| RESULTS FOR DAY | |
|---|---|
| NQ Contracts: | 24 |
| Net $P/L: | 937 |
| Wins: | 3 |
| Losses: | 3 |
| Win%: | 50 |
| Avg$Win: | 436 |
| Avg$Loss: | -124 |
Sorry to all the PFG customers out there! I really sickens me that another broker has failed to meet regulations by not keeping customer funds segregated! Something needs to be done. Trading is hard enough without worrying about the safety of our funds (beyond the risk of our own losing trades)! This article gives me more to worry about as my broker, OEC, is 11th from bottom.
I also just learned today that OEC is being sold to Gain Capital for $12 million, effective next quarter sometime. OEC has been owned by Schwab for the past year which I think is a slightly better name than a Forex bucket shop! Should I be worried about Gain?
Speaking of Forex, I found this interesting (links to past quarters under the table).
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I too am with OEC and found this surprising:
ReplyDelete"As of March 31, 2012, OEC held $98.3 million in customer assets."
...my account is 2.1% of their customer assets?!?!?!
I too am thinking I need to start looking elsewhere, but need to trade directly off the chart and have gotten used to their platform. Maybe go back to AMP.
Actually move the decimal places a few places to the left, more like .021%.
MBA, I do not think Gain is a reputable company. Their whole business model was spread extraction while fleecing retail customers in FX; anyone who truly knew the business would not do business with a bucket shop like Gain. Because FX was largely unregulated, they were within the law to do what they did. However, the general feel of their business model was to screw over the customer.
ReplyDeleteI'd advise you to move your money to a more reputable broker, and keep the bare minimum in your accounts.
@ Alegnus, 2.1% of their customer assets (of $98.3 M),nice! lol
ReplyDelete@ Anonymous GL, what's the success rate of opening a business, and how do gauge a persons satisfaction, and how's life at trolling working out for you? Sorry for all the questions.
MBA, The best strategy may be to just divide the account up between 2 brokers,if not 3 depending on your balance. As long as each account has enough to cover the margin you need for the contracts you're trading, there's no need to have more cash in it. If one broker does shut down you have the other with enough cash to continue on.
ReplyDeleteThat's my plan at least...
Michael, agree that makes sense. My problem is that I like trading Allocation Blocks at OEC. I can click once and orders/fills get properly distributed placing trades in both my accounts automatically. Makes it easy to trade the same system/strategy in multiple accounts. With different brokers, you have multiple platforms open, multiple DOMS, etc. Is this a sacrifice I have to make to reduce risk of loss due to theft/fraud? Oy vey...
ReplyDeleteNever heard of that capability, pretty cool! Though to reduce that risk it may be a sacrifice worth taking. PFG won't be the last, unfortunately.
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ReplyDeleteMBA, Check out Options Express, if I'm reading it right they are a member of SIPC which according to what I read covers fraud by the firm. Look on their home page bottom and check for yourself. If that's correct than it is a layer of protection I didn't think the futures brokers offered.
ReplyDeleteIf that's true, it's even more of a bummer they are selling OEC to Gain! Thanks for above deleted comment too btw.
DeleteI deleted it after seeing the questionable comments disappear.
DeleteFound out this morning my broker isn't covered by SPIC. :-(
MBA, I split my accounts some time ago, if you use CQG-Trader DOM you can have multiple accounts at all supporting brokers and trade through one DOM, they link them up on the back end. Only thing is they will charge you 25bucks a month per broker account. So the trade up is cost.
ReplyDeleteI'm pretty sure that X-Trader from TT must offer something similar.
Ninja has multi-broker connectivity also but there DOM leaves much to be desired unfortunately.
Regards Gain all I would say about that is beware the bucket shops. I would worry about any company who's primary business model is fleecing their customers. If you think Futures is bad, it is nothing compared to the shady back alley that is the retail Forex industry.
Thanks for info 1Lot. I have never looked at CQG.
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