jlpi,
I myself am not up to speed at all with allecohfx so I can't comment. But I'll do some homework so that I don't appear ignorant next time.
I appreciate your comment about the benefit of the doubt, thank you.
In this 'industry' the trust factor is huge. We clearly have a big battle on our hands overcoming that. Nevertheless, trading is a risky business. So no matter what I say here or what is on our own web site then we still fully advocate that every trader does their own due dilligence on any Broker. If we don't meet the traders requirements then so be it. We are more than happy to accept that. We don't have a target number of traders we need to sign up every month else we don't eat
As to your questions.
The Collective FX LLC is a brand new entity, maybe 6 weeks old. It was created solely to facilitate us offering this 'Brokerage' service to people outside of our trading group.
As we've tried really hard to stress, we are not a big corporate entity. We are in fact a small group of system autotraders who created the technology infrastructure that allows us to trade in the way we want to. The Brokerage offering is secondry to that.
We have no staff other than ourselves. Our accounts process is being outsourced directly to our accountants. So money transfers, compliance etc, is going through them.
Our technology is supported by a 24/5 service contract which makes sure that our servers, data feed and bridging software is all looked after.
We personally all trade from a datacentre where our own trade servers are housed, so we are very particular about the technology that we use.
In terms of assets, then the company has next to none. Everything we have was put together before the Brokerage became even an idea. The costs associated with our support etc. are all costs that we as traders were bearing. We considered them our cost of business, in the same way that retail traders consider the spread as a cost of business.
As far as operating overhead is concerend we are lean. No sales people, no support staff, no nothing.
Accounts issues are routed accordingly. Technology issues all deal with in the same way. The only thing that we have needed to do for the Brokerage, over and above what we ourselves were doing, was to provide an 'Emergency' contact number for members.
This number routes to all of our cell phones, on a first to pick up basis. If there are ever any emergency issues then a member can call us. For example, if a member loses his power supply and wants to ensure that he is FLAT then he/she can call and we can flatten them over the phone.
In summary, we are exactly what we try and put accross. We are simply a small group of autotraders who have created the best trading environment we could.
If anyone wants the comfort of a huge corporation with zillions of staff, giving away a free car every month in competions etc. then we are NOT for them.
The minimum account size is indeed $100, actually we should have made that $150 to be more realistic. The reason we say this is because again the trust issue comes into play. We thought it would be good for new members to deposit a small amount and test that our demo and live platforms do actually perform the same. Rather than having to deposit a big chunk of cash only to find out that we were full of the proverbial.
$100 is the absoute minimum that is required to open a single mini sized lot position, 100:1 margin and all. So $100 is optimistic, given that a single pip of drawdown precludes the entering of any further trades. $150 is more reasonable, that way there's a $50 or 50 pip drawdown buffer built in.
The $47 fee really has no bearing on the $100 minimum deposit at all. Clearly it wouldn't be economically viable to spend $47 to trade a single mini lot.
As for the account size itself relative to the $47 fee, then as far as we are concerned then that is a matter for the individual to address. Money management is a crucial factor in trading in my opinion. 100:1 margin means that you only need $100 dollars in your account for each and every mini lot position that is opened. Does that mean that you should fully leverage yourself? My answer is not the important one.
As to the Liquidity Providers. I can't provide a list of who may or may not be on the list in the future over and above the ones already listed earlier in the thread. I can't do it because I don't know. But, if there is one thing that you can categorically quote me on, even take me to court over if I ever misrepresent this issue, is that anyone we EVER trade with as the LP will be fully fully fully registed/regulated in the US. Our own trading money is on the line too. Where your money goes then so does our own. We will NEVER go outside of the mainstream LP's in the US, Period.
I have a habit of being verbose, sorry for that. I haven't yet mastered the art of precis.
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