can i trust lightspeed with my money?

Sure if there are any assets left. Look, you can't prevent internal wrongdoing at clearing firms.it has happened before and will again.

Robert Morse said:
It is NEVER up to the Clearing firm. If there is a SIPC event, SIPC over sees the transfer of your assets to another clearing firm.
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Max E. said:
Prop firms offer insane amounts of leverage, but its still your money. Back when i was systems trading i needed 100 million dollars just to float orders, every day there is no way in hell a place like IB or any other place that is insure would do that. I NEEDED the buying power, what i was trying to say before this argument is if you dont need insane leverage dont go to a prop shop, cause they can fuck you. But yeah there is 1 massive benefit with prop shops, once they get to know you, buying power is just a number they need to change, they only need cash for positions, but in terms of floating orders, they could have set the number so i could float a billion dollars worth of orders it wouldnt have mattered. That was why i was there, i needed insane leverage to float orders as a systems trader. Then went in one day and it was lights out.
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You put up 200k and they gave you potential access to 100 million dollars? Wouldn't that be 500-1 leverage? I understand why that prop firm went out of business.
 
Mtrader said:
Maybe because for "poor" people losing money is causing more financial damage.

The small one is maybe with 10% of his assets in this account, while the big ones might be in for maybe 1%. The percentage of your total worth is relevant, not the amount of money in $. For some losing 100K is more life threatening then losing 10 mill for someone else.
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Took the words right out of my mouth.
 
sprstpd said:
You put up 200k and they gave you potential access to 100 million dollars? Wouldn't that be 500-1 leverage? I understand why that prop firm went out of business.
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Well not if you really have a good system. The thing about high leverage is that if you are able to make profit, then high leverage will just magnify your profit by whatever is the leverage rate but if you are losing then high leverage also wipes out your account faster, that's the double-edge sword of high leverage. So with that 500-1 leverage, any $1000 profit is instantly a six-figure profit!! So if you can consistently make that much, how would you go out of business?
 
Robert Morse said:
Yes, ALL assets are custody with the clearing firm not us, but we are more than just a referral agent. We are next in line for losses and responsible for service/support, platforms, routing and booking of trades. We basically do everything except the clearing, stock loan and banking functions. You are our client but clear at the clearing firm.

Bob
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Glad to have learned more about what your business offers. So you are basically Interactive Brokers minus the custodian of funds and clearing firm function?
 
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