I would like to start a thread about customer account protection in the future market because at this point I´m not really understanding what would happen with my funds if my broker goes bankrupt.
I´m remembering the Refco bankruptcy. Does anyone knows what happened with the customer accounts?
IBKR is a BD and velocity is not..... all broker-dealers registered with the Securities and Exchange Commission (SEC) are SIPC members and as such under SIPC coverage .... SIPC is limited in the risks, amounts, and investments that it covers. follow the links and educate yourself.
no problem .... There are only like 4 fcm's that are also broker dealers within the small account range as you will see from the xls file on the link. The good thing about that Data from Cftc is that it allows you to determine your level of risk based on customer holdings.
Advantage is great, though they are lacking on the account management platform part ... if you are committed to ninja, that might be an issue ... They do offer cqg, which will give you what you need ... For a fee of course.
Your alternative would be to look at vision financial, given rithkic has eurex ...or mfglobal ... Besides ibkr of course... Assuming you want to remain with sipc protection. In either case, you can negotiate the comme just like with advantage.
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Concerning the event of bancruptcy CTFC indicate that:
"Customer funds in segregation have a bankruptcy preference in the event of FCM insolvency" [...] and that "To the extent that customer funds are not sufficient to pay customer claims, the remainder of what customers are owed will participate pro rata in the distributions to unsecured creditors of the bankrupt FCM."
( Futures Commission Merchants (FCMs) & Introducing Brokers (IBs) - CFTC )
So what is mean by "bankruptcy preference" and "unsecured creditors"?
Does anyone remember the Refco bancruptcy and what happened with the customer accounts?
I have a question. What about IB's So lets say there's an IB for velocity,can you assume that you have the same protection as velocity if you're with the Introducing Broker instead of the FCM itself, since you account are basically with them?