can i trust lightspeed with my money?

[dumpdapump]

Lightspeed is NOT a prop firm. Which part of that do you not want to understand?

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.

 

[beerntrading]

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.

Lloyd's doesn't have that kind of capacity...Not all off it's syndicates combined. There's not an insurer on earth that can retain that kind of risk. Not all insurers on earth combined could retain that risk. It's not a product that exists.

That said, it's viable in a hyper inflation economy with a valuation in gold....or, for example in the case of Venezuela, insurance in dollars

 

[Max E.]

SIPC is NOT FDIC. Different insurance dude.

Yep your right, cant remember which is which in the u.s. all i know is you are insured for 250k in the states in major banks and at major brokerages, but zero insurance at prop firms.

 

[Overnight]

...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.

If this were the case, then nobody in the universe could ever have protection for their billions of dollars in accounts. Where does the protection come for the millionaires or billionaires?

 

[Max E.]

Lightspeed is NOT a prop firm. Which part of that do you not want to understand?

So if he puts his money at light speed where does it go? And dont list the clearing firm cause the clearing firm doesnt matter.

 

[dumpdapump]

Lloyds have done it for decades and they still do for paying customers. IB offered this account protection for years before they discontinued it. It's a fact not my opinion or feeling.

Lloyd's doesn't have that kind of capacity...Not all off it's syndicates combined. There's not an insurer on earth that can retain that kind of risk. Not all insurers on earth combined could retain that risk. It's not a product that exists.

That said, it's viable in a hyper inflation economy with a valuation in gold....or, for example in the case of Venezuela, insurance in dollars

 

[Max E.]

If this were the case, then nobody in the universe could ever have protection for their billions of dollars in accounts. Where does the protection come for the millionaires or billionaires?

Answer is the same as us, they have 250k insurance from government agencies thats it, but thats why they spread their money around, and thats why they trade through JPM not "Lightspeed" lol.

Although im sure with the lobbying power they have if the scenario ever happened where all their banks failed they would just tell the government to re-write the rules.

 

[Overnight]

So if he puts his money at light speed where does it go? And dont list the clearing firm cause the clearing firm doesnt matter.

Oooh ohh, I know a part of that answer! *raises hand* It goes into the customer segregated account, which is then distributed across all other accounts on the exchange and mixed up into a giant kiddie pool! What happens after that, you'd have to ask Rob M and Matt Z.

I think it involves Cheez-Whiz.

 

[vanzandt]

So how 'bout them Penguins?

 

[dumpdapump]

Very simple answer, via diversification and large reputable banks. The larger and more diversified the banks the better. HSBC, UBS,.... Others hold with pure custodians such as State Street or Northern Trust. Listen, for anyone who has accounts smaller than regulatory/government insurance it does not matter anyway, for those with larger accounts it almost always pays to go with larger established banks than small family outlets. It is just the nature of this business and industry.

If this were the case, then nobody in the universe could ever have protection for their billions of dollars in accounts. Where does the protection come for the millionaires or billionaires?