SIPC and FDIC are frauds.. they don't have the funds to cover a widespread wipe-out. recently they increased the insurance from 100k to 250k per account without adding more funds in the FDIC's coffers.. what a joke..
i dont see a govt gaurantee. CIPC, SIPC? basically the same - perhaps under-capitalized insurance programs?
Brokers use client money as their own piggy bank and act like the money is theirs. because for the most part, it is. If your broker goes bust, you ain't getting a penny of your money back.
CIPF My account is covered because I am an eligible customer of an investment dealer that is a Dealer Member of the Investment Industry Regulatory Organization of Canada (IIROC) http://cipf.ca/c_home.htm The amount of protection is the 'defined limit' MAXIMUM LIMITS OF COVERAGE A limit has been placed by CIPF on the coverage provided for a customer's General Account, and each Separate Account after combination with other Separate Accounts as described below, equal to $1 million for losses of securities, commodity and futures contracts, segregated insurance funds and cash. The 180-day period for filing a claim to CIPF commences on, but does not include, the date of bankruptcy [of the brokerage]. http://cipf.ca/c_explore_coverage.htm#determination If you question the ability of the CIPF to make good on its committments, you may have a deep hole dug in your back yard containing a generator, gasoline, arms and ammo, and canned food.
If you question the ability of the CIPF to make good on its committments, you may have a deep hole dug in your back yard containing a generator, gasoline, arms and ammo, and canned food. you forgot to add Gold bullion.. question authority. in the end, only the paranoid will survive..
Some of you need to examine a few facts before you come on a website and fuel unnecessary gossip/fear. From the IB website: Important Strength and Security Facts about Interactive Brokers Group We currently hold $4 billion in equity capital. We handle over 1,000,000 trades per day. Memberships held on over 70 exchanges, market destinations, and clearing corporations around the world. We have been in the trading business for 31 years. We have always been at the forefront of trading innovation, starting with the invention of the first floor-based handheld computer in 1983. Customers are protected by $30 million of SIPC and Lloyd's of London securities account protection. Our real-time margin system continuously enforces limits for each account, and automatically liquidates positions if any individual account violates its limits at any time. All orders are automatically vetted on a pre-trade basis. We do not hold CDOs, Subprime Debt, or Credit Default Swaps. With the exception of foreign exchange, we trade only exchange listed products that are cleared through central clearing houses and are marked daily to external closing prices disseminated by the exchanges. Positions and resulting payables/receivables are automatically reconciled against external sources daily. Investment Policy As a regulated broker, IB is subject to SEC and CFTC regulations on investment of customer funds. Permissible investment vehicles include bank deposits and a variety of top-rated government securities and related instruments. IBâs effective investment policy is more stringent than this, reflecting our risk-averse philosophy. We invest customer funds only in government securities and repos, cash deposits in bank accounts at the largest banks and triple A-rated Money Market Funds (in which we invest less than 2% of customer assets). Additionally, we limit customer exposure through the following credit policies: Keeping investments in highly liquid, short-term instruments. Distributing client funds among a variety of banks and counterparties to avoid concentrated exposure to any single counterparty. Rigorous analysis by our Credit Committee of Counterparty Financial Conditions as well as review of risk factors prior to permitting investment activity with or via any counterparty. IBâs investment policy is very conservative. Our strict policies when investing client money minimizes our and your exposure in uncertain credit environments.
We invest customer funds only in government securities and repos, cash deposits in bank accounts at the largest banks and triple A-rated Money Market Funds hahahah i feel much better now ! government... cash deposits in bank accounts...triple A-rated...hmmm just the sound of it... it's wonderful !!