i don't know which post of yours you think I was replying to ?? My post was an independent post and was a reply to stoch.
But anyway I said ....
FDIC insurance doesn't really make any difference either, its mostly an insurance upto some small limit as protection against bank insolvency NOT broker bankruptcy .... so all the insurance buzz is basically BS, people hear about insurance and think they're money will be protected ... it will not be
FDIC is a United States Govt. Corporation, it has nothing to do with UK. Some Forex & Futures brokers are regulated by CFTC if the comply with their requirements, however the CFTC has no requirement for protection against broker bankruptcy
Now coming to FDIC insurance some US brokers did advertise this which was basically indirectly misleading their clients into believing if the broker goes bankrupt their funds are protected.
What I said was this is not so FDIC is protection against bank insolvency if an FDIC insured bank fails (assuming your broker keeps client funds in a FDIC insured banks) then you stand some chance of getting your money back but if the broker goes bankrupt ...."paisa gaya" .... in most cases it actually turns out to be "paisa gaya".
I made no reference to the FSCs but as you have brought it up we can discuss it.
Now coming to what you said
Couple of things
1) I was referring to FSCS insurance in UK ( 50 000 Pounds )
Have you actually read what FSCS has said ?? They have said in their handbook as well as on their website
"Regulated investments covered include: stocks and shares; unit trusts; futures and options; personal pension plans and long-term policies such as endowments."
There is no mention of forex,
When I checked with them (some years back specifically about Fx they didn't give me a direct reply)
Some others have checked and they replied .....
"Spot Forex Contracts are unregulated products and therefore not protected by the FSCS."
You can see here --->
http://www.elitetrader.com/et/index.php?threads/the-coverage-of-uk-fscs.231006/
So even if a UK FX broker (FSCS covered broker) goes bankrupt you will not get your money back and definitely not 50000 pounds.
However if the bank the broker has deposited the money in goes insolvent you MAY get 85000 pounds but this is once again bank insolvency not FX broker bankruptcy.
So in US, UK (it seems even FSCS protected brokers) & Australia broker bankruptcy protection is practically non-existent for FX brokers, and in most other countries as well so that cover like +90% of the currency world on this basis we can deduct.
In other words "Paisa gaya"
MY MAIN POINT IS AS I ALREADY SAID ALL THE INSURANCE BUZZ IS BASICALLY BS, PEOPLE HEAR ABOUT INSURANCE & THINK THEY'RE MONEY WILL BE PROTECTED .. IT WILL NOT BE.
Even bigger point (for all members in general) ---> just because some broker or anyone else gives you some BS insurance story don't believe it, verify for yourself.