regarding Safety of Funds, in that page it is stated that Commodity Futures Contracts and Forex are ineligible for SIPC protection. What kind of "peace of mind" do you propose to Forex Traders?
Forex accounts cannot be insured by SIPC by definition. That’s certainly not unique to us. This is one of the main reasons that the NFA and CFTC has worked so hard to raise capital requirements of forex brokers…so that customer funds are as secure as possible. As I’ve said often in the past, keep in mind that the most obvious “risk” to customer funds at the firm level is when firms are trading against their customers and thus maintaining positions in this volatile market. Since we just pass your trade through, we aren’t subjected to that level of risk that a deal desk faces daily. Probably the next biggest form of risk is customer account supervision, meaning that the firm must have good policies in place to observe all accounts and make sure that they are closed before they go below zero. We have both manual and automated systems that monitor this. Outside of that, we’re not a bank, we don’t lend money, etc. Just things to keep in mind.