Dorman Trading financial statement 2016

Good afternoon, I have deposited my money with Dorman Trading https://www.dormantrading.com/ (so them acting as the broker, not as the clearing house) and have traded futures with them for a couple of months.

I took a look at their financial statement (https://www.dormanaccounts.com/quick1FR/GetFile.ashx?fileId=012d5e4e-951b-4467-be69-71dd4391bfe2 page 4 of the pdf) and saw that they have a very small amount of cash, isn't that a bad sign usually? Can someone who knows about financial statements of FCM's take a look and tell me their opinion please?

 

according to them: 203M in assets

maybe they don't need much cash to operate

 

The 203MM is largely customer funds and is offset by equal liability.

 

What FCM does Dorman use? Where is your account custody? I thought they were an FCM.

 

Dorman are an FCM, but also operate as a broker. And my account is with them.

 

Yeah that's the thing, I'm not sure if FCM's generally operate like that, or if they are an exception.

 

As a broker they have a lot of capital. As an FCM, they are small. Take from that what you will.

 

Wedbush does the same, I believe.

 

You're more knowledgeable about financial statements that I, but my take is anyone might show "low cash" at some time for a variety of reasons. If they need more cash, they can always convert some other holdings to cash. I like to see the ratio of "net capital vs required net capital" be decent as a cushion against unforseen events. What do you think, please?

 

Wedbush is an FCM with >$160mm in net capital as of end of January 2017 that also has a securities business. Lightspeed Trading is a broker that introduces business to Wedbush.
http://www.cftc.gov/idc/groups/public/@financialdataforfcms/documents/file/fcmdata0117.pdf