What is the risk of losing my money with a futures broker ?

Discussion in 'Trading' started by puretruth, Nov 19, 2009.

  1. How many examples do you know of people who lost money with a futures broker ? (not by trading themselves of course )
  2. MTE


    Futures accounts are segregated so your money is fairly secure no matter what happens to the actual broker.
  3. Your money is only segragated from the firm's money, not segregated from that of other clients. It is conceivable that a large client could wipe ot the funds or some of the funds of other clients. I don't know what would happen in that circumstance. I know only of one broker, IB, who holds your segregated funds in an insured stock account even if you day trade futures. That for me is secure.
  4. How many times has this already happened ?

    Any examples ?
  5. MTE


    In case of Refco futures accounts didn't lose anything, only the forex ones did (along with other OTC).

  6. No surpise here since forex is largely unregulated, looks like it is difficult to find a futures broker where customers lost their money...
  7. wrong

    US fx brokers are regulated by the same agencies as futures brokers:
    Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA)
    likewise in the UK the FSA, Canada the 13 provincial regulators, Australia the ASIC
    Russia the FRA (KROUFR), EU by the regulators of the country they operate from

    'Where Does the Money Sit When Commodity Trading?'

  8. A LOT of forex brokers operate from unregulated offshore jurisdictions...
    #10     Nov 23, 2009