best futures broker
- Thread starter fred1
- Start date
To start off, I would like to mention that I am a broker with Global Futures so please keep that in mind with what I say.
There is currently no insurance available on Futures accounts. SIPC is a regulatory function of the Equities market and is not available for futures accounts.
I can't obviously speak to what IB does in their accounting practices in my position but they cannot insure funds that are actively used in the futures market.
Also, I have personally looked for a private firm that would offer Clearing Counterparty Risk Insurance and I have not found any.
I would say that if as Futures and Commodities traders you would like to have similar protection as SIPC, you should contact your congressman and senator.
There is currently no insurance available on Futures accounts. SIPC is a regulatory function of the Equities market and is not available for futures accounts.
I can't obviously speak to what IB does in their accounting practices in my position but they cannot insure funds that are actively used in the futures market.
Also, I have personally looked for a private firm that would offer Clearing Counterparty Risk Insurance and I have not found any.
I would say that if as Futures and Commodities traders you would like to have similar protection as SIPC, you should contact your congressman and senator.
http://www.sipc.org/How/Covers.aspx
More than 90% of small traders lose! They just lose!
http://www.bloomberg.com/news/2012-...-seen-profiting-at-small-firm-expense-1-.html
P.S
you should focus on mastering the "reloading technique."
practice, practice, practice on reloading your accounts
Reload
AFAIK, that insurance a broker has is for the entire firm - not per account. trust me, if TSHTF that $30 million or whatever limit it is is gonna go real quick.
Likely not.
See https://www.interactivebrokers.com/en/?f=ibgStrength&p=acc
"... under Interactive Brokers LLC excess SIPC policy with certain underwriters at Lloyd's of London for up to an additional $30 million (with a cash sublimit of $900,000) subject to an aggregate limit of $150 million. Futures, and options on futures are not covered."
Remember that for regulatory purposes there are two underlying accounts, a securities account and a futures account. IB sets up a virtualized veneer to transfer cash back and forth between them as needed and calls the package a "universal account" to give you a nice screen of combined balances but there is no such thing for regulatory purposes. The regulation regimes of securities and futures accounts are completely different.
The insurance policy is going to follow the regulatory notion of what an account is, not IB's presentation gloss.
If everything collapsed, they are going to look at where that cash was really being used in trading - securities or futures.
Email them and ask if you want.
Also there is an overall limit of $150 million which would not cover a major collapse anyway.
I have worked with 3 different brokers over a span of 7 years and have to say Cannon Trading has the best customer service I have ever dealt with. They are very prompt and will provide the resources to handle any concerns. Chances are Cannon Trading has the best support I have seen. Brokers are knowledgeable and mine is always quick to respond if I have a question or issue. The platform I use is quick and user friendly and best yet free. Commissions are very competitive. I highly recommend Cannon Trading as a broker of choice.