I have a complaint

Discussion in 'Retail Brokers' started by qdz3, Mar 29, 2003.

  1. I've now had to add Number 3 to the Ignore List (along with 2 and the original).

    Funny thing, the majority of the tag names on my Ignore list have numbers in them.
     
    #11     Mar 31, 2003
  2. QDZ, if he only made this point once, would be doing everyone a service with regards to making people cautionary...It is true that some smaller Introducing Brokers have been known to fleece their customers...There are a few reports on this with the CFTC website and/or NFA...But, when this becomes the sole obsession of one person, it goes into the land of paranoid...Clearly, the CFTC has taken some steps towards full disclosure, requiring that these FCM's disclose their financials every quarter...This can be of great assistance if one hears about a firm offering lower commissions, but then sees that this firm has about 0 in client funding...

    There are a number of ways to protect oneself, especially if one does not like the fact that futures accounts do not carry this SIPC insurance...One way is to simply keep the minimum cash balance required for the margin requirements intra-day...This way, you basically know, if the remote chance of some smaller firm goes under, what your maximum exposure would be...Otherwise, obsessing about this non-stop is really a great way to develop a bleeding ulcer...
     
    #12     Mar 31, 2003
  3. Who feeds you this stuff?????

    example: You put 25k into an account....
    Instituiton: 10 million

    You or one of these other 'little guys' short a total of 50m, shares of a 5.00 stock....the stoclk rips up and now the firms is in net cap and has to file a SIPC.......

    SIPC covers up to 100,000 in each account on CASH claims and
    500,000 in securities

    You get a check sent to you in a few weeks for 25k and you go off to the next firm

    the "big institution" get's a check for 100K and is out 9, 900,000 because SIPC doesn't cover it


    ....yeah, little guys are getting screwed:confused:
     
    #13     Apr 2, 2003
  4. white17

    white17


    He doesn't want to work. He wants someone to take care of him.
     
    #14     Apr 2, 2003