With the increasing number of failed banks, I would not want a new futures trading account to suffer bank failure.
Any ratings posted from among the banks holding futures trading accounts? Which NT supported brokers work with the highest rated banks?
Any recent bum stories like Refco from which I lost my FX account several years ago? I do not want to make the same mistake twice. The risk of trading is enough without having my account at risk due to a failed bank.
Any segregated futures trading account fully protected from bank insolvency (stupidity)?
This was one of the criterions for me to choose my broker. Two points to think about:
(1) Regulation for futures brokers is tighter than for forex brokers , futures brokers are required to keep you funds in a separate account.
(2) You will need to check how your funds are protected.
As I am located in Europe, I opened an account with Interactive Brokers UK. Their British affiliate is regulated by the Financial Services Authority (FSA) and as such my funds are guaranteed by the British state up to something like GPB 50,000,-
Further IB offers protection through the SIPC up to USD 500,00 and Lloyd's of London if this amount is exceeded. The value of the SIPC protection can be studied with the settlement of the claims against Mr. Madoff, LOL.
I'm with Mirus/RCG too. Another way to protect your money is to just clear out your account often. I keep enough in my account to cover margins plus a few bad trades. If have a few bad trades it forces me to stop trading until top up funds have cleared from my "storage" account.
Minimizes exposed money and forces a risk management plan because you have to know how much to leave in the account.
The following user says Thank You to Treggs for this post:
Luke I do compound. I just leave the extra margin in the account as required. Mirus intra day margins are pretty small so it doesn't take much in my account to cover the margins. I don't hold big overnight positions but I have enough to cover the occasional single contract runner after market hours.