Dealing directly with clearing firm...

[TM_Direct]

Quote from propseeker:

Hello, yes, thank you... I've been looking for an IBD that provides color. It is so important. Thank you for emphasizing this!

LMAO!!!!! how does sage green work for ya??

 

[traderpro]

Quote from cstfx:

Don

Isn't it also true that dealing with clearing firm directly, funds no longer fall under the umbrella protection of SIPC? I see alot of guys here with this belief that SIPC is the "everything" safety net, but that is only for retail accounts.

This is from my penson acct.




Customer accounts carried by Penson Financial Services are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 (including $100,000 for claims for cash). An explanatory brochure is available upon request or at www.sipc.org. In addition PFSI has purchased supplemented coverage through Lloyds’ of London which provides additional coverage not to exceed $35 million per account including a cash sub limit of $900,000. This coverage does not protect against changes in the market value of securities (whether as a result of market movement, issuer bankruptcy or otherwise).
SIPC and the supplemental changes in policy do not cover commodity contracts and options on futures.

 

[Don Bright]

Quote from risktaker:

Well, it's always great to have an experienced guy like Don respond to this type of question!

Don, but I was under the impression that if I work directly with a clearing firm that executes the trades then I would NOT need any exchange membership?

I'm looking at trading stocks in Europe and getting setup with a Europe-based clearing firm and they're saying $100K-$150K would be acceptale to begin trading.

They're NOT a retail broker and do not take regular retail business and seem to be well respected by the trading community.

What am I missing here?

Thanks guys. I appreciate all the responses!

Send me a PM with names etc., I can probably shed light on what you're trying to do.

GSEC (Goldman Sachs Exectution and Clearing) does not actually execute the trades per se' for us. We, as a broker dealer, execute the trades and use GS as the "give up" for clearing. Just FYI.

Some clearing firms do allow retail traders under certain conditions.

Anyway, PM me and I'll try to offer some help.


Don