Why do you think this insurance protection would help you? This sort of insurance in the USA is simply to protect your deposits at a bank in the event of their insolvency or a run...
The bank your broker holds the funds at has nothing to do in their insolvency and the use of your funds to pay their creditors with....but if the bank itself has problems then you have protection....but you should really check the details of how your funds are protected and disbursed back to you even tohough it has the FDIC stamp on it....
Remember who you make the check payable to when you fund your account, and you will understand that there is not any insurance available...even with segregation that insurance would protect the broker if the bank went down...BECAUSE THE FACT REMAIN THAT YUO MADE DEPOSITS PAYABLE TO YOUR BROKER AND LIST THE ACCOUNT NUMBER THEY GAVE YOU ON THE CHECK....NOT YOUR BANK ACCOUNT NUMBER AT THE SEGREGATED BANK ACCOUNT THAT THEY BANK AT.
The more important issues to check are if they are NFA and CFTC. But in the event that they are caught doing something wrong...you then still may not get your funds back...ask FutureWise clients....
Michael B.
The bank your broker holds the funds at has nothing to do in their insolvency and the use of your funds to pay their creditors with....but if the bank itself has problems then you have protection....but you should really check the details of how your funds are protected and disbursed back to you even tohough it has the FDIC stamp on it....
Remember who you make the check payable to when you fund your account, and you will understand that there is not any insurance available...even with segregation that insurance would protect the broker if the bank went down...BECAUSE THE FACT REMAIN THAT YUO MADE DEPOSITS PAYABLE TO YOUR BROKER AND LIST THE ACCOUNT NUMBER THEY GAVE YOU ON THE CHECK....NOT YOUR BANK ACCOUNT NUMBER AT THE SEGREGATED BANK ACCOUNT THAT THEY BANK AT.
The more important issues to check are if they are NFA and CFTC. But in the event that they are caught doing something wrong...you then still may not get your funds back...ask FutureWise clients....
Michael B.
Quote from TMcKenna:
Yes, there are many good things to be said about Oanda, I use them as well (one of my accounts). Unfortunately, I have relatively little money with them as compared to my other two brokers (both Canadian). If Oanda had CIPF insurance in Canada (as IB does) I would deposit ALL my money with Oanda and probably stay with them forever, but they don't
I think the equivalent in the USA is FDIC insurance, which again unfortunately they don't have
So after what hapenned with Refco I can't put my money with any broker without insurance.
Can anybody tell me why is this? Is it too expensive or complicated for a broker to have a CIPF insurance?
As far as Oanda platform is concerned I agree with ES, it is so far out there ahead of everybody and I just love it. On a scale 1-10 Oanda would be 9 and second best broker probably 3.
The fractional entry feature is the best thing ever invented in forex trading, you don't have to use stupid 'Lots"
If you are reading this Oanda, get CIPF insurance and I am closing all other accounts!!!! You will be my only broker