Penson

Discussion in 'Retail Brokers' started by JohnTrader, Mar 28, 2012.

  1. LOL .... you are the only one with a valid excuse to keep money there. You're high!!!

    On a more serious note why would anyone choose what is a potentially weak counter party to keep money with? I honestly do not get it. I would not keep a dime with any firm I thought was weak and I would love to hear the argument for doing so.

     
    #31     Apr 7, 2012
  2. I'm actually really concerned with Penson since their latest screw ups with 1099 Tax Documents is really bad. With all those errors, seems like they're running a shell company. No one manning the wheel. I'm actually worried.

    However, isn't our money protected by SIPC? Isn't that guaranteed by law?

    When MF Global went under, did all the customers with SIPC protection get their money back?
     
    #32     Apr 11, 2012
  3. magicz

    magicz

    I have a IB account with them and I dont feel the need to close it down and go somewhere else. They do take on more risk with the margining of certain products but they charge a lower margin interest then most. Just dont have all your trade money with them and if they get insolvent you have to wait.
     
    #33     Apr 11, 2012
  4. Should NEVER be a factor to be considered.

    If you have reason to be worried about the safety of your capital, you should take action.... and not just hope the regulations will save you.

    Regulations aside, all MF Global customers SHOULD have been protected... yet, look where they are.
     
    #34     Apr 11, 2012
  5. Amen!!!

     
    #35     Apr 11, 2012
  6. magicz

    magicz

    It all depends on the type of account you have with firm. futures and FX account are not protected, though it can be insured with an outside insurance company.
     
    #36     Apr 11, 2012
  7. I don't know about "FX accounts"... but one could choose to access FX markets via futures... which are supposed by law to be segregated from broker/FCM assets.
     
    #37     Apr 11, 2012
  8. magicz

    magicz

    yes but you're still pooled with other "customer" accounts so if one of them blow up huge, you wont get your money back.
     
    #38     Apr 11, 2012
  9. Not clear that you understand.

    While what you say MAY be true in the theoretical extreme, that's not supposed to happen... some safeguards to be exhausted before.... which are highly unlikely to occur "big enough" to impact customer equity... notwithstanding criminal acts/fraud by Corzine-like persons-in-charge.
     
    #39     Apr 11, 2012
  10. magicz

    magicz

    but it did happen by your example. everything we do involve some risk. if you dont like or tolerate the risk dont have your money at penson. IMHO the services they provide far out weight the risk I am taking.
     
    #40     Apr 11, 2012