We need to make sure our funds are safe!

[jasonshurnas]

I wanted to post on this topic because of recent events with PFG Best.
With the recent liquidation of MF Global no one thought this could happen again.....

typicaly futures and forex are not protected against loss in the event your FCM decides to go bankrupt or
implode. Most clearing firms say they keep customer's funds in a seggregated acct.


http://www.citifx.com" onclick="window.open(this.href);return false; apparently has FDIC insurance on all deposited funds

i would appreciate some ideas/input fro others as to how they protect their trading accounts.

We work hard to build our trading accts and take all the risk as traders, we certainly don't need greedy firms
stealing our money.


thanks, jason

[snorm]

Good topic Jason.

My advice is to only keep X% of trading funds in a single broker account; the rest stays in a bank (or you could have some funds with another broker). No matter what happens, be it the collapse of the broker or a really stupid trading mistake, your trading funds should be safe for another day.

The view that one should only trade 1 or 2% of one's account need not be limited to the deposit with the broker. If only 20% of your funds are in a broker account, you could risk 5% or 10% of that on each trade, whilst still only risking 1 or 2% of your trading funds.

[immy]

Good topic Jason.

My advice is to only keep X% of trading funds in a single broker account; the rest stays in a bank (or you could have some funds with another broker). No matter what happens, be it the collapse of the broker or a really stupid trading mistake, your trading funds should be safe for another day.

The view that one should only trade 1 or 2% of one's account need not be limited to the deposit with the broker. If only 20% of your funds are in a broker account, you could risk 5% or 10% of that on each trade, whilst still only risking 1 or 2% of your trading funds.

Double that from me.

I never put over 20% of my entire trading money with brokers. Why give it to them when you can put it in a saving account. Just play with percentages.

cheers and have a great weekend everyone.

[Topher]

Good topic Jason.

My advice is to only keep X% of trading funds in a single broker account; the rest stays in a bank (or you could have some funds with another broker). No matter what happens, be it the collapse of the broker or a really stupid trading mistake, your trading funds should be safe for another day.

The view that one should only trade 1 or 2% of one's account need not be limited to the deposit with the broker. If only 20% of your funds are in a broker account, you could risk 5% or 10% of that on each trade, whilst still only risking 1 or 2% of your trading funds.

Double that from me.

I never put over 20% of my entire trading money with brokers. Why give it to them when you can put it in a saving account. Just play with percentages.

cheers and have a great weekend everyone.

Immy

You mentiond somewhere else on this forum about the ah ha moment well this is it for me.

It is so simple and so obvious but I completely overlooked this most basic of techniques. I have all my trading money with Alpari and only risk 1% per trade but that is a lot of money sat doing nothing. I am in the process of getting 80% withdrawn and into my savings at this moment. Just need to hide it from the wife or else it will turn into shoes, handbags and the other useless stuff that she has far too much of and will never use.

Richard

[Den]

It seems this subject is not much discussed and I am so grateful for this thread. I assumed from watching other journals and comments that half or 1 % was the norm, not realising the half or 1 % was the total of trading funds available.

I feel I have had a breakthrough too as I was so anxious about brokerages having all the funds. Its so simple I feel stupid. I can now use one broker and keep trading funds in the Bank.

Alpari will wonder whats going on with all the sudden withdrawals lol

Many thanks Jason for starting this thread. I feel so relieved.

[Den]

I wanted to post on this topic because of recent events with PFG Best.
With the recent liquidation of MF Global no one thought this could happen again.....

typicaly futures and forex are not protected against loss in the event your FCM decides to go bankrupt or
implode. Most clearing firms say they keep customer's funds in a seggregated acct.


http://www.citifx.com" onclick="window.open(this.href);return false; apparently has FDIC insurance on all deposited funds

i would appreciate some ideas/input fro others as to how they protect their trading accounts.

We work hard to build our trading accts and take all the risk as traders, we certainly don't need greedy firms
stealing our money.


thanks, jason

Hi Jason,

Again many thanks for your post. It put the wind up me and I have made this subject a priority for me. I have done some homework including talking to Brokers. In the end I was able to speak direct with a Fund Manager who is responsible for $millions of clients funds. He was direct and open. He has asked not to divulge his name, but here is some info from dialogue:

Your funds can be held in an segregated account at an Australian bank or a top tier bank (JPMorgan, HSBC, etc) in the UK.
Your trading account will be regulated by the FSA and ASIC.

No one can control or hold your funds. If anything happens to the broker your funds are still safe. After MF Global I am really cautious with these things.
However, A****i Ltd. is holding your funds and is able to control them. Be careful with this.
There is also something I was told which I darnt place on the forum, which certain members should be aware of.

Anyway as they say dont shoot the messenger, Im just sharing info.

[jasonshurnas]

can you email me the info:

jason@horizoncapital-llc.com

[James]

Den,
Very interesting stuff here.
Could you email me the info that you found out but couldn't mention on the forum as well.

jgroetsch@tampabay.rr.com

Thanks a million!
James

[Herbert]

Hi Den. thanks for additional info. I would appreciate your complete info: multinat@gmail.com

regards
Herbert

[immy]

Den, you can share here if you like, as long as it does not have pictures of your pants or mine! B-)