Just incase some think I'm trying to promote one dealer over another it is worth noting I have or had accts. with IG , CMC , SONRAY , CITI, IG , Axis ,Bell , CBA [shares] , cmc shares and others .
Thought it worth discussing the differing segregated accts as shown above with Citi which is plain sick .
IG do use a trust acct which may offer more protection and they don't seem to have all the fuzzy freakin terms like MF and Citi does .
CBA otc cfds the cash is held in a segregated acct with comsec and not any other broker/dealer so one can understand why their clients won't be copping a loss from MF as MF wasn't in charge of the acct .
7.4 Client funds All money paid to CommSec by you or a person acting on your behalf, or which is received by CommSec on your behalf, will be held by or on behalf of CommSec in one or more segregated accounts in accordance with the requirements of the Corporations Act 2001 (Cth). It is important to note that holding your money in one or more segregated accounts may not afford you absolute protection. The purpose of segregated accounts is to separate client funds from those of CommSec or any third party holding the funds on CommSec’s behalf. Within the segregated account, all client funds are pooled together, so an individual client balance may not be protected if there is a default in the overall segregated account balance. In order to minimise this risk, CommSec would normally deposit its own company funds into the segregated funds account to cover any client balance shortfall caused by a client default. CommSec reports, where necessary, all transactions in compliance with relevant Australian antimoney laundering and financing of terrorism legislation, as amended from time to time. CommSec is entitled to retain any interest it earns on client money held by CommSec in the segregated accounts it maintains with a bank or approved deposit-taking institution. The rate of interest is determined by the organisations at which the client funds are held
