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Best capitalized brokers which do not rehypothecate?


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Best capitalized brokers which do not rehypothecate?

  #1 (permalink)
maxplanck
Chicago IL
 
Posts: 19 since Sep 2011
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Which are the best capitalized brokers that do not rehypothecate, and which offer a way to trade that is free of rehypothecation through the entire order execution and delivery process (execution, clearing, etc)?

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  #3 (permalink)
 
Lornz's Avatar
 Lornz 
Oslo, Norway
 
Experience: Advanced
Platform: CQG, Excel
Trading: CL
Posts: 1,193 since Apr 2010



maxplanck View Post
Which are the best capitalized brokers that do not hypothecate, and which offer a way to trade that is free of hypothecation through the entire order execution and delivery process (execution, clearing, etc)?

All brokers/FCMs hypothecates. One needs to keep one's account value above the margin requirements, or one will be liquidated.

I assume you are referring to rehypothecation, meaning that they use your account as collateral for their own trading?

Are you looking to trade futures and/or equities?

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  #4 (permalink)
maxplanck
Chicago IL
 
Posts: 19 since Sep 2011
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Yes, I meant rehypothecation. Thanks

I'm looking to trade both equities and futures. However, if there is an equities only broker which provides a far superior level of capitalization, then I would trade equities w/ them and futures w/ another broker.

I appreciate your responses very much Lornz, Thanks again

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  #5 (permalink)
maxplanck
Chicago IL
 
Posts: 19 since Sep 2011
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Trying to position safely re:

MF Global and the great Wall St re-hypothecation scandal

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 bluemele 
Honolulu, Hawaii
 
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maxplanck View Post

How much does it cost to have a seat at the exchange and trade your own without going through a brokerage? (not sure if that is all that is required)

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  #7 (permalink)
ddouglas
New York, NY
 
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bluemele View Post
How much does it cost to have a seat at the exchange and trade your own without going through a brokerage? (not sure if that is all that is required)

If you buy (or lease) a seat, what you get is priviledges. Reduced transaction cost, etc. But even if you own a seat outright, you still have to have an account to trade for. Which means a brokerage (FCM, clearing firm, pick-your-terminology).

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Last Updated on December 11, 2011


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