So with which broker can I rely to trade with? I was with IB and heard their commercial about being a save haven. (I switched over to infinity due to cheaper fees) Are there any others? What about all the brokers with the cme group? Suppose someone goes bankrupt, is my money safe? If so up to how much?
Any broker with associated with the CME Group is a FCM and as such funds deposited with an FCM are not insured, like securities accounts and the SIPC. If a firm does go belly up, the assets are usually purchased by another firm. These assets are generally considered safe against firm default because these funds are segregated from firm operating funds. (see Refco situation and the subsequent resolution).
Can we generate a list based on what the broker's web site tells us? This is from Open E Cry 6. Deposited Cash and Property. You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specified legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall. So basically there is no protection for my account in the event that they declare bankruptcy.??? Do I have that right? I also have an account with IB. I've hesitated to get involved with them due to so many users saying they arrogant toward traders. But maybe that's the safer bet... From their website: "Interactive Brokers LLC is a member NYSE - FINRA - SIPC and regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission" So is my money insured by SIPC? What is the best keyword to look for when choosing a broker? I am in futures. SIPC?
This has been beaten to death on this board already. SIPC only covers securities and cash, it does not cover futures. So if you have an account with OEC or Mirus or Dorman (or any of the other FCM's) then you have NO account protection afforded by SIPC. Customer funds are segregated but that is no guarantee of full reimbursement.
Does anyone know if any of the well regarded FCM brokers carry extra insurance to cover client cash accounts?
well if sipc covers cash then as long as I am out of the market (overnight) my money theoretically is safe
NO. Accounts held with FCM's are not covered by SIPC insurance, whether you are sitting in cash or not. Period. The only way you are covered is if your FCM is a member of SIPC: http://www.sipc.org/who/database.cfm
well if sipc covers cash then as long as I am out of the market (overnight) my money theoretically is safe --------------------------------------------------------------------------- Only up to the limit of SIPC protection for cash.