Best & Worst Daytrading Broker? Message Board

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Non-Tech : Best & Worst Daytrading Broker?

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To: LPS5 who wrote (109)	5/30/1999 5:39:00 PM
From: Cash	Read Replies (1) of 126

You are partially correct. It all depends on the structure of the company. First, leveraged traders are probably going to be required to have some sort of registration very soon now. The PHLX has been taking about it for months now and that's where most of those types of firms have a seat. I suspect it's just a matter of time. Second, regarding the security of your funds. Different firms do it different ways. Some firms have trader's initial investment secured in a separate trust account and those funds are not used for trading. So if something bad happened the only money that you could lose would be any profits that you leave in the account and why leave profits there if you have all the leverage you need? With other firms, you are a "limited" partner. So, if someone does a "Neesam" (ie Barclays Bank), then your entire investment "could" be gone (depending on the company structure). Each firm is different and I suggest anyone considering doing this investigate each thoroughly to determine which is best for them. Personally, I'm just trying to find out the different firms. So again, if anyone has any info on such lists, let me know.

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