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Velocity Futures charged Maintenance Fee. Need new broker recommendation
see my post in the other velocity thread - I detailed some negative experiences with Velocity a few days ago and got this email out of the blue yesterday (I have been trading with velocity for almost 2 years):
Effective immediately, your account with Velocity Futures is being closed for Business and Risk reasons exclusive to Velocity Futures.
Your funds will be forwarded to you immediately upon receipt of wiring instructions as to where you would like them sent.
Thank you for trading with Velocity Futures and good luck and continued success in your future trading.
caveat emptor...
Seek freedom and become captive of your desires. Seek discipline and find your liberty. - Frank Herbert
Can you help answer these questions from other members on NexusFi?
I read that thread and it doesn't surprise me. I guess velocity has enough customers and don't care to let a few loyal long term (2 years for both of us) go. that's business for you. I've always had great service from Mirus.
Just as a heads up, Velocity is a very small firm that has had numerous NFA violations. Their website implies them to be a large brokerage, however they don't even come up on a Bloomberg terminal. I think their capital is $1.6 million. Clearly they have no hedge funds, which is what their front page implies.
Nothing wrong with this, every firm has to start somewhere. I will never use them. I guess they will be bought out someday, or the firm's owner will maybe see a successful trader in action - and also get a ton of orderflow in the process.
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
The "capital" in which you're referring to here is most likely the assets separate and aside from their seg. funds. Their seg. funds. are far greater to the tune of $85MM according to the Top 50 Brokers report from last year. That would indicate that there are potentially some small funds included within their client mix.
Not sure why they aren't appearing on Bloomberg. Did you search correctly? I can't imagine a firm that is listed as a top 50 futures broker not showing up. Did you try searching under the CEO's name?
As for the NFA violations, they appear to be silly anti-money laundering (AML) procedures. This is a pain in the rear for all firms since the Patriot Act came about. If you don't follow everything to the last detail, you get fined.
I'm not looking to defend this firm nor do I have anything to do with them but just wanted to respond because your post was a bit vague. Having been in the business for so long, I've seen both sides of the table here. Public (retail) perception can be way off many times because they're not looking into the details.
"From building trading floors and systems from scratch to developing custom software and risk solutions for use in new markets, Jack brings robust utility to complex trading operations. Especially in new and complex markets it is functionality that makes traders comfortable and potentially more profitable."
Jack E. Earnest, Jr. is the founder Velocity Futures LP., a Futures Commission Merchant registered with the CFTC and the NFA to address the needs of active commodity traders.
Prior to founding Velocity Futures, LLC. , in 1995 Mr. Earnest founded Momentum Securities, Inc., an NASD and SEC registered broker/dealer and CSI.NET, a software development company which developed several diverse products for high frequency trading in the equity markets. Momentum went on to become one of the largest professional equity trading organizations in North America, second only to Charles Schwab in terms of daily transaction volume. In 1999, Momentum and CSI.NET were acquired and are now owned and operated by E-Trade under the name E-Trade Professional. Prior to founding Momentum Securities and CSI.NET, Mr. Earnest worked as an accountant with KPMG Peat Marwick.
In October 2007, together with Mark Schwausch, Mr. Earnest formed Velocity Merchant Energy LP, a private investment manager dedicated to providing investment management globally to institutions and sophisticated investors specifically in the areas of North American power and natural gas. In March of 2006, Mr. Earnest became a founding partner of Velocity Energy Trading, a private energy trading firm, and is the architect responsible for developing the trading floor, proprietary software, technology and risk management used by Velocity Energy Trading today.
Jack holds a BBA from the University of Texas at Austin in Finance with a second major in Accounting.
Disclaimer: I am not a customer of nor do I have any financial or business interests in Velocity Futures or any of their associated companies.
I'm just a simple man trading a simple plan.
My daddy always said, "Every day above ground is a good day!"
hmmm I knew about the maintenance fee, I could not just not see it when I opened the account. Fee Schedule | Velocity Futures
interesting links in this thread. That Atlas thing.
I thing people don't understand one thing in life: if somebody wants to screw them up, they will. You will never be able to protect yourself from it.
Similarly if to ban all weapons in a country, there will still be those who can take a chair and smash you on the head or stab you in the eye with a pen. Banning weapons does not protect people at all. Laws don't protect you, anybody could kill you if they wanted whether there is law or there is none. There is no difference betwen law being there and not being there.
Good rankings do not guarantee anything and they do not protect you from anything. Just relax and let go of what you can't really control.
