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Due Diligence: NFA Search for IB's, FCM's, CTA's, etc...


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Due Diligence: NFA Search for IB's, FCM's, CTA's, etc...

  #1 (permalink)
 
bluemele's Avatar
 bluemele 
Honolulu, Hawaii
 
Experience: Intermediate
Platform: NinjaTrader
Broker: ATC/TT, AMP/Zen-Fire, AMP/CQG
Trading: TF
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Hi all,

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:

BASIC Search

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:

FXCM BASIC Details

Forex.com BASIC Details

Velocity Futures BASIC Details

AMP Futures BASIC Details

Optimus Futures BASIC Details

Mirus BASIC Details

Interactive Brokers BASIC Details

Open E Cry BASIC Details

Dorman BASIC Details

Look at all 3, regulatory actions, arbitration awards & reparations cases.

I was very very suprised to take some time. I think my biggest surprise was AMP & Velocity.

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  #3 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
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Stickied in the Brokers section.

Mike



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  #4 (permalink)
 sysot1t 
 
Posts: 1,173 since Nov 2009


bluemele View Post
So, I got my Series 3 certification about a year ago .... .

how come you got the series 3? was it just for kicks? and how did it impacted your account registration with your broker?


bluemele View Post
I think my biggest surprise was AMP & Velocity.

what exactly was surprising? you leave it a bit in suspense..

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  #5 (permalink)
 sysot1t 
 
Posts: 1,173 since Nov 2009

I always use basic to research everyone.. here are some more..

Crossland, LLC... BASIC Details
Advantage Futures, LLC.. BASIC Details
MBFCC ... BASIC Details

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  #6 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
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Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,497 since Jun 2009
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Thanks Received: 101,711

Also the CFTC list (shows customer funds size, etc):

Financial Data for FCMs - CFTC

Mike



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  #7 (permalink)
 
puma's Avatar
 puma 
zurich
 
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I think the CFTC list is discontinued, but is now available on the NFA site.

Which is bizarre, since NFa was the body, that f++ked up with PFG.

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  #8 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
Developer
Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,497 since Jun 2009
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Thanks Received: 101,711


Big Mike View Post
Also the CFTC list (shows customer funds size, etc):

Financial Data for FCMs - CFTC

Mike

The CFTC stopped this reporting in November, and NFA took over:
NFA's BASIC System - Public Display of [AUTOLINK]FCM[/AUTOLINK] Financial Information

NFA Manual / Rules

I'm actually having trouble finding a similarly formatted report from the NFA. Does anyone have a link for that?

NFA FCM reporting requirements:
https://www.nfa.futures.org/NFA-compliance/NFA-futures-commission-merchants/fcm-reporting.pdf

Mike



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  #9 (permalink)
 westmalle 
Eindhoven The Netherlands
 
Experience: Intermediate
Platform: Sierra, NinjaTrader
Trading: TF NQ YM 6E ES
Posts: 52 since Mar 2013
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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.

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  #10 (permalink)
jaytrades
New York, USA
 
Posts: 80 since Jun 2011
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westmalle View Post
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?

Good list, I'd add more:

-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.

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