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Due Diligence: NFA Search for IB's, FCM's, CTA's, etc...
I always see a lot of comments about this forex company, that FCM, IB or whatever and who plays by the rules.
So, I got my Series 3 certification about a year ago and I learned a lot about the whole process. Here is a great link that will help you learn more about those entities to look up what their past records look like:
Also, here are some top brokers already and I have to say, I haven't looked at this in a while and boy was it shocking to see some of the payouts from some of these companies:
Suggestion to Big Mike to organize a webinar so I (and no doubt many others!) better understand crucial basics like:
- What is an IB?
- What is the difference between an IB and FCM? Where to look at as a retailer trader?
- Where can I see who is a FCM and who is an IB? Is it good to have an IB and FCM combined - or not?
- Where to look for at an IB and FCM in terms of business sustainability ( so not the level of commissions).
- Is there a way I can trade so I am not responsible in case an IB or FCM cause me damage if their system malfunctions?
- What is a seggregated account? Is my money save or not? Are there ways to better secure my funds?
- How important is it to check the background of the bank the IB/FCM is using?
- How can I read the NFA website? Whcih other websites are there that help me better understadn the entities I deal with?
- Which components comprise the fee I pay to the IB/FCM?
I notice that in the current Mirus/Zenfire messages many traders have no clue how the above works - or even that it exists (I even read that someone assumed JP Morgan was the FCM). I myself also have no clear picture.
The above information may be scettered around at threads and websites. But it would be nice if someone can give a webinar covering the above topics (and other related requirements I do not mention or do not know it exists) and also an all you want to ask thread on Big Mike. There is more in trading than just the trade itself or your charts, indicators or methods.
The following 3 users say Thank You to westmalle for this post:
-What are the requirements for a data feed business to be formed?
-What are the internals for the business formation of IB, FCM, Data Feed co, clearing, and other related entities?
-What is the break down for all fees for a transaction?
-What business entities can be combined into one and which can or should not be?
-What is the electronic infrastructure of the exchange, their data, their order execution, etc? Is there one data pipe that comes from one exchange entity?
-Why is there data and fills with the original physical futures exchanges names like comex, nymex, etc., when they are all now owned by CME and why is there some orders and data coming from the exchange names vs globex?
-If there are still pit trades, how are they entered into the electronic exchange?
-Is the way the exchanges funtion on these basic levels, proprietary?
There's probably a book on this, but I can't imagine it's very popular.
The following 3 users say Thank You to jaytrades for this post:
