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Client fund safety? Broker going out of business

  • #1
  • First Post: Jul 13, 2010 9:32pm Jul 13, 2010 9:32pm
Can anybody suggest a FXbroker who is not only regulated in reputable country! but aslo provides security of funds by SIPC ( I think that is the us insurance)
I am one of the victims of the recent debacle in Australia of a Saxo bank white label partner called Sonray

It seems in Australia all OTC market makers accounts are
1 Clients fund are co mingled ( just being in segregated account does not provide protection)
2 If Broker goes belly up then the funds and positions become unsecured creditors

Moksha
  • #2
  • Jul 14, 2010 12:44am Jul 14, 2010 12:44am
Quoting moksha
Can anybody suggest a FXbroker who is not only regulated in reputable country! but aslo provides security of funds by SIPC ( I think that is the us insurance)
I am one of the victims of the recent debacle in Australia of a Saxo bank white label partner called Sonray

It seems in Australia all OTC market makers accounts are
1 Clients fund are co mingled ( just being in segregated account does not provide protection)
2 If Broker goes belly up then the funds and positions become unsecured creditors

Moksha
There are probably quite a few although I seem to remember reading somewhere that forex was exempt from SiPC protection.

Wasn't it Interactive Brokers who devised some unique way of 'sweeping' excess funds from FX clients accounts and putting it in an equities trading account (covered under SiPC), give 'em a call and ask a rep or an account manager.
  • #3
  • Jul 14, 2010 6:31am Jul 14, 2010 6:31am
Hi Pipmutt-

I don't trade with Interactive Brokers (and I am not affliated with them in any way)- but i find it suprising that they might even consider doing something that's not straight-forward.
For Instance, though they have an office in India- they accept clients who are only interested to trade equities in Indian exchanges. They flat out refuse to allow Indians to trade Forex or in overseas exchanges because they still have not got any go-ahead from RBI.

Regards,
Scalper
  • #4
  • Jul 14, 2010 6:49am Jul 14, 2010 6:49am
Quoting Scalperforex

I don't trade with Interactive Brokers (and I am not affliated with them in any way)- but i find it suprising that they might even consider doing something that's not straight-forward.
Hi Scalper

I can't see why client's transferring funds between accounts would be anything less than perfectly straightforward, I'm sure IB wouldn't entertain anything which wasn't.
  • #5
  • Jul 14, 2010 11:50pm Jul 14, 2010 11:50pm
Hi Pipmutt,

Please diregard my previous post. For some reason I completely misunderstood your post's content/context. (Don t ask me how, but for some reason I thought you meant IB swapped funds between clients accounts)...
I just re-read your post and i seriously can't figure out how i misunderstood it. I apologize for that.

Regards,
Scalper.
  • #6
  • Jul 15, 2010 3:12am Jul 15, 2010 3:12am
Quoting Scalperforex
Hi Pipmutt,

Please diregard my previous post. For some reason I completely misunderstood your post's content/context. (Don t ask me how, but for some reason I thought you meant IB swapped funds between clients accounts)...
I just re-read your post and i seriously can't figure out how i misunderstood it. I apologize for that.

Regards,
Scalper.
lol, I just read it again too, I can see how it could have sounded like I was saying that IB were doing something not quite on the level!

I wonder how good that SiPC protection is, can't say I've ever read/heard of anyone putting it to the test.
  • #7
  • Last Post: Jul 18, 2010 7:05am Jul 18, 2010 7:05am
Hi,

You can try then Dukascopy or MIG. Both have agreement as swiss bank. But Dukascopy offer a great feature as you get segregated account if your account is over 100k. That's the best protection ever, despite being a bank & having swiss insurance. BUT take care all insurance by governement have maximum cover. You can't get that I think for 10 million. Usually I saw it's about 10k$-100k$.

Hope it helps
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