GNI Touch(MF Global)

[szymon24]

Hi guys,

I wont to open proffessional client account at GNI.As they are offering non-segrageted accounts do I lose all FSA protection in case of bankrucy.Is it a common industry practise offering non-segragated account for proffesional client?

Regards
Szymon

 

[Adamus]

Good question, would be good if there was a lawyer around here who could answer that sort of question.

 

[fibonelli]

You should look at a one year chart of MF Global Inc. (NYSE: MF) to help you decide whether you want to lose all FSA protection.

 

[Adamus]

Plus they just aren't discount brokers, so what advantage could there be?

 

[ns1000]

There's nothing to stop them offering a seg account to professionals, but it isn't normal practice. Margins in professional business are generally much slimmer, so mean (especially in thsi environment) that they don't want to have to borrow money to post your margin. Keeping funds non-seg means that they can pass your funds through to meet your margin requirements. Asking for professional rates and private client protection is likely to be seen as having your cake and eating it.

 

[Adamus]

I forgot to ask: what are the professional rates? Presumably cheaper than the rates advertised on their website?

 

[ns1000]

All depends on volume. Between 1 and 5 bps I'd guess. But that's decent size.

 

[Adamus]

Ok right. 4X you mean. I was contemplating opening a futures account there and talked to one of their brokers who wanted about £8 round-turn. Didn't seem too interesting compared to IB.

 

[fantastic]

Ok right. 4X you mean. I was contemplating opening a futures account there and talked to one of their brokers who wanted about £8 round-turn. Didn't seem too interesting compared to IB.

It depends on the volume - If you do more than 1500 RT/quarter, they have an excellent deal.

 

[Adamus]

ok thanks, i'll bear it in mind for when I've tripled my account size!