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Security

Since 2010 Generic Trade has been registered with the Commodity Futures Trading Commission (CFTC) and has been a member of the National Futures Association (NFA).
Because of the financial safeguards created by the CFTC, the NFA and all U.S. futures exchanges (including the $7 billion safeguard system of the CME group), the assets which you maintain are well protected. The financial obligations are subject to continuous audit and enforcement by the regulatory agencies and our clearing partner, Ironbeam, Inc. holds all funds in segregated accounts and files daily reports with the exchanges, CFTC and NFA.
Due to these strict daily financial reporting requirements, substantial net capital requirements to hold customer funds on deposit, and the vigorous audits performed by the NFA, your funds on deposit with a United States FCM have a significant level of protection.

Although there is no guarantee against customer losses due to the insolvency of a futures brokerage firm, the above mechanisms are designed to ensure the financial integrity of this nation’s futures markets, and have in fact minimized the risk of customer losses.

According to the NFA:

Investor confidence is crucial to the success of the futures markets, and the best way to gain investor confidence is to ensure that the highest levels of integrity are demanded of all market participants and intermediaries. National Futures Association (NFA) is the industry wide, self-regulatory organization for the U.S. futures industry. NFA strives every day to safeguard market integrity, protect investors and help our Members meet their regulatory responsibilities.

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Further factors which we believe are imperative to the integrity of any financial organization is that they do not engage in proprietary trading and that they have not had regulatory fines levied against them. Fortunately our clearing partner meets all of these requirements.

For additional information on the protection of customer funds, please see the Futures
Industry Association’s Protection of Customer Funds Frequently Asked Questions

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There is a substantial risk of loss in trading futures and options.