Read the pds and FSG very carefully as generally a forex transaction is not like a share or futures contract where u own something . ie; if your futures or share broker goes broke u can generally transfer your contract to another broker and close the position .[It is not as easy as that unfortunately ] With forex your position ,normally, is your brokers position and not yours . It doesn't matter if it is a market maker or stp or whatever else they dream up .
I also know of instances where the segregated acct was wiped by one or 2 bad traders trades and the brokers didn't close their positions quick enough . So in brief u have got NO IDEA knowing the real financials of the forex provider u are going with or what the state of the segregated acct is at SO DON'T LODGE MONEY WITH A FOREX PROVIDER that u can't afford to lose .
Do any others have a different take on what I wrote above ?
cheers g
ps; there has been some forex or cfd providers in the past that allow each trader to have their own segregated acct from the broker and other traders . But our Govt was to freakin weak to adopt that across the board . Most forex and cfd providers like to only have one segregated acct so they can keep the interest . Some forex providers do pay out the interest though and so they should as it is NOT their money . JPmorgan has billions upon billions in segregated accts .
