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vetten
Registered: Nov 2004
Posts: 202 |
04-29-12 04:10 AM
Jack,
the only problem with Dukascopy is that you can only trade spot forex, so if the business goes bust, you`re just a creditor.
I think your account size needs to be quite high, 100k?, to be able to open a bank account in your own name.
Macquarie Bank offers forex futures and other futures and your cash is safe in a bank account (not Macquarie) in your own name.
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ddouglas
Registered: Aug 2011
Posts: 89 |
04-29-12 06:59 AM
Quote from Jack_Larkin:
Dukas is the same broker that Lakai from tradeitdontdateit used to trade FX...
He was shown to be a fake who was trading on SIM.
Search around this forum, & you can find the screenshot evidence of fake limit orders of 50+ lots in his DOM, when there are only 19-20 showing at that price level in the actual order book.
Nothing against Dukas - I just wouldn't point to that guy if I were trying to build credibility . .
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Jack_Larkin
Registered: Jun 2011
Posts: 491 |
04-29-12 05:22 PM
Quote from vetten:
Jack,
the only problem with Dukascopy is that you can only trade spot forex, so if the business goes bust, you`re just a creditor.
I think your account size needs to be quite high, 100k?, to be able to open a bank account in your own name.
Macquarie Bank offers forex futures and other futures and your cash is safe in a bank account (not Macquarie) in your own name.
Err.. just to back up a tad. You're right about spot in the sense that there's no 'industry wide' regulation on how funds are kept (like in futures and such,) but that doesn't mean you're unprotected in all cases.
You have to go on a broker by broker basis when assessing this, and atop of that, there's regulators and standards in different areas of the world that will add funds protection.
For instance:
Some brokers use segregated accounts, while this claim on its own won't protect you from illegal transfers (MFGlobal,) in a few regulated areas the claim of segregated accounts means the local regulator gets to make sure they are following through on it.
Then there's the local government's insurance programs:
I do some business with Oanda here in Canada, and my accounts are CIPF protected up to $1million. If Oanda goes under, CIPF will make sure my funds are transferred to a new institution (whoever buys up their old account base) or back to myself if I request it. It's a fast process too, we're talking weeks, not years... (I got to witness a co-worker's transfer from MFGlobal to RBC Securities.. within a few days his entire account was available at RBC to do with as he pleased. Not a dollar lost.)
For Dukas, they are a registered bank, and thus covered under the Swiss government's investment protection plan:
http://www.einlagensicherung.ch/en
So if you keep your funds directly with Dukas, and they go under, you're covered up to 100,000CHF.
All this is moot though, since the context was a broker who'll work with a 3rd party bank account instead of keeping funds directly with themselves. If you go the custodian banking method I described earlier, and Dukas goes under, your funds aren't touched since they are sitting at another bank in your name.
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ElectricSavant
Registered: Jan 2003
Posts: 14844 |
04-29-12 06:54 PM
I lost all of my funds in my accounts with several dealers. My Demo accounts are all zero...if not they eventually get drained...What to do about it?
but seriously..I am beginning to think that if they want your money it doesn't matter if you are offshore or in the States...Its all a gamble at this point in our history. For someone to put up their life, their earnings, their savings and their time fooling themselves into thinking that it is safe...well...oh nevermind.
ElectricSucksAtTradingSavant
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vetten
Registered: Nov 2004
Posts: 202 |
04-29-12 07:30 PM
Electric,
I think its foolish to join the first broker who meets your trading needs.
I realize that nothing can be 100% safe, but like trading you`re looking to minimizing risk.
and its not as if it is such a big job to research for the best broker available for your needs.
once I have my "safe" broker, be it in the US or abroad, I just know I did the best I could.
it will be a relief to know that, if you hear horror stories from other brokers over the years.
I certainly dont want the attitude of: she`ll be right mate!
Jack,
thank you for your detailed research.
I think having a bank account in your own name will be much better than one segregated account.
any unauthorized withdrawels will be spotted immediately.
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ElectricSavant
Registered: Jan 2003
Posts: 14844 |
04-29-12 08:26 PM
Well..in the light of that...wouldn't it be safer to diversify?
I think its foolish to join the first broker who meets your trading needs.
I realize that nothing can be 100% safe, but like trading you`re looking to minimizing risk.
and its not as if it is such a big job to research for the best broker available for your needs.
once I have my "safe" broker, be it in the US or abroad, I just know I did the best I could.
it will be a relief to know that, if you hear horror stories from other brokers over the years.
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