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Having an account with TradeStation Securities is tantamount to having an
account with Bear Stearns, and I'm not concerned that Bear will fail.
Generally, all broker/dealers that aren't self-clearing aren't the place to
look for security of one's assets. The self-clearing or clearing broker is
usually the custodian and that's where you need to investigate stability and
strength, imho. At the bottom of page 1 on TradeStation's account
application, it states where one's assets are held.
However, a substantial clearing broker isn't the only place to look should
fraud be perpetrated, as distinct from business risk (of failure). Obviously
fraud's another matter entirely, and if you are overly concerned about
fraud, then its wise to obtain your own insurance, or find another clearing
broker or use more than one.
-----Original Message-----
From: Bob Fulks [mailto:bfulks@xxxxxxxxxxxx]
Sent: Wednesday, September 05, 2001 7:15 AM
To: John Lynch
Cc: James Fulton; Omega List
Subject: Re: TSPro littleknowns
At 9:09 AM +0100 9/5/01, John Lynch wrote:
>5) Who holds your money when you trade with TSPro (that is, if they go
bust
>do I lose money?)
This concerned me also. I found the following on their website.
Bob Fulks
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7. What account protection does TradeStation Securities offer?
TradeStation Securities offers the account security you need -- and
expect -- from an online brokerage that caters to the active and
professional trader. TradeStation Securities is a member of the
Securities Investor Protection Corporation (SIPC), which provides
protection*** for customer accounts up to $500,000, of which $100,000
may be in cash. In addition, TradeStation Securities clears through
Bear, Stearns Securities Corporation for all its custody and clearing
issues associated with its brokerage transactions. Bear Stearns has
obtained an excess securities bond issued by Travelers Casualty &
Surety Company that is supplemental to SIPC protection and provides
protection up to the amount of the covered account's net equity in
excess of the primary SIPC protection. This gives you an unlimited
amount of protection for your account.***
3. How secure are my funds? Who is the Clearing Firm?
Our futures clearing firm is Lind-Waldock. The firm was founded in
1965 and is one of the world's largest futures firms, maintaining a
capitalization level that is in excess of the amount required by
regulations.
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