One question As a futures trader, my funds are segregated, so a broker cannot either misuse my funds nor will they be part of the "holdings" if the broker goes bankrupt (which is somewhat possible with small brokers/IBs). Think, REFCO. Only the Futures customers fared OK... What protections are there with forex brokers & industry?
Well ... Thats the million dollar question. In forex you have no protection whats so ever. Your best bet would be with a Canadian broker. In canada ... there's some sort of a insuarance gurantee upto 1million dollars for forex accounts in case if the broker files for bankruptcy. The next best solution is to find a broker regulated by FSA(UK) or ASIC(Australia) since those two regulatory body's have very strict guidelines on financial reportings etc etc on brokerage firms. Or may be a forex broker regulated by the two biggest brothels in the world (CFTC & NFA) and keep your fingers crossed
the best protection is to work with bank which provides retail forex services. So you will be protected as all bank clients I can suggest just this one http://www.dbfx.com/
Did you happen to notice it is exactly the same platform as FXCM? I strongly doubt you are treated as a "client" of a bank bro, as a retail fx customer. el surdo
as I remember it is ActForex - http://www.actforex.com/ good platform. reliable bank... why not to use??? btw, do you know if they used is as Dealers or ENC Broker? I have doubt, as seams they have fixed spread
A significant point to note: RefcoFX was not NFA regulated, though the RefcoFX Canada clients got protected by the domestic government as someone mentions above.