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Best Forex Broker?

  #31 (permalink)

San Jose, Ca
 
Trading Experience: Beginner
Platform: MetaTrader 4
Broker/Data: Interactive Brokers
Favorite Futures: Forex
 
Joseph689's Avatar
 
Posts: 121 since Sep 2012
Thanks: 113 given, 37 received


Branzol View Post
Just a bit of information, your funds are not insured in futures either......
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.

Interesting on Futures not being insured! Since I don't have a 6 figure account *yet* I'm screwed there!

The safest bet is to go with a diverse/established broker like IB. I have used IB since I left TD many years ago for Futures. I just didn't want to use them for Forex since their commissions are way to high for scalping.

On domestic/overseas brokers, unfortunately it's not what country your a citizen of (I hold dual, US and EU), but where you reside. I believe there are European Forex brokers that your trading funds are insured to a specific amount and are well regulated by their respective watchdog agencies. But, unfortunately they avoid us US residents like the plague because of the long arm of the IRS and not having to go through the hassles!

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