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Advantage Trading Group is a Guarranteed IB for LFG, llc. The funds on
deposit are with LFG not ATG and as such to my knowledge there has never
been a failure of a FCM in which customers funds were lost. I believe that
if a FCM were about to go under that it would sell it's operation to another
FCM to perserve customer confidence in the FCMs and Futures Exchanges as
there is no SIPC for the futures customer funds on deposit. This does not
preclude a unscrupulous IB from overcharging its customers (through
unapproved/agreed upon increases in commissions or various "fees") that from
time to time mysteriously appear on statements) and then going out of
business through forced bankruptcy ala. Chicago Trading Group an IB of
Vision LP a nonclearing FCM. Also if a IB goes belly up(ie. bankruptcy)-the
NFA arbitration process has no jurisdiction and depending upon your claim
you may only collect pennies on the dollar if you collect at all in
bankruptcy procedings. To substantiate any claim of overcharge/diversion of
funds you must present hard evidence(tape recorded broker communications or
hard copy statements of agreed upon commission/fee rates) which is extremely
difficult to come by (please anybody correct me, brokers included, the last
time you received/put in writing-and I don't mean on a website!
commision/fees/wire costs ect. (LindWaldock is the only firm I personally
know of who supplies that info in writing to customers) and I've had
accounts with Zap futures, LFG, Alaron, Lind-Waldock, Spike Trading, Vision
LP, First American, LIT First Options at one time or another, if one is not
onguard for such behavior-you're only a virgin once. If I sound well, rather
familiar with such matters, its just that I'm "experienced" now. nuf said!
-----Original Message-----
From: Mark Savage <taurus.ltd@xxxxxxxxxx>
To: JMB <traderguy@xxxxxxx>
Cc: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Saturday, June 20, 1998 3:20 AM
Subject: Re: Advantage Trading Group
>With regard to the recent postings viz-a vis Advantage, I myself know
nothing
>of Advantage but with regard to one of the more recent postings regarding
what
>happens when a IB goes belly up, well it just so happens that very recntly
I
>had several accounts with a very well known IB in London and what happened
yes
>you guessed it they were forced to go into liquidation. Fortunately for
myself
>I had recently transferred my main accounts to another broker due to bad
fills
>etc when I heard through the grapevine that they were about to be shut down
by
>the SFA ( Securities and Futures Authority). I immediately instructed them
to
>close my outstanding accounts and return the funds but alas too late
liquidation
>was in progress.
>
>I did recieve all of the outstanding funds with interest and fortunately
for me
>it wasn't my main fund accounts because it took over 3 months to get the
money
>back. Now i'm sure that there are quite a few traders whose main trading
>accounts are with theses guys still and they are probably going nuts with
the
>frustration of having to wait for moneys to be returned. So I guess I was
very
>lucky but with regard to getting funds back from smaller IB's I do not know
what
>the answer is, my suggestion is always pick a relatively large broker who
is not
>going to go belly up so check around ask people and most importantly don't
be
>afraid to ask its your cash and if trading is your full time occupation if
you
>have to wait for 3 months before you can trade would you have sufficeint
cash to
>trade elsewhere or sufficeint cash to live!!
>
>Good Luck
>
>JMB wrote:
>
>> On Thu, 18 Jun 1998 20:11:08 -0700, you wrote:
>>
>> >Does anyone know what has happened to Advantage? All their phones have
been
>> >disconnected.
>> >
>> >Thanks,
>> >Kim.
>>
>> Kim,
>>
>> Several months ago I posted a message that "I was looking for an LFG /
>> LEO-WEB Broker."
>>
>> I got a tremendous response from "Omega Listers", with a large
>> percentage of people who said they used.... Advantage Trading Group!
>> I mean a LOT!!
>>
>> I didn't go with them, because "they seemed too good to be true", if
>> you know what I mean! You know... one of those famous sayings your
>> mother used to tell you!
>>
>> Actually, my concern about this situation would be a hypothetical
>> question regarding IB's in general for those who may know?:
>>
>> 1) IF an IB were to "go belly up", what would happen to their
>> clients' accounts? Both short & long term??
>>
>> 2) Could those clients be harmed financially??
>>
>> Needless to say, I feel sorry for ALL those "clients", that may be or
>> could be "burned" if something "terrible" were to happen to this or
>> any other broker!
>>
>> PS. YES, I did FIND a broker that I am extremely happy with, so
>> please NO BROKER RESPONSES TO THIS MESSAGE, Thanks!
>>
>> JMB
>> TraderGuy@xxxxxxx
>
>
>
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