Are the brokers working with Penson safe?

[Event_Horizon]

Hi all,
I was looking for a broker to open an account, and I found that virtually all low commissions brokers work with Penson. I understand that Penson is in real danger of going bankrupt(at least this is what its share price indicates). Is it a good idea opening an account with these brokers?
The only low commission alternative to Penson, I saw, is Interactive Brokers. The problem with them is that they have inactivity fees.
Any recommendations for a broker?

 

[pboyles]

No broker is safe. You should check what size of deposit is guaranteed by your financial regulator and never exceed that amount. In fact keep the minimum amount possible on deposit at all times.

 

[rmorse]

My name is Robert Morse and I’m with Victor Securities. We are Introducing Brokers to Merrill Lynch Professional, Penson Financial and FC Stone and provide a variety of solutions for Hedge Funds, Trading Groups and Active Traders.

If your not interested In Penson, which we offer, I'd be happy to talk to you about ML Pro. Be aware that ML Pro and other prime brokers, have higher account minimums, higher risk premiums on your trading for CPM accounts and stricter requirements on margin calls. Send me an email and we can talk about it.

Bob
-----------------------------------
Robert L. Morse
Business Development
VICTOR SECURITIES
285 Grand Avenue,Englewood, NJ 07631
[email protected]
office: 646-545-3860
Robert Morse | LinkedIn
Home
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[Event_Horizon]

If your not interested In Penson, which we offer, I'd be happy to talk to you about ML Pro. Be aware that ML Pro and other prime brokers, have higher account minimums, higher risk premiums on your trading for CPM accounts and stricter requirements on margin calls. Send me an email and we can talk about it.

Regarding margin calls, can you answer my question at http://www.trade2win.com/boards/gen...tion-about-short-selling-account-balance.html with regard to both Penson and ML?

 

[rmorse]

No broker is safe. You should check what size of deposit is guaranteed by your financial regulator and never exceed that amount. In fact keep the minimum amount possible on deposit at all times.

Your money will be held by the Prime Broker, in this case Penson, not your broker. If you're a member of a Broker Dealer your account will not be protected by SIPC under any issues that require SIPC. If you have a customer account, you will be protected up to the SIPC limits. Plus, Penson like most brokers also pay a third party for excess SIPC coverage on the total of their customer accounts, not per account.

Bob
BTW: We are Introducing Broker's to Penson Financial.
-----------------------------------
Robert L. Morse
Business Development
VICTOR SECURITIES
285 Grand Avenue,Englewood, NJ 07631
[email protected]
office: 646-545-3860
Robert Morse | LinkedIn
Home
-----------------------------------

 

[rmorse]

Regarding margin calls, can you answer my question at http://www.trade2win.com/boards/gen...tion-about-short-selling-account-balance.html with regard to both Penson and ML?

I answered your question in that thread for Portfolio Margin accounts, not Reg-t margin.I hope that helps.

Bob