FXCM Is Buying RefcoFX - Deal is Done - Funds are safe

[def]

Quote from globaltech:

Going through an IB is the worst thing you could do. They dont insure your money at all. I dont know what this looney tune is talking about. If he knew what an IB was he would change his tune

Just setting the record straight. He is not referring to an Introducing Broker which is often called an IB, he is referring to the firm called Interactive Brokers also referred to as IB. Jayford is correct to say that Interactive Brokers is very solid financially. IB (the firm) has ample excess capital and has a number of safeguards in place which the typical firm does not. Two that are unique are:

1. Sweeping excess cash from the commodities account to the securities account. (this sweep brings cash under the protection of SIPC and the additional 3rd party insurance).

2. strict margin and liquidation practices (avoids one client blowing out and bringing down the firm).

Not all clients are happy about the second but those with large amounts of funds with us sleep better at night because of it.

 

[lite]

so what's the deal now?

can refco fx clients get their money back or not? anyone else here with refco fx?

 

[forex-forex]

Quote from lite:

so what's the deal now?

can refco fx clients get their money back or not? anyone else here with refco fx?

Have you been living in a cave for the last 9 months?

 

[Jayford]

Quote from globaltech:

Going through an IB is the worst thing you could do. They dont insure your money at all. I dont know what this looney tune is talking about. If he knew what an IB was he would change his tune

I didn't say AN IB. I said IB (Interactive Brokers).

BTW, nothing wrong with using AN IB as long as they clear through a good firm. The introducing broker does not hold the funds.

 

[ElectricSavant]

The title of this thread.....Well anyways the next time you are sure...go smoke a cigar first, that way you remove the risk of being close...



close, but no cigar
Archy

 

[Jayford]

Quote from dandxg:

Hi Jay or anyone else knowledgable,

Could you please elaborate on segregated means nothing if the firm crashes. I thought it gave protection to whereby your money could only be used for your trading? Not against other customers or against bankruptcy. I currently clear through Dorman which has been around forever so I feel pretty good. If this is true, maybe I will reconsider IB and stop gripping about their 50% margin requirement for futures trading.

Segregated means that your funds will not be used to cover a blow up by someone else. In case of bankruptcy though, its the secured debt holders that get first crack at all funds (I think). I am not sure how it works exactly, but I believe you get your funds back in full if another firm buys the accounts.

In my case, the firm was FuturesWise. There was fraud involved as well as the firm's liquidation. I was lucky that I had a relatively small acct with them. Some guys had half million dollar accts and really got creamed.

 

[ElectricSavant]

Yep..I got out just before the heartfelt letter....Did they guy go to prison? Sneedly, Snider Schneely or something like that... That was the day of the 5 buck RT...

Did you know that everytime you went for 1 tick, you got filled from that bucketshop automatically...oh it was sweet...

It doesn't hurt to have some friends in this industry...

Quote from Jayford:

Segregated means that your funds will not be used to cover a blow up by someone else. In case of bankruptcy though, its the secured debt holders that get first crack at all funds (I think). I am not sure how it works exactly, but I believe you get your funds back in full if another firm buys the accounts.

In my case, the firm was FuturesWise. There was fraud involved as well as the firm's liquidation. I was lucky that I had a relatively small acct with them. Some guys had half million dollar accts and really got creamed.

 

[dandxg]

Thanks Jay, I need to get to the bottom of this answer. Until then I feel pretty confident with Dorman as they are older than dust itself.

It has me thinking though because I was considering switching to Trans Act which I believe are self clearing.

 

[Jayford]

Snively. Perfect name for such activity. He got 5 years in prison starting last year.

Quote from ElectricSavant:

Yep..I got out just before the heartfelt letter....Did they guy go to prison? Sneedly, Snider Schneely or something like that... That was the day of the 5 buck RT...

Did you know that everytime you went for 1 tick, you got filled from that bucketshop automatically...oh it was sweet...

It doesn't hurt to have some friends in this industry...

 

[Jayford]

Quote from dandxg:

Thanks Jay, I need to get to the bottom of this answer. Until then I feel pretty confident with Dorman as they are older than dust itself.

It has me thinking though because I was considering switching to Trans Act which I believe are self clearing.

Transact clears through Goldy. They say they are self clearing sometimes, but when you press them on the issue they say Goldman Sachs. Maybe they clear both ways. I do know that much of their biz is experienced pros going for the volume discounts. I've heard mostly good things, except for a platform prob awhile back.

Jay