I used to work for an FCM. I find that as an Independent IB, I can present more choices to the customer and negotiate at times better terms than he would do for him/herself because of volume.
Thanks guys, what would you offer for service and support? Btw, I'm still undecided on whether to pick RJO vs Wedbush.
If you open an account with Lightspeed Trading, your account will be serviced by Lightspeed, me, Wedbush futures and the software you choose. Bob
Personally, I would pick Wedbush over RJO... imo, a better balance sheet as an FCM.. it really depends on what you trade... to me, they are more professional when it comes to what you will have access to or not and their risk limits. since last time I posted information on how one should evaluate FCM's, some of the FCM got a bit mad and the thread/posts were deleted, I will basically say to you that you should look at a few variables yourself within the data they report.. go to the following site and get the latest data.. http://www.cftc.gov/MarketReports/financialfcmdata/index.htm then look at their adjusted net capital, overall net capital requirements, excess net capital, and segregated assets. You should be able to construct a few ratios from that data that should give you a comparison of each FCM based on what I consider financial stability (their ability to absorb market shocks in the event of risk management failure).. FCM's will tell you that excess doesnt provide a complete picture of financial health because they have available lines of credit to draw upon for improving the net capital or that the owners can provide more net capital as needed... but I beg to differ... again, my opinion. keep in mind none of that protects you against fraud, for that common sense and not keeping all your funds in the same basket help you instead. full disclosure, I am a wedbush client (going way back to the days of crossland... long long ago.. close to a decade now..)
Thank you offthomas, it's definitely helpful. In fact thats the the link I picked up from the forum when deciding FCM. It really helped me focused on what I really wanted. Very helpful point that you even build ratios to make the assessment of FCM.
I think excess capital shows the strength of the firm. It's what they hold over and above their regulatory requirements. I think ADM has the largest one for retail non-banking FCM.
Purely on Client money protection with Interactive Brokers your money is protected via SIPC coverage with any FCM it is not! ( MFG) But true Interactive brokers don't seem to offer TT or CQG type futures oriented platforms