As a regulated broker, it is the responsibility of Alpari (US) to ensure that our clients understand how we treat their funds and remain confident that they are being held in good faith. In order to do so, we encourage you to continue reading below for more information about our policies:
Alpari (US) is dually registered with the Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant (FCM) and a Retail Foreign Exchange Dealer (RFED) and is a member of the National Futures Association (NFA) - Member ID 0379678.
For retail foreign exchange transactions, Alpari’s policy prevents the firm from comingling customer funds with its operational expenses. Alpari has, therefore, maintained a long standing banking relationship with Bank of America specifically for the purpose of holding its customers’ funds. These funds are held separate and apart from any funds used by Alpari for its day to day operating expenses.
Our net capital requirement as an RFED is $20 million dollars. These funds must be deposited in a US bank and cannot be utilized by the RFED for its day to day operations. In the event that our adjusted net capital drops below the early warning level of 110% of our required capital amount (or $22 million), the CFTC is immediately made aware.
For futures transactions, Alpari is required to keep customer funds separate from its operational funds. This means that all client funds are held in segregated accounts and are protected from general creditors in the event the firm goes into bankruptcy. Each month, all FCMs, including Alpari, must file a Segregated Investment Detail Report (SIDR) with NFA; this report provides a detailed breakdown of the FCM's investment of customer funds and identifies the carrying brokers and other depositories holding these funds.
Additionally, all US registered firms are required to file monthly financial reports with the CFTC’s Division of Clearing and Intermediary Oversight within 17 business days after the end of the preceding month. Clients have the ability to view all historic financial data including Alpari’s adjusted net capital and excess net capital on the CFTC’s website. Clients also have the ability to view all regulatory actions and other information about Alpari by visiting the NFA’s website.
A committee of representatives from the futures industry's self-regulatory organizations (SRO) unanimously agreed to immediately begin confirming balances of customer segregated bank accounts for all FCMs using a web-based electronic confirmation process.
Via a system called confirmation.com, the NFA can directly request balance confirmations from any bank in which a broker holds segregated accounts and customer funds. Any bank depository that fails to provide electronic online access will not be considered an acceptable depository for holding segregated and secured customer funds.
Additionally, as of September 1, 2012, FCMs will be required to file daily segregation and secured funds reports, representing how customer funds are invested and identifying where they are held. Should customer funds be disbursed of segregated and secured accounts not made to their benefit, and in excess of 25% of the accounts, a principal of the firm is required to provide immediate notice to its SRO.
These requirements have been put in place so investors can feel confident that their funds have an additional level of regulatory protection. We believe in offering our clients a transparent trading experience and strive to ensure that they are informed of our industry’s regulations and their rights to protection. We support these requirements set forth by our regulatory organizations and continually adapt our business practices in order to comply.
If you have any questions or concerns about this policy, please do not hesitate to contact an Alpari Representative by phone at +1.646.825.5760 or by email at cs@alpari-us.com.
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