I have an account with Ironbeam and am looking to open another one for diversification/different strategy etc. I am hesitating between Phillip Capital and Dorman Trading. Is Ironbeam somehow financially dependent on Phillip Capital? I have read in their disclosure document that as a non-clearing FCM they maintain a clearing firm/carrying broker relationship with Phillip Capital. What could it mean exactly? I do not want to have a false sense of security for my funds if Ironbeam and Phillip Capital are in fact the same "basket". Is Dorman a reliable FCM? Family-owned I suppose, which might be a good thing when it comes to the risk of potential defraudation.
I've never done biz with Ironbeam. But according to FCM financials, Ironbeam is about the size of AMP based on segregated customer funds. I really don't know if they are a clearing FCM or not. Maintaining a clearing relationship is NOT the same as being a GIB (Guaranteed Introducing Broker), which almost always involves exclusivity, which I don't think applies to IronBeam operations. As for Philips, they are fairly large. AFAIK, their specialty was energy markets. They began partnering with "retail" firms a couple/few years ago. Dorman, I have several years experience with. I like Dorman. However, my primary trading account is with AMP. Heres the link to FCM financials from November 2019.... https://www.cftc.gov/sites/default/...ms/11- FCM Webpage Update - November 2019.pdf HTH
NonClearing FCMs have Omnibus accounts with FCMs that typically have the seats on exchnages. Your funds, whether with a small or large FCM, are segregated. The smaller FCMs are a lot more lenient when it comes to margins, and the larger...not always. The choice between FCMs should be based, in my opinion, on your profile, your expectations, day trading margins, cost of execution, and the size of your portfolio. Each FCM serves a function.