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Financial state of a futures broker


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Financial state of a futures broker

  #1 (permalink)
 Blaster666 
Buenos Aires Argentina
 
Experience: None
Platform: TWS
Trading: Micro ES
Posts: 48 since Mar 2018
Thanks Given: 32
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Is possible to find out the financial state (or similar) of a futures broker?

If so, how would I can do it?

Of course, before opening account with a futures broker I would like to know if it's everything ok with its capital, finance, etc

Thx

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  #3 (permalink)
apac
Nearest City + State/Country
 
Posts: 29 since Mar 2019
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Assuming you are asking about US brokers, start here https://www.nfa.futures.org/basicnet/

Pay attention to recent regulatory actions in your search.

However, there is no easy way to tell if a firm is fraudulent.
Viz, https://en.wikipedia.org/wiki/Peregrine_Financial_Group


Quoting 
...confession letter... "using a scheme of false bank statements to embezzle millions of dollars from customer accounts over a period of about 20 years." Congressional hearings questioned why the CFTC had not caught the embezzlement earlier and "the agency’s failure to adequately oversee the National Futures Association, the self-regulatory organization directly responsible for overseeing Peregrine."


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  #4 (permalink)
 Blaster666 
Buenos Aires Argentina
 
Experience: None
Platform: TWS
Trading: Micro ES
Posts: 48 since Mar 2018
Thanks Given: 32
Thanks Received: 30

Thanks for the answer

Specifically I look for financial information about Tradovate

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  #5 (permalink)
apac
Nearest City + State/Country
 
Posts: 29 since Mar 2019
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Then look'em up at that link ^ above.

And you will see there there is no financial info.

And you should then ask why.

And then lookup the company name that answers that question why.

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  #6 (permalink)
 Blaster666 
Buenos Aires Argentina
 
Experience: None
Platform: TWS
Trading: Micro ES
Posts: 48 since Mar 2018
Thanks Given: 32
Thanks Received: 30

It could be somehow bad or strange that there is no financial info about a futures broker on NFA website?

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  #7 (permalink)
apac
Nearest City + State/Country
 
Posts: 29 since Mar 2019
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No, it would no be bad or strange, perfectly normal.

What would be bad is if you the trader didn't ask why... and then find the related and required information to continue with their decision.

It is better to step through that door yourself, but in this case, I'll be your Dorman. You can call me Phillip

Here: https://tradovate.zendesk.com/hc/en-us/articles/205134408--Where-are-my-funds-held-

You need to understand the different between an IB and a FCM.

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  #8 (permalink)
 Blaster666 
Buenos Aires Argentina
 
Experience: None
Platform: TWS
Trading: Micro ES
Posts: 48 since Mar 2018
Thanks Given: 32
Thanks Received: 30

Very kind of you, apac, for the answers

Yes, I've read about introducing brokers and FCM ...

My cash (when I finally open account
) will be held at FCM's segregated accounts ... excuse my mean english

I think that the best choice between Dorman Trading or Phillip Capital would be this last one (Phillip)

Why do I think this? I think that Phillip Capital is on better financial situation than Dorman

Also, on Phillip's website is stated that in case of bankrupt of FCM, customer funds are guaranteed

I hope to be right about this

My intention would be to open account with Tradovate through FCM Phillip Capital

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  #9 (permalink)
apac
Nearest City + State/Country
 
Posts: 29 since Mar 2019
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I hope you didn't mind me leading you along like that. But it is always best to find your answers. Your English is great.

I have no experience nor opinions about either FCM. But you are trying to work it out, which is great.


Quoting 
Also, on Phillip's website is stated that in case of bankrupt of FCM, customer funds are guaranteed

How do Phillip guarantee client capital? Why doesn't Dorman state the same? Is there a fundamental difference, or is it just a different approach to marketing?

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  #10 (permalink)
 Blaster666 
Buenos Aires Argentina
 
Experience: None
Platform: TWS
Trading: Micro ES
Posts: 48 since Mar 2018
Thanks Given: 32
Thanks Received: 30


Well, now I am reading through the cellphone, later I will see on more details ...

As for what I've read superficially ... it seems to be that Dorman has a lot of fines against, and Phillip only two

Phillip seems to be on better financial situation, since its excess net capital ($ 19.000.000 ~) is bigger than Dorman's ($ 12.000.000 ~)

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Last Updated on April 20, 2019


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