Never ever put all your eggs to one broker

Should brokers be allowed to speculate ?

  • Yes

    Votes: 9 28.1%
  • No

    Votes: 17 53.1%
  • Only when the customer accounts are controlled by different independent trustees

    Votes: 2 6.3%
  • The law first has to change the rules for it

    Votes: 4 12.5%

  • Total voters
    32

4xpipcounter

Well-Known Member
#31
I don't know why I did not get an e-mail for this thread, as I would have responded earlier.

I think I can say we both agree that we don't like Obama. I'm afraid what I would say along these lines could be misinterpreted, so I'll keep my comments to myself. Just to cut to the chase, I'm a free moral conservative capitalist, and Obama shares the exact opposite views.

@Dan: The name of your thread says it all. That's why I spread my money around.


:rofl::rofl::rofl::rofl::rofl:

Nice sense of humour But Obama can dye of heart atack:rofl:
 
#32
I don't know why I did not get an e-mail for this thread, as I would have responded earlier.
Did you subscribe to this thread ??

I have turned email notification for all my subscribed threads, but when I log in, the first thing I do is to visit User CP. If any of my subscribed threads have new posts, it shows up there.
 

4xpipcounter

Well-Known Member
#33
I'm subscribed to all the threads I post in. It's just I never got an e-mail notification from this one.

BTW, do you know why you never put all your eggs in one basket?
Trading is not all it is cracked out to be.


Did you subscribe to this thread ??

I have turned email notification for all my subscribed threads, but when I log in, the first thing I do is to visit User CP. If any of my subscribed threads have new posts, it shows up there.
 

DanPickUp

Well-Known Member
#35
And here goes the next broker company which cheated there customers and now signed for bankruptcy:

PFGBest or also know as Peregrine Financial Group (PFGBest), located in Cedar Falls, IA and Chicago, IL.

CEO Russell Wasendorf, Sr: I have committed fraud. For this this I feel constant and intense guilt. I am very remorseful that my greatest transgressions have been to my fellow man. Through a scheme of using false bank statements I have been able to embezzle millions of dollars from customer accounts.

http://www.forbes.com/sites/walterp...ested-the-audit-confirmation-that-caught-him/
 

whisky

Well-Known Member
#37
Never ever put all your eggs to one broker, and keep hen to yourself :thumb:
Good one Mr.Ravi, but I am confused:confused: when human started laying eggs & why they want to keep them with brokers:rofl: just kidding.

On a serious note, agree with the Dan's thread.:thumb:
 

DanPickUp

Well-Known Member
#38
Good one Mr.Ravi, but I am confused:confused: when human started laying eggs & why they want to keep them with brokers:rofl: just kidding.

On a serious note, agree with the Dan's thread.:thumb:
Men = Two and Woman = Many

On a serious note: Here a repetition for those which not went through the whole thread.

It is a bad experience when you want to open your trading terminal and it say: No connection available, please contact your broker. You then call the broker and you are told that you and they have no access to any account, as all accounts are frozen because of chapter 11 (US law when a company gets bankruptcy). You then try to find out what happen through the news and you sit there and can't do absolute nothing. All your money with that broker is out of reach and at that moment you even do not know if you ever see any part of that money again.

I can tell you: That feeling is absolute worse and you do not want that. But wait, as I will add some more to that bad feeling: No access to the account means also no access to any ongioing trade, what ever market does. If you have an other broker, you quicly can take an other position to protect your trade in case market is going against you, but if you not have that second broker, your bad feeling will get even worse when that situations add to the other situation. Now you know you do not have any access to your money and you know you not can do anything about your trades in which you start to lose money now. But not enough, as we will go along all the way we have been pushed in without having done any mistake by our own.

The next punch in your already sick stomach comes, when finally some of your money from the bankrupted broker is transferred, through the trustee from that case with the help of the Exchange, to an other broker. As you have ongoing trades in the worst case and only 20% or 30% percent of your money was transferred (US laws to protect the investors into the company and the lenders to that company, as they will get first there money before customers do), the first thing the new broker does is asking for enough margin to protect your ongoing trades.

Now all the above explained should be enough for you to realize how important it is to have at least two brokers. I went through that, luckily with no ongoing trades, but that was already very hard to face. Until today, 72% of the money from that time has been transferred to the new broker and the rest I may never see again. The people who did the crime by using customers money for there bets are still not in prison. Thousand of traders all over the world, as this was at that time the biggest broker house in the world, still wait for there justice.

And as a final, absolute horror for some affected traders of this bad event with MFG: Some of the above customers from MFG, which had asked for Chapter 11 on the 01. November 2011, where transferred to PFGBest which has asked for Chapter 11 in July 2012. Those pore and unlucky traders faced now the second time in between one year the above mentioned case.

Take care / DanPickUp
 

gmt900

Well-Known Member
#39
Men = Two and Woman = Many

On a serious note: Here a repetition for those which not went through the whole thread.

It is a bad experience when you want to open your trading terminal and it say: No connection available, please contact your broker. You then call the broker and you are told that you and they have no access to any account, as all accounts are frozen because of chapter 11 (US law when a company gets bankruptcy). You then try to find out what happen through the news and you sit there and can't do absolute nothing. All your money with that broker is out of reach and at that moment you even do not know if you ever see any part of that money again.

I can tell you: That feeling is absolute worse and you do not want that. But wait, as I will add some more to that bad feeling: No access to the account means also no access to any ongioing trade, what ever market does. If you have an other broker, you quicly can take an other position to protect your trade in case market is going against you, but if you not have that second broker, your bad feeling will get even worse when that situations add to the other situation. Now you know you do not have any access to your money and you know you not can do anything about your trades in which you start to lose money now. But not enough, as we will go along all the way we have been pushed in without having done any mistake by our own.

The next punch in your already sick stomach comes, when finally some of your money from the bankrupted broker is transferred, through the trustee from that case with the help of the Exchange, to an other broker. As you have ongoing trades in the worst case and only 20% or 30% percent of your money was transferred (US laws to protect the investors into the company and the lenders to that company, as they will get first there money before customers do), the first thing the new broker does is asking for enough margin to protect your ongoing trades.

Now all the above explained should be enough for you to realize how important it is to have at least two brokers. I went through that, luckily with no ongoing trades, but that was already very hard to face. Until today, 72% of the money from that time has been transferred to the new broker and the rest I may never see again. The people who did the crime by using customers money for there bets are still not in prison. Thousand of traders all over the world, as this was at that time the biggest broker house in the world, still wait for there justice.

And as a final, absolute horror for some affected traders of this bad event with MFG: Some of the above customers from MFG, which had asked for Chapter 11 on the 01. November 2011, where transferred to PFGBest which has asked for Chapter 11 in July 2012. Those pore and unlucky traders faced now the second time in between one year the above mentioned case.

Take care / DanPickUp
Dear Dan,
Thanks for this warning. I have more than one account with a single broker. I will take immediate action to split them with two brokers.
regards
 

whisky

Well-Known Member
#40
@DanPickUp,

Excellent post to open the eyes of investors/traders. Thankfully, I am already following this practice & successfully managed such experience.
Will refer this post in my thread on "Evaluation of Brokers", I think this will also help there.