Protection of Funds

[laocoon]

Recent events around ZenFire/Mirus made me ponder on the extent to which my funds are protected when a broker experiences "issues". (I'm NOT suggesting Mirus is in trouble, I'm just asking a question).

In the case of Mirus, funds are held by RCG (at least for me), so my understanding is that they're safe as long as RCG is OK. But what if RCG (or any other broker) would get into trouble? Are their funds guaranteed by FDIC/SIPC? I'm not an American so I'm not very familiar with these different protection options.
Another popular Ninja broker seems to be AMP. Could someone shed some light on the fund protection situation there?

Thanks

[KiwiPete]

Uncertain,,,, I myself just submitted online application to transfer 20% of holdings back to overseas account just in case.
But if Mirus have closed the doors as Ive had no responses to emails and heard of unanswered telephones; its a bit like closing the gate after the horse has bolted.
But surely this shouldn't be an issue as was under the impression that things stateside were going swimmingly well in the financial sector.... surely....

[schranzi9]

When we change from Mirus to AMP do we lose the FCM opportunity?

I have heard that AMP is his own broker and clearing firm in one and this can bring you in trouble with your funds as AMP have later the same problems as mirus today. With mirus we have FCM like RCG or dorman behind so your capital is saved when mirus go down...

Chris

[mrraymonds01]

Hi What's a "FCM"

I just started trading and hearing all this stuff going on with Muris, which I have an account with and can't trade yet. I see people posting about FCM and would like to understand what it is. Thanks

[laocoon]

I just started trading and hearing all this stuff going on with Muris, which I have an account with and can't trade yet. I see people posting about FCM and would like to understand what it is. Thanks

FCM stands for: Futures Commission Merchant

http://en.wikipedia.org/wiki/Commodity_broker

http://www.investopedia.com/terms/f/fcm.asp

http://www.cftc.gov/IndustryOversight/Intermediaries/FCMs/fcmib

[mrraymonds01]

Thanks a lot. Have a great day

[KiwiPete]

Mirus Funds

Just following up on earlier comments on uncertainity of Mirus due to their poor communications skills.
I put through a request to withdrawal 20% of my funds yesterday and got a response from MirusTreasury and today its already in my overseas accounts.
So I guess Mirus are still manning something and operational - just incase some were still having concerns about them.

[steve0617]

I am an ex MF Global customer. There is NO insurance protection for our accounts held in a futures trading firm. RGC, Dorman, AMP none of them are given any sort of FDIC like protection.

MG Global was Duke and Duke basically until they got greedy and hired Corzine, who train wrecked a great firm.

Trust no FCMs with more than you have to.