Depositing your funds in the arcade's account - guarantee

[Sheen]

When a trader places his trades through an arcade, he must deposit his own capital first in the arcade's account. How is that usually solved? Do you just have to deposit your funds into a normal bank account owned by the company which organises the arcade? Is it an escrow account? What guarantee is there that your funds will not be misappropriated?

 

[wackypete2]

When a trader places his trades through an arcade, he must deposit his own capital first in the arcade's account. How is that usually solved? Do you just have to deposit your funds into a normal bank account owned by the company which organises the arcade? Is it an escrow account? What guarantee is there that your funds will not be misappropriated?

You have been asking questions about prop trading/arcades for 4 years and you STILL don't know this??

Peter

 

[pboyles]

. What guarantee is there that your funds will not be misappropriated?

There's no guarantee and several brokers have misappropriated funds in the past couple of years.

 

[Sheen]

There's no guarantee and several brokers have misappropriated funds in the past couple of years.

Could you give some examples, please? Also, CME rules do not allow arcades to have member rates commission so how can they offer such low ratrs to traders?

 

[pboyles]

Could you give some examples, please? Also, CME rules do not allow arcades to have member rates commission so how can they offer such low ratrs to traders?

MF Global.

 

[Sheen]

MF Global.

It wasn't an arcade, was it?

 

[pitarcheo]

Can someone give me an example of such a place, anywhere will do. I have £15,000. A few monitors and access Trading technologies software is what i need.