give me a sound reply and if he needed time give me call on friday, on this fund-Safety thing and few other question.

I will keep you guys update wat he said.

I realy appriciate the thoughts and views of the ppl, on this thread.
Hi everyone,

As i said in my previous post that i had to spk to my ForexSpecialist today on friday.
I was waiting for his call. I even did emailed him to give me a call i wanted to talk to him abt the Questions we discussed last week.

But u know wat no Reply no email, no ph. call. (Strange.)

But will try to contact him on Monday and c wat happens and as soon as i get some feed back from him will share with u frnds.

Keep the good work on.
  • #29
  • Sep 9, 2006 9:23am Sep 9, 2006 9:23am
Hello,

The replies are interesting in this Thread.

Would like to see more replies abt the Brokers and their Fund-Safety Policies, coz it would be safety for other traders aswell.

Actualy i would like to see the views of:
Merlin, Isotonic, Diallist, DarkStar, James, PhilmcGrew, BurgerKing...and many more.

As I see these are the PPl who have been trading forex since long... and their views and Information would be valuable on the Brokers fund-Safety Policies.

I dont mean to say only these ppl whom i want to know the views, their might be many other Traders who have been trading in this market and their Views would be helpful to us.

Thanks,
  • #30
  • Sep 11, 2006 6:07pm Sep 11, 2006 6:07pm
Quoting sachin
Hello,

The replies are interesting in this Thread.

Would like to see more replies abt the Brokers and their Fund-Safety Policies, coz it would be safety for other traders aswell.

Actualy i would like to see the views of:
Merlin, Isotonic, Diallist, DarkStar, James, PhilmcGrew, BurgerKing...and many more.

As I see these are the PPl who have been trading forex since long... and their views and Information would be valuable on the Brokers fund-Safety Policies.

I dont mean to say only these ppl whom i want to know the views, their might be many other Traders who have been trading in this market and their Views would be helpful to us.

Thanks,
Hi Sachin,

I agree with u... Why it didnt come in my mind.
Even i would like to see views by the Person you mentioned.
Specialy Merlin, Dialist, James, Isotonic...and all those who have some valuable information on the fund-Safety by Brokers.

Pls Merlin if u see this post Give us ur valuable comment on it.
  • #31
  • Sep 12, 2006 1:52pm Sep 12, 2006 1:52pm
I was just reading SpotFX's contract. On page 9 or 10 it says basically that if a broker goes under you are entitled to whatever percentage of the companies total holdings your account represents after the dust settles.

So if you have 20k with them when they are worth 20 million, and then they have a melt down and now they are solvent by 4 million you should get 4k back. If they the company doesn't have positive equity after the said melt down, guess how much you get
Profit is where readiness meets Opportunity
  • #32
  • Sep 13, 2006 7:27am Sep 13, 2006 7:27am
Quoting FXopportunist
I was just reading SpotFX's contract. On page 9 or 10 it says basically that if a broker goes under you are entitled to whatever percentage of the companies total holdings your account represents after the dust settles.

So if you have 20k with them when they are worth 20 million, and then they have a melt down and now they are solvent by 4 million you should get 4k back. If they the company doesn't have positive equity after the said melt down, guess how much you get
Hiii,

Look this is wat worries me.... the thing u mentioned is by a broker called SpotFX.
who says u get the %age of the holdings whn the dust settles. u metioned if co. goes solvent by 4 million then ur $20,000 will be worth $4k.
I hope one doesnt have to pay incase they are in (-ve) Debt :-) watever.

There might be many brokers with diff. Fund-polices

But good to see u back with some info, Fxoppertunist...ur veiws are appriciated.

I have heard some Brokers offering FDIC-Insured Accounts if Anyone has some info on this pls dont hasitate to share with us...
  • #33
  • Sep 15, 2006 2:26pm Sep 15, 2006 2:26pm
take a look at fxdd. they have the same kind of set up that refco had and that there parent company is register with nfa but fxdd is not. another refco waiting to happen.
If I Go Broke Trying Then I Will die happy.
  • #34
  • Sep 16, 2006 7:46pm Sep 16, 2006 7:46pm
Quoting Moe
take a look at fxdd. they have the same kind of set up that refco had and that there parent company is register with nfa but fxdd is not. another refco waiting to happen.
I agree with u totaly Moe. U said abt Fxdd i wonder how abt other brokers aswell.

Another thing I don't understand y Traders dont consider Fund-Safety as their Primary Concern. And if they are considering it primary consern every one who opens a live account with any broker should be asking abt their fund-Safety policy rite....? (i hope so....)

If so, then i would invite all those traders to pls put atleast one view spend just 1-single minute to put their views abt the broker they are trading with and their Fund-Safety Polices.

It would be a gr8 help to the New Traders who are abt to Fund their Live Accounts.

I asked Merlin and other few traders on this FF site to put their views but i can't see any of their replies yet... I WONDER Y....?

