Thread: Is your money safe with your broker?

Global3 yes if you're neither a us/uk citizen however trading with a us/uk registered broker the situation is a little bit complied, I'm not sure if it can be done, it probably depends upon if the insurer has an arrangement with an overseas partner (rather like medical insurance when traveling overseas). Get in touch with a general insurance company in your country regarding this particular situation. Seeing insurance by FSA SIPC etc well I haven't really gone into it with the topic tend to concur with everything you say, but most people well versedthe segregated account banter brokers cite is the exact same. Here in India some trades have a guarantee fund where the exchange collect money from all associates on a regular basis and this moves into a fund which the exchange governs and its goal is to guarantee payment to members trading throughout the exchange in case the counter-party defaults. But this will only protect your open trades not your money held with brokers or clearing houses, and this is only for exchange goods.

Due fugly,

however, the real situation is very disappointing until of course you have about US$250,000 that will permit you to keep your deposits using a safe bank, using a bank guarantee, while simultaneously having an arrangement with the bank and broker to immediately access those funds as required to input each trade. Dukascopy.com in Switzerland offers that Custodian Banking Service starting from US$250,000 along with a Bank guarantee arrangement starting at US$100,000 so until that time one's trading capital will be at risk. So it is just as the saying goes, No Pain, No Gain.

Bank Guarantees Custodian Banking Services:
http://www.dukascopy.com/swiss/engli...ng-facilities/

Everyone knows that other brokers offer these amenities? In spite of these type of arrangements, if the bank goes bankrupt or is shut down by authorities, I guess you'll still only get the deposit insurance limitation of that country plus any additional funds the regulator's receivers can salvage from the sale of their remaining bank assets.

If you are a consistent profitable trader and possess a account using a broker, all profits made each month should be withdrawn until your starting capital is complete and all you have left in the account is profits.

After that, then begin making majority withdrawals every 3 weeks. Should you wake up one day to hear that your broker is burst, you wunt pass outside

Originally Posted by ;

If you're a consistent profitable trader and possess a sizable account using a broker, all profits made each month should be withdrawn before your starting capital is complete and all you've got left in the account is only profits.

After that, then begin making majority withdrawals every 3 weeks. If you then wake up a day to hear your broker is burst, you wunt pass

Yeah, or only maintain 50 percent of your trading funds with the broker and use more leverage, keeping the other 50 percent in a simple access current account.

I cant help you with a Response here since I have N't had that Enormous money in my account before, but I can say that its comfortable to Allow the money in your account if you Hope That Your broker, but if you dont I dont Understand why to open an account with them at all)

Originally Posted by ;

I cant help you with an answer here as I have not had that enormous money in my account before, however I can say that its comfortable to allow the amount in your account should you trust that your broker, but if you dont I dont understand why to open an account with them whatsoever)

only for the record, I trusted my broker but in the long run I lost many many thousands of dollars if the same broker I reliable went under, so trust isn't enough.

Since March 13th, 2012 that the NFA have established new guidelines which require FCMs to document DAILY segregation reports, but as one reader posted in the comments part of this post below:

Originally Posted by ;

These rules are useless. An FCM may file (whatever that means) a report on seg funding daily, or hourly, or whatever, but the data contained there can just be incorrect. It is my understanding that MF Global filed seg funds reports which were incorrect. Filing untrustworthy reports more often does not help.

Http://leaprate.com/forex-industry-n...ion-rules.html

The problem was, and still is, the authorities only make spot checks on the validity of these reports so whenever they do, clients segregated funds may have been abused, therefore it may be too late. The stage remains set to take place.

Originally Posted by ;

Since March 13th, 2012 the NFA have created new rules which require FCMs to document DAILY segregation reports, but as one reader posted in the comments part of this post below:

http://leaprate.com/forex-industry-n...ion-rules.html

The issue was, and still is that the regulators just make spot checks on the validity of those reports whenever they do, customers assessed funds may have been abused, so it may be too late. Therefore, the point remains set for another...

If JP Morgan can lose $2 billion unnoticed, Im sure whatever is possible.
Go with a broker which has a fantastic regulator and also a respected financial centre.
Australia is ideal because of it size, principles and eduion.
Brokers are closely monitored and leverage is generous only because they are.

Originally Posted by ;

Just for the record, I trusted my broker but in the long run I lost many many thousands of dollars if the same broker I reliable went under, so trust is not enough.

Hope that example was only. Be cautious with the Massive lot opening)

Originally Posted by ;

If JP Morgan can lose $2 billion undetected, Im sure anything is possible.
Proceed with a broker that has a good regulator and a respected financial center.
Australia is perfect for it size, rules and schooling.
Brokers are carefully monitored and leverage is generous simply because they are.

Hi,

Which Australian based brokers would you recommend?