well. whichever one is the best for the things i listed. I was under the impression prime brokers were just one set up from white label.
No, well I guess you could say that, but its a biiiiig step. Prime Brokers are Banks, Large hedges, etc. You would have to negotiate with them directly, with no intermediary. So they would want to know you min size, volume per month, and also your creditworthiness and net worth etc. The exact numbers cannot be estimated untill you, the trading firm negotiate with them, then at that point you would know, but it is in the high mio's. Now as far as white lable providers, this would be like aaron, pfg, gain pro etc., minimum account size on CX 25-100k depending on the White Lable provider, minimum size also goes from 50k to 500k, what I have found is that the lower the account minimum the higher the minimum size. Also fees run from $20-$50 a mio. If you are trading IB why do you want to switch? The Evere Straight Forward VIPER
TradeViper, How will the attempt at centralizing this unregulated, fragmented Forex quoting segment, with the upcoming Reuters/CME deal affect Currenex, Dealers, Marketmakers, White label, Prime, Triple Lindy...etc... going forward? Michael B.
I often read how fx is unregulated, the wild west etc etc. In the UK fx is as regulated as the futures, equities and all other financial markets. If you trade with a FSA regulated firm (and all legit firms in the UK must be regulated) then there is no issue.
the entities that marketspace is aimed at are already comfortable with the way spot fx is handled interbank. I fail to see it taking a sufficient amount of volume from globex futures and interbank to make it as successful as reuters/cme predict ... I hope I am wrong
Well then we can call you guys "the "Tamed Brit's" no disrespect intended...after all Great Britain is the largest player. Hey...will the demise of the GBP and the use of the Euro really happen? Michael B.
The business is already regulated, as long as your dealing with a firm registered with the NFA. It could get nasty otherwise, as indicated in Saturday's Wall Street Journal. Big headline, "Currency Villains," touches on some of those firms. They noted one guy who raised $30 million cold-calling and doing seminars! I can't raise 30 mill and I'm legit. Anyway, he made a fortune defrauding those customers, had a few houses, a 12 acre private island in Belize, exotic cars, etc. Now he is in federal prison. Anyway, gives us all a bad name. I am not registered, but that article alone has me thinking I better just to make future clients more at ease. I am sure a lot of you remember those shady "regulated" stock firms of the 80's and early 90's. Anyone remember Hanover Sterling? Regulation doesn't necessarily mean honesty, as we all know. Whoops, I'm getting off topic...sorry.
We can hope things will be more competative with the intro of the cme product (pricing). But don't forget retail will not be accessing it directly, it will be through a broker. As far as centralized is concerned, there is no, and in my opinion, will never be a centralized market. Everything spot fx traded today and in the future, unless there is a one world gov't, will be in a bucket. Even today on CX you are trading in a bucket, or hub because of size and who your white lable provider is, etc. CurreneX as an execution platform, and as such, so far as I have seen, cannot be beat, but the rest, spreads, fees, depth are controlled by your white label, so you are still in a bucket, the difference is, if you go to an honest white label you will do ok, but it depends on the provider. I think that the rookies here "feel" the with the intrduction of the cme product everyone will be profitable, stops and take profits will be guaranteed, no slippage, no gaps during news etc. Obviously this will never happen in any market but some continue to think at the end of the day we will all sit around in our bunny slippers, sipping hot cocoa and singing kumbaya. FX needs the kind of regulation they have in GB, but right now there is not a great outcry of the public in general, supposedly we were going to get some regs regarding IBs this year but who knows? In other words cme or no cme buisness as usual. The Ever Interested IN This Stuff VIPER
who, good point, don't forget REFCO. The Ever Wondering Why Anyone Would Trade With Refco's Cousin, VIPER
Has anyone requested the detailed trade log from Currenex to verify the validity of a trade? Someone a while back on Currenex told me that upon request, they could provide a trader with this log, which shows the time the trade was received at the CX server and the time it took the counterparty to reply.