Is Virtual Brokers safe?
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- Updated On:20-Sep-2022
- Replies:1
Short Answer
Yes, Virtual Brokers is a safe online trading platform. Let's analyze the safety and security features that make the Virtual Brokers a popular platform.
Detailed Answer
What is Virtual Brokers?
Virtual brokers is one of the many e-trading platforms for trading financial assets. It has been in the business for 13 years now. It is headquartered in Canada and offers trading and investment facilities to both Canadian and non-Canadian citizens. In the year 2020, it was taken over by CI Financials and was re-branded as CI Direct Trading.
Features of Virtual Brokers
You can invest, trade, save and learn via Virtual Brokers. The platform offers assets both in US & Canadian dollars. You can open a Margin Account, Tax-free Savings Account (TFSA), Registered Educational Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund, or a Registered Life Income Fund via Virtual Brokers.
You can own shares, ETFs, exchange traded debentures, options and term deposits via the platform. You can trade using your mobile or laptop applications. You are required to do manual trades and the platform doesn’t offer robo advisors.
Is Virtual Brokers safe?
Virtual Brokers is under the umbrella of CI Financial. On 31st of December 2021, the company reported that it has funds under management worth approximately $152 billion and wealth management assets worth approximately $232 billion totalling to $384 billion. This is a testimony in itself that your funds will be safe with Virtual Brokers.
CI is covered under Canadian Investor Protection Fund (CIPF). This means that the member takes out an insurance with CIPF and in case the member firm becomes insolvent, then CIPF will offer a limited protection to the firm. It will cover the investors of the firm, only when the firm declares insolvency.
It will not protect against loss incurred due to fraud or volatility in the markets. CIPF covers for a shortfall of up to $1 million. Please note that the maximum covered is $1 million. In addition, it only covers for a shortfall, that is the Market value of the account minus what the member firm can pay back.
In addition to the protection against insolvency, the CI website has declared that it will reimburse the customers for any loss incurred due to fraudulent trading activities.
Safety of Virtual Brokers
Virtual Brokers have a very positive track record, which in itself is a testimony to its safety. However, it is important that you check for the encryption, state of art and privacy policy of the trading platform before you commence an account. Do you have an account with Virtual Brokers or any other brokerage firm? Do share your queries and feedback.
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Discussion (0)
Virtual Brokers is owned by CI Investments Services Inc, which took over it in 2017, from BBS Securities, the previous owner of Virtual Brokers. Virtual Brokers was integrated with WealthBar, another financial platform in 2020 to form a new investment platform known as CI Direct Investing. Although it operates separately in Canada.
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