When one is a non clearing FCM , does the firm they clear with assume the responsibility for their clients?
just the fcm as a whole and that would by definition cover the clients as well (if the FCM went under)
Thank You Rachel. My concern here is looking at the cash on hand a lot of these discount brokers have. I've been looking at a few that clear through much larger firms and was hoping that it would be sort of an insurance policy. If a firm I was trading with went under I have no doubt that I would eventually get my capital back, but I'm trying to avoid the mess and time that would involve. Choosing a very established and liquid firm seems to only make sense. There are some recommended firms that are trading with about 500K of excess cash and with that kind of "cushion" it only takes one mistake to be out of business. Thanks Again