You have obviously been bashing REFCO for quite some time due to issues that you have had with them previous to this. A simple search on ET reveals such.
Do what you want, I could care less. I am only giving my opinion and it is this: If I had money with Refco I would lose a few days in the market to transfer it to another FCM who is not in the situation refco is in. When and If Refco's situation resolves favorably move it back and nothing is lost. However, if more fraud is disovered at Refco and they go under, it will be several months before you see your money and a lot of time and opportunity will have been lost.
You are taking my quote out of context. Your funds will be 100% safe and you will get your money back. However, it would likely take some time, probably several months.
This is not something I would worry about. Banks have very little to do with the margin FCMs extend to clients. When you buy a futures contract it is simply a performance bond given to the Exchange Clearing Corp. Banks have nothing at all to do with this.
I have issues with any firm that is not doing business ethically. There are plenty of good firms out there, why not go with them? Btw a simple search on ET also reveals that you must be obviously affiliated with them
The news release I read said that financial statements from 2002, 2003, 2004, 2004, 2005 could not be relied upon!! Tell us again where you got the $1 billion figure from?
I use them as one of my back up accounts and for pit traded futures and I pulled the plug the day after the news hit (left a few $K in just to keep the account open). I agree with Brandon, not worried about losing my money but don't want to deal with it potentially being tied up and also by moving it out now one less thing to worry about. May move it back in if things resolve as I have had an account with them for a long time and have been pleased with the service and company but for now it is a no brainer and I lose nothing by taking this course of action but gain some peace of mind (not that it is a substantial amount mind you so Refco isn't going to miss it, especially not when they don't miss hundreds of millions ;-) ) To each his own. Isn't Apex some 9 figure hedge fund trader or something? Maybe for people swinging that kind of money around it is a harder proposition to transfer funds (though it really shouldn't be and with a prime broker I would have thought it wouldn't be that hard?)
I have a RefcoFX account and I am a bit worried. Its unregulated so I assume that our accounts could be at risk. I believe that the major banks only have to give back the first $60,000 if they go down (this is in Canada and I think that limit is higher now).
Back when I took my Series 3 exam the FX stuff was not a big deal, I do not recall any questions on the test about it so I do not know for sure. I would strongly doubt though that the Exchange Clearing Corp would want to back up stuff that is on an FX only account seeing as how they have never seen any of that business. If I had an FX account with them I would call an attorney who knows the commodities business well and spend a few bucks to get a few minutes of his time to know for sure. My best guess though on FX is that you would be up shit creek. Brandon
if you are referring to FDIC-type insurance, it protects against the bankruptcy of the bank, not of the FCM. If the FCM goes bankrupt you will be standing in line with the other creditors and there is no guarantee to the amount you can recover.