Forex trading - broker

Discussion in 'Automated Trading' started by rcanfiel, Jun 8, 2007.

  1. 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?
  2. auslanco


    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 :)
  3. DavidDA


    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 :p
  4. Surdo


    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
  5. DavidDA


    as I remember it is ActForex -

    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
  6. auslanco


  7. Surdo


    Shhhhhhhh>>>>>don't tell anybody!

  8. auslanco


    lol.. ..:p
  9. forex162


    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.