I could be wrong on this but beginning from May 19th, 2009 the capital requirement will be raised to $20,000,000.00. So you might want to get hold of them (their live chat tech support was not have the ability to answer this) and ask them how this may affect their performance. I'm still waiting for a reply from their financial division.Originally Posted by ;
IMO A brokers fiscal health can be evaluated (to some extent ) by simply taking a glance at the adjusted net capital. Having said that though a brokers trades and rankings, exposed to market occasions (CEO mishaps, better informed traders) blah blah#8230;.can influence capital levels fast (I don#8217;t know if you recall REFCO). The best thing you can do if you#8217;re trying to find a new broker is 8220;DO YOUR HOMEWORK#8221;. Its important to know how a broker manages its risk when it concerns the protection of its own assets and its customer assets. A better way might be to employ your won management and only deposit what's absolutely necessary to exchange and draw money or profit as you see fit. Any ways that#8217;s only my to cents.
Another thing you might want to think about is whether it is true NFA members have series three permits, need to back up client #8217;s money with there own capital to some degree LOL, below go annual audits, etc . . The segregation rule dose not actually apply to FOREX brokers IMO as if a broker gets into trouble there customers might be 8220;abandoned at the position of unsecured creditors of the thing concerning attempting to collect anything in the FCM#8221;, and there is no guarantee you will find any of your earnings/deposits. I have confirmed that through many talks with brokers including mine. So is your money safe with over-the-counter derivatives or off-exchange such as FOREX absolutely NOT.
On another note, I downloaded the ExpressFX presentation from curiosity because they're offering the zero disperse, and found it to be very perplexing.
For example: On my presentation
There are not many possibilities for chart setups.
You set your stops and limitations in dollar amounts.
There coloring options for the charts make studying price action hard.
Unless you are a new to forex and this your first platform these things IMO prefer the broker more than customer.
I also agree with fxtrader42 on the whole #8220; IF YOU LOSE YOU DONT PAY A COMISH#8221;
you need to read between the lines in regards to investing/purchasing anything such as cars, houses, furniture, and FOREX is no distinct #8230;. . .LOL I believe either they will still get compensated. Most brokers currently have their losing customers put up on a separate server they can accumulate on, and also those that win will only be past to the clearing house that they will collect the commission.
Brokers aren't all bad, and this really is a company, I am just not a big fan when it comes to exactly what forex brokers can and cannot get off with. I have nothing against the broker in question, only trying see it in the clients point of view to bring some insight.
Happy Trading,
Can