There's a thread or 2 talking about different Futures brokers, but I'd like to focus directly on Alaron Trading. Currently, I have all my accounts (myself, family, friends, etc.) with Alaron. Combined it is a substantial some of money for us. After Refco, I can't help but be considered about so much money at 1 firm. So, what are your thoughts on Alaron? Good or bad, I don't care. Also, how specifically would I perform even more due diligence on Alaron and other futures brokers? I'm not sure what resources, websites, etc. are even available as I liked what I saw at Alaron and have just used them. Also, what do other firms offer for protection that perhaps Alaron does not? Thanks in advance!
Personally, I think we're all whistling past the graveyard on this one. See....http://www.elitetrader.com/vb/showthread.php?threadid=58330
Here is the process: http://www.nfa.futures.org./ click on broker/ firm info, takes you here: http://www.nfa.futures.org./basicnet/ type Alaron in the "firm" box, shows you all the biz combos they have, let's take Alaron trading at the bottom click and look thru this page very carefully, lets click on regulaory actions details, click case details for first action, go thru the page, the bottom box has a running narrative. Go back and perform the process for each entity. There are probably no futs brokers that have not been involved in some sort of actions against them as the biz is complex and huge and the world is full of clowns. That said ,I've had daytrading accounts at Alaron for 5 yrs and they have always been very quick to correct any errors, all in, a very proffessionally run firm in my experience. The question some of you guys are asking is akin to asking " how do I know my wife will never cheat on me", you don't, unless you choose to never marry and simply not play. The best thing you can do is use several different brokers to spread the risk.
As general rule, I do not keep all my eggs in one basket. I have my funds distributed among several banks and brokerages. It's just too risky to keep them in one place.
It means that Refco can and will happen again, and that the geometric growth in the derivatives market constitutes a gigantic real-time economic experiment the outcome of which can only be guessed. Another way, perhaps, to think about it: Why don't futures brokers offer insurance? Because insurers won't insure them -- i.e., the potential liabilities are vast and unknowable. So, in effect, it is up to us -- the retail account holder -- to "insure" what Lloyds of London won't. Hmmm... I dunno. Am I missing something here?
Banjo, thank you for posting. I did a search for some of the retail forex brokers (i.e. fxcm, fx solutions, saxobank, gain capital, cmc). I'm glad that gain has a clean record. That is where I've been doing business for the past 5 years. Fxcm has a couple of black marks. Saxobank isn't even registered. Cmc has one black mark.
I'd just like to add that I trade through Alaron with Greenstreet as the IB. Very happy with the brokerage.