Dorman Trading financial statement 2016

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Pluralsight

Good afternoon, I have deposited my money with Dorman Trading https://www.dormantrading.com/ (so them acting as the broker, not as the clearing house) and have traded futures with them for a couple of months.

I took a look at their financial statement (https://www.dormanaccounts.com/quick1FR/GetFile.ashx?fileId=012d5e4e-951b-4467-be69-71dd4391bfe2 page 4 of the pdf) and saw that they have a very small amount of cash, isn't that a bad sign usually? Can someone who knows about financial statements of FCM's take a look and tell me their opinion please?
 
Pluralsight said:
Good afternoon, I have deposited my money with Dorman Trading https://www.dormantrading.com/ (so them acting as the broker, not as the clearing house) and have traded futures with them for a couple of months.

I took a look at their financial statement (https://www.dormanaccounts.com/quick1FR/GetFile.ashx?fileId=012d5e4e-951b-4467-be69-71dd4391bfe2 page 4 of the pdf) and saw that they have a very small amount of cash, isn't that a bad sign usually? Can someone who knows about financial statements of FCM's take a look and tell me their opinion please?
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according to them: 203M in assets

maybe they don't need much cash to operate
 
Pluralsight said:
Good afternoon, I have deposited my money with Dorman Trading https://www.dormantrading.com/ (so them acting as the broker, not as the clearing house) and have traded futures with them for a couple of months.

I took a look at their financial statement (https://www.dormanaccounts.com/quick1FR/GetFile.ashx?fileId=012d5e4e-951b-4467-be69-71dd4391bfe2 page 4 of the pdf) and saw that they have a very small amount of cash, isn't that a bad sign usually? Can someone who knows about financial statements of FCM's take a look and tell me their opinion please?
More...

What FCM does Dorman use? Where is your account custody? I thought they were an FCM.
 
Robert Morse said:
As a broker they have a lot of capital. As an FCM, they are small. Take from that what you will.
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You're more knowledgeable about financial statements that I, but my take is anyone might show "low cash" at some time for a variety of reasons. If they need more cash, they can always convert some other holdings to cash. I like to see the ratio of "net capital vs required net capital" be decent as a cushion against unforseen events. What do you think, please?
 
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