What are the safest futures brokers? MF Global and PFGBest have me worried! Besides selecting a safer broker, is there anything else a futures trader can do to keep their money safer?
With interactive brokers you can set, in account management, to sweep cash into the securities account that is sipc insured. The interactive brokers universal account is both a securities and futures account. For example you could be long a portfolio of boring dividend stocks and then use them as margin to trade futures or options on futures.
if u are a small trader, keep opening multiple accounts. If u are a big trader, u have the power and higher educated.
Any broker can commit fraud. Regulators need to put better protections in place that actually work and protect our funds. Velocity is near bottom here: http://www.zerohedge.com/news/first-mfglobal-now-pfg-who-next
This statement is misleading. Cash used to trade futures or forex is not SIPC protected even if it is swept from the commodities sub-account into the securities sub-account of your Universal account. Confirm this with IB and with SIPC. You can reach SIPC via asksipc@sipc.org.
I'm considering transferring business to ADM Investor Services. Because ADM is a highly profitable physical commodity processing business, with billions in physical assets I feel good about the firm and the direction they're heading in. ADM Investor Services is a very small portion of ADM's revenue, but they realize how important their clearing firm is because if not for it, they probably would have had millions on deposit with other, less stable FCMs. Most other FCMs, as I can see, are purely financial companies. Their *EXCESS NET CAPITAL* is strong @ $120mm, and $3.07bb in customer segregation. If there's a better choice I haven't found it yet.... PM me if you need a contact. I still clear @ Dorman and RJO Brien, FWIW. Good luck!
thats the dumbest thing i've ever seen. I guess RCG is ready to go under, they are one off the bottom. and the guys at the top would have gone under if not for the bailout.
Well, as a customer of theirs, I can't say that I'm exactly happy to see them down there, regardless.