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Financial state of a futures broker
Updated April 20, 2019
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Financial state of a futures broker
April 19th, 2019, 10:57 PM
Buenos Aires Argentina
Experience: None
Trading: Nothing currently
Posts: 55 since Mar 2018
Thanks Given: 34
Thanks Received: 33
Is possible to find out the financial state (or similar) of a futures broker?
If so, how would I can do it?
Of course, before opening account with a futures broker I would like to know if it's everything ok with its capital, finance, etc
Thx
Can you help answer these questions from other members on NexusFi?
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April 19th, 2019, 11:35 PM
Nearest City + State/Country
Posts: 29 since Mar 2019
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Assuming you are asking about US brokers, start here https://www.nfa.futures.org/basicnet/
Pay attention to recent regulatory actions in your search.
However, there is no easy way to tell if a firm is fraudulent.
Viz, https://en.wikipedia.org/wiki/Peregrine_Financial_Group
Quoting
...confession letter... "using a scheme of false bank statements to embezzle millions of dollars from customer accounts over a period of about 20 years." Congressional hearings questioned why the CFTC had not caught the embezzlement earlier and "the agency’s failure to adequately oversee the
National Futures Association , the self-regulatory organization directly responsible for overseeing Peregrine."
April 20th, 2019, 01:18 AM
Buenos Aires Argentina
Experience: None
Trading: Nothing currently
Posts: 55 since Mar 2018
Thanks Given: 34
Thanks Received: 33
Thanks for the answer
Specifically I look for financial information about Tradovate
April 20th, 2019, 01:26 AM
Nearest City + State/Country
Posts: 29 since Mar 2019
Thanks Given: 1
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Then look'em up at that link ^ above.
And you will see there there is no financial info.
And you should then ask why.
And then lookup the company name that answers that question why.
April 20th, 2019, 01:58 AM
Buenos Aires Argentina
Experience: None
Trading: Nothing currently
Posts: 55 since Mar 2018
Thanks Given: 34
Thanks Received: 33
It could be somehow bad or strange that there is no financial info about a futures broker on NFA website?
April 20th, 2019, 02:10 AM
Nearest City + State/Country
Posts: 29 since Mar 2019
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No, it would no be bad or strange, perfectly normal.
What would be bad is if you the trader didn't ask why... and then find the related and required information to continue with their decision.
It is better to step through that door yourself, but in this case, I'll be your Dorman. You can call me Phillip
Here: https://tradovate.zendesk.com/hc/en-us/articles/205134408--Where-are-my-funds-held-
You need to understand the different between an IB and a FCM .
April 20th, 2019, 02:46 AM
Buenos Aires Argentina
Experience: None
Trading: Nothing currently
Posts: 55 since Mar 2018
Thanks Given: 34
Thanks Received: 33
Very kind of you, apac, for the answers
Yes, I've read about introducing brokers and FCM ...
My cash (when I finally open account
) will be held at FCM's segregated accounts ... excuse my mean english
I think that the best choice between Dorman Trading or Phillip Capital would be this last one (Phillip)
Why do I think this? I think that Phillip Capital is on better financial situation than Dorman
Also, on Phillip's website is stated that in case of bankrupt of FCM, customer funds are guaranteed
I hope to be right about this
My intention would be to open account with Tradovate through FCM Phillip Capital
April 20th, 2019, 03:01 AM
Nearest City + State/Country
Posts: 29 since Mar 2019
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I hope you didn't mind me leading you along like that. But it is always best to find your answers. Your English is great.
I have no experience nor opinions about either FCM . But you are trying to work it out, which is great.
Quoting
Also, on Phillip's website is stated that in case of bankrupt of FCM, customer funds are guaranteed
How do Phillip guarantee client capital? Why doesn't Dorman state the same? Is there a fundamental difference, or is it just a different approach to marketing?
April 20th, 2019, 03:22 AM
Buenos Aires Argentina
Experience: None
Trading: Nothing currently
Posts: 55 since Mar 2018
Thanks Given: 34
Thanks Received: 33
Well, now I am reading through the cellphone, later I will see on more details ...
As for what I've read superficially ... it seems to be that Dorman has a lot of fines against, and Phillip only two
Phillip seems to be on better financial situation, since its excess net capital ($ 19.000.000 ~) is bigger than Dorman's ($ 12.000.000 ~)
Last Updated on April 20, 2019