Correct, by assets, we are not near top 15. When in history has size protected the customer more? E.g. MFG, BS, LB, ML etc. We provide a variety of solutions for small and medium-sized Hedge Funds, Trading Groups and Active Traders. We focus on US-Listed Equities, Options, and Futures and do our best to do that to the best of our ability. We look to provide access to fast software that is highly configurable with a choice of routing. You can choose to have your own sales rep like me. We have a support/trading desk that is very responsive. We are not self-clearing and not a bank. We like our place in the trading world and so do our clients. https://www.lightspeed.com/testimonials/
SIPC only covers part of it. the rest is open for debate and whether additional insurance is made available. This is one reason to hold accounts in big named houses so "too big to fail" kicks in and automatically ensures some sort of protection. All securities are likely protected as there is usually a custody that is a different account. I am thinking cash is vulnerable.
Thanks for sharing. I can imagine a trader going for months without income if he puts all his cash in a single broker. Way too risky doing that.
I can imagine too luckily back then ot was just my side account and i wasn't trading for living i was in sales back then, pure luck
Your dealing with “bigger” money and maybe considering a broker that’s going out of business? that adds more responsibility of making sure you are ensured if things go south. What is your risk/reward ratio here?
If you're really worried about it you can always have the broker purchase a treasury in your name and hold it as collateral that you can then trade off of. Typically this involves a 5-10% haircut. In the event the broker goes under the treasury belongs to you and doesn't fall under the jurisdiction of the bankruptcy court, so you should get it back in a matter of days vice months. I've done this at several brokers over the years, so I know they all know what it is and how to do it. It is a manual process as they have to bid into the auctions. Given that, I'm not sure if there is a minimum, but presumably you're significantly above the SIPC limits if you're worried about it so you should also be above any minimums they might have.
I haven't but I understand you can. You might have to hang up and call again a few times to get a "customer service" agent who has the intellectual capacity to understand what you're asking, but then you have to do that with most questions with those clowns.
RE: Has anybody lost money with a broker going under? Refco - but I most likely would have blown out my account anyways. FX at 400:1 margin was the Wild West of currency trading.