Broker for a $5mln trading account

Quote from SuperBanda:

Hello.

If you have to open a $5mln trading account (stocks, ETFs and options), what would be your choice?

Thanks!
More...


I use IB, Fidelity for longer term stuff. It might be prudent to uses several brokers...


http://en.wikipedia.org/wiki/Securities_Investor_Protection_Corporation


The SIPC serves two primary roles in the event that a broker-dealer fails. First, the SIPC acts to organize the distribution of customer cash and securities to investors. Second, to the extent a customer's cash and/or securities are unavailable, the SIPC provides insurance coverage up to $500,000 of the customer's net equity balance, including up to $250,000 in cash.[5] In order to state a claim, the investor is required to show that their economic loss arose because of the insolvency of their broker-dealer and not because of fraud,[6] misrepresentation,[7] or bad investment decisions.
 
I would look at Newedge, or one of the many offerings that clear through ML Pro (therefore too big to fail, FWIW). Both of these have $5 million minima, I think. ABN Amro and Wedbush also cater to that range. I would stay away from the more retail-oriented places such as the ones that the previous poster is recommending, at least if you're going to trade really actively.
 
Quote from SuperBanda:

Hello.

If you have to open a $5mln trading account (stocks, ETFs and options), what would be your choice?

Thanks!
More...

Why put all your eggs in the same basket and depend on just one broker, spread your risk and open 5 different trading accounts (1 million each) with 5 brokers instead.

You can always keep the most reliable one later and transfer all your money there, if that's what you want.
 
Quote from SuperBanda:

Hello.

If you have to open a $5mln trading account (stocks, ETFs and options), what would be your choice?

Thanks!
More...


BMO Investorline. You can put the entire amount in, no need to spread it around multiple brokers. They are part of The Bank of Montreal.

https://www.bmoinvestorline.com
 
Quote from SuperBanda:Hello.If you have to open a $5mln trading account (stocks, ETFs and options), what would be your choice?Thanks!
More...
My guess is that your hypothetical wealth was not acquired from trading or investments. If you're a "newbie," I would urge you to stay far away from stocks, ETFs, options, futures, currencies, etc. because you're like a single lamb walking into into the wilderness amidst a pack of hungry wolves ready to tear and consume every morsel of your flesh, while leaving only scraps of bones to ants. At best, open a $20,000 trading account and see how fast you lose this money. Put at least 50% into income producing real estate with no mortgage. Maybe 30% into gold like gld, but don't trade it. Buy and hold.
http://www.youtube.com/watch?v=AYrpROr9Gmk
 
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