Error : 100% in one BROKER

[jabba]

I have the same issues as the OP. Brokers in Europe are insured up to 100k eur. If you have 1 million to invest it is a real headache, it would be prudent to have as many as 5 brokers from an insured standpoint but terrible from a login/allocation/management point of view.

The good part I think though is that equities actually stay in your name, in my current broker at least. I need to find out if the 100k covers cash and equities combined.

You guys may say life is too short to worry but hello, MF Global anyone?

hi,

4 brokers with one asset each at least.

What do you think?

Yes will probably end up like that. It is not like I am day trading in each so a login once a month.

[k9]

The good part I think though is that equities actually stay in your name, in my current broker at least. I need to find out if the 100k covers cash and equities combined.

In France, equities (from EU only) are insured too (and that's another insurance, so that's 100k for cash, 100k for equities). Equities are supposed to be yours, so that's not an insurance against failure from your broker, that's an insurance against fraud.

Don't forget ETF are another layer of risk, too. You don't hold equities actually, you hold a share from a company that holds equities. What if THEY fail / fraud ? Moreover, mots ETFs in Europe are synthetic ones : the ETF does not actually own the securities it should, it only holds a few ones and derivative assets ; the result is the same, unless something goes wrong.

So, for the stock portion of my PP, I have 3 brokers, with 1 different ETF at each. I hold cash in a completely different bank and I hold gold physically. I hold no LT bond (I have explained why in other posts), so that's 33%/33%/33%. No silver bullet, but I can hardly lose a huge part of my portfolio, so I tend to sleep rather well

[frugal]

The good part I think though is that equities actually stay in your name, in my current broker at least. I need to find out if the 100k covers cash and equities combined.

In France, equities (from EU only) are insured too (and that's another insurance, so that's 100k for cash, 100k for equities). Equities are supposed to be yours, so that's not an insurance against failure from your broker, that's an insurance against fraud.

Don't forget ETF are another layer of risk, too. You don't hold equities actually, you hold a share from a company that holds equities. What if THEY fail / fraud ? Moreover, mots ETFs in Europe are synthetic ones : the ETF does not actually own the securities it should, it only holds a few ones and derivative assets ; the result is the same, unless something goes wrong.

So, for the stock portion of my PP, I have 3 brokers, with 1 different ETF at each. I hold cash in a completely different bank and I hold gold physically. I hold no LT bond (I have explained why in other posts), so that's 33%/33%/33%. No silver bullet, but I can hardly lose a huge part of my portfolio, so I tend to sleep rather well

that's my idea for the future!

Physical gold and LTBonds directly no?

[k9]

Yes, if I was investing in LT bonds, I would hold them directly.