Ok guys. I have been trading for several years now and feel good about myself. This has been profitable year and I have found my zone in this market. I have paid my dues, stress tested my system and I can sleep at night. Until now. I traded the tech in the '90s, traded through LTCM, the first, second and third tech melts, and knew that eventually LTCM and all the voo doo games banks play would come up again. I got out before Lehman because I could see "LTCM" leverage all over that market. MFG has me concerned especially when one considers that pretty much any brokerage can re-hypothecate. Options, only options, it's all I do so I know there is no SIPC out there and I don't want my broker frozen in limbo while they sort out the liabilities if something should go wrong. I am with Interactive Brokers and would like an alternative to them. Any thoughts? Thanks in advance.
I don't think there is anyone as cheap as IB, and I haven't used either yet, but what about MB Trading?
Don't think there are too many choices for options. Besides MB Trading, Tradestation has been around a long time. If you trade with them, you get the platform free which is pretty nice.
Mb trading have the re-hypothecate provision, Mirus use RCG who have the re-hypothecate provision. Ditto for Dorman.
What makes you think your options position is not covered by SIPC? If the assets of your margin account needed to be liquidated in a bankruptcy of a broker dealer, your options positions would be liquidated and the value would be included in your claim.
Even if you change brokers you'll probably be in the same boat as with IB. Just because IB got mentioned in that article doesn't mean all others aren't in the same or worse condition. They would probably be if they were investigated in the same manner as IB, and I'm guessing their numbers would be even worse. Might not be the case for very small firms, but then you're looking at a very different cost structure.