Phil, my impression of Datek is that it is run by some very bright and innovative people, but that is run by the seat of their pants. (Much the same way that I manage my investments. :) ) Software testing and configuration management appears inadequate, particularly for the financial industry, and some basic financial controls seem to be lacking.
Even so, they offer a unique service, that I am willing to risk a small amount of money on. By keeping my risk low, and equipped with a loud voice and a willingness to use it, I feel comfortable with my use of Datek for now.
I would not, at this time, however, feel comfortable with more than $100,000 (The SIPC cash insurance limit) in a Datek account.
Frankly, I would be much more reassured were Datek to take the unusual (and it is unusual) step of obtaining additional insurance on the cash portion of our investments. But I have to say that I wonder how easy it would be for Datek to obtain that insurance given their casual attitudes about our money?
And that is exactly why I would be reassured if they obtained such insurance - if and when they would be able to obtain it, it would be a good indication that their house is in order. |
