How Safe Are Introducing Brokers in Respect to Our Money

[Archie 10]

I am not a trader yet but will start trading CN Futures soon. Currently I am researching all brokers and I have a question.

 

How safe is my money with an introducing broker?

 

As far as my knowledge goes, safety wise those brokers who are also clearing members are more safe then introducing brokers. Any opinions?

[OAC 10]

There is no difference, your funds are deposited with the FCM or the clearing member that the IB clear through anyway.

[brownsfan019 17]

OAC got it - your money never even goes to the IB. The IB is mainly there to help you, answer questions, etc. but your funds never actually go to the IB.

 

Basically the IB is initially used for marketing purposes and then once a customer, they take care of customer issues; meanwhile the FCM takes care of the trades, reporting, etc.