Best Broker for U.S. Retail Traders?

bbpp said:
Who care.
If someone is caught, plenty people behind would line up.
I am happy as long as I have a good broker to trade.
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You made a ridiculous statement. I've corrected now and now of course no one cares. OK :)
 
MattZ said:
The CFTC will issue a notice to any Forex Dealer that is not licensed in the USA.
Research CFTC going after Tallinex is Estonia, JAFX in Bulgaria, etc.
These are countries you referring to as "offshore" gets their bank account Frozen when the CFTC goes after them. Try and get your funds out then. Anyway, I am done on the topic because I would never encourage any (reasonable) trader to leverage 1:500 that yields bad gambling like results.
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This is actually a grey area. If offshare brokers do not cross line, CFTC would not care. The line is, if offshare brokers don't solicit US customers,but only accept them when US traders come to them, then CFTC would turn a blind eye.
BTW, you are ignorant in thinking traders' money at risk if CFTC does after offshare brokers. NO, even if offshare brokers go bankrupt, traders' fund are still safe because their funds are in segregated accounts.
On the other hand, if those US allowed brokers go bankrupt, you guys could lose your funds because those brokers are not required to put customers' funds in segregated accounts.
You don't really understand why traders need high leverage. High leverage let traders take many positions in different instruments at the same time, each position only for a small amount. So there is no over risk in any of these positions. If you don't have high leverage, you will miss a lot of opportunities because you don't have enough buying power.
 
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bbpp said:
This is actually a grey area. If offshare brokers do not cross line, CFTC would not care. The line is, if offshare brokers don't solicit US customers,but only accept them when US traders come to them, then CFTC would turn a blind eye.
BTW, you are ignorant in thinking traders' money at risk if CFTC does after offshare brokers. NO, even if offshare brokers go bankrupt, traders' fund are still safe because their funds are in segregated accounts.
On the other hand, if those US allowed brokers go bankrupt, you guys could lose your funds because those brokers are not required to put customers' funds in segregated accounts.
You don't really understand why traders need high leverage. High leverage let traders take many positions in different instruments at the same time, each position only for a small amount. So there is no over risk in any of these positions. If you don't have high leverage, you will miss a lot of opportunities because you don't have enough buying power.
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O God :)
 
lentus said:
O God :)
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I'll reply to you as you seem to understand better and not to our "buddy" who calls me ignorant.
When the CFTC went after Tallinex in Estonia, They said:

"Specifically, the Default Order found that Tallinex falsely represented that it was lawfully doing business in the United States, falsely and misleadingly represented that customer funds were segregated and protected in the event of Tallinex’s financial collapse, and Tallinex failed to disclose risks but promoted extraordinary profits of between 162.29% up to 1301.10% to create the impression that forex investments made with it were likely to be profitable so that it could increase its number of customer accounts.

Yeah segregated.

JAFX from Sophia, CFTC:

"Specifically, the CFTC’s Complaint, filed on July 27, 2018, charges that JAFX has been the counterparty to leveraged, retail forex transactions for customers located in the United States, who are not Eligible Contract Participants (ECPs). JAFX allegedly solicits orders from U.S. customers who are not ECPs to open leveraged, retail forex trading accounts through JAFX’s website, as well as videos on YouTube, where JAFX is, or offers to be, the counterparty to each leveraged retail forex transaction.

Yeah ECN. Sure!
 
MattZ said:
I'll reply to you as you seem to understand better and not to our "buddy" who calls me ignorant.
When the CFTC went after Tallinex in Estonia, They said:

"Specifically, the Default Order found that Tallinex falsely represented that it was lawfully doing business in the United States, falsely and misleadingly represented that customer funds were segregated and protected in the event of Tallinex’s financial collapse, and Tallinex failed to disclose risks but promoted extraordinary profits of between 162.29% up to 1301.10% to create the impression that forex investments made with it were likely to be profitable so that it could increase its number of customer accounts.

Yeah segregated.

JAFX from Sophia, CFTC:

"Specifically, the CFTC’s Complaint, filed on July 27, 2018, charges that JAFX has been the counterparty to leveraged, retail forex transactions for customers located in the United States, who are not Eligible Contract Participants (ECPs). JAFX allegedly solicits orders from U.S. customers who are not ECPs to open leveraged, retail forex trading accounts through JAFX’s website, as well as videos on YouTube, where JAFX is, or offers to be, the counterparty to each leveraged retail forex transaction.

Yeah ECN. Sure!
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Hey Matt, just for fun what % of your retail traders profitable on an annual or longer basis? :)
 
bbpp said:
BTW, you are ignorant in thinking traders' money at risk if CFTC does after offshare brokers. NO, even if offshare brokers go bankrupt, traders' fund are still safe because their funds are in segregated accounts.
On the other hand, if those US allowed brokers go bankrupt, you guys could lose your funds because those brokers are not required to put customers' funds in segregated accounts.

On the subject of client money safety after broker going belly up:

Here one has to first distinguish whta types of brokers
3 types of brokers come to mind
1) Equity and Options brokers mainly covered by SIPC in USA and FSA in UK
2) OTC market maker mainly spot FX
3) Futures brokers
the 4th type is hybrid whether they offer Equity, and futures together like IB which claims that all money in a/c is swiped in to SIPC cover even if it is a combination of equity and futures brokerage
SO far this is what I have found
In USA if CFTC/ NFA members ( Futures brokers) goes out of business there does not seems to be Any client money protection scheme ( MF Global USA)
In UK all 3 type of broker's clients are protected by FSA( so MF Global UK clients would be protected
In Australia only Equity holding under CHESS / HIN are protected and fall under AFG scheme
OTC FX although supposed to keep client money in seg account if they dont do it and go belly up traders become ordinary unsecured clients of a failed company period

So except UK even in other major jurisdictions FX broker clients are NOT protected
So why even consider other tin pot country jurisdiction ( some other EU jurisdictions or Singapore / Japan might be offering better protection, dont know enough )
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"OTC FX although supposed to keep client money in seg account if they dont do it and go belly up traders become ordinary unsecured clients of a failed company period"



If brokers keep client money in seg account , then clients' money are protected.
If they (brokers) dont do it, then they are scams.
The majority of brokers are not scams.
So the clients of majority brokers are protected.
 
bbpp said:
"OTC FX although supposed to keep client money in seg account if they dont do it and go belly up traders become ordinary unsecured clients of a failed company period"




If brokers keep client money in seg account , then clients' money are protected.
If they (brokers) dont do it, then they are scams.
The majority of brokers are not scams.
So the clients of majority brokers are protected.
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That is a big If! + not to mention conflict of interest between a MM type OTC and client
Also fact remains that in worst case scenario there is no protection in USA/ AUS except in UK for OTC broker clients money
SIPC or ASG only applies to brokers dealing in direct shares on exchanges
so to claim that clients of majority brokers are protected is a overstatement
look at the fine print
 
bbpp said:
If brokers keep client money in seg account , then clients' money are protected.
If they (brokers) dont do it, then they are scams.
The majority of brokers are not scams.
So the clients of majority brokers are protected.
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