What are the safest futures brokers? MF Global and PFGBest have me worried!
- Thread starter travelingtrader
- Start date
Excellent points. Thank you for your post.
What do you think of RJ Obrien? I was under the impression they are a pretty safe firm.
Any other firms like RJ Obrien that have been around forever?
What do you think of RJ Obrien? I was under the impression they are a pretty safe firm.
Any other firms like RJ Obrien that have been around forever?
To address two posts @ once, I was deeply imbedded within the Chicago futures community for several years, including @ the CBOT and Merc. So there's much that I do *not* know, but my perspective might be different than others who trade purely retail as outsiders.
I think RJO Brien is a *very* solid firm, but their service has suffered slightly as they've grown. They seem less 'hungry' for business than other firms I've spoken with, and if you talk to ANY IB (Introducign Broker) you will hear their clearing rates are the highest in the industry. E.g., they might clear trades for XYZ Company for $ 4.00 per R/T while ABN Amro might clear trades for $1.25 per R/T.
Overall, I view them as safe. Though smaller, I feel comfortable with Dorman Trading and RCG though I prefer Dorman to RCG by a good margin.
RCG is pretty transparent on where they park customer funds held on deposit (see their website).
As I stated, it's likely at this point we're moving to ADM Investor Services, but I have an open mind.
...there aren't many clearing firms that are primarily NON-FINANCIAL, and this is one.
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Frankly, what we need now is:
(1) Prosecutions in the MF Global and PFG cases
(2) A $0.05 to $0.10 charge per R/T that goes into a protection fund. CME does about 9,000,000 lots per day, so at a nickel it could accrue about $150mm the first year if my calcs are correct. I didn't count ICE in this calculation.
I think RJO Brien is a *very* solid firm, but their service has suffered slightly as they've grown. They seem less 'hungry' for business than other firms I've spoken with, and if you talk to ANY IB (Introducign Broker) you will hear their clearing rates are the highest in the industry. E.g., they might clear trades for XYZ Company for $ 4.00 per R/T while ABN Amro might clear trades for $1.25 per R/T.
Overall, I view them as safe. Though smaller, I feel comfortable with Dorman Trading and RCG though I prefer Dorman to RCG by a good margin.
RCG is pretty transparent on where they park customer funds held on deposit (see their website).
As I stated, it's likely at this point we're moving to ADM Investor Services, but I have an open mind.
...there aren't many clearing firms that are primarily NON-FINANCIAL, and this is one.
----------
Frankly, what we need now is:
(1) Prosecutions in the MF Global and PFG cases
(2) A $0.05 to $0.10 charge per R/T that goes into a protection fund. CME does about 9,000,000 lots per day, so at a nickel it could accrue about $150mm the first year if my calcs are correct. I didn't count ICE in this calculation.
but wasn't MF and PFG pretty legit before they went under? Wasn't JPM pretty profitable after reporting some irregularities? I think even Enron was raking in the cash for awhile.....
Just do the proper research and then go with your gut. best you can do.
and if they all turn into PFG's.....well, what can you do.
I see SFO went under.....that was a garbage publication. Should have seen the red flag!!! haha.
bottom line: make a few quick billion, open up your own firm, and have the Fed call you!!!!
PFG was never too legit. They're not even a clearing broker. They were a NON-CLEARING FCM.
Only an FCM - Futures Commission Merchant can accept customer money in their name, i.e. make the check out to us.
PFG grew by acquiring Alaron, which was a thoroughly disreputable firm. PFG attracted mostly very small traders and did practically NO institutional business.
And yes, MF was quite legit, even having a former governor as CEO. Which is why it was such a shocker they violated the sacrosanct rule of "KEEP YOUR CUSTOMER MONEY SEPARATE."
I stopped doing business with MF back in 2010 after Corzine took over. The firm became a pain in the ass, though I had no idea they would ever purloin money !
the CFTC website, under MARKET DATA, publishes financial data for FCMs.
It's a good starting point for anybody reading this.
Could some thing happen to IB the same? like 5 billion cash disappeared and head of Interactive brokers Peterfly suicide???
I AM SCARED
I AM SCARED
Quote from ChkitOut:
thats the dumbest thing i've ever seen. I guess RCG is ready to go under, they are one off the bottom.
and the guys at the top would have gone under if not for the bailout.
Evidently you aren't familiar with the Velocity Futures-Sentinel Group fiasco from 2007. I'd suggest you, and anyone interested read up on it. Goes to show what can happen when futures brokers don't have their customers interests at heart.
OldTrader
FWIW... OpenECry (OEC) is very "retail" friendly.
Importantly, they are a subsid of OptionsXpress Holdings LLC, which is wholly owned by Charles Schwab as of Sept 2011.
I also carry accounts using Dorman, Vision, and Crossland as FCMs. I closed a PFG and RCG account about 4 years ago. Never had one with MF or Refco. Rand Financial is also worth looking at for diversification IMO.
Sorry, and best of luck to all those affected.
Importantly, they are a subsid of OptionsXpress Holdings LLC, which is wholly owned by Charles Schwab as of Sept 2011.
I also carry accounts using Dorman, Vision, and Crossland as FCMs. I closed a PFG and RCG account about 4 years ago. Never had one with MF or Refco. Rand Financial is also worth looking at for diversification IMO.
Sorry, and best of luck to all those affected.
Linky?
gotcha, thanks