Safe Broker... - Page 2
Page 2 of 504 FirstFirst 1234 LastLast
Results 11 to 20 of 31

Thread: Safe Broker...

  1. #11

    Can you know what sort of accounts they have, in terms of Min trade dimensions or Min capital required to be deposited?


  2. #12
    The matter isn't a matter how big or small the customer account size is it should be guarded. . Just becasue somebody has 1-2K only does not mean no protection is necessary
    Any way with FSA ... in case you read the correspondence I had with FSCS that they could not egorically say that FX is covered!

    So it's still perplexing. .

  3. #13
    Quote Originally Posted by ;
    The issue is no matter how big or small the customer account size is it ought to be protected. . Just becasue somebody has 1-2K only does not mean no protection is necessary
    Any way with FSA ... if you read the correspondence that I had with FSCS that they couldn't egorically say that FX is covered!
    So that it is still perplexing. .
    It's not confusing. You did not ask the FSCS person specifically if your trading account deposits with a forex broker is insured under FSA's #50K insurance. Instead they wanted you to describe which investment goods involving forex companies like a chatroom subscription, or signals subscription, or automated trading robot. Examine the FSA website for policy details, it is very apparent as CFH Markets explained too at their website.

    Likewise, Singapore's MAS is very clear on their website and that's where I discovered the list of 19 forex broker/traders with Capital Markets Services License. I saw Oanda, GFT, Saxo, CMC, MF Global, IG Markets, on this list.

  4. #14
    I did ask them specifically about FX
    This is Exactly What Mr. Robinson Stated
    By the way You're Right about MAS in Singapore... the only reason I would trust Singapore is Changi prison Really Is a Dreadful place and would Dissuade Individuals from committing fraud...

    Thanks for your E mail of 29 July 2010 about protection for investments Between FOREX Businesses under the Financial Services Compensation Scheme (FSCS).
    I have been liaising with our legal department.

    The major question is if the contract is a regulated ”prospective” (and therefore falls within the definition of a ”designated investment”, and in turn, is in principle covered by FSCS if the claim made is ”in relation to secure investment business” or whether the contract remains a unregulated forward FX contract (which falls outside the definition of a ”specified investment”) and consequently would not be covered.

    As mentioned previously, unfortunately, until a claim is presented we would be unable to Supply a more authoritative response as only then would we manage to carry out a Complete assessment of the eligibility of any claim .

    I hope this can be useful. But if you have any additional questions please contact us or telephone our helpline on 020 7892 7300 or freephone 0800 6781100.

    Yours sincerely

  5. #15
    Quote Originally Posted by ;
    I am searching for a SAFE Foreign Exchange broker that will actually give me a type of security in my capital....
    I am pretty certain Dukascopy has finance protection around approximately 100k take or give being they are a Swiss Regulated Bank.

  6. #16
    You Place Safe and Broker in Precisely the Same sentence.
    Your grammar instructor could have you expelled for that.

  7. #17
    I asked the question to LCG

    Here is the response
    ONCE again this doesn't give 100% assurance that FX is covered by FSA insurance.

    So no matter what they say afterward they acknowledge that FX is not covered!

    Hi Sir,

    As Spot Forex is not a regulated investment instrument, the FSA's client money rules (such as those of trust standing via segregation) cannot apply for this business. But to set your mind at rest that I could affirm that LCG is termed a ”full range” firm by the FSA (which will not be the case for a lot of our competitors) and therefore, meets strict capitalisation requirements constantly. Additionally, we carry out complete capital based stress testing as part of our internal capital adequacy assessment process.

    1) The minimum account size for Currenex is US$20,000 or equivalent in any currency.
    Two) LCG doesn't run a dealing desk all transactions for 50k or 50m are all matched with different clients or liquidity providing banks.
    3) Not on Currenex but we have an institutional Metatrader solution running 0.6 pip EURUSD spreads that you could use this on. We are not a market maker.
    4) Only on Metatrader
    5) No. We'll be launching a FX Options platform at the first half of next year.



    Graeme Watkins

    FX Operations Manager

    Direct: 44 (0)20 7456 7032 Mobile: 44 (0)7894 614 350 24 Hour: 44 (0)20 7456 7030

  8. #18
    I think he clarified clearly that LCG fulfilled FSA's stringent capitalization requirements. Additional USA brokers registered with CFTC and member of NFA had to meet the $20million capital requirement.

    Quoted from another site:
    In 2007, NFA President Dan Roth testified at a hearing before the Subcommittee on General Farm Commodities and Risk Management Committee on Agriculture regarding the need for a high minimum capital requirement for forex traders. He said, #8220;The next attribute that marks the issue firms in retail forex is that most, although not all, have been thinly capitalized. Congress long ago realized that behaving as a dealer involves greater risk than acting as an agent in futures trading, the way a conventional FCM does. That is the reason why Congress in 1978 enforced a $5 million net worth requirement for firms granting dealer options and why the CFTC generated a $2.5 million capital requirement for leverage transaction merchants in 1984. Congress should amend Section 2(c) of the Act to require FCMs acting as counterparties to retail forex trades to keep minimum capital of at least $20 million. NFA has raised the funds requirements for forex traders several occasions but this congressional action could ensure that firms can satisfy their duties to their customers and have a significant financial stake in their enterprise. #8221; Subsequently, the CFTC Reauthorization Act of 2008 enforced a $20 million capital requirement for retail forex counterparties which are Retail Foreign Exchange Dealers or which are FCM-only firms primarily or substantially engaged in on-exchange futures actions. Observing the requirements outlined in the legislation, NFA amended its Financial Requirements to increase Forex Dealer Member capital requirements to $20 million, on a gradual basis, by May 16, 2009.

    If you think these are still insufficient early warning auditing to a broker's insolvency, forget about spot forex and trade a regulated investment tool instead.

  9. #19
    Does not mean anything to you?

    As Spot Forex is not a regulated investment tool, the FSA's client money rules (such as those of trust standing via segregation) cannot apply to this enterprise.

    Why are you so keen to show that there is not much risk!

    When 4000 accounts loose 47 MIllion for a consumer we are bound to ask the fine print.

    With Refco don;t know what teh damage was

    Even on this forum are so many people ask about Is XYZ brokr is safe or not?

    How come we don;t see people asking the exact same question about Exchange traded merchandise brokers?

    Becasue with OTC brokers that there are lot more scrupulous people than those involved in Exchange Traded merchandise market

  10. #20
    just make certain you read the Risk Disclosure Statement if you join with any forex broker. Know the risks involved should you still want to exchange spot forex.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners more information