How safe are my funds with a (US) futures broker?

Discussion in 'Index Futures' started by bankroll, May 29, 2013.

  1. mokwit

    mokwit

    "I think that attempting to document a false intent to invest in securities'

    Thanks for your answer, but not sure where the above comes in - I actually do (now) invest almost exclusively in stocks through IB.
     
    #11     May 30, 2013
  2. How would this be interpreted if one has funds in an all-in-one account, but they are used (thus far) exclusively for stocks and options?

    I maintain the option to trade futures, forex and worldwide stocks in my IB account in case some great opportunity catches my eye, but thus far have only traded US stocks and options from that account.

    Unclear and probably will be litigated in the event, or has SIPC clarified this point?
     
    #12     May 30, 2013
  3. Eight

    Eight

    The USA is third worldish deregulated s$%t... Get a dual citizenship or marry a Canadian and park your $ in Canada. Canadians got their MFGlobal money back in a week, the US bagholders didn't. POS politicians are cannibalizing the US, same as Rome in it's latter days.
     
    #13     May 30, 2013
  4. Well then you are covered.

    This thread is about futures according to its title.
     
    #14     May 30, 2013
  5. I see no problem. You are covered.

    The issue was about futures traders, doing no stock trading, but trying to get SIPC coverage via sweeping of idle funds to a "securities" account that was otherwise inactive.
     
    #15     May 30, 2013
  6. cornix

    cornix

    One of futures benefits: leverage. Allows you to keep only so much on the actual trading account but trade good size.
     
    #16     May 30, 2013
  7. Thanks.

    With no bona fide securities trading, I would expect claims would be denied.

    For those who purely trade futures, I would suggest maintaining the bare minimum necessary in the brokers account, and even then if the amount is significant to you, spread it around 2 or 3 brokers.

    Tedious to be sure, but infinitely preferable to losing it all through malfeasance or recklessness.
     
    #17     May 31, 2013
    Apophenia likes this.
  8. What does POS stands for? I only know it as Point Of Sales.
     
    #18     Jun 7, 2013
  9. #19     Jun 7, 2013
  10. Llxa

    Llxa

    So HOW do you get a seat on the exchange? Just out of curiosity.
     
    #20     Jun 8, 2015