Which FCM is the safest?.. Technically if there is compliance with regulations, a FCM shouldn't fail. Is the safest, the largest? Not sure if this is valid either. Look at the issues with MF Global, and FXCM in regards to regulations and compliance. What are the requirements in forming your own FCM? A IB introducing broker seems easier, but still have to rely on FCM to park and clear funds/trades. Chris
The is an old list. Make note of the large, traditional FCMs on the list highlighted in bold. It is very difficult to get the best rates going to them directly. Most will need an IB, especially retail traders. Special note on ADM, aka ADMIS, is backed by the one of the largest agricultural firms in the world. If anybody can get RJO at .65c starting commission, pls send me a PM with the IB name. *Rankings of FCM's by Customer Segregated Equity -April 30, 2011 - Non Broker Deals Only - (Source: CFTC) - Ranked by Customer Segregated Funds* JP MORGAN FUTURES INC: $17,628,775,299 PRUDENTIAL BACHE COMMODITIES LLC: $3,400,585,000 RJ OBRIEN ASSOCIATES LLC: $2,815,862,733 ADM INVESTOR SERVICES INC: $2,797,845,347 ROSENTHAL COLLINS GROUP LLC: $1,832,840,806 BNP PARIBAS COMMODITY FUTURES INC: $1,609,147,270 FCSTONE LLC: $1,164,476,821 PENSON FUTURES: $864,074,811 MCVEAN TRADING & INVESTMENTS LLC: $845,290,957 MACQUARIE FUTURES USA INC: $813,691,662 PEREGRINE FINANCIAL GROUP INC: $511,339,095 ADVANTAGE FUTURES LLC: $430,207,984 ENSKILDA FUTURES LTD: $388,754,287 RAND FINANCIAL SERVICES INC: $327,307,200 TENCO INC: $305,910,159 TRILAND USA INC: $214,973,309 COUNTRY HEDGING INC: $142,691,536 CROSSLAND LLC: $116,808,770 DORMAN TRADING LLC: $101,031,944 MBF CLEARING CORP: $93,507,639 OPEN E CRY LLC: $90,434,711 YORK BUSINESS ASSOCIATES LLC: $72,923,324 VELOCITY FUTURES LLC: $71,700,880 IRONBEAM INC: $62,508,657 MAREX NORTH AMERICA LLC: $59,730,683 CUNNINGHAM COMMODITIES LLC: $53,917,287 LINN GROUP THE: $42,285,565 FRONTIER FUTURES INC: $34,390,668 STERLING COMMODITIES CORP: $31,366,238 BNY MELLON CLEARING LLC: $31,161,559 <===Too Big to Fail. AMP GLOBAL CLEARING LLC: $28,594,453 CX CAPITAL MARKETS LLC: $26,591,840 MID CO COMMODITIES INC: $25,551,108 IKON GLOBAL MARKETS INC: $16,928,151 FRIEDBERG MERCANTILE GROUP INC: $11,350,990 EAGLE MARKET MAKERS INC: $2,201,733 STRAITS FINANCIAL LLC: $1,443,739 GLOBAL FUTURES & FOREX LTD: $803,063 IG MARKETS INC: $156,289
Yes, anything is possible (and more probable) with derivatives. I do not even have a concept of the various legal maneuvers by which customers of the blue chip firms may be left holding the bag. You can use T-bills as margin collateral, which are registered to your name, as a form of protection. Is this correct?
Here's an updated one? http://www.cftc.gov/idc/groups/public/@financialdataforfcms/documents/file/fcmdata1216.pdf
Even large firms can get into trouble if parent company engages in speculative derivatives exposure. Seems best to stick to firms that don't diversify. Diversification leads to exposure of risk in other ways.
my 2cents... look at the size of State Street. the size of assets they sit on represents about 11%+ of all assets worldwide. needless to say, they are huge, making even outfits like FCStone or RJO look like dwarves. the reason i mention State Street is because they own Currenex and FXConnect. that being said, Currenex is well connected to a wide pool of liquidity but offers any broker offering it as a platform the ability to B-book client flow.
why would you look at segregated client equity. i would look at excess net capital as a start but you also need to look at the equity segment capital position of a company
Since PEREGRINEFINANCIAL GROUP, aka PFGBest is on this list it is indeed old. It also demonstrates the limits of such lists!
That's $0.65 per leg, not including exchange fees, right? Do you specifically not want to go to them directly?