What brokers have FDIC backed accounts?

PlusMinus · Dec 25, 2009

Not that I put a ton of faith in FDIC, but it should be slightly better than absolutely nothing. Are there any in the US that offer this, and of course are there any in the UK or Swiss that offer the equivalent?

AJFCapital · Dec 25, 2009

CitiFX is the only one that I know of

PlusMinus · Dec 25, 2009

Quote from AJFCapital:

CitiFX is the only one that I know of

Any idea who they use? I have to think they are a white label application for retail.

bstay · Dec 25, 2009

Quote from PlusMinus:
Not that I put a ton of faith in FDIC, but it should be slightly better than absolutely nothing. Are there any in the US that offer this, and of course are there any in the UK or Swiss that offer the equivalent?

Most established brokers are registered with or member of FINRA, SIPC, CFTC(FCM), NFA. So not exactly "absolutely nothing", but SIPC is not equivalent of FDIC though, http://www.sipc.org/who/notfdic.cfm

bstay · Dec 25, 2009

Quote from PlusMinus:
Any idea who they use?

use what?

PlusMinus · Dec 25, 2009

Quote from bstay:

use what?

I'm surmising that they are not actually providing their own platform or even prices, but rather a white label of a broker. If this is wrong, then I'd love to know. Otherwise I'd like to know which broker they're white labeling?

PlusMinus · Dec 25, 2009

Quote from bstay:

Most established brokers are registered with or member of FINRA, SIPC, CFTC(FCM), NFA. So not exactly "absolutely nothing", but SIPC is not equivalent of FDIC though, http://www.sipc.org/who/notfdic.cfm

Well the problem is that none of the spot brokers provide segregated accounts, and if they go Refco, then it's over for your money. CitiFX would not have that problem. However I'm not sure what the FDIC would be able to do, since they too are practically broke.

bstay · Dec 25, 2009

Quote from PlusMinus:
Well the problem is that none of the spot brokers provide segregated accounts, and if they go Refco, then it's over for your money. CitiFX would not have that problem. However I'm not sure what the FDIC would be able to do, since they too are practically broke.

you can research MIG FX, they just became a Swiss bank,
http://www.migbank.com/about-us/message-from-the-ceo/

bstay · Dec 25, 2009

Quote from PlusMinus:
Well the problem is that none of the spot brokers provide segregated accounts, and if they go Refco, then it's over for your money. CitiFX would not have that problem. However I'm not sure what the FDIC would be able to do, since they too are practically broke.

i wouldn't worry about that. unless u intend to park your life savings with a forex broker in non-interest account. for the average new trader, he/she would probably lose the first account trading, refund it several times, and change to the next broker when they become more experienced with the industry and know what to look for in a broker.

PlusMinus · Dec 26, 2009

Quote from bstay:

you can research MIG FX, they just became a Swiss bank,
http://www.migbank.com/about-us/message-from-the-ceo/

Thanks for the info. A shame they are not a direct market provider, they seem to be act as principal in all trades, unlike real-forex.com, which was appealing since it operates as a DMA offering.