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I read that Amp started closing big trader accounts because they didn't have enough money to let them trade. They blamed risk department but the guy made it very clear he was doing nothing wrong, and trading from his retirement account for more than 5 years with amp. They refused to speak with him or give him any explanation and it all seems really concerning.
I was going to open a new account with them this month but when I read this it really comes me because some are saying don't give amp your money, you'd be crazy to give them money and all this and I was going to transfer my td Ameritrade account to them with well over 300k because it's my retirement! Now I think I would be foolish to follow through with my plan, but I'm not sure even transferring 30k is safe?
I thought brokers money was guaranteed and didn't know it could be lost? Also the person I read said that amp was one of the worst capitalize brokers and be careful. I know about futures markets but apparently a lot to learn about brokers.
Some advice please? Thank you in advance for giving me direction
I’m pretty sure I know of the thread you’re talking about.
It is concerning, however none of us will know 100% the truth of the story. That trader could have been engaging in some illicit activity that obviously AMP nor the individual would ever divulge.
I come from the banking world. We would close accounts down (they still do) with ZERO explanation. They don't have to give you any info either. It is a "business" decision. That is all the former client would ever hear.
Couldn't find the last place this was posted, so making this a sticky.
Check your FCM's CFTC capital requirements report here:
The explanation for the fields is here:
The summary table shows the following columns of information:
Reg …
It lists the capital requirements and excess net capital for each FCM.
I personally would strongly advise you against AMP. I've read enough horror stories of them on the forum, and I strongly dislike how (in my opinion) they actively mislead customers with regards to their commission structure, by slipping in a "clearing fee" and acting like its normal.
Of course, the fact that they sued the community a few years back (and lost in court) also doesn't help my opinion of them, but regardless a lot of members here do use them.
That said, they cater to new traders with small accounts. With the type of money you are talking about, I would strongly recommend you look at Interactive Brokers (IKBR). I use them personally. They offer a sweep program that automatically sweeps excess funds into an insured account at the end of each day, otherwise you need to understand that there is NO INSURANCE for funds deposited at an FCM.
You have only the trust in the FCM's accounting practices to save you. And don't let them tell you "of course it's safe! Our funds are segregated!". That will NOT save you, just look no further than the last several industry blow-ups where customers lost everything (everyone remember PFG Best).
Firms HAVE, WILL, and DO hide things from their accountants and the CFTC. The only smart thing to do is to accept this as fact, and try to protect yourself knowing ahead of time that such things exist.