Penson

Swan Noir · Apr 7, 2012

LOL .... you are the only one with a valid excuse to keep money there. You're high!!!

On a more serious note why would anyone choose what is a potentially weak counter party to keep money with? I honestly do not get it. I would not keep a dime with any firm I thought was weak and I would love to hear the argument for doing so.

Quote from high99:

So Swan, have you moved your money out of Penson, or are you still watching prior to making your strategic move? Or perhaps you are simply bored with nothing constructive to do, other than to chime in with some sarcastic shit?

sfbayarea · Apr 11, 2012

I'm actually really concerned with Penson since their latest screw ups with 1099 Tax Documents is really bad. With all those errors, seems like they're running a shell company. No one manning the wheel. I'm actually worried.

However, isn't our money protected by SIPC? Isn't that guaranteed by law?

When MF Global went under, did all the customers with SIPC protection get their money back?

magicz · Apr 11, 2012

Quote from sfbayarea:

I'm actually really concerned with Penson since their latest screw ups with 1099 Tax Documents is really bad. With all those errors, seems like they're running a shell company. No one manning the wheel. I'm actually worried.

However, isn't our money protected by SIPC? Isn't that guaranteed by law?

When MF Global went under, did all the customers with SIPC protection get their money back?

I have a IB account with them and I dont feel the need to close it down and go somewhere else. They do take on more risk with the margining of certain products but they charge a lower margin interest then most. Just dont have all your trade money with them and if they get insolvent you have to wait.

Scataphagos · Apr 11, 2012

Quote from magicz:

"... Just dont have all your trade money with them and if they get insolvent you have to wait.

Should NEVER be a factor to be considered.

If you have reason to be worried about the safety of your capital, you should take action.... and not just hope the regulations will save you.

Regulations aside, all MF Global customers SHOULD have been protected... yet, look where they are.

Swan Noir · Apr 11, 2012

Amen!!!

Quote from Scataphagos:

Should NEVER be a factor to be considered.

If you have reason to be worried about the safety of your capital, you should take action.... and not just hope the regulations will save you.

Regulations aside, all MF Global customers SHOULD have been protected... yet, look where they are.

magicz · Apr 11, 2012

Quote from Scataphagos:

Should NEVER be a factor to be considered.

If you have reason to be worried about the safety of your capital, you should take action.... and not just hope the regulations will save you.

Regulations aside, all MF Global customers SHOULD have been protected... yet, look where they are.

It all depends on the type of account you have with firm. futures and FX account are not protected, though it can be insured with an outside insurance company.

Scataphagos · Apr 11, 2012

Quote from magicz:

It all depends on the type of account you have with firm. futures and FX account are not protected, though it can be insured with an outside insurance company.

I don't know about "FX accounts"... but one could choose to access FX markets via futures... which are supposed by law to be segregated from broker/FCM assets.

magicz · Apr 11, 2012

Quote from Scataphagos:

I don't know about "FX accounts"... but one could choose to access FX markets via futures... which are supposed by law to be segregated from broker/FCM assets.

yes but you're still pooled with other "customer" accounts so if one of them blow up huge, you wont get your money back.

Scataphagos · Apr 11, 2012

Quote from magicz:

yes but you're still pooled with other "customer" accounts so if one of them blow up huge, you wont get your money back.

Not clear that you understand.

While what you say MAY be true in the theoretical extreme, that's not supposed to happen... some safeguards to be exhausted before.... which are highly unlikely to occur "big enough" to impact customer equity... notwithstanding criminal acts/fraud by Corzine-like persons-in-charge.

magicz · Apr 11, 2012

Quote from Scataphagos:

Not clear that you understand.

While what you say MAY be true in the theoretical extreme, that's not supposed to happen... some safeguards to be exhausted before.... which are highly unlikely to occur "big enough" to impact customer equity... notwithstanding criminal acts/fraud by Corzine-like persons-in-charge.

but it did happen by your example. everything we do involve some risk. if you dont like or tolerate the risk dont have your money at penson. IMHO the services they provide far out weight the risk I am taking.