First of all, I am not promoting any particular broker. I am asking for opinions here because what I am hearing from this certain broker seems a bit too good to be true and I am suspicious. That's why I am asking more experienced traders for their opinions. As a follow-up to a previous post of mine about a broker offering me rates "too good to be true", I have done some investigating. I talked to them on the phone and found out the following (as best as I understand): They started out as a firm that was closed to the general public, everyone trading at the firm sits there in a single office and trades their own accounts. They have been in existance less than one year, I think actual trading has only been happening for 7 months. They decided to open up trading to people who trade at home as a way to create additional revenue. There is a telehone staff dedicated to dealing with trades over the phone if you need to get out of a trade and your connection is not working. They claim to answer all calls within 3 rings, but I have no way to verify this. They are their own clearing firm, so the broker would be the one ultimately holding my funds. They claim to be registered with the government assocation that regulates futures dealers, I have not verified this, but I have no reason to doubt them. They want high volume traders only, doing 100+ contracts a day. Theie website offers rates of $4 RT maximum rate, plus $650 a month for X-trader. I was immediately offered a preferred rate of $3.25 per RT with no volume minimum to get that rate (other than the understanding I do about 100 contracts a day). They are offering me a trail rate of $2.52 per RT for the first 30 days, plus cost of X-trader. Normally you have to do 50,000+ contracts a month to get this rate, but they are willing to give it to me. After a month it goes to $3.25 per RT. This compares to the $5.75 per RT I pay my current broker e-local. I would love to take advantage of these potential cost savings, but am suspicious, it sounds too good to be true. I have this vision of someone at the firm disappearing with all my funds in the middle of the night and flying to South America. Am I just being paranoid? Or is this a real possibility? I know they are registered with the government, but so what? How does that protect my money from being stolen by a firm that has only been in business for 7 months? This compares to e-local's clearing firm that has been in business since 1922. That's a huge experience difference. That is my real concern here, the loss of capital from a dishonest fly by night shop. What protection is there out there for me? I am not making any accusations, it just concerns me dealing with a firm that lacks experience. What happens if someone at this firm steals my money and disappears? What happens then? Are there any government protection programs out there like FDIC?