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Best Forex Broker?

  #30 (permalink)

Baltimore Maryland/United States
 
Trading Experience: Advanced
Platform: Custom
Broker/Data: IB
Favorite Futures: Asian Stocks / Indexes
 
Branzol's Avatar
 
Posts: 39 since May 2014
Thanks: 43 given, 61 received


Joseph689 View Post
Full Circle....

I'm finding that the whole Forex process way too stressful at this point, from this whole Greek fiasco, to brokerages, to the IRS reporting, to the awful and archaic MT4, etc. SO, I'm going back to my first love, Futures (CL/ES) with NT.

Maybe when the dust settles, and our trading funds are insured, I'll revisit Forex then.

Cheers,
Joseph


Just a bit of information, your funds are not insured in futures either. The only difference is in Forex than can be taken by a creditor if the Brokerage goes insolvent. In futures customer segregated funds cannot be tapped into be creditors in the event of insolvency. But you still have a heavy chance of not seeing funds again in the event of a SNB like event in the futures markets, as other traders go negative in there accounts at your brokerage it will pull the negative balances from the customer segregated pool hence drawing down was is available for distribution back to the customers in the event of insolvency. Equities/Bonds is the only market that receives the $500K SPIC protection with a $250K limit on Cash.

NFA Account Protection(Futures)

SPIC Protection What it Does and Doesn't Protect(Securities)

Your only true option of segregation in either markets is to get a segregated account in just your name. Most of the big firms offer them FXCM/IB/CITI but your going to have to maintain a low six figure account balance to get that protection. For people who don't have balances like that, it's best to spread your risk among brokers so if one goes insolvent your not losing everything.

As far as a good broker for Forex that is "LEGAL" to use by a US Citizen, I use IB and it's about the only one I would use. I had a FXCM account but pulled my funds after there fiasco. I understand they received the loan, are paying it back..etc But all it would take is another SNB and they'll be looking for another 300M loan or become insolvent. I say legal because there a lot of non-regulated buketshop brokers overseas who will take a US Citizen. Technically its not legal for you to use them as a US Citizen even though they take you, and tax reporting is going to be extremely tough as none of them report to the IRS.


Last edited by Branzol; April 26th, 2015 at 02:02 PM. Reason: Added NFA Link
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