DislikedEhh... be careful there. While it's true that some might, don't for one instant think that those plans cover their depositors until you've read the fine print. It's very easy to think you're covered, when in fact you aren't.Ignored
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DislikedEhh... be careful there. While it's true that some might, don't for one instant think that those plans cover their depositors until you've read the fine print. It's very easy to think you're covered, when in fact you aren't.Ignored
DislikedNah, you didn't. It just concerns me a bit when ppl play w/ generalizations. I think a lot of people assume they are protected, then something like Refco comes along and all the years of hard work come tumbling down. A cry of \"But there's investor insurance!\" won't matter if it turns out the terms of coverage aren't so generous.
While having external protection is certainly useful, and if you're running a fund for other people absolutely necessary, I think it goes the wrong direction. Instead of looking for what protections others give you, look to build protections for yourself. Diversify your trading activities and keep tabs your broker's liquidity. Be proactive in managing your risk.Ignored
DislikedAccording to the SIPC's website Forex isn't covered. However there's a big grey area there, large enough to drive a truck thru. Did you read the thread I linked to?Ignored
QuoteDislikedTo Whom It May Concern,
I would like some information about your coverage of brokerage forex accounts. Your policy specifically does not cover currency. However, brokers such as Interactive Brokers do not handle forex as contracts but rather use a system of debits to the various cash currency accounts (i.e. one for EUR, one for USD, etc.). Are these types of forex transaction and the resulting cash positions covered by the SPIC cash protection policy?(i.e. $100,000)
Thank you for your time.
Regards,
DislikedNod. The question we had for IB was whether a person had a mixed account, and used it to trade both, would their cash balance be protected by the SIPC? Obviously their FX trades wouldn't be, but would their cash balance?
Or does the fact that the account has made forex trades invalidate that?Ignored
QuoteDislikedHaving something in your account that is not covered by SIPC does not invalidate your entire account.
QuoteDislikedHow is the situation if the Broker is also a Bank? Are my deposits protected then? Like for ex. with Saxo Bank
QuoteDislikedSaxo Bank is a member of the Guarantee Fund for Depositors and Investors supervised by the Danish Ministry of Economics and Business Affairs. In the unlikely event that Saxo Bank should run into financial difficulties, your cash deposit of up to DKK300,000 (approximately EUR40,000) and securities of up to EUR20,000 are guaranteed by the fund. Other independently-owned physical securities such as shares or bonds will be returned to you in accordance with the laws that establishes segregation for such securities, provided that no prior dispute about...
DislikedSafe harbour - cash.
Do your own homework, don't expect others to do it for you. You are probably going to lose whatever money you put into it anyway (because you need to be able to research and reach your own conclusions, if you can't manage even this elementary 101 skill to arrive at a solid opinion you can literally bank on, the rest will be history).
Forex is for risk capital only.Ignored