Should you close your IB accounts now?

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Quote from Optionpro007:

If I have a million dollar account to trade futures and currencies, which broker do you suggest I use?
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Advantage Futures is good. There is only a few instances to go with IB, IMO. 1. Extremely tight risk mngt. 2. Large company 3. Variety of instruments. 4 Free or almost free data. 5. Because you like shitty customer service.

If you are trading futures only IB has nothing to offer their rates blow you can do much better.
 
You should get all those trades busted.

I find it amusing the NASDAQ announces a blanket statement thinking they have no liability in cases like this one where lost millions. They knew their system is open to manipulation because of the preferred sub-penny order routing to a few. NBBO my ass.
 
Quote from Optionpro007:

Two brokers, great. If IB is so bad as you state, which other broker do you recommend or use?
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If you are talking about from the perspective of broker stability, it doesnt matter because you will be under SPIC protection
 
Quote from Daal:

If you are talking about from the perspective of broker stability, it doesnt matter because you will be under SPIC protection
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I was referring to the broker's own financial condition and it's ability to withstand a black swan event. In 1987 many brokerages went out of business precisely because they lacked the safety procedures this thread is trying to discredit.

Excerpt: "Among the investments that are ineligible for SIPC protection are commodity futures contracts and currency."
http://www.sipc.org/how/covers.cfm

If you can suggest a better or safer broker than IB, please do.
 
Quote from Optionpro007:

I was referring to the broker's own financial condition and it's ability to withstand a black swan event. In 1987 many brokerages went out of business precisely because they lacked the safety procedures this thread is trying to discredit.

Excerpt: "Among the investments that are ineligible for SIPC protection are commodity futures contracts and currency."
http://www.sipc.org/how/covers.cfm

If you can suggest a better or safer broker than IB, please do.
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As I understand if your money is in US Treasury bonds used as collateral for buying the contracts, it is safe(at the broker level, there is the sovereign risk of couse) but dont quote me on that. I could be wrong
 
And if I'm wrong, you might want to check for brokers that are subsidiaries of big banks that are too big to fail(specially if they have the same name) since they would support the broker in order to avoid loss of reputation
 
Quote from Daal:

And if I'm wrong, you might want to check for brokers that are subsidiaries of big banks that are too big to fail(specially if they have the same name) since they would support the broker in order to avoid loss of reputation
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I was under the impression banks are being stripped of their power to profit from derivatives trading.

But Ok. Which subsidiaries are you referring to? Do they have a better than BBB++ rating?
 
Quote from Daal:

If you are talking about from the perspective of broker stability, it doesnt matter because you will be under SPIC protection
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It does matter because you don't instantly get your funds back and SPIC has a limit on refunds.
 
Quote from Optionpro007:

In 1987 many brokerages went out of business precisely because they lacked the safety procedures this thread is trying to discredit.
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Don't lie about me. This thread was posted to point out a hidden risk that most are unaware of. The "safety procedures" you describe, actually *increase* risk in certain scenarios.
 
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