Our brokers...

[Riz]

This news raises this questions...what if they go bankrupt? Do we lose the shares or cfds they hold for us?

NEW YORK (CNNfn) - Online and discount brokerage Charles Schwab Corp. said Thursday it plans to slash 2,750 to 3,400 jobs, or 11 percent to 13 percent of its total staff, to reduce operating costs.

http://cnnfn.cnn.com/2001/03/22/news/schwab/index.htm

Riz

 

[darth trader]

as I recall schwab have extensive insurance against going bust...

can't comment on others.

 

[shelman]

Can't comment on cfds but the simple answer for brokers is no.
The shares are held in a nominee or crest account and are legally yours, exactly the same as if you held a paper certificate.

Steve

 

[troyresearch]

With the commissions brokers like Schwab charge I can't see them going belly up...

 

[Uncle]

I agree with Steve, and if your broker is likely to go bust, am sure you will experience poor service before it happens, so you should have some warning to make a change of broker in time before your locked into a situation of being unable to trade shares held.

John

 

[shelman]

Good point John. Not being able to trade the shares could be almost as bad. I'm sure the SFA would be able to come to the rescue though.
Anyway its about as likely as our beloved MMs ending up on the stones.
Steve

 

[bako45]

With the commissions brokers like Schwab charge I can't see them going belly up...

I just like to bring this to attention , when it comes to brokers yes there are plenty of them , you need to ask your self where is my money going to be safe, I have triad most of them and finally settled for the ECN broker , dukascopy.com they charge commission but if you join trough one of they introducing brokers you can claim your commission , up to 35% back , introducing broker , grandforex.net is one that pays 35% back and they can help you with your trading also, also they have Metarader platform now and you can open account with $5000K and trade micro trades which is something they just allowed to give full freedom to trade, your money is safe , I can confirm it here as I have been trading with them for a while and never had any problems withdrawing my money, and a good thing is they are ECN they make they money from commissions not like market makers , who sell you the trade and buy it back when you sell, you will get the best liquidity and very love spreads . if anybody has any questions I am happy to answer them , this is my experience, with them.

 

[jel_futures]

This news raises this questions...what if they go bankrupt? Do we lose the shares or cfds they hold for us?

NEW YORK (CNNfn) - Online and discount brokerage Charles Schwab Corp. said Thursday it plans to slash 2,750 to 3,400 jobs, or 11 percent to 13 percent of its total staff, to reduce operating costs.

http://cnnfn.cnn.com/2001/03/22/news/schwab/index.htm

Riz

I do not know if stock brokers work the same as us commodity brokers, but when someone deposits money with my company, the funds are held in Harris Bank Chicago where the FDIC insures up to $250,000...but again, stock brokers may be different.