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Where is the safe harbour due to world economic crises?

Discussion in 'Forex Discussions' started by cameleonguru, Oct 24, 2008.

  1. cameleonguru

    cameleonguru New Member

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    Good day,

    I am new a new member in this forum but not in online trading business. I am glad to join this forum and I hope I could contribute with my postings to bring value and useful information to this forum community.

    Therefore I have a general question for the forum community due to the ongoing banking and economic crises. I think it might be interesting for the forex community to receive helpful information on the following issue.

    Do you know how secure our trading accounts are?

    I am wondering if the online trading community knows how secure the trading accounts with their brokers are. In a period where big banks like Lehman Brothers collapses, what happened with my money with my online broker?

    Companies like GFT - FXCM – Saxobank – AC Markets – WSD Financial – Forex Trading – iForex – etc… what are the guarantees they offer to secure the deposits their customers have with them. Online trading is more and more becoming a huge market where people invest huge amounts of money to trade them or into managed accounts.

    What happened with the deposits when one of these companies fails?

    Are their deposit insurances implicated which guarantees the deposits made with this kind of accounts too, in the same way like the deposits on my bank account?

    I hope that all the members of this community will contribute with interesting postings to give valuable information to the rest of the members and share their knowledge and experiences with us. Because I believe to have our money in a safe harbour is important for all of us.

    Thank you in advance for your contribution.
     
  2. cameleonguru

    cameleonguru New Member

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    Maybe this is useful

    Here is some information regarding Saxo Bank clients: On 5 October 2008, the Danish Government and the Private Contingency Association (“PCA”), which was established in 2007 and comprises virtually all Danish banks extended a safety net and agreed on a bailout fund so that all claims by creditors (not covered by other means such as the above Guarantee Fund for Depositors and Investors) and senior debt (unsecured unsubordinated debt including but not limited to deposits, senior unsecured bonds or interbank deposits) to any creditor are fully covered.

    Saxo Bank has joined the PCA on October 7, 2008 and thus all our client funds will be fully protected. This means the limitations of DKK 300,000 and EUR 20,000 of the ordinary Guarantee Fund do not apply during the two-year term of the agreement, but instead all client funds as well as other creditors will be protected regardless of the amount. The additional guarantee will be in effect until 30 September 2010, but may be extended if deemed necessary to secure financial stability.

    http://www.saxobank.com/?id=960&Lan=EN&Au=1&Grp=5

    How about others like

    AC Markets in Switzerland
    WSD Financial in New Zealand
    FXCM in USA
    others . . .
     
    #2 cameleonguru, Oct 28, 2008
    Last edited by a moderator: Oct 28, 2008
  3. cameleonguru

    cameleonguru New Member

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    Safety of Funds at WSD Financial (NZ)

    All client funds are held in New Zealand with the Kiwi Bank in well protected and segregated bank accounts. This segregation ensures that client assets are never co-mingled or used for any other reason than for each individual clients trading.


    Each client account and WSD Financial’s books are then audited on a quarterly basis by one of the largest accountancy firms in the world which then send a complete report direct to the NZX to confirm all aspects of the client account regulations have been upheld.


    Further client account protection is also provided by professional indemnity insurance cover up to a value of USD 1 Million.
     
  4. cameleonguru

    cameleonguru New Member

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  5. daniellefr

    daniellefr New Member

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    Even when broker is regulated and things seem to be alright, you still have to be careful without your profits. I say, withdraw once in a while - don't keep too much money in the account (like in a bank or someting... I mean, even banks are not so reliable these days!).
     
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