Safe Futures Broker to park your money

Discussion in 'Professional Trading' started by Futuresscalper, Jul 31, 2007.

  1. Guys I trade full time have posted some here before on various subjects but right now I would like some feedback on brokers where I can park 50k somewhere well capitalized and are basically safe and have a reputation for the long haul. I have a 100k in one account now and would like to split it up just wanted some feedback on some of your experiences out there. I trade futures full time primarily energy (CL) and once in awhile the YM thats it. Any feedback would be appreciated. As we know futures brokers are not as tightly regulated so you can never be to careful. Tradestation is not an option because they dont allow daytrading margin on energies its full margin all night and day.

    Thanks in advance.
     
  2. For futures, I would say Interactive Brokers or Optionsxpress, altough the latter charges higher commissions.

    SIPC covers up to 500k, 100k cash, but best contact SIPC to be sure they cover the futures you intend to trade.
     

  3. Wrong. There is no "insurance" whatsoever, government or private, for a futures account.

    "Universal" brokerages can not provide insurance for funds that are encumbered or otherwise segregated in reference to futures instruments. SIPC covers cash and securities only. http://sipc.com/how/covers.cfm

    Osorico
     
  4. Although I don't have an account with IB, I would say with their reserves they are one of the best capitalized firms out there.

    http://www.cftc.gov/tm/tmfcm.htm
     
  5. I was going to say that didn't look right, the OP's post, honest mistake. I was so tired it went over my head. Here's an out of the box suggestion, I am considering. Use a futures brokers in Canada, all brokers in Canada, no matter what they trade have "insurance" for customers. It's called CIFP I believe. Sorry I am just beat, give it a google. A rep. from CIFP told me all customers regardless of nationality receive this protection. Alt Futures, google, is Canadian based. Maybe some nice Canadians can fill in the rest of the blanks for us.

    Furthermore, you can get an audit sheet from NFA/CFTC showing deposits for customers for US based brokers. I feel confident with both Velocity and TransAct Futures. Nothing personal against Global Futures, but I will never deal with a broker that allows $300 margins. That's just begging for insolvency down the line IMO. $500 is good for me. IB is twice that I believe and they have an auto liquidate feature when you go below their margin requirements, which has it's own pros and cons. Good luck and good question, not asked often enough.
     
  6. BJL

    BJL

    apart from your margin requirements the rest of your cash is in an equities account and covered by SIPC.
     
  7. Pippi436

    Pippi436

    Is the SPIC insurance somehow capped at a total amount they will pay out? Can SIPC stay solvent if an institution the size of IB will go under?
     
  8. katesdp

    katesdp

    Buy a T-Bill.


     
  9. Wiseguy this question was based on the fact that I make good money trading futures and wanted a run down on some futures firms because all are not equal. Maybe you should take your 5k that you have and buy a T-bill. Of course you being such a veteran you took the liberty of posting with that answer, what a jerk off. Go back and give mommy her money back.
     
  10. BJL

    BJL

    buy a t-bill as collateral was what he meant, you arrogant fool
     
    #10     Aug 1, 2007