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isAt 05:14 PM 6/19/98 GMT, JMB wrote:
>On Thu, 18 Jun 1998 20:11:08 -0700, you wrote:
>
>>Does anyone know what has happened to Advantage? All their phones have been
>>disconnected.
>>
>>Thanks,
>>Kim.
>
>
>Kim,
>
>Several months ago I posted a message that "I was looking for an LFG /
>LEO-WEB Broker."
>
>I got a tremendous response from "Omega Listers", with a large
>percentage of people who said they used.... Advantage Trading Group!
>I mean a LOT!!
>
>I didn't go with them, because "they seemed too good to be true", if
>you know what I mean! You know... one of those famous sayings your
>mother used to tell you!
>
>
>Actually, my concern about this situation would be a hypothetical
>question regarding IB's in general for those who may know?:
>1) IF an IB were to "go belly up", what would happen to their
>clients' accounts? Both short & long term??
>2) Could those clients be harmed financially??
answer to #1
Most (IB) Introducing Brokers are not guaranteed but are instead guaranteed
by the (FCM) Futures Commission Merchant. If a broker is guaranteeing
himself he has to provide quarterly financial reports to the (NFA) National
Futures Association. Fcm's have to give quarterly financial reports to the
NFA. The Exchanges will only except IB'S that have Fcm backing.
answer#2
Exchanges are the first line of defense against clients losing money only
because they will refuse business from a non reportable Fcm. Fcm's that go
below financial reporting standards
will be refused a license if not corrected obliviously.
That is it you don't have SPIC Insurance and you could in fact lose all
your money
with a busted Fcm with no help from Uncle Sam. Most of the time other Fcm's
take over before this happens. To my knowledge no client has ever lost a
penny because of a busted Fcm have heard of money delays but can't even
verify that.
Robert
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