can i trust lightspeed with my money?

[Max E.]

Even that is meaningless for someone with 5 or 6mln in the account. IB in the past purchased private insurance from Lloyds of London I think it covered up to 10mln of non trading related losses per client account if I remember correctly. Not so anymore.

Well yeah guess for all the guys with 6 million dollars looking for a "prop" firm, you are right, they are only insured up to 250k, it might be a million now but dont know in the states, i know its a million in canada now, but you can spread money around, and anyone the government is insuring, you can bet its not going tooo happen, it only happens with prop firms.

 

[dumpdapump]

Mate, you still don't get it, this thread is NOT about prop firms. Get that THC out of your system. Read again and follow the thread topic or else why not open your own thread on your grievances with prop firms?

Well yeah guess for all the guys with 6 million dollars looking for a "prop" firm, you are right, they are only insured up to 250k, it might be a million now but dont know in the states, i know its a million in canada now, but you can spread money around, and anyone the government is insuring, you can bet its not going tooo happen, it only happens with prop firms.

 

[sle]

SIPC covers you up to 500 in cash plus any regulated IBD will deliver any securities positions you happen to have at the time of IBD default. This is retail, not prime (where you are protected less).

Having said all that what ensures that smaller clearing firms and custodians in the US are safe? I trust large established houses such as UBS or GS a lot more than Wedbush and Co. What happens to my funds beyond the SIPC protection cap? I would be fully exposed to a total loss beyond, was it 100k Usd? In that regards going with a more reputable, established, and above all, larger firm always pays. Of course that only applies to those who have a choice.

 

[Max E.]

You have the same SIPC insurance with Wedbush, Apex, IB, Goldman, Merrill, and others.

The SIPC insurance doesnt apply to your clearing firm though, wedbush is a clearing firm, the insurance isnt covering anyone who clears through wedbush. But yeah The rest of the names would have the insurance, im just trying to tell someone not to sign up at a prop firm.

 

[dumpdapump]

Hence my saying the safest way for anyone with more funds is to go with a reputable bank and have them issue a letter of credit to the broker(s) one works with.

SIPC covers you up to 500 in cash plus any regulated IBD will deliver any securities positions you happen to have at the time of IBD default. This is retail, not prime (where you are protected less).

 

[Max E.]

SIPC covers you up to 500 in cash plus any regulated IBD will deliver any securities positions you happen to have at the time of IBD default. This is retail, not prime (where you are protected less).

Its 250k on well known banks trust me, maybe thats FINRA who covers that but i know for a fact its 250k but you got to go to solid places, not just some random prop shop, thats what im getting at, prop shop no insurance, bank 250k insurance

Which one you want to do?

 

[Overnight]

I do and my funds are held with a large international bank. And I recommend others to consider that as well if they have the chance to choose who safekeeps their funds. All you need your bank to do is issue a letter of credit and most brokers are willing to work with that

My funds are held at a teeny-tiny little FCM in Chicago. Tiny little guys! Super small cute little buggers! Cute as a button! Aww, look at them, so cute! So young and tiny and smitten with hugs and kisses! Is my money safe with them? Do I have confidence in them? Yes. 1,000%.

You need to have an understanding and belief in your broker (or whatever depository your funds are held in). I am comfortable with mine, and it is not a "large international bank". A "large international bank" scares the heck out of me. I guess I watched too many of those "Bourne" films.

 

[Max E.]

Mate, you still don't get it, this thread is NOT about prop firms. Get that THC out of your system. Read again and follow the thread topic or else why not open your own thread on your grievances with prop firms?

Look at the title of the thread "can i trust my money with lightspeed" Yes the thread is absolutely about whether or not you should put your money into places like this.

 

[dumpdapump]

To each his own. I have seen too many times trust and promises broken, even seen relatives of friends go on a run with funds loaned to them. Small outfits usually do not recover from a single disaster while large banks fill that hole easily. Nothing may have happened to your account so far but once something happens it's almost guaranteed lights out for your cute little firm up north.

My funds are held at a teeny-tiny little FCM in Chicago. Tiny little guys! Super small cute little buggers! Cute as a button! Aww, look at them, so cute! So young and tiny and smitten with hugs and kisses! Is my money safe with them? Do I have confidence in them? Yes. 1,000%.

You need to have an understanding and belief in your broker (or whatever depository your funds are held in). I am comfortable with mine, and it is not a "large international bank". A "large international bank" scares the heck out of me. I guess I watched too many of those "Bourne" films.

 

[sle]

SIPC is NOT FDIC. Different insurance dude.

Its 250k on well known banks trust me, maybe thats FINRA who covers that but i know for a fact its 250k but you got to go to solid places, not just some random prop shop, thats what im getting at, prop shop no insurance, bank 250k insurance

Which one you want to do?