Discussion in 'Retail Brokers' started by turkeyneck, Mar 17, 2008.
If BSC can go under, any broker can go under. Any thoughts?
bsc didnt go under, they are being bought and fed is guaranteeing their liquidity, this will save people with money there. Im keeping my money with stock brokers with segragated accounts like MB and IB
Those who don't have any subprime exposure are safer.
Those who don't invest their own money, only their clients money, are safer.
Those who are conservative about offering margin on unlimited risk trades are safer.
Perhaps brokers like optionsxpress and thinkorswim are much safer?
I googled this topic over the weekend and what I found was the largest broker houses back in 1929 did not fail but that is because they tightened their margin requirements shortly before the crash. Had they not done that many of them would have failed. Supposedly the brokerage industry is more regulated and more secure than it was back then but I still don't have confidence that one won't fail and you wont be out a ton of cash. Google SIPC Insurance for more info...
I think TOS allows anyone to trade naked options. So I don't know if they are really safer or not.
Does Etrade do prop trading?
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