Anyway this thread is came to its end i m planning to come with a better thread which should show the concern abt How much Fund-Safety is necessary.
  • #35
  • Sep 16, 2006 8:57pm Sep 16, 2006 8:57pm
One thing i like to here from brokers is that your funds or separate from company funds and that your funds or in there own account with such and such bank thats a start. i beleive oanda and interbanfx have that set up. we all know that dealing with the big boys/ banks you should be allwright . also that bond that some broker offer don't mean sh/t if the company goes under.
Quoting kevfx
I agree with u totaly Moe. U said abt Fxdd i wonder how abt other brokers aswell.

Another thing I don't understand y Traders dont consider Fund-Safety as their Primary Concern. And if they are considering it primary consern every one who opens a live account with any broker should be asking abt their fund-Safety policy rite....? (i hope so....)

If so, then i would invite all those traders to pls put atleast one view spend just 1-single minute to put their views abt the broker they are trading with and their Fund-Safety Polices.

It would be a gr8 help to the New Traders who are abt to Fund their Live Accounts.

I asked Merlin and other few traders on this FF site to put their views but i can't see any of their replies yet... I WONDER Y....?

Anyway this thread is came to its end i m planning to come with a better thread which should show the concern abt How much Fund-Safety is necessary.
If I Go Broke Trying Then I Will die happy.
  • #36
  • Sep 21, 2006 3:58pm Sep 21, 2006 3:58pm
Hi Kev,

I've never posted before, but I've been following similar threads for a while now, and thought I'd add something.

This is a good thread about Oanda. It also has a few good links.
http://www2.oanda.com/cgi-bin/msgboa...7;t=002044;p=1

Personally, I have an account with Oanda, and only found out later that my money is not protected. Other than that, Oanda is great.

I've learned that the best thing to do is to open an account with a broker based in Canada with CIPF insurance. However, an important question arises: what if, just prior to their bankruptcy, they withdraw from the insurance coverage?

MAN Financial FX seems like a good bet for a broker... "As of March 31, 2006, Man Group reported funds under management were over $48 billion."

FXCM is backed by MANFX, and both offer CIPF insurance. Would it be better to go with MANFX or FXCM? Why?

It's kind of scary how long it took to find out just this much info about account security. A full day of research, and still no sure answer.
  • #37
  • Sep 21, 2006 9:36pm Sep 21, 2006 9:36pm
Isitrue -

What you said about Oanda concerns me and has prompted me to do more research about this. I will see what I can find out and please do share more. In fact, I never really thought too deeply about fund safety given that it seems like so many people are doing it and many with much more money at stake than me, but after reading this thread, I feel I need to be more cognizant about this. Yup - it would indeed be invaluable to hear the veterans weigh in on all of this.
  • #38
  • Sep 22, 2006 9:22pm Sep 22, 2006 9:22pm
Quoting ForexWinnie
Isitrue -

What you said about Oanda concerns me and has prompted me to do more research about this. I will see what I can find out and please do share more. In fact, I never really thought too deeply about fund safety given that it seems like so many people are doing it and many with much more money at stake than me, but after reading this thread, I feel I need to be more cognizant about this. Yup - it would indeed be invaluable to hear the veterans weigh in on all of this.
Hi ForexWinnie,

I m glad to see that Traders are thinking Fund-Security as one of their Primary Priorities when trading Forex as a Business.
U r rite ForexWinnie i totaly agree with u, its not only u who didnt give a proper thought to fund-Safety when taking ForexTrading as ur Business there are more then 70% ppl i guess who dont care abt Fund-Safety.
(May be these traders are sure of losing money in the end.... as 90-95% of the ppl lose in ForexTrading...:-) I would say there is a Point in my Sarcasim...if u get it.)

Btw i have started another thread called ¨Ur funds Vs Ur Brokers¨ which is kind of a more Eye Opener as i have given one Example, which should awake more Traders how important is Fund-Safety policy while having an Account with Any Broker.
The link is here http://www.forexfactory.com/forexfor...?threadid=8198

Keep posting ur Views abt any broker u trade or u know abt their fund-Safety policy.

Infact we are so many traders in ForexFactory more then 2000 I guess, if all of us just put 1-Line for 2-Questions blw it would be a gr8 info for all the Traders...

1) Broker's Name: ___________

2) Broker's Fund-Safety Policy : _________

Don't u think so frnds... !!!
  • #39
  • Aug 30, 2008 11:16pm Aug 30, 2008 11:16pm
I know this thread is really old but I thought I'd bring back the topic of funds safety. After all this time is there any new info? Is putting our funds with a canadian firm with cipf insurance the way to go? Thank you.
  • #40
  • Last Post: Apr 6, 2009 2:03pm Apr 6, 2009 2:03pm
any reactions to citifx's recent announcement about providing fdic ins to acct holders? they might not have the best platform, but i am not concerned about that. i watch mt4 demo feeds and only make 1-2 trades a week.
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