How safe is our money?

Q

qdz

An ID theft news on CNN brought attention to me.

http://www.cnn.com/2002/LAW/11/25/ID.theft/index.html

I have been annoyed by the fact there is no effective protections on our money in brokerage firms. Forget about SIPC. They only bail out the customers in very few circumstances. And all customer agreements are against the customers which is basically saying it's the responsibilities of the customer to secure their funds. How ridiculous! And NASD/SEC hypocritically creates PDT rules to protect brokers rather than customers. There is no law to force brokers to take security issues seriously and responsible.

What a .... forget about my $25K with YOU, kiddy. Besides, there is no interest. How may I be supposed to risk $25K just for day trading. Forget it.

:p
 
qdz -looks like you've found your niche - the whiner. I guess when you eventually begin trading you'll be able to write a book on "101 reasons why I lost money and it wasn't my fault."

Try approaching some insurance companies yourself - I'm sure they can't wait to get hold of those big premiums for your $1,000 account
 
Good suggestion. Thanks. I'll contact my personal financial manager to check out some really good insurers. But the question coming first is that why I am supposed to pay for this kind of cost. Why it is not the brokers? Why the regulators do not protect us in these regards?

:p

Quote from voltrader:

qdz -looks like you've found your niche - the whiner. I guess when you eventually begin trading you'll be able to write a book on "101 reasons why I lost money and it wasn't my fault."

Try approaching some insurance companies yourself - I'm sure they can't wait to get hold of those big premiums for your $1,000 account
More...
 
Quote from Madison:



They aren't crackers - they are criminals.
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Right, they are criminals. Isn't the purpose of our laws to protect public from these criminals?

By the way, let me reiterate that my concern is not brokers going out of business in which case SIPC protects me hopefully. But what about these criminals sitting inside and outside of the firms. When my money is gone, who protects me? Of course not the PDT rules.

:p
 
qdz: You make these statements, and then are led down the path of arguing over self-insuring, but there is no fact that I know of in back of the original statements.

Can you give an example of a broker (clearing firm, actually) that went bankrupt or stole their customers' money, and where the customers were not made whole again (admittedly with some time delay)? That's the whole purpose of the SIPC and the additional insurance policies that brokers/clearing firms buy.
 
alanm,

SIPC covers broker failure but not other cases like theft. Since I was not intending to discuss the risk of broker failure in this post, may I not waste time to give you such an example?
However, there are plenty of examples including the one I gave the URLs earlier, where people are victims of criminal activities. What I argue is that why the regulators do not put strict rules to make brokers be more responsible rather than pissing off customers? Not only negligence helps criminals but itself is crime.

:p

Quote from alanm:

qdz: You make these statements, and then are led down the path of arguing over self-insuring, but there is no fact that I know of in back of the original statements.

Can you give an example of a broker (clearing firm, actually) that went bankrupt or stole their customers' money, and where the customers were not made whole again (admittedly with some time delay)? That's the whole purpose of the SIPC and the additional insurance policies that brokers/clearing firms buy.
More...
 
qdz,
if you spent as much effort learning how to trade as you do complaining you would have an account to worry about, all retail brokers are insured.
 
If you think I am complaining, I am. If you don't think I am compaining, I am not.

How do you know I do not spend enough effort on trading? Exactly because I paid high cost to tune a working system, PDT rules came in and destryed it. I surely spend my effort to fight back.

All retail brokers are insured? That's too general, isn't it? Read with more effort before you give more comments. Thank you.

:p

Quote from stokhack:

qdz,
if you spent as much effort learning how to trade as you do complaining you would have an account to worry about, all retail brokers are insured.
More...
 
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