The Safest forex Broker?

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Old Jul 31, 2009, 11:44am   #22
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If segregated accounts is the same in UK as all other well regulated countries (USA - CH 4 eg) then that is not fully correct. I found out that what it actually means is that the broker has a client account that requires it to be separate from their "running" account, ALL clients money is deposited en masse into this one account which is in the name of...the broker. If it were a real segregated account then you would be eligable to get a bank card to it, because it should be in your name. What is important is up to what amount is your account insured to? With UK and Switzerland it works out, if I remember correctly, to about the same amount. UK is up to 80,000 and Switzerland and the USA $/CHF 100,000. In all cases it is PER account and not per person.

Spreads is important but most top brokers are so close that the difference lies more with the execution quality and number of liquidity providers they have, the more the better. I am Very happy with ACM who seem to have a good balance of both.
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Old Jul 31, 2009, 3:39pm   #23
 
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Originally Posted by danial View Post
If segregated accounts is the same in UK as all other well regulated countries (USA - CH 4 eg) then that is not fully correct. I found out that what it actually means is that the broker has a client account that requires it to be separate from their "running" account, ALL clients money is deposited en masse into this one account which is in the name of...the broker. If it were a real segregated account then you would be eligable to get a bank card to it, because it should be in your name. .
A segregated forex account in the UK wouldn't work the same as an account with a US broker. If your FSA regulated broker segregates client deposits and maintains funds in accounts earmarked for the benefit of customers, then in the event of bankruptcy, such funds may not be used to benefit other creditors, but to ensure customers receive back their deposits. This is not the case in the US for forex dealer members.

The crown forex bankruptcy should be an interesting test case for Swiss brokers.
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Old Jul 31, 2009, 4:48pm   #24
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With UK and Switzerland it works out, if I remember correctly, to about the same amount. UK is up to 80,000 and Switzerland and the USA $/CHF 100,000. .

Huh??? As far as I know, its up to a swiss broker to get insurance coverage (but find out, if they paid the fees), only for brokers with bank status coverage is granted by government.

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Hittfeld
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Old Aug 3, 2009, 10:55am   #25
 
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Hi Folks,

I currently have an account at Oanda but am going to start trading some family money now so obviously I wish to have the most trustworthy and financially sound broker available so my money will not dissapear if a company liquidates. I thought about a swiss FX broker because of the new regulation maybe.

Any suggestions or am I better off just sticking to Oanda?


a lot of this will depend on what sort of amounts you are looking to put into your account !
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Old Aug 3, 2009, 1:21pm   #26
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Correct

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Originally Posted by Hittfeld View Post
Huh??? As far as I know, its up to a swiss broker to get insurance coverage (but find out, if they paid the fees), only for brokers with bank status coverage is granted by government.

Regards

Hittfeld
Yes Hittfeld, that is correct. Be aware that the major FX brokers in Switzerland, Dukas, MIG and of course ACM have all had their applications for the banking license accepted and approved by FINMA, if all goes ahead as explained to us clients, these should be handed out near the end of this year, ergo clients accounts will be protected to the amount mentioned before.
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Old Aug 3, 2009, 7:05pm   #27
 
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have all had their applications for the banking license accepted and approved by FINMA, if all goes ahead as explained to us clients, these should be handed out near the end of this year, ergo clients accounts will be protected to the amount mentioned before.
I've heard of the swiss brokers applying, but haven't heard of them being approved. Have there been press releases about it?
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Old Aug 4, 2009, 1:32pm   #28
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Sorry Jason, what i mean is that the applications were good enough to be accepted before the deadline. To be honest, I don't see MIG having problems, nor my broker ACM neither, that I base on the service they have given me as well as their platform. If they have signed up to offer MT4 soon, they must obviously be 100% confident in receiving that license. Dukas should be ok but I have heard the odd rumor regarding them, some questions are apparently being raised regarding the way their net capital is made up, or something (I read in another forum)but I would imagine it would go through.
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