Quote from JSHTrader:
Traders... I've searched ET and havent found much on both. Any info would be great. I know Broad Street Securities is a member of the CBOE, but CTG isn't.
Would you feel more comfortable with a brokerage who is with the CBOE instead of a private company?
Anything on either of these three groups would be great. Thanks.
It depends on what you're looking for. Those of us who traded with Team Trading (a private company) had a rude awakening when the firm suddenly shut its doors last March and failed to return almost $2 million of traders' deposits (although some of us have now received our capital back, after almost a year later and after many complaints filed with SEC and NYAG).
If you ask CTG for their contract (which a fellow trader sent me), it's written almost VERBATIM with the Team Trading contract! Granted, CTG may be run by honest people who have no intention of closing shop with your funds (I'm not familiar with them so I can't comment on how they operate, other than what they claim on their site, which is a private LLC and not a brokerage).
A registered firm files monthly reports with their SRO (self regulatory organization, such as the CBOE or FINRA) so at least there is some oversight regarding capital contributions, whereas with an unregistered firm you probably won't have access to their financials or know about how they spend their money.
Either way, what the op said is correct, the funds are not SIPC insured (unlike a retail firm), so it's a matter of which firm you trust, and whether you want to deal with all the paperwork and filing requirements of joining a registered firm (U4, FBI background check, fingerprints, etc).
There are pros and cons with both types of firms, fees should not be the main concern, but rather the integrity of management, and doing business with a firm that you're comfortable with.
