Anyone has experience with DeepDiscountTrading.com ?
- Thread starter Peternam
- Start date
What's the advantage of using an IB to Crossland, versus opening a direct account with them? Thanks.
I had a conversation with Howard yesterday. Frankly, the rates are simply too good not to check it out. He's a knowledgeable guy, speaks frankly and offers to a wide range of platforms at fair prices.
He clears through Crossland and while they are not a major clearing firm their regulatory history is good. As with every other smaller clearer the risk is always that the segregation is not done properly or, when under financial pressure, not done at all. When Lehman went done a number of clients trading through their London operation got beat for a total of three billion (with a B!) as the courts ruled (under British law) the improper segregation made the funds Lehman's assets in the bankruptcy.
It pays to remember that segregation is a far cry from the type of guarantee on has with SPIC. No matter what you hear about segregation it is TOTALLY dependent on the integrity of the clearer and their staff.
The argument for using Interactive, Pension, Goldman or another strongly capitalized clearer has great merit particularly since most of us anticipate incredible swings as the dollar is debased. Great trading but only if you don't lose it to a poorly segregated brokers bankruptcy.
Howard has no minimum account size and acceptable day trading margins so at some point I'll open up a small account and see what the service is like. If I'm not pleased with the service I'll close the account in a heartbeat.
BTW, just in case you are wondering my name is Tommy not Howard ... lol.
He clears through Crossland and while they are not a major clearing firm their regulatory history is good. As with every other smaller clearer the risk is always that the segregation is not done properly or, when under financial pressure, not done at all. When Lehman went done a number of clients trading through their London operation got beat for a total of three billion (with a B!) as the courts ruled (under British law) the improper segregation made the funds Lehman's assets in the bankruptcy.
It pays to remember that segregation is a far cry from the type of guarantee on has with SPIC. No matter what you hear about segregation it is TOTALLY dependent on the integrity of the clearer and their staff.
The argument for using Interactive, Pension, Goldman or another strongly capitalized clearer has great merit particularly since most of us anticipate incredible swings as the dollar is debased. Great trading but only if you don't lose it to a poorly segregated brokers bankruptcy.
Howard has no minimum account size and acceptable day trading margins so at some point I'll open up a small account and see what the service is like. If I'm not pleased with the service I'll close the account in a heartbeat.
BTW, just in case you are wondering my name is Tommy not Howard ... lol.
Unless the CFTC or NFA have changed the rules since years ago when I was involved in the commodity futures business, there is NO protection for customer funds being held by Future Commission Merchants (FCM) regardless of the financial size of the firm. There was no regulation in a futures account that funds be segregated unless the broker wants to and no regulatory agency enforces it. All the FCM that is a member of an exchange clearing house has to deposit is the required margin to balance their account with the clearing house. For example, if a clearing FCM has 500 contracts long and 400 contracts short in a futures contract, they would have to post margin to cover the unbalance 100 long contracts. If they had 500 contracts on both sides of the market, no margin deposit is required. Clearing houses can and do mark to the market during the trading day if they believe there is risk. Of course, clearing members have made other financial obligations to the clearing house but we are strictly talking about customer margin funds. The excess customer funds are interest bearing for the brokerage. For those firms that are securities and futures brokers, customer funds being used for futures margin are not covered by SIPC.
Early Nineties style
I never much minded about how a website looks as long as the company is good at what they do and have been in business long enough to be dependable.
How many slick looking websites are out there are selling a ripoff service to would-be traders ? Plenty. Websites alone are not a good judge of whether or not you should do business with a company. When I first started using Sierra Chart I heard how bad their website was but their software is excellent so who really cares as long as they are good at what they do. I'm not paying them for great looking marketing or to take care of their website. I am paying for good software and reliable services and support.
That being said, I would be very hesitant to put money with this firm at this time until more due diligence was available about them and they were in business longer. Their commissions are attractive though, I have to admit.
How many slick looking websites are out there are selling a ripoff service to would-be traders ? Plenty. Websites alone are not a good judge of whether or not you should do business with a company. When I first started using Sierra Chart I heard how bad their website was but their software is excellent so who really cares as long as they are good at what they do. I'm not paying them for great looking marketing or to take care of their website. I am paying for good software and reliable services and support.
That being said, I would be very hesitant to put money with this firm at this time until more due diligence was available about them and they were in business longer. Their commissions are attractive though, I have to admit.