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Alpari-US vs. MigFX

Discussion in 'Forex Company Comparisons' started by Aaron S, Apr 23, 2008.

  1. Aaron S

    Aaron S Recruit

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    Anyone have any experience with either of these? I have demo'd with both and I am wanting to open a LIVE account. I like both, but I am leaning toward Mig. Their professionalism and customer service have swayed me.

    I would gladly love to hear anyone's opinion on either of these.
     
  2. forextraderfl

    forextraderfl Recruit

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    How much money does either firm have behind them? Alot of unregulated firms can open up shop with virtually no capital behind them at all. What they do is play the numbers betting that most forex traders will lose. If you actually are beating them, they will start to play games such as stop hunting and platform freezes.

    I prefer to deal with large clearing firms with alot of their own capital behind them, that are regulated in the US. They have to submit reports to the regulators showing exactly what net capital they have behind them. If they drop below the minimum net capital requirement, the regualators will step in and shut the firm down.

    This is done to try and help investors from losing their money to small firms with no money behind them.
     
  3. Pharaoh

    Pharaoh Colonel

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    I don't know anything about MigFX, but Alpari-US is a new branch of Alpari-UK. The UK version is very well rated, and I'm at least thinking of opening an account with the US version.

    I agree with what forextraderfl says about wanting a large firm with US regulations, but the Alpari-US branch has US regulations and also has the capital of it's UK parent company behind it.

    One oddity - i opened regular and mini demo accounts on Alpari-US, and the regular account can trade down to microlots, but the mini account can't get below minilots. I suspect it's just a bug in their account creation on the demo server, but haven't had a chance to ask support about it.
     
  4. forextraderfl

    forextraderfl Recruit

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    How dealing with regulated firms can help

    This is just an example of how dealing with a regulated US firm can help. I used to clear my business through a US based FCM named velocity 4X. People may have mixed opinions of them, but I had my customer business through them and liked them.

    They failed to meet NFA minimum capital requirements, the NFA stepped in and all my accounts were transferred to forex.com. All of my customers had their funds transferred.

    They failed to meet the net capital requirements because the firm didnt have 5 million of their own funds to put up for the new higher requirement.

    Why would anyone even consider putting any money with a firm that you have no idea exactly how much capital they have behind them???

    It has happened so many times I can not even count. These companies open up in unregulated areas with no money. (Swiss or Bahamas usually).They create an elaborate marketing campaign and basically take the other side of their customers trades. They do not pass anything off to counterparties. They are betting on you losing.

    Are you doing this to save a pip or 2 on the spread? Its not possible for anyone to offer a spread less than what is in the true interbank martket unless they are betting against you.

    Don't do it unless you know how much capital the firm you are dealing with has! And not an affiliate of a big parent company either, the big parent company could be worth billions while the forex affiliate division has no money behind them.

    Complete transparency of any company you are dealing with is extremely important.







     
  5. Aaron S

    Aaron S Recruit

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    MIG Investments SA - Home apparently now has a new identity. I still like dealing with them, but one of you mentioned capital in their coffers. I was wondering, could you tell me where I could get those numbers from. Their website says they have 10,000,000 CHF, which is good I guess. But I would rather see it from an independent source. Back when I first started trading I found a spreadsheet of sorts, online, that contained many forex brokers total capital amounts in it.

    Thanks in advance!

    Aaron
     
  6. Pharaoh

    Pharaoh Colonel

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    Since the NFA has the capital requirements, it should be possible to ask them how much capital anyone regulated by them has. Has anyone tried?

    There are other regulators in other countries, but you MUST do you own due diligence. Quite a few companies claim to be regulated in one country, but are really based elsewhere and are completely unregulated (others proudly proclaim that they are self regulated).

    Some country's regulators are less effective than others.
     

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