Hi Folks,
Dumb question, pls. advise if my investment is protected with a ‘Trader’ who trades with a broker which is registered with CFTC (Commodity Futures Trading Commission Home Page) as a CTA (COMMODITY TRADING ADVISOR) or with any other Financial Regulatory Authority in their line of business even though the ‘trader’ does not give any protection ?!
DC.
The trader cannot provide you any protection, aside from good money management to prevent major trading losses.
All the protection is in the hands of the broker where the funds are on deposit. Being registered with an agency doesn’t specifically guarantee anything, though certainly it can significantly diminish the likelihood of something untoward happening. The only brokerage account protection that I am aware of is SIPC, which is like the brokerage equivalent of FDIC, but I can’t recall ever seeing it in forex.
The brokerage, of course, cannot protect you from trading losses.