How can one find brokers that are "safer"
first i'd say that anyone that burned me would never see me again...it's that 'fool me once' thing.
somewhere safer? hmmmm...
i went to fido because they can do what i need done and reassured me that they do not hypothecate their accounts.
if you're going to depend on sipc to protect you, i suggest you read jim sinclair as he has some specific advice about how to proceed to protect yourself. following is an email sent out about that very topic...go to this link and then scroll to the bottom of the page and click on older entries and you'll find more info...
jsmineset.com 
Hi Jim,
Regarding Jeff Berwick's article, "Who Really Owns Your Gold Stocks?," it is important for JSMineset readers to understand the limitations of SIPC protection. Page four of the booklet "How SIPC Protects You" says, "Customers of a failed brokerage firm get back all securities (such as stocks and bonds) that already are registered in their name or are in the process of being registered."
I asked SIPC specifically if securities held in "street name" are considered to be registered in the name of the customer and thus eligible for complete protection. SIPC replied:
"In a liquidation proceeding under the Securities Investor Protection Act ("SIPA"), customers of a failed brokerage firm first get back all securities that are already registered in their name or are in the process of being registered, these are called "customer name securities." Customer name securities are negotiable only by the registered owner.
Securities held in "street name" are not considered customer name securities. In a SIPA liquidation proceeding, after the return of customer name securities, the remaining customer assets make up the "fund of customer property." The fund of customer property includes all customer securities held in "street name." The fund of customer property is divided on a pro rata basis with funds shared in proportion to the size of claims. If securities are still missing after the pro rata distribution, the customer would then be entitled to the coverage provided by SIPC, up to the statutory limit."
The SIPC brochure is available for download here: sipc.org
I could elaborate on discussions I had with SIPC, which raised additional red flags, but the above should be enough to encourage anyone who is serious about protecting him or herself to take action.
Best Wishes,
CIGA Paul
i spoke to fidelity, and i could, for example, hold pslv registered in my name and physically hold the shares...apparently, it's dependent on the issuer of the stock.
i suggest spending some time reading and then calling to ask informed questions and compare the answers.
bottom line is everyone must be informed and prepared to take care of oneself, as we are all on our own. |
