I want to open trading account in Open e-cry. Ilike their soft but what worries me that: Q19: Are my funds insured or otherwise guaranteed? A: No. Aside from the protection afforded above, there is no FDIC, or SIPC similar insurance protecting your deposited funds. Any experience with this brokerage?
Your funds would be in a segregated account separate from OEC accounts per CFTC regulations. I had a futures account with Refco when they went belly up and it was not even an issue. However, those folks who had funds in their unregulated business based in Bermuda were kinda screwed by the bankruptcy. Stick to futures and you should be ok. SIPC insurance is a joke anyway.
Does their statement means that company dont have insurance at all? Lets say they file for bancrupcy and you can say bye bye your $$$.
Read what I just posted above! I went through that with Refco and did not lose a dime. If you don't know about Refco do some research on it. My guess is that you would lose your money faster than they ever could based on this thread so far.
Good luck finding a futures broker that has insurance on your funds... Maybe they are out there but have never come across that myself.
that is not how futures brokers work. It has nothing to do with OEC. The futures industry is segregated funds, backed up by clearing firms, etc. etc. Only Futures traders came out of the Refco situation pretty much intact. Insurance guarantees nothing in an economic collapse.
I guess you're not familiar with IB, eh? Just in case, IB has what they call a Universal Account. When your cash is sitting in the Universal Account, it is insured by SIPC, and under certain conditions by Lloyd's. Overnight futures trades are cleared at night. At that time whatever your overnight margin on a futures trade is transfered, and at that time is no longer insured. But the remained of your funds remain in the Universal account where it is insured. Day trades your funds stay in the Universal account. Only losses would be transferred out, and profits transferred in at the end of the day. OldTrader
. Well, I posted the below on the other OeCry thread so I'll just copy it over to here...... it does not address exactly what you were asking ....... but it's pertinent. ....................................................................... I tried Open eCry ....for a short time.....not impressed. I say the following ........ ( knowing that I may not know all the facts )...but this is my best understanding. I changed over to "Infinity" .....in Chicago. Closer connection with TransAct.......(which clears Open eCry). I'm very happy with them. It's the same platform......the old yes trader DOM. It's the same clearing firm. It's just a better connection. Infinity is TransActs best customer. You can go directly with TransAct.....but there's a minimum. Not so with Infinity. You'll still have to get a quote on rates. ..( I also hate that...why don't they just put a number out there based on Vol...and stick with it). I have no connection with them other than being their satisfied customer. PM me if you want to know a good broker there....... I'll give you mine......and he'll love that ! Oh.....and unlike IB you have some humane support on the phone. Regards, Ray
Ray - while you are impressed with Infinity, I was not. The rates I was quoted was not even in the ballpark of what OEC is charging me. Point being, make sure to do your homework and contact a few brokers when deciding where to trade. For me, Infinity was not even a remote option.