Alpha Adds Client Funds Insurance for Retail Clients, Dispels Some Myths
- The new insurance provisions will target retail customers referred by Alpha’s introducing broker network
London-based provider of FX & CFDs institutional Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Alpha is introducing a new layer of protection for the retail clients that are referred to the company by its Introducing Brokers (IBs) Introducing Brokers (IBs) An introducing broker (IBs) represents an entity that is facilitating the relationship between the clients and the broker or futures commission merchants (FCMs). Introducing brokers are generally seeking to provide an added value to the relationship between the parties by offering support or specific services. These may or may not be a subsidiary of the broker.Introducing brokers do not hold client money, execute orders or provide any trade-related services to the clients. In developed markets s An introducing broker (IBs) represents an entity that is facilitating the relationship between the clients and the broker or futures commission merchants (FCMs). Introducing brokers are generally seeking to provide an added value to the relationship between the parties by offering support or specific services. These may or may not be a subsidiary of the broker.Introducing brokers do not hold client money, execute orders or provide any trade-related services to the clients. In developed markets s Read this Term). The company is also shedding some light onto the practice, highlighting that in many cases the additional insurance policy is only used as a marketing tool.
As it turns out, while clients do get additional protection from insurance policies, those usually have a hard cap on the total payout on part of the insurer. Many brokers are offering increased protection, but in order to ascertain how much is the real protection that retail clients are getting, the should be asking their brokers for the details of the insurance policy.
Alpha is adding an additional £250,000 insurance for its retail clients with the cap on the total payout on the insurance policy amounting to £10 million. Clients also will have the option to get additional insurance depending on their needs. Alpha is starting the additional insurance coverage with the current limit due to the present amount of retail client assets it holds.
The London Summit 2017 is coming, get involved!
Commenting on the announcement, the Chief Executive Officer of Alpha, Muhammad Al-Amin Rasoul, said: “I think these policies have value although I do not like what I see from most brokers selling direct to the retail customer. They don’t disclose the caps on coverage, and they don’t explain to the customers the limits of the policy."
"They just say something to the effect of you are protected here, we have 1 or 2.5 million more that the regulatory coverage. That’s not true - the policies always have caps to the payouts and if that cap is less than your current retail assets your customers are not covered. This is false advertising. Alpha has more professional assets than retail so right now our policy is capped at 10m GBP. As those numbers grow we will increase the policy,” Mr Rasoul elaborated.
London-based provider of FX & CFDs institutional Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Alpha is introducing a new layer of protection for the retail clients that are referred to the company by its Introducing Brokers (IBs) Introducing Brokers (IBs) An introducing broker (IBs) represents an entity that is facilitating the relationship between the clients and the broker or futures commission merchants (FCMs). Introducing brokers are generally seeking to provide an added value to the relationship between the parties by offering support or specific services. These may or may not be a subsidiary of the broker.Introducing brokers do not hold client money, execute orders or provide any trade-related services to the clients. In developed markets s An introducing broker (IBs) represents an entity that is facilitating the relationship between the clients and the broker or futures commission merchants (FCMs). Introducing brokers are generally seeking to provide an added value to the relationship between the parties by offering support or specific services. These may or may not be a subsidiary of the broker.Introducing brokers do not hold client money, execute orders or provide any trade-related services to the clients. In developed markets s Read this Term). The company is also shedding some light onto the practice, highlighting that in many cases the additional insurance policy is only used as a marketing tool.
As it turns out, while clients do get additional protection from insurance policies, those usually have a hard cap on the total payout on part of the insurer. Many brokers are offering increased protection, but in order to ascertain how much is the real protection that retail clients are getting, the should be asking their brokers for the details of the insurance policy.
Alpha is adding an additional £250,000 insurance for its retail clients with the cap on the total payout on the insurance policy amounting to £10 million. Clients also will have the option to get additional insurance depending on their needs. Alpha is starting the additional insurance coverage with the current limit due to the present amount of retail client assets it holds.
The London Summit 2017 is coming, get involved!
Commenting on the announcement, the Chief Executive Officer of Alpha, Muhammad Al-Amin Rasoul, said: “I think these policies have value although I do not like what I see from most brokers selling direct to the retail customer. They don’t disclose the caps on coverage, and they don’t explain to the customers the limits of the policy."
"They just say something to the effect of you are protected here, we have 1 or 2.5 million more that the regulatory coverage. That’s not true - the policies always have caps to the payouts and if that cap is less than your current retail assets your customers are not covered. This is false advertising. Alpha has more professional assets than retail so right now our policy is capped at 10m GBP. As those numbers grow we will increase the policy,” Mr Rasoul elaborated.