Hello, if I trade through a prop firm by using my own money (that is, the prop firm only gives me access to its platforms but I trade my own capital) is my money that I deposit in the prop firm's account insured by SIPC or any other protection so that if the prop firm goes bunkrupt I don't lose my money? Thanks.
SIPC Insurance
- Thread starter lightrader
- Start date
No. If you join a prop firm that is a Broker Dealer, you have no account, the firm does. BDs are not protected by SIPC, only customer accounts. You're trading for the firm in a sub-account to keep track of your P & L and expenses. That account is NOT in your name or SS# or EIN#.
This is why choosing a propr firm by the lowest rates is not the best strategy. You have to take into account management and ask for their lasted focus report.
1245
No prop firms offer insurance. Only retail brokerages have that option.