Is it bad risk management practice to rely only on one broker?

Discussion in 'Risk Management' started by helpme_please, Dec 30, 2017.

  1. ironchef

    ironchef

    I don't know either, just speculating.

    But like the failed saving and loan situation back then, it took a long time to get your money back because the Agency needs to verify your claim and make sure it is legit, etc. And I am not sure you will get your stocks/security back or just their value at the time of failure so the opportunity costs......
     
    #11     Dec 30, 2017
  2. sle

    sle

    Didn't customers at MF Global lose money, or was it on the non-SIPC eligible contracts?
     
    #12     Dec 31, 2017
  3. spindr0

    spindr0

    During the GFC I only had one ISP. Because of the volatility, it was not unusual for me to have 15-20+ open orders at a time. My ISP went down and I was a bit freaked. Since then, I have carried two ISPs and consider the add'l fee to be the price of peace of mind (whether it be my ISP or IBKR down).
     
    #13     Dec 31, 2017
  4. IAS_LLC

    IAS_LLC

    The "well funded" client is also probably smart enough to realize it's 2017, and cloud servers + cell phones are a thing....and triple redundant internet + generator is a completely unjustifiable fixed cost.
     
    #14     Dec 31, 2017
  5. Robert Morse

    Robert Morse Sponsor

    #15     Dec 31, 2017
  6. Handle123

    Handle123

    Your correct but when you live on ranch, takes them long time to come out, don't want to eat through solar in case going to be several hours. Thinking need to put in more panels as they come down in cost.
     
    #16     Dec 31, 2017
    beginner66 likes this.
  7. Stdray

    Stdray

    I have IB and Tradier account. It's mainly because Tradier supports US stocks only and provides free 1k stocks quote streaming, whereas IB supports other markets and requires purchasing data streams.
     
    #17     Dec 31, 2017
    nanama likes this.
  8. No professional/institutional account would rely on only one broker. Lot's of folks whining today about IB being down and trades only moved against them.
    We use three brokers - it takes some scale, but one day being offline can be more expensive than all those cheap commissions.
    Today was the day that proves why you have multiple points of access.
     
    #18     Jan 5, 2018
  9. drcha

    drcha

    that is good to hear, because I have the same question and have a lot of money in my IB accounts
     
    #19     Jan 5, 2018
  10. drcha

    drcha

    Alex, do you refer to the broker being unable to execute trades within the day? I'm not a day trader (I'm more like a week trader or a month trader), so that is not a big concern to me. I mostly worry about the whole place going under and having >$500K there.

    BTW, I must tell you that I attended some options seminars you did about 12 years ago and you were tremendously helpful to me as a newbie. Thank you.
     
    #20     Jan 5, 2018