PFG freezes accounts, CEO attempts suicide
- Thread starter Maverick74
- Start date
Friends who use them tell me they are well run but AMP is self clearing with low capital, runs a rapidly growing shop with lots of IB's, low margins and small accounts. On the plus side they say they do not trade their capital. I do not mention them to knock them ... as I said they seem to run a solid business and there model seems successful. I mention them to illustrate some of the things you look for as you do further analysis.
Amp as an example seems ideal for a guy with limited capital trading a one or even a two lot posting a couple of thousand to start. And as Mav points out a much better shot that some currency scum bucket shop. It bears pointing out that in most cases even if a firm gets in trouble segregation does get you out whole. I think in this current case segregation probably will not matter. The money has to be there for you to get it and it sounds like it has already put on its hat, coat and gloves and waved goodbye.
Counter party risk matters. When my partner and I had three small firms -- one in NYC, one in London and a tiny presence in Lugano, Switzerland -- we looked at our counter part risk every day. You need to know who owes you money and not count on a concept like seg funds but on a balance sheet or insurance (FDIC, SIPC etc.) that you have faith in. Risk matters!!
BTW ... just to be clear, given there very low margin requirements i would not hesitate to put a small sum -- $5,000 or $10,000 -- with AMP and trade 5 or 10 lots through them. I just would not post $50,000 against a small balance sheet. Where is the edge?
Amp as an example seems ideal for a guy with limited capital trading a one or even a two lot posting a couple of thousand to start. And as Mav points out a much better shot that some currency scum bucket shop. It bears pointing out that in most cases even if a firm gets in trouble segregation does get you out whole. I think in this current case segregation probably will not matter. The money has to be there for you to get it and it sounds like it has already put on its hat, coat and gloves and waved goodbye.
Counter party risk matters. When my partner and I had three small firms -- one in NYC, one in London and a tiny presence in Lugano, Switzerland -- we looked at our counter part risk every day. You need to know who owes you money and not count on a concept like seg funds but on a balance sheet or insurance (FDIC, SIPC etc.) that you have faith in. Risk matters!!
BTW ... just to be clear, given there very low margin requirements i would not hesitate to put a small sum -- $5,000 or $10,000 -- with AMP and trade 5 or 10 lots through them. I just would not post $50,000 against a small balance sheet. Where is the edge?
Off-topic, but this needs to be corrected. If you are starting to trade with 1000-2000 USD, you better start with FX. Something like OandA is a perfect choice. You can trade any size, compared to futures where minimum you can go is an emini. So you are not over-leveraged and risk of ruin can be easily minimized.
From what I read, PFG was supplying allegedly accurate bank data to the NFA. Why would the NFA allow members to self-report on their current bank assets in customer accounts? Shouldn't the bank supply that directly to the NFA? If I'm reading that right, this is a gaping hole in the reporting process.
I almost opened an account with them! 
AMP is not a clearing firm. They are a nonclearing FCM.
http://www.cmegroup.com/tools-information/clearing-firms.html
as always, canadians have it better:
http://www.theglobeandmail.com/glob...n-clients-expected-to-be-safe/article4402543/
http://www.theglobeandmail.com/glob...n-clients-expected-to-be-safe/article4402543/