If I have understood it correctly, It seems to me that you are protected fairly well. Am I missing something?Didn't the two links you provided explain it?
Choosing a platform
- Thread starter hutcho73
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Trembling Hand
Can be found on the bid
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That is my conclusion as well. And probably the best bit is it is a listed company so its health will be closely tracked to the share price. If that starts to take take ya money out. I have it on my main watch list.
http://au.finance.yahoo.com/q/bc?s=IBKR&t=2y&l=on&z=l&q=l&c=
tech/a
No Ordinary Duck
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Good idea.
The other thing is that in a crisis situation funds would be frozen.
Insurance is only as good as the health of the insurance company.
In a massive claim that may not be that good.
I don't think you can be 100% safe in anything.
But it would be wise to take out profits and not accumulate.
I have an instruction for deposits when account reaches X---to me so its a withdrawal!
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There's a good article on Brent Penfold's site about SIPC protection and how to set up an IB account if you're a futures trader. The link is about half way down the page and is titled " Why Australian Futures Clients Are Unsecured Creditors". (a PDF file will open)
http://www.indextrader.com.au/Brokers_Who_Can_Help.asp
http://www.indextrader.com.au/Brokers_Who_Can_Help.asp
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Speaking of crisis situations, I believe most aussie CFD providers (ie IG and CMC) co-mingle client funds together.
So if a big client were unable to meet obligations, and the provider also goes belly up, clients would get screwed.
Though imo, anyone sufficiently big will be worth their salt and won't have a huge CFD acct.
So if a big client were unable to meet obligations, and the provider also goes belly up, clients would get screwed.
Though imo, anyone sufficiently big will be worth their salt and won't have a huge CFD acct.
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Client funds are "pooled" in futures and FX provider accounts in Australia as well, not only CFD accounts. In the case of Sonray there were clients who were "white label" Interactive Brokers clients who originally had their funds pooled with other clients although I see that they are now able to go through a tracing exercise to determine if their funds were co-mingled with other clients or were maintained in individual segregated accounts with IB.
The Sonray administration has now been going for over 3 years.
GB the reason IB has that thread is the amount of products and huge exchanges available. It has nothing to do with stable or not it by its nature is quite powerful and therefore complex.
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Didn't the two links you provided explain it?
MMMM EQ trader software was very convincing, spend 2 hours a day to create your weekly income etc etc.They got $100 deposit from me but I backed out with not enough info on their background, thanks for the info on these guys.
Reading these are pretty interesting as I have some money to invest and don't want to start off with the worst platform afterall, they could possibly make or break you. IG was a bit of a first pic until I read some very disturbing reviews. There are some great reviews on Amscot discount trading if your trading everyday, nothing negative and great customer service
.wow what an eye opener, yknow I searched the net for weeks looking for some reviews on these guys, Thankyou very helpful. I know I may be out of my league but surely with the right formular and platform , I can provide an income for my family
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http://jlmfinancial.com.au/wp-content/uploads/JLM-FSG.pdf said:
http://jlmfinancial.com.au/wp-content/uploads/JLM-FSG.pdf
Given that the above quoted paragraph appears in JLM's Financial Services Guide, would anyone care to hazard a guess at JLM's capacity (or lack thereof) for impartiality when recommending IG Markets?
I know I may be out of my league but surely with the right formular and platform , I can provide an income for my family
Sorry, but you have no hope in the world of creating a family income with a $20K account! No off-the-shelf formula that you buy will be able to do that for you, no matter what their claims are.
tech/a
No Ordinary Duck
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+1
If stock trading Id say $200k
Futures you could do with $100k
But in both cases you'd need to be good.
If you want to earn $80K after tax you'll need to produce around $160K profit.
Hi Tech/A
Good post . I do think that he is indicating that by income he doesn't mean sole income.
I guess he can correct me if I assumed wrong
Shaker
skc
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No. But nothing JLM said about IG is false. If one must trade CFD then I'd agree IG is the best available in terms of being able to manage counterparty risks.
Part of the reason that clients of MF Global took so long to get their money back is because most CFD brokers use client money to hedge their positions - which means that money is not in MFG's account when the $hit hit the fan. IG claims that it doesn't use client money for hedging so in theory any bankruptcy may be resolved more quickly (but probably will still take a long time as the administrator milks the cash cow).
BTW the thread starter never mentioned that he wants to trade CFDs. I guess he's using CMC as equity broker as opposed to their CFD operations.
Yes. That's how I got 90% of my money out of MF Global before it went totally bust.
IG is also a listed company in London (Code is IGG) and that's why they are up there when it comes to managing counterparty risks.
skc
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Hutcho,
There's no such thing as easy money in the market, and that's the simplest way to determine who's a scam and who's legit. If someone is trying to sell you a product/service by saying trading is easy - probability is that they are just scamming you. If someone tells you trading involves a lot of learning and hardwork - then they are more likely to be legit. That's not to say you'd make money from the market but it's sure better than being scammed.
BTW if you want to feed a family trading a $20k account, your family probably can't live anywhere more expensive than say, Phillipines.
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I think the OP might be looking at this as sole income as he said in the opening post that he can't return to work. Pretty tough situation especially as a newbie trader and a small trading account.
CanOz
Home runs feel good, but base hits pay bills!
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Just read Chris's intro. I am wrong he does wish to earn sole income with 20k......Good Luck
Hutcho73,most of the replies you have seen on this thread have been from the pros,all are well intentioned.All have huge amounts of screen time,years of experience,these are the people you will be up against,with 20k you can't afford to lose, forget it.AlHi all Im just researching at the moment to find a platform for trading under $20k everyday to produce a modest income as I cannot return to work. Australian shares only, with a platform that has smart software and if anything goes wrong with the trading company, my money is protected. e-trade, Amscot discount trading or cmc?
Advise appreciated
