Another important point to keep in mind is that $5 million is just the initial minimum capital requirement. In addition to this requirement regulators also require brokers to set aside 10% of all customer assets aside in addition to the $5 million requirement. That means that a firm with $30 million in customer assets will have to set aside an additional $3 million. Then there are concentration charges the firm must also set aside capital for. Altogether that means most firm will need at a minimum TEN MILLION DOLLARS in net capital to survive. Judging from the Dead Firms Walking list none of those firms are even remotely close to meeting these requirements. If anything, the situation is much worse than it appears. Again, if you have money with a smaller firm talk to your broker and ask them these questions. After all, its only your money at stake.

At the end of the day, yes beware anyone posting on a bulletin board, but beware YOUR MONEY even more.