"But what I would like to know is what happens if this broker goes broke (pardon the pun) - what good are their guaranteed stop losses then?"
find8 , It depends on whether they rob /steal from the segregated account before going broke .
Many forex and futures brokers over the years have had a habit of treating the traders acct as their own . If u use a yankee futures broker they are supposed to lodge their accts each month but some of the cheating buggers create cash out of thin air and thieve from the traders/seg. acct .
http://www.bloomberg.com/news/2014-...uptcy-trustee-ends-dispute-with-jpmorgan.html
http://www.forexfraud.com/forex-art...y-and-its-impact-on-retail-forex-trading.html
http://www.forexfraud.com/forex-articles/fabulous-fabrice-tourre.html
http://www.abc.net.au/news/2014-04-...ts-founder-jailed-for-theft-and-fraud/5398304
http://en.wikipedia.org/wiki/MF_Global
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 .
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"But what I would like to know is what happens if this broker...
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