I have a shotgun, lots ammo and patience to find them. Make sure that the money is safe.
I have a shotgun, lots ammo and patience to find them. Make sure that the money is safe.
For more serious deposits pick a bigger and a respectable broker. Opt for. Swiss one would do - search for a Swiss Bank that provides individuals with support. They're under the regulation of FINMA. I won't mention any names here but you can google them.Originally Posted by ;
If you can afford to deposit some 50k there is a lot of companies to select for you.
I had an account with Avafx, starting was so easy, but the withdraw has a dreadful delay, seven to 10 days, I began with $650 and end of year I had $2000 so I decided close it, but they only give me back $1000, someone has had bad experience with Avafx? i will call after the holidays...
I only have accounts with FSA regulated businesses. I am good around #50,000 that I know I'll get back if a company goes under. Its worth. Capital should be segregated. I've got accounts with Hirose, ETX, Smartlive and IG Financial and that I am confident I will get my money.
As to withdrawal processes it generally takes up from 2 to 5 days to get back funds. However there's a quick pay process (same day) that's being implemented but not sure how many companies will embrace in the near future.
How can your trading account pops safer with UK brokers who are governed by the Financial Services Authority (FSA)?
Even though at the UK depositors' funds are segregated and through the FSA's Financial Services Compensation Scheme (FSCS) they say:
And compensation limits are only #85,000 for # and Indices50,000 for Investments.Originally Posted by ;
Http://www.fsa.gov.uk/consumerinform...nsation/limits
But all this still means nothing in accore with the next advice I read in an article that appeared at the Market Oracle entitled, The Way MF International Collapsed by over Hypothe#8203;ing and Who is Next, the UK firms are free to utilize depositors' funds as collateral to get their own trades and investments-- that is called Re-hypotheion. And up to Feb 2012 US firms like MF International did exactly the same from the US to a certain extent as permitted by UK law, as permitted by law and unlimitedly by using their UK offices.
This is your link:
http://www.marketoracle.co.uk/Article32087.html
And this is the relevant section:
Additionally, according to another article on Reuters website, there are now new rules in place to decrease this sort of exploitation of customer deposits.Originally Posted by ;
Http://blogs.reuters.com/financial-r...ng-collateral/
My question now is, just how much protection does this new rule/law really give forex traders who have deposits from US firms? Even though some brokers segregate depositors' funds from their own capital, does that mean that they can not utilize some or maybe all those funds as MF Global did? What is the extent of protection after the new rule and where can we read concerning the new rule in detail. Once depositors' funds are redeemed, brokers should not be permitted to re-hypothee those funds at all then would our deposits be safer if the broker goes bankrupt, but just how safe? Can anybody answer this?Originally Posted by ;
Nice pick up. This is yet another article that refers to this (lack of) regulations in the united kingdom regarding security of capital deposited with brokers because of Re-hypotheion.
http://blog.rogermontgomery.com/hyper-what/
AUD, thanks for sharing this article. Seems like nothing has changed to protect depositors. The question is that, is there some way to get a trader to make sure the safety of his/her funds deposited with a broker? If there's a way, then please describe it and provide us examples of brokers and states. Can anyone answer this? Many thousands of individuals worldwide have lost many many tens of thousands of dollars of their hard earned cash with brokers and investment companies so I'm convinced any advice on this would be appreciated by everyone in this forum.
Fact is after clients lost 30 percent of their funds I do not think that the money is safe with any broker whatsoever especially a Foreign Exchange broker unless you can privately insure your funds from the broker going under. Finest thing is to approach an insurer request them to get a quote and pay the premium in your own personal capacity.
Thank you for your response fugly, now suppose you're trading for example via a US or UK broker but you are not a US or UK citizen nor residing in the US or UK, I suppose you'd you want to guarantee your deposit together with this broker via a US or UK insurance company respectively and if so, what insurance companies in the US or UK would be best for this purpose and can this kind of insurance policy be take out online?Originally Posted by ;
The so-called security given by the Securities Investor Protection Corporation (SIPC) in the US is practically useless as it is quite hard, if not impossible to recoup deposited funds as explained here:
Inserted Code http://www.bankrate.com/brm/news/investing/20020605a.asp in addition to the protection does not pay Foreign-exchange contracts, commodities and futures, in addition to choices on these as explained here:
Inserted Code http://www.investopedia.com/articles/stocks/08/sipc-fdic-bank-failure.asp And as I already explained in a previous post, the Securities Investor Protection Corporation (SIPC) of the FSA in the UK is also practically useless because UK law permits infinite re-hypotheion. So the only real option must be insuring the deposits with some insurance company that is respectable as fugly clarified--but that companies would be the most appropriate for this and can this be done on line?