In my opinion, there is usually strong correlation between CFTC/NFA reparations and problems a la MFG & PFG. The more reparations--PFG had many--the more likely there is malfeasance at firm. I will ask my broker more about this tomorrow, but think about it: logic says any FCM's capital on hand does not really say anything about its finances if there is firm-wide fraud... you can theoretically have $1 trillion in extra money, but if there is fake accounting, this can be the same as $1 for all it matters. To me, the FCM's integrity and past history is paramount.
Insurance is welcome... I have read the CFTC is considering this now, but nothing comes free. Money will come from traders, so I would not be surprised if commissions will increase across the board. I would not mind paying an extra 10 cents or even 20 cents per side to know my money is safe even if an FCM or bank goes bust.
PFG was caught after the NFA told PFG they would stop relying on paper statements and confirm the firm's assets independently via its bank. So electronic confirmation seems the way to go.... unless the banks collude with FCM, which seems less likely, this will protect investors much more than in past. I can't believe the NFA in this day and age was still relying on paper statements--anyone can forge documents in Photoshop. This is what to me is most alarming.
I am just surprised they did not do this sooner... but there is nothing risk-free anyway except from futures trading insurance scheme I noted above.
