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What if something happens...

  • #1
  • First Post: Mar 10, 2006 7:21am Mar 10, 2006 7:21am
Hi,

This is something that has been bugging me for the last few months. What happens to the fund in the trading account when something terrible happened and the account owner is mentally and/or physically incapable of managing it? Worse, when the owner is dead (touch wood!). From my experience with the online brokers so far, correspondence is normally by email. All the info regarding the trading account is normally available when we log in. So as you can see, there's no hard copy mailing. How will your next-of-kin know about your account?

Of course, most of us (I assumed), will inform our next-of-kin accordingly. That's good and fine. What about those who forgot or just didn't want to? In that case, what will happen to the fund?

I suppose this is something I should ask the broker. It just that I'll would like to know the feedback from this forum.

Thank you.
KISS
  • #2
  • Mar 10, 2006 11:49am Mar 10, 2006 11:49am
Quoting wee
Hi,

This is something that has been bugging me for the last few months. What happens to the fund in the trading account when something terrible happened and the account owner is mentally and/or physically incapable of managing it? Worse, when the owner is dead (touch wood!). From my experience with the online brokers so far, correspondence is normally by email. All the info regarding the trading account is normally available when we log in. So as you can see, there's no hard copy mailing. How will your next-of-kin know about your account?

Of course, most of us (I assumed), will inform our next-of-kin accordingly. That's good and fine. What about those who forgot or just didn't want to? In that case, what will happen to the fund?

I suppose this is something I should ask the broker. It just that I'll would like to know the feedback from this forum.

Thank you.
Do you think that you have a grand grand father with a big account and you don't know? Just joking, it's a good question
Try hard, think fast, die young
  • #3
  • Mar 12, 2006 2:58am Mar 12, 2006 2:58am
Quoting wee
Hi,

This is something that has been bugging me for the last few months. What happens to the fund in the trading account when something terrible happened and the account owner is mentally and/or physically incapable of managing it? Worse, when the owner is dead (touch wood!). From my experience with the online brokers so far, correspondence is normally by email. All the info regarding the trading account is normally available when we log in. So as you can see, there's no hard copy mailing. How will your next-of-kin know about your account?

Of course, most of us (I assumed), will inform our next-of-kin accordingly. That's good and fine. What about those who forgot or just didn't want to? In that case, what will happen to the fund?

I suppose this is something I should ask the broker. It just that I'll would like to know the feedback from this forum.

Thank you.
It is good to have representative but I didnt see in any broker that I could have one. I think that forex is too young market that was too much accidents like this. In my opinion it could be very hard to resolve this except you are in the country where the broker is.
  • #4
  • Mar 12, 2006 4:20am Mar 12, 2006 4:20am
I have been asking this question to myself many times...What if I died or anything wrong happens to me...How will others be able to make use of my accounts and withdraw the money from them, provided that I am an Egyptian resident and all of my accounts are with US brokerages, either for stocks or for forex..

If anyone have a solution, please tell me


Thanks,

Nader
  • #5
  • Mar 12, 2006 11:30am Mar 12, 2006 11:30am
Write a will.
The framework is there; we just have to work on our frame of mind.
  • #6
  • Mar 13, 2006 1:24am Mar 13, 2006 1:24am
For those traders who have already informed someone of their accounts, there should not be any problems, as far as I know. In situations like this, it's probably just a case of proving the relationship (I hope!). If legal issues do arise, it can be very messy when the claimant is not in the same country as the broker (as pointed out by Tomecki).

For those traders who did NOT inform anyone, then it's another story. This is especially so for those who does not use stop loss. Imagine the trader laying in coma in a hospital while his account is being reduced to a margin call situation over a period of time. What a waste! Talking about cutting loss, I think we should look at stop loss from this point of view too.

For those inactive accounts without claimants, I guess after a long period of time, our friendly brokers will get to keep the funds!

Dof, I have started a research on my family tree for THE grand grand father. If I find him, there might not be a need for me to trade anymore .

Thank you.
KISS
  • #7
  • Mar 13, 2006 5:34am Mar 13, 2006 5:34am
Quoting wee

Dof, I have started a research on my family tree for THE grand grand father. If I find him, there might not be a need for me to trade anymore .

Thank you.
Good luck
Try hard, think fast, die young
  • #8
  • Last Post: Mar 17, 2006 6:35pm Mar 17, 2006 6:35pm
Quoting wee
Hi,

This is something that has been bugging me for the last few months. What happens to the fund in the trading account when something terrible happened and the account owner is mentally and/or physically incapable of managing it? Worse, when the owner is dead (touch wood!). From my experience with the online brokers so far, correspondence is normally by email. All the info regarding the trading account is normally available when we log in. So as you can see, there's no hard copy mailing. How will your next-of-kin know about your account?

Of course, most of us (I assumed), will inform our next-of-kin accordingly. That's good and fine. What about those who forgot or just didn't want to? In that case, what will happen to the fund?

I suppose this is something I should ask the broker. It just that I'll would like to know the feedback from this forum.

Thank you.
You bring up an excellent point!!!!!.....

I would be concerned especially for longterm position holders... I try to be flat everyday, but say if you're in a long term profitable postion & you kick the bucket... Who makes the decision whether when to close it. Worse still, we get a major world event whilst your next of kin & the broker are duking it out!!. That could mean 200 to 500 pips in either direction!!. I guess another argument for using stops & limits!!!.
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