Forex Peace Army Members Forums>

[CWH]

Does the financial crisis we are facing now eventually affect forex brokers as well?

What about the deposit funds we place with these brokers? If their bankers are affected by the this crisis, what will happen to our money?

Do you think we should withdraw all the money from our forex account & stop trading until the dust settles?

-NEED YOUR ADVICE & OPINION DESPERATELY-

[ernest8fingers]

I have 2 Brokers-Main and one secondary(to get chart service) - I have liquidated all funds from main Broker(account still open though) and have only 100. $ dollars in my secondary broker. I leave the bare minimum in only to trade.So far, no funny business( crazy swap rates-Intraday trade only?) As soon as this account reaches 100% profit I withdrawal it-so far they have never failed to honor my requests. This way I can feel safe and trade for profit. If any thing happens (bancruptcy?) I would only be risking my 100 bucks. I have been trading this way for almost 30 days and had to refund this account 1 time only-withdrew many times. Not the best way to maximize profits but it works for my FEAR factor.

[sam111]

Forex trading is always affected by the prevailing finanacial conditions around.Sometimes I just cant stop getting insecure about my investments.I didnt withdraw money during the recent crisis and not regretting that. Around here, In India, the situation seems to getting better.

[obe24]

The biggest risk is that the volatility of the forex markets will kill off smaller retail brokerages not hedged correctly. See if you can get Market Cap figures for brokers. For US based companies, you can get that report from the NFA.

Same logic as if your personal account is over leveraged - a big swing will stop you out. Can happen to brokers too.

[Pharaoh]

There are big opportunities for profit (and loss), but you would be safest not leaving all of your money inside of any one brokerage. If you use 2 brokerages, make sure they use different banks.

The FDIC has increased the insurance for US banks, but if we lost several more big ones, it might take a long time to get the mess sorted out, and corporate accounts would likely take a back seat to personal accounts - corporations can bribe congress, but senior citizens have been known to attack them with umbrellas and canes.

The upgraded NFA capital requirements make the out and out failure of a USA based forex firm less likely, but it could still happen.

Whatever you do, keep at least some of your money in the mattress.

[lion]

Not think, that it will render affecting brokers. Most it will render influence on traders, because currencies will be so much to hesitate

[martin01]

I believe until emerging economies like India , China etc continue to grow at a steady pace we should be able to avert any major crisis in the near future..
as regarsd the brokers the only dictum that might prove true- dont put all the eggs in one basket.