Well yeah guess for all the guys with 6 million dollars looking for a "prop" firm, you are right, they are only insured up to 250k, it might be a million now but dont know in the states, i know its a million in canada now, but you can spread money around, and anyone the government is insuring, you can bet its not going tooo happen, it only happens with prop firms.
Mate, you still don't get it, this thread is NOT about prop firms. Get that THC out of your system. Read again and follow the thread topic or else why not open your own thread on your grievances with prop firms?
SIPC covers you up to 500 in cash plus any regulated IBD will deliver any securities positions you happen to have at the time of IBD default. This is retail, not prime (where you are protected less).
The SIPC insurance doesnt apply to your clearing firm though, wedbush is a clearing firm, the insurance isnt covering anyone who clears through wedbush. But yeah The rest of the names would have the insurance, im just trying to tell someone not to sign up at a prop firm.
Hence my saying the safest way for anyone with more funds is to go with a reputable bank and have them issue a letter of credit to the broker(s) one works with.
Its 250k on well known banks trust me, maybe thats FINRA who covers that but i know for a fact its 250k but you got to go to solid places, not just some random prop shop, thats what im getting at, prop shop no insurance, bank 250k insurance Which one you want to do?
My funds are held at a teeny-tiny little FCM in Chicago. Tiny little guys! Super small cute little buggers! Cute as a button! Aww, look at them, so cute! So young and tiny and smitten with hugs and kisses! Is my money safe with them? Do I have confidence in them? Yes. 1,000%. You need to have an understanding and belief in your broker (or whatever depository your funds are held in). I am comfortable with mine, and it is not a "large international bank". A "large international bank" scares the heck out of me. I guess I watched too many of those "Bourne" films.
Look at the title of the thread "can i trust my money with lightspeed" Yes the thread is absolutely about whether or not you should put your money into places like this.
To each his own. I have seen too many times trust and promises broken, even seen relatives of friends go on a run with funds loaned to them. Small outfits usually do not recover from a single disaster while large banks fill that hole easily. Nothing may have happened to your account so far but once something happens it's almost guaranteed lights out for your cute little firm up north.