We all know RefcoFX default customers' deposit. All customers' money or cash in account have been lost. What does this tragety happen? What do we learn from this bitter lesson? The following message is the research on this issue to wake you up and alert. Be aware. the critical word affecting risk of deposit on Forex is a big difference of affiliate and division. For example, RefcoFX is an affiliate of regulated entity Refco inc, not a divisoin of Refco inc. RefcoFX is an unregulated company. If RefcoFX is a division of Refco, deposit of customer is safe. Now we know that RefcoFX default to deposit of customers. Give another expample of a comany called Interactive brokers Canada. It is still in business. In its website, it said Interactive brokers Canada is an affiliate of Interactive brokers group LLC. Reality is as true as it said on the web. But its representive said in another way that Interactive brokers Canada is a division of Interactive brokers group LLC. Be careful !!! What I found is the following You can search on NFA website to get three regulated entity as following INTERACTIVE BROKERS group LLC INTERACTIVE BROKERS INC INTERACTIVE BROKERS LLC Three different ID number to assign to each of them but INTERACTIVE BROKERS INC and INTERACTIVE BROKERS LLC is a same entity. INTERACTIVE BROKERS group LLC is a parent company. Its only affilate company called INTERACTIVE BROKERS LLC which is a USA affiliate is regulated company. the other affliates are not member of NFA. INTERACTIVE BROKERS Canada is not regulated company to retail Forex business. Please post your argument on this issure. INTERACTIVE BROKERS Canada recently become a member of CIFP. The recent move gains INTERACTIVE BROKERS Canada some credibility. I feel IB canada is a small company. You know it when you see how viewer rate it. Two years ago there is almost no customer service when you call in. Now you can get customer service in a few minutes but how good is its customer service? You will taste it when you call them. But I warn you dont complain. They are improving. Remember there is no customer service two years ago ( not remeber 2 or 3 years ago exactly ) I will post any finding late.
Message to IB Canada At first, dont fool people on era of Internet. Only honesty can gain business. Going to NFA to register if you want to be regulated company on Forex business like your recent move to CIFP. It just a click away to know you are a member or not. You are not a division of IB group LLC. You are an affiliate of it. That is big difference
This post is not anything to take offensive to IB Canada intentionly. You can see a lot of threads on this forum to talk about IB Canada, bad or good, agree or not agree. It is all about exchanging ideas and information how our corpration doing on its buisiness. Customers need service. This post come out just several hours. It earns your high mark thanks to God. Remember this post is not from your rival company. and I belive most posts about IB Canada is from its customers and experience its customers enacount. If you have your own argument, please post it. Some views in the post may not be right or correct. Please stand up and correct it using your knowledge and courage. Dont be outrage and jump up. Nobody want to offense you, my son. And also remember this is in Canada or USA soil not in China communist regim. Dont lose your face. Peace with you Amen.
You obviously have no idea on how the regulators and regulations work. I'll post the insurance coverage below and be done with this. You're way off base on your accusations and I agree, this thread should be closed. At least do some proper research before making such an inappropriate post... Securities Account Protection Interactive Brokers Canada Inc. is a Member of the Canadian Investor Protection Fund (CIPF). As such, your Interactive Brokers Canada account is covered by CIPF for up to $1,000,000 for losses related to securities and cash balances that result only if Interactive Brokers Canada becomes insolvent. CIPF does not cover customers' losses that result from other causes such as changing market values of securities, unsuitable investments or the default of an issuer of securities. Separate accounts of customers are each entitled to the maximum coverage of $1,000,000 unless they are combined with other separate accounts. In addition to CIPF coverage, customer securities accounts at Interactive Brokers are protected up to $30 million (including up to $1 million for cash). The market value of your stocks, options, warrants, debt, and cash -- denominated in all currencies -- is covered by this insurance. Futures, options on futures, and single stock futures are not covered, but available cash will be swept from your futures account to your securities account periodically so as to take advantage of insurance coverage as much as possible. As with all securities firms, this insurance provides protection against failure of a broker-dealer, not against loss of market value of securities. This protection is provided by the Securities Investor Protection Corporation (SIPC) and Lloydâs of London insurers. SIPC provides the first $500,000 per customer (including up to $100,000 for cash). For customers who have received the full SIPC protection, the Lloydâs policy provides up to an additional $29.5 million (including $900,000 for cash), subject to an aggregate limit of $150 million. For the purpose of determining a customer account, accounts with like names and titles (e.g. Individual/John Smith and Individual/John Smith) are combined, but accounts with different titles are not (e.g. Individual/John Smith and IRA/John Smith). SIPC is a non-profit, membership corporation funded by broker-dealers that are members of SIPC. For more information about SIPC and answers to frequently asked questions (such as how SIPC works, what is protected, how to file a claim, etc.), please refer to the following websites:
thank you def for your clarification here and all information provided. But I am sure even though you dont bother to post here, everyone can collect those information from either IB Canada website or customer service. There is nothing new to most IB Canada customers. As original post raise concern, IB Canada is affiliate of its parant company. IB Canada is not NFA member. Even its parent is member of NFA, it does not prove IB Canada is regulated company for Forex business because it is a only affiliate not a division of its parent company. I would send message to IB Canada representitve be careful to speak a affiliate not division. You should act professionally. Be careful how you practice business. and I like to mention that IB American affiliate is a member of NFA or regulated company for Forex business. You can search NFA website to prove it. The final complain would bring you or IB Canada to NFA to clarify. Because some customers didnt pay attention on this quite important issue until RecfoFX default customers' deposit. I tell you I am not victim of RecfoFX. But I believe what effor I do is worth in the future. I learn a lot from following this matter. You are absolutely welcome to post anything related issure. but just killed this thread is not a good manner to do in the forum. It could work on a publisher you own but not here I think. Am I still logic? Peace with you Amen
Why a Canadian company has to be regulated by US regulators? All people around the world have to get permissions from US before they do something? IB Canada is regulated by IDA, the Canadian regulator. Go to IDA website to look for that.