I need to find new broker as TOS is untradeable right now with their lag. I've narrowed it down to Rosenthal Collins Group/Marex and Wedbush Securities that I'll be able to use TT through them. I've downloaded the FCM data for January 2020 but I'm unsure of how to analyze the numbers. https://www.cftc.gov/MarketReports/financialfcmdata/index.htm Both are good options from what I gather, but is there one that stands out above the other when looking at balance sheet? Appreciate any input!
We work with Wedbush and could help with the TT set up. Would be glad to help. Although there are many FCMs that you should consider because not all FCMs provide the same margins.
the number of FCM has gone from 284 some 15 years ago to 63 right now. The smallest (based on adj net capital) are: HIDDEN ROAD PARTNERS CIV US LLC MINT BROKERS HUATAI FINANCIAL USA INC IRONBEAM INC AMP GLOBAL CLEARING LLC CUNNINGHAM COMMODITIES LLC I would avoid them!!
yes, JCVD goat reference. Was crushed when I found out Frank Dux was a fraud but that's another story. this is giving me headache trying to figure out this FCM stuff. I don't think I'm comfortable putting my $ in any firm without SIPC insurance. Was looking at IB pro...then found this clause. "By properly segregating the client's assets, if no money or stock is borrowed and no futures positions are held by the client, then the client's assets are available to be returned to the client in the event of a default by or bankruptcy of the broker." Well what happens if you do use futures or borrow stock..you aren't eligible for insurance? I can't handicap chance of firm blowing up....(<1%?) but it's not something I want to have to worry about at all.
This would be a better conversion on the phone. The NFA/CFTC requires all futures trading be traded in a Segregated Futures account which is not protected by SIPC. Some brokers with Universal accounts sweep money not required for futures margin into a SIPC protected account. We do not do that and neither do most FCMs. The CME/CFTC/NFA have faith in the segregated account system which keeps your money separate from the FCMs money. I can tell you there is a lot of money in Segregated accounts. Wedbush on Jan 31, 2020 had $1,106,109,965 in seg accounts. The most was JPM with $25,497,593,368. This is the way they do business. You should do what makes you comfortable.