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Trading though an iPhone, that's like the dumbest thing ever (just thought you might like confirmation )
Great problem, great fix, great confess, great post!!
Be yourself; everyone else is already taken. Oscar Wilde
Depositing funds with AMP, like any other privately owned broker is a game of Russian roulette. You place your funds and hope you don't wake up one morning look at the news and find you have fallen victim to another MF Global or PFG Best.
We know from history with MF Global and PFG that the regulators are and continue to be useless so we have no confidence there. We also know that given the risks insurance companies won't offer coverage to futures brokers anytime soon, if ever. So where does that leave us?
Personally I use the following risk management techniques:
1. Limit the amount of cash available for "cash margin" in privately owned firms to 10% of net worth. If your net worth is $100k then you shouldn't have more than $10k in futures accounts.
2. Further spread the 10% around to two privately owned futures brokers so exposure to any one broker is 5%. If your net worth is only $10k and you deposit all of that with one broker then you are asking for trouble in my opinion.
My current losses from a failed firm is currently $0. As in Russian roulette I know that sooner or later I'm going to get shot. But when I do at least I've minimized the damage.
Reading through this thread I think some people are not seeing the big picture. Who cares whether AMP answer the phone after 2 rings or 10 rings, or the guy on the other end is rude, or they stiffed you $1 in commissions, or round trip commissions are 50 cents more than the next guy. Admittedly I've called AMP a few times about my account. Their customer service has been mixed but have no opinion either way.
The most important question is how safe is my capital?.
Is the owner stealing my funds (PFG) or hypothecating them in an egotistical sovereign bond bet (MF Global)? I can never know so need to take my own precautions by limiting my exposure to them or any other privately owned broker for that matter.
Protecting my capital is my own responsibility.
My preferred option is to limit funds with privately owned brokers in favor of publicly listed brokers. Preferred option is to use companies that allow excess cash to be swept to FDIC/SIPC insured accounts. However there are inherent risks with some publicly listed brokers as well as I pointed out in this thread:
After the PFG collapse I've been evaluating my futures brokers to determine whether my capital is adequately protected. I'm certainly not panicking but it is clear regulation is poor and the required legislation to protect my capital is some time